your one stop a-z crypto Encyclopedia
a - z of common crypto jargon
Crypto can be confusing so we've decrypted most of the slang,
acronyms and technical terminology that you will encounter.
a - b
Altcoin - An altcoin or alternative coin refers to every crypto currency that has been released since Bitcoin. If you've missed the Bitcoin train then altcoins are your hope for financial freedom. There is in excess of 2200 crypto currencies according to Coin Market Cap so which is your ticket to the moon?
Arbitrage - Taking advantage of price discrepancies between different markets in order to make a profit. For example, I know the price of XRP is lower on Exchange A, so I buy some knowing the price is higher on Exchange B where I plan to sell it for a profit soon after.
Asymmetric Encryption - A cryptographic algorithm that uses a key generation protocol to create public and private keys. The keys are mathematically linked together to encrypt the location of data so that only the owner has access to them. Check out my Wallets page for a more in depth look.
ATH - Acronym for All Time High. The highest price point a crypto currency has ever been. All Time Low refers to the opposite, being the lowest ever price point.
Atomic Swap - A smart contract technology that enables the exchange of one coin for another without using an exchange or other intermediary. This can take place on or off the blockchain.
Bag / Bag Holder - A non-specific amount of any coin held by one person. People would argue what amount of any asset constitutes a bag depending on their financial position. One persons bag, is another's spare change or TipBot money.
Bearish - When the price of a coin has a downward tendency and its value is steadily decreasing we can't help but feel a bit bearish.
Bear Market - A negative market where prices are steadily decreasing. This encourages people to sell and causes continued doubt and capitulation in the market. This term is not exclusive to crypto currency.
Bitcoin - Created by Satoshi Nakamoto, Bitcoin was released in 2009 and marked the inception of crypto currency. Its primary use case is that it is a decentralized store of value that can be accessed without the need of any bank or any other intermediary. It is a form of digital cash that can be sent and accessed anywhere in the world. Its downside is that it's extremely slow, highly volatile and transactions are very expensive, not to mention the impact it is having on the environment due to mining. Bitcoin was a major technological leap forward for humankind but there is far better utility out there now as blockchain technology is further developed and becoming more widely adopted.
Blockchain - A blockchain is a public, digital ledger where transactions are recorded in a linear, chronological order. It is the technology that underpins all crypto currencies and considered by many as the 4th industrial revolution which will profoundly improve our world economy.
Bots - Trading bots use software to talk to exchanges via an API to automatically place buy and sell trades for the user. It is legal to run a bot and many exchanges welcome them. Bot's are not exclusive to crypto trading however they are not as widely accepted in the stock market.
Bullish - A positive vibe within the crypto community. This positivity is the result of a sharp increase in price and the release of groundbreaking news in favour of a project. I'm 100% bullish about 2019!
Bull Market - A market where prices are steadily increasing, encouraging people to buy. People FOMO hard in a bull market!
Bull Run - When prices rapidly increase and continue in an upward direction. A bull run causes mass FOMO, bringing new investors to the crypto space and is probably one of the most exciting things I've experienced on this Earth.
Burn - The process of destroying tokens so they no longer exist. Burning decreases the total supply of an asset over time so if the demand remains the same, burning will eventuate in a price increase.
Buy Wall - Occurs when there are a higher number of buy orders than sell orders indicating a high demand for the asset and faith in the project backing it. A buy wall is usually followed by a decent pump.
c - e
Capitulation - By definition, capitulation means to surrender. When talking crypto, it refers to panic selling your investment at a loss in the fear that the price will continue to spiral.
Centralized - Governments control our laws. Banks control our money. CEO's make the final decision in a company. Centralized = Controlled by a central authority.
Chart - Charts give you the ability to see the price, volume and changes of a stock or crypto currency over a period of time. A good chart should be fully customizable and give users the tools to be able to map the lifetime of any asset.
Circulating Supply - The total amount of a crypto currency that can be purchased, held or traded. XRP has a max supply of 100 billion tokens where the current circulating supply is approximately 42.5 billion and the remainder are either held by ripple or have been burned.
Cold Storage - An offline wallet used to store crypto. Being stored on a platform not connected to the internet means it is protected from unauthorized access, hacking and other vulnerabilities that any online system is susceptible to.
Commodity - Anything of value that is globally interchangeable. Metals such as gold and silver as well as energies such as crude oil and natural gas are to name a few. These days, internet bandwidth and coffee beans are as valuable a commodity as any other.
Confirmations - In general terms, confirmations are the settlement of trades. In crypto terms, confirmations are also the number of blocks in a blockchain that have been produced and accepted by the consensus network.
Crypto - By definition means "concealed; secret". Crypto is short for crypto currency. The concealment or secret refers to the private keys where your crypto is stored.
Crypto Charities - A charity organisation that accepts crypto currencies as a form of donation. Visit my Charities page for more information on the causes you can help support with crypto.
Cryptography - Cryptography in crypto currency is a mathematical method used for three main purposes. It is used to secure transactions, to control the creation of additional units and to verify the transfer of assets.
