Terms used by cryptocurrency traders
New to the blockchain? Welcome! It’s an enthralling new space but there is so much jargon being thrown around. If you’re a newbie, how are you meant to get on board and ride the wave?!
We’ve put together definitions for some of the most important crypto-terminology to help you get set up in this completely new world.
An alternate coin, that is not Bitcoin.
An online management system that stores information on all cryptocurrency transactions.
The price of a coin has no meaning on its own. However, the price of a coin, when multiplied by the circulating supply, gives the coin’s market cap.
A decentralized application that runs on a peer-to-peer computer network.
A decentralized software platform for smart contracts.
Short form for ‘fear, uncertainty, and doubt’. Used when somebody is spreading FUD about a coin.
The first block is created in a blockchain.
A misspelling of ‘hold’ stuck around to mean ‘keep’. A crypto-trader who buys a coin and plans to keep it for the foreseeable future is called a hodler of the coin.
Initial Coin Offering. The crowdfunding stage is where tokens or coins are offered in exchange for stable cryptocurrencies.
Short form for ‘joy of missing out. It’s the feeling that people have when they miss out on making a decision, which would have turned out badly.
Short form for ‘know your customer’. The requirement is that businesses must know the identity of their customers.
An order placed at a future price that will execute when the price target is hit.
In the cryptocurrency market, the market cap is the total supply of a coin multiplied by the current price. It is used to illustrate a coin’s dominance in the entire cryptocurrency market.
An interface that handles communication and private keys between wallets, on the Bitcoin network.
A valid block that is not a part of the blockchain. These are created when miners create valid blocks at a similar time.
Pump and Dump
Pump and dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading, or greatly exaggerated statements.
Short form for ‘quick response’ barcodes which can be encoded with data.
The short form for ‘wrecked’ is used to describe a bad loss after a trade.
The act of unsolicited endorsing of the coin in public. Traders who bought a coin has an interest in shilling the coin, in hopes of igniting the public’s interest in that particular coin.
The ‘coin’ of a cryptocurrency can be bought, sold, and owned.
Short form for ‘unspent transaction output’.
Occurring or existing mostly online.
A huge player who has a substantial amount of capital. Whales are often the market movers for small alt-coins due to their huge capital. They are believed to manipulate the market.
The ticker for Bitcoin. All cryptocurrency tickers start with X.
When you should have bought Bitcoin.
Zero Confirmation Transaction
An unconfirmed transaction.
The blockchain has its own language—hopefully, these definitions of important crypto-terminology make the move onto the blockchain a little easier.
Do you think we’ve missed an important term? Add yours