Usually referred to as the “crypto market,” which refers to the cumulative cryptocurrencies and projects operating within the industry. Long A situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. Liquidity Pool Liquidity pools are cryptocurrency lingo crypto assets that are kept to facilitate the trading of trading pairs on decentralized exchanges. Internet of Things Internet of Things is a global interconnected network of devices, sensors and software that can collect and exchange data with each other in real-time over the Internet.
When a bitcoin holder is mocked for not being rich yet, they’re being bitshamed. The case of bitcoin advocate Andreas Antonopoulos is a great example of this. An avid bitcoin lecturer for years, he revealed in December that he’s actually not a bitcoin millionaire, and sold his coins early to cover rent and bills.
If computational power is taken off of the network, the difficulty adjusts downward to make mining easier. With as many as 300,000 purchases and sales occurring in a single day, verifying each of those transactions can be a lot of work for miners. Total market cap, or capitalization, is the combined market capitalization of all cryptocurrencies. Bitcoin mining could be done using a personal computer in the early years of the cryptocurrency. These days, the mining efforts are divided between giant companies such as the Chinese-based Bitmain. Hodlers believe in Bitcoin and hold it all times regardless of its price, for the long term, even forever. HODL was first used during the crypto bubble pop of December 2013.
Sharding Sharding is a scaling approach that enables splitting of blockchain states into partitions containing states and transaction history, so that each shard can be processed in parallel. Sell Wall A situation where a large limit order has been placed to sell when a cryptocurrency reaches a certain value. This can cryptocurrency lingo sometimes be used by traders to create a certain impression in the market, preventing a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed. Selfish Mining A situation in which a miner mines a new block but does not broadcast this new block to the other miners.
Wtf Is Bitcoin? A Super
In jurisdictions where exchanges are disallowed or where amounts traded will move the markets, traders will go through the OTC route. Oracles An agent that finds and verifies information, bridging the real world and the blockchain by providing data to smart contracts cryptocurrency lingo for execution of said contracts under specified conditions. Mnemonic Phrase A mnemonic phrase is a list of words used in sequence to access or restore your cryptocurrency assets. Market An area or arena, online or offline, in which commercial dealings are conducted.
Faucet A cryptocurrency reward system usually on a website or app, that rewards users for completing certain tasks. It is mostly a technique used when first launching an altcoin to interest people in the coin. This is possible to be automated using smart contracts on the blockchain. Dust Transactions Minuscule transactions that flood and slow the network, usually deliberately created by people looking to disrupt it. cryptocurrency lingo Dominance Also known as BTC Dominance for Bitcoin Dominance, it is an index that compares the market capitalization of Bitcoin with the overall market cap of all other cryptocurrencies in existence. Difficulty A relative measure of how difficult it is to discover a new block. In Bitcoin, the difficulty is adjusted periodically as a function of how much hashing power has been deployed by the network of miners.
He was bitshamed by Roger Ver, known in the bitcoin community as “Bitcoin Jesus,” for his failure to hodl. Among bitcoiners, however, FUD is generally used to refer to anything, like negative press coverage or blog posts, that might dissuade people from joining the cause of cryptocurrency. According to The Merkle, Obsessive Cryptocurrency Disorder, or OCD, is a condition developed over time by those who own any amount of bitcoin. They become obsessive about watching bitcoin prices rise and fall, all day and night. Wash Trade A form of market manipulation in which investors create artificial activity in the marketplace by simultaneously selling and buying the same cryptocurrencies. Unconfirmed A state in which a transaction has not been appended to the blockchain. Symbol The ticker of a cryptocurrency; for example, bitcoin’s symbol is BTC.
Storage Decentralized storage refers to the concept of storing files online by splitting them into encrypted fragments and delegating these fragments to multiple nodes on a distributed network, e.g. a blockchain. Spot Market A public market in which cryptocurrencies are traded for immediate settlement. It contrasts with a futures cryptocurrency lingo market, in which settlement is due at a later date. Side Chain A blockchain ledger that runs in parallel to a primary blockchain, where there is a two-way link between the primary chain and sidechain. This allows the sidechain to operate independently of the primary blockchain, using their own protocols or ledger mechanisms.
Futures A futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. cryptocurrency lingo They are different from forward contracts, which can be customized for each trade and can be conducted over-the-counter, instead of being traded on an exchange.
Zero Confirmation Transaction
- With digital currency, however, it’s a different story.
- Mining – the process of using computer power to secure and verify bitcoin transactions on a decentralized network.
- The transaction data is added to the public ledger, and each 1 MB group of transactions is called a block.
- But generally, once you spend $20 at the store, that bill is in the clerk’s hands.
- Blocks build on one another to form the above-described blockchain.
- Software with which you send and receive cryptocurrency.
Basically, it is all kinds of coins we know and use on a daily basis (USD, Euro, CAD, etc.). Most of the crypto exchanges allow crypto-to-crypto trading only. However, the larger ones also allow crypto-to-FIAT trading. The most popular exchanges are Binance, Coinbase, Kraken, Bitstamp, and BitFinex.
Instamine A period in time, shortly after launch, when a large portion of total mineable coins or tokens are mined in a compressed time frame, and may be unevenly and quickly distributed to investors. Initial Coin Offering A type of crowdfunding, or crowdsale, using cryptocurrencies as a means of raising capital for early-stage companies. It has come under fire due to the occurrence of scams and market manipulators.
Bitcoin Value …
There are a number of other words and phrases you’ll come across when you trade or mine coins. You need to become familiar with ethereum terminology, Altcoin lingo, etc, in order to be successful. On the stock market, it describes an investor who holds on to their shares in a company for too long and ends up taking a huge loss when the value tanks. In cryptocurrency, it basically means the same thing — if you buy a bunch of altcoins, and wait too long to sell, their value could go to zero, and you’re left holding the bag.
Another notable cryptocurrency, Peercoin was the first to use a proof-of-work/proof-of-stake hybrid. Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency. Since the release of bitcoin, over 7,000 altcoins have been created. Some blockchains, like the Ethereum blockchain, support a specific type of transaction called smart contracts, which work like a computer program, using if-then-else statements to carry out a particular command. These are essentially legal contracts with code instead of official documents.
Derivatives Market A public market for derivatives, instruments such as futures contracts or options, which are derived from other forms of cryptocurrency assets. Deflation Reduction of the general level of prices in an economy. May also refer to deflationary monetary policy, such as Bitcoin, where there is a fixed supply of coins. Decentralized Exchange A peer-to-peer exchange that allows users to buy and sell cryptocurrency and other assets without a central intermediary involved. Correction A correction is a reverse movement of at least 10% in a cryptocurrency or general market, to adjust for over- or under-valuations. Cold Wallet A cryptocurrency wallet that is in cold storage, i.e. not connected to the internet.