Also known as: Alternative cryptocurrency
Every cryptocurrency launched after Bitcoin can be referred to as an altcoin. There are currently more then 1500+ altcoins. More commonly used phrases for altcoins are cryptocurrency or cryptoasset.
Also known as: All Time High
The highest (most expensive) trade recorded in history. People often say that you never should buy anything on ATH.
People that are holding big amounts of worthless cryptocurrencies. People that fall victim to a "P&D group" are often called Bagholders.
The technology behind cryptocurrency and the birth of Bitcoin. The blockchain is a decentralized public ledger (also known as Distributed Ledger) storing information of all transactions made on the network in blocks. Every block is numbered in completion order after the Genesis Block, this creates the "chain". Once the information is recorded and stored on the blockchain it cannot be changed or compromised, this is the foundation of the trustless trust system. Every project isn't limited to share one Blockchain, Bitcoin and Ethereum are two different projects and both use different Blockchains.
Also known as: Block number
Transactions on the blockchain are recorded in different blocks, once one block is confirmed it's placed on the blockchain with a certain Block Height. The number of blocks between the genesis block and the most recently confirmed block decide the value of the Block Height. The genesis block (first block) has the Block Height value of zero (0).
Also known as: Decentralized Application
DApp is the abbreviation for decentralized application. It is the equivalent to an app with the simple difference that its back-end code runs on a decentralized P2P network instead of centralized servers. Smart contracts are parts of DApps, while a SC only describes the back-end, a DApp also includes the front-end code (the graphical user interface).
A public ledger of data completely decentralized with the help of a peer-to-peer network and different consensus algorithms. The recorded data on the public ledger reduces the possibilities of hacking attempts, because the information can be viewed by everyone. The more unique nodes on the network the safer it becomes.
Also known as: Do Your Own Research
When people publish articles or educational videos about future trading plans, they usually mention that you should always do your own research. This is to reduce the amount of people that blindly walk into a trade without any knowledge of the project(s). People that blindly invest tends to be the ones spreading panic and lose money when the market slows down. Used as a safety for the publishers as well, to not be the reason for a possible losing trade.
Also known as: Centralized currency
Commonly used term in the crypto-world when referring to a money established by governments (centralized currency, USD, EUR, GBP, YEN, etc.). The gateways (buy & sell) to cryptocurrencies are usually via fiat, because of the currently limited cryptocurrency payment options available in stores.
Also known as: Fear of Missing Out
An emotional response one can suffer from, when observing people having rewarding experiences. Compulsive actions are taken to not miss out on opportunities with pleasing results. Negative outcomes are usually associated with FoMO (e.g. People buying cryptocurrencies on ATH).
Also known as: Soft Fork / Hard Fork
Forks are used on networks for smaller updates or completely change requirements within the network. To Fork a cryptocurrency is usually a very controversial subject and can spark a variation of different emotions from the community. Soft Forks are usually smaller updates to the protocol that are optional for users. To Hard Fork a cryptocurrency the old version will no longer be compatible with the new update (e.g. new consensus rules), resulting in a required update. A Hard Fork will have zero value if there are no underlying support for the changes (backed by miners).
Also known as: Fear, Uncertainty & Doubt
Associated with negatively focused news. Organizations or people can take advantage of other people's fear by spreading false or misleading information about projects and make a profit in the process. Can have severe impacts on the market if the domino effect grows big enough (e.g. an organization start spreading false information, people start to believe and share the published article/video. Resulting in more people exposed and fear/panic starts to grow, this can result in people selling off a cryptocurrency cheaper and push the price down. The organization that started the domino effect can then buy the assets for a lower price.
Also known as: Gas limit
Used in the fee structure for transactions on the Ethereum network, payment to the running nodes. There exists a wide variation of gas prices, sending ETH usually requires lower gas limit, compared to Token transactions on the Ethereum network. Gas requires to be calculated together with the Gwei value.
Defined as the first block created in a Blockchain, or as "the birth" of the blockchain.
Also known as: Gas price
Second part of determining the total transaction fee on the Ethererum network. Gwei can be explained as the price per unit of gas. Maximum transaction fee can be calculated: (Gas/Gas limit)*(Gwei/Gas price)
Also known as: Hold On for Dear Life
During the decline of the Bitcoin price in late 2013, a thread was started on the bitcointalk forum named "I AM HODLING". What first started as a misspelling of the word "holding", resulted in a backronym "Hold On for Dear Life" or HODL. A popular phrase often used in a down trending market, can be viewed as a meme.
Also known as: Initial Coin Offering
New projects can host Initial Coin Offerings to raise capital for development expenditures. Investors receive tokens in exchange for invested capital, the tokens usually have some sort of utility to the future platform. The number of ICOs exponentially increased during 2017. Creating both opportunity for great profits, but also a higher risk of falling victim to the growing number of scams. Ethereum is the most popular platform to use when projects launch their ICOs.
Every listed cryptocurrency has an individual Market Cap, which is calculated by multiplying the circulating supply with the current price of the cryptocurrency (e.g. circulating supply 5,000,000 * Price $1 = $5M Market Cap). To get total Market Cap of all cryptocurrencies, you simply summarize every individual Market Cap. The Market Cap can be used as an indication tool for market trends, and how cryptocurrencies compare to each other.
Also known as: Lightweight / Full Node
By connecting to a cryptocurrency network a node is created, downloading the complete blockchain will result in a full node. The full nodes have bigger impact over the network compared to lightweight nodes, which are more common. Lightweight nodes can be seen as "followers" to full nodes.
Also known as: Proof-of-Stake
A consensus algorithm substitute for PoW. Instead of measuring mining power with the hash rate, PoS determine mining power by the total amount of cryptocurrency holdings (e.g. the more cryptocurrency a person owns, the more mining power they receive).
Also known as: Proof-of-Work
The most commonly used consensus algorithm for cryptocurrencies. However, it's a costly process and often requires special equipment (ASIC rig) for efficient results. The miners compete for block rewards by solving mathematical equations and to confirm transactions made on the network. The more hash rate/power a miner has the bigger chance for rewards and power on the network.
Also known as: P&D (group)
Usually referred to groups (P&D groups) that try to accumulate different cryptocurrencies they have selected beforehand. With the goal to rapidly increase the price of the cryptocurrency and once they have reached certain goals they start selling of their holding to newcomers that are either laggards from their group or random people see the huge rise and don't want to miss an opportunity to join the train. The inner circles of the P&D groups are usually the only winners after a "raid", while the 90%+ lose. Warning! Stay away from all P&D groups! Illegal activity in the regular stock market for obvious reasons.
Also known as: Return On Investment
A commonly used abbreviation to see how successful different investments are. The higher ROI an investment has the better, measured in percent (%). ROI = [(Total value of the investment - Cost of investment) / (Cost of investment)]
The smallest possible unit for Bitcoin is called a Satoshi. It's named after the unknown person or group "Satoshi Nakamoto" that created Bitcoin. One (1) Satoshi equals 0.00000001 BTC, hundred million (100,000,000) Satoshi equals 1.0 BTC.
Programmable contracts created to execute terms upon accomplishment. Eliminating the need for any third party. (E.g. a company agrees to send a payment of 2 BTC, if person A finish a task. Once task is done the smart contract will automatically credit the 2 BTC to person A).
A person or a group can be defined as a whale if they have huge amounts of cryptocurrencies overall or in one specific cryptocurrency. They can use the advantage to impact the market negatively, including manipulation.
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