A Beginner’s Dictionary For Crypto Jargon PART 2

Jump to page contents

A Beginner’s Dictionary For Crypto Jargon PART 2

This guide is the second in a two-part series about the most common terminology used in the cryptocurrency industry. If you haven’t yet, be sure to also check out Part 1.

  • ICO – meaning Initial Coin Offering, this is the crowdfunding mechanism of the industry which allows businesses to issue their own cryptocurrency in exchange of investor’s fiat or crypto assets.
  • Lightening Network – a payment protocol which is based on blockchain and able to processes billions of transactions per second.
  • Market Cap – the total availability of a particular cryptocurrency multiplied by its current price.
  • Mining – the process by which dedicated software works to solve a block in a blockchain and is rewarded in cryptocurrency.
  • Mining Rig – a powerful computer with high graphics processors designed to process blockchains.
  • Moon – a colloquial term associated with the probable increase of a cryptocurrency’s volume and price.
  • Node – an individual computer which holds a copy of the blockchain and continually maintains it.
  • Paper Wallet – probably the least secure type of wallet, involves keeping public and private keys written on a piece of paper.
  • POW – meaning proof of work, this is the algorithm used by cryptocurrencies to reward a miner to solve a block.
  • Private Key – a code held privately which allows a user to unlock a cryptocurrency wallet.
  • Proof of Stake – the creator of a new blockchain block based on his/her wealth.
  • Public Key – sometimes referred to as the crypto address, this is the string of numbers and letters used to send and receive cryptocurrencies from an exchange or wallet.
  • Pump and Dump – when a cryptocurrency suddenly gets a lot of attention leading to a massive price increase, followed, shortly afterward, by a steep decline.
  • ROI – meaning return on investment, this term is commonly used in investing sectors and refers to the percentage profit one can expect to make on a given investment.
  • Satoshi Nakamoto – the mysterious and elusive person or group of people behind Bitcoin.
  • Sharding – a method of scaling blockchains by getting nodes to include partial copies of entire chains which allows them to increase network speed and performance.
  • Shilling – when a group or individual advertise a crypto coin in order to raise its price and personally gain from their investment.
  • Smart Contracts – applications which run based on pre-defined algorithms which cannot be influenced by unauthorised external sources once set.
  • Software Wallet – a virtual wallet, such as Exodus or Coinbase Wallet, where cryptocurrencies can be stored in a computer, just like any other file.
  • Stable Coin – a low volatility cryptocurrency which is a preferred choice for investors looking for a long-term trading pair, such as BTC/NEO.
  • Tokens – a cryptocurrency built on the Ethereum blockchain which is awarded as part of an ICO before the currency itself is available on major exchanges, such as Binance or Kraken.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar Guides

Latest Guides

Crypto Mining,Cryptocurrency,Investment

Why Investing in Dogecoin Now is Lucrative?

2021 has greatly been touted as the year of meme investments. Memes took over the financial trading industry towards the first quarter of the year – from the stock market to bonds trading. The crypto market wasn’t left behind either – Dogecoin emerged as the winner of this trend. But contrary to what has been […]

5 May, 2021
Bitcoin,Crypto Wallets,Exchange Platforms,Investment

Should I Sell My Bitcoin?

HODLing Bitcoin isn’t for the faint-hearted. Period. One minute the prices are in the red zone, the next the price skyrockets shattering known resistance zones and setting new all-time highs. If you are among the few lucky people who boarded the Bitcoin bus early, there’s a question that’s always lurking on your mind – should […]

25 April, 2021
Altcoins,Cryptocurrency,Liquidation

Top 3 Most Volatile Cryptocurrencies

According to a publication by CNBC, the total crypto market value crossed the $2 trillion mark in April 2021. The major milestone marked the entry of the asset class as a worthy contender in the global financial market scene. However, despite the impressive history and growth of cryptocurrencies, the issue of volatility still bugs this […]

24 April, 2021
Cryptocurrency,Exchange Platforms,Stablecoin

How Many Cryptocurrencies Are There?

Bitcoin, the first decentralized cryptocurrency, was launched in 2009. It took several years before the world heard about it. However, it didn’t take long after that for the world to recognize its value – and for its value to soar to prices higher than $20,000. Bitcoin demonstrated the potential of cryptocurrencies. It also inspired the […]

22 April, 2021
Bitcoin,Exchange Platforms,Investment

How To Cash Out Large Amounts Of Bitcoin

Bitcoin is a form of digital currency launched in 2009, which earned it the status of the first cryptocurrency to ever exist. It is a decentralized digital currency that does away with middlemen such as banks and government agencies during any financial transaction, but it requires a certain level of knowledge on how to cash […]

20 April, 2021
Altcoins,Cryptocurrency,Investment

How to Buy Penny Cryptos In 2021?

Cryptocurrencies are increasingly becoming the main headline in news broadcasts and the central topic of finance and technology discussion forums. The price of the leading coins, Bitcoin and Ethereum, has led to the crypto market cap topping $2 trillion, and this has only increased interest amongst investors. Whilst major coins continue to take much of […]

19 April, 2021
Banking,Bitcoin,Cryptocurrency

How to Buy Bitcoin with Bank Account

The mainstream explosion of cryptocurrencies has led to an increase in the number of ways you can buy cryptos. It wasn’t long ago when Bitcoin was considered a risky fringe asset, with banks and most financial service providers refusing to handle any transactions related to Bitcoin. There are some countries where you cannot buy Bitcoin […]

10 April, 2021
Cryptocurrency,Exchange Platforms,Investment

Coinbase vs Coinbase Pro: Which one to choose?

With cryptocurrencies making waves globally, many people now look for ways to convert their fiat currencies into popular cryptos like Bitcoin, XRP, Ethereum, etc., on different crypto exchanges. Today, more than 300 crypto exchanges are available, and it can be daunting to know which to choose. One of the most popular exchanges with over a […]

9 April, 2021