CT - An acronym for Crypto Twitter. One of the biggest and by far the best way to stay up to date with your fav coin or all things crypto. If you're not on Twitter, then do you really Crypto?
Dapps - 'D' for Decentralized. 'Apps' for Applications. DApps = Decentralized Applications. DApps are developed using blockchain technology and are making huge waves in many big money industries including those in gaming.
Death Cross - A technical chart pattern indicating the potential for a mass sell off. Historically this is followed by a dump and used as a sell signal by traders. The death cross appears when the short term moving average crosses below the long term moving average. Typically, the most commonly used indicators are the 50 day moving average and 200 day moving average (50MA and 200MA).
Decentralized - When something is decentralized, it means it is not controlled by one central authority. Anything decentralized has multiple entities that come together and vote upon the final decision. Crypto is decentralized because it works via distributed ledger technology which is a blockchain which serves as a public crypto transaction database.
DeFi - An area within cryptocurrency that has recently taken off is DeFi or Decentralized Finance. DeFi refers to smart contract technology like Ethereum which is utilized as an open financial ecosystem geared toward disrupting the global finance market. Every day we are seeing new dApps being created like Uniswap and DeFi Swap which allow users to stake their crypto as liquidity and get daily rewards for it.
Digital Asset - Many people like to refer to crypto currency as a digital asset. 'Digital' due to it being stored as data rather than something tangible like gold. 'Asset' because it is a store of value and globally exchangeable like other commodities.
DLT - Acronym for Distributed Ledger Technology. Tech that allows a ledger to be distributed globally meaning people from all over the world can assist in the upkeep of the block database.
Drops - Drops are to XRP what Sats are to Bitcoin, being a fraction of 1 token. As an example, 1 XRP is made up of 1 million drops of XRP because it has 6 decimal places. 1 drop = 0.000001 XRP.
Dump - A sharp and dramatic decrease in the price of a crypto currency due to a mass sell off.
DYOR - Acronym for 'Do Your Own Research'. This term is an invitation for an investor to do their own due diligence into a project before deciding to invest in it. Don't blindly listen to others, DYOR!
Earn and Learn - Coinbase is one of the biggest and best rated exchanges in the cryptosphere. While being a great exchange to buy, sell and trade crypto, often when they list a new token, they include it in their Earn and Learn program, where they invite users to earn a small amount of the currency while learning about it by watching short tutorial videos and answering a simple question on the topic they just watched. I have previously earned EOS, Dai, Ox, Stellar, Zcash and Basic Attention Token. Sign up for Coinbase and get in while the free crypto is still flowing.
Escrow - An escrow is a legal way to control and protect financial assets. An escrow occurs where 2 parties engage a 3rd party (a guarantor) to hold an asset on their behalf. Once in escrow, the asset cannot legally be moved, sold, traded or otherwise without the consent of all 3 parties.
Ethereum - Released in 2015, Ethereum is currently the number 2 crypto currency behind Bitcoin (by market cap). It was created by Vitalik Buterin for the purpose of providing developers the tools to create decentralized applications (DApps) and smart contracts. Ethereum base tokens are known as ERC20 tokens and is the power behind DeFi.
Exchange - Exchanges are a business that allow their customers to buy, sell, store and trade their crypto currency online. There are some pretty amazing features out there if you know which exchanges to look at. Visit my Exchanges page for further information on how exchanges work and what special offers you can enjoy.
Exit Scam - In a nutshell, an exit scam is fraud. There has unfortunately been a growing number of scams as crypto has become more widely adopted. For example, a new player in town comes along and presents potential investors with an opportunity to purchase an ICO (initial coin offering). Enough people buy to satisfy their greed and self indulgence and they disappear without a trace keeping the money. They might seem legitimate because they look the part say all the right things but they're all legit until they're not. If I haven't stressed it enough, research is paramount!
f - k
FA - Acronym for Fundamental Analysis. As the name suggests, traders who use FA look at some alternative indicators than those who prefer TA. An example of an FA tool is to look at social metrics, where an spike in chatter about a crypto on Twitter could often mean there has been a major announcement which is likely to increase the coin's value. They may also research the use case to understand the solution the coin provides or they may simply read the white paper.
Face Melt - When the price of a crypto rises so exponentially that it results in the observer’s face melting right off.
Faucet - A reward system usually in the form of a website or app where users can earn crypto by completing tasks. There are a few out there but the majority of them payout minuscule amounts which aren't worth the time spent completing the tasks. If you want to go down the faucet path and like the sound of some free Bitcoin then FreeBitco.in is rated by many as the best.
Fiat - Currency that the government declares as legal tender. USD, AUD, JPY and EURO's are a few examples of what are known as Fiat. Short answer = money. For how long? Watch this space!
Flippening - Bitcoin is currently the number 1 crypto currency by market cap (for now) and all altcoins are measured on a percentage scale of Bitcoin dominance. The flippening would occur when Bitcoin is no longer dominant and an altcoin would take the number 1 spot.
FOMO - Acronym for Fear of Missing Out. Buying crypto in the fear that the price is going to skyrocket and you don’t want to miss out on the opportunity. Let's be honest, we've all fallen victim to FOMO at some point...or will be!
Fork - A fork or hardfork relates to changes to a blockchains open source code that makes a previously invalid block (transaction) valid, or vice-versa. All nodes (users) would then abandon the invalid block and upgrade to the latest version of the protocol to continue the chain.
FUD - Acronym for Fear, Uncertainty and Doubt. It is created by someone attempting to spread fear within the community to profit off your fear driven decisions. Don’t listen to FUD! Do your own research and make your own decisions when buying, selling or trading crypto.
Gas - The name of a transaction fee on the Etherium network.
Golden Cross - A technical chart pattern indicating the potential for a mass purchase. Historically this is followed by a pump and used as a buy signal by traders. The golden cross appears when the short term moving average crosses above the long term moving average. Typically, the most commonly used indicators are the 50 day moving average and 200 day moving average (50MA and 200MA).
Hardware Wallet - An external device where users can securely store their private keys. They have their advantages and disadvantages like all wallets but there is no one size fits all storage solution. Check out my Wallets page for the different types of storage solutions out there.
Hashing - An algorithm used for the purpose of taking an input string of any length and giving an output of a fixed length. It basically generates a value or multiple values from a string of text using a mathematical function.
HODL - Slang among the crypto community for holding crypto currency rather than trading or selling it. It started as a typo in a Bitcoin forum in 2013 when someone mistakenly posted "I AM HODLING". The crypto community have enjoyed using it instead of 'hold' ever since.
Hot Wallet - Crypto currency wallets that are connected to the internet. The wallet your keys are stored in on an exchange are hot wallets. They present a greater risk of being hacked resulting in the loss of coins than keys kept in cold storage. More info on my Wallets page.
ICO - Acronym for Initial Coin Offering. In my opinion, you should stay away from these! By all means, take a look, because many of them are legitimate and could be the next big project that gets you moon bound, but a lot of them are unfortunately scams so before making any decisions, research first.
Indicator - Tools that traders use to analyze crypto currencies when viewing charts. They can be used to measure the speed and change of price movements, moving averages and the amount or volume of a stock that is traded over customizable periods of time.
Ledger Nano X
The latest and most highly anticipated member
of the Ledger family. The Nano X hardware wallet
is rated one of the best storage solutions for your crypto and is now shipping worldwide.
* Certified Secure Chip
* 100 apps storage
* Bluetooth Enabled
Check out the Nano X here.
l - o
Lambo - Short for Lamborghini! The Italian super car that has become the measuring stick for success in crypto. The size of your bags, the price you bought in at and how good a trader you are = how close you are to buying your Lambo. So…When Lambo?
Ledger - Ledger has 2 meanings in the world of crypto. First and foremost, a ledger is a database full of all crypto transactions on a blockchain. The ledger is decentralized and not controlled by a central authority making it public, therefore making cyber attacks more difficult. Ledger is also the name of a company with a focus on the protection of crypto currency. Famous for their Ledger Nano S which was the first and only certified hardware wallet on the market. Check out my Wallets page for more info or visit the Ledger website.
Leverage / Margin Trading - Leverage or Margin is the money borrowed from a exchange or broker to purchase crypto. It is the difference between the total value of crypto held in an investor's account and the loan amount from the broker. Buying on margin is the act of borrowing money to buy crypto currency. This is very 'high risk, high reward'. Due diligence and personalized advice recommended.
Limit Order - An order placed on an exchange to purchase or sell crypto at a specific price. A buy order will only be executed at the limit price or lower the same way a sell order will only be executed at the limit price or higher.
Liquidity - In crypto terms, liquidity refers to the ability of a crypto currency to be quickly converted in to Fiat or another crypto currency. Fast speed, low cost and seamless process equate to higher liquidity.
Long - To 'long' a crypto currency means to purchase with the expectation of selling it at a higher price in the future to realize a profit.
MA - Acronym for Moving Average. 50MA = 50 Day Moving Average. A tool used in TA where moving averages are compared over set times to indicate the future performance of a crypto currency. The best charts allow traders to set their own customized MA indicators. The most commonly used are 50MA, 100MA and 200MA.
Manipulation - Market manipulation is a deliberate attempt to interfere with the price of a crypto currency. Fake news is one way to alter the perception of a coin of the market in general, while whales also play a big part when buying or selling in mammoth volumes causing others to follow suit.
Market Capitalization - The current price of a crypto multiplied by the number of existing tokens (circulating supply). This is the most common way you will see crypto ranked on websites.
Market Maker - A trader who either places a buy order below market price or a sell order above market price (placing limit orders).
Market Taker - A trader who accepts a market makers order to enter the market before someone else who is trading at market value.
Maxi - Short for Maximalist, is a person who refuses to invest in any coin other than their own and generally like to spread FUD about other coins, usually from fear, uncertainty and doubt about their own holdings. There are plenty of BTC maxis in the world whose ultimate fear is that XRP is in fact the standard - aka Bitcoin 2.0.
Mining - A process where crypto currency transactions are verified and added to the blockchain ledger. Miners use specialized computer hardware to help maintain the blockchain ledger and are rewarded for their efforts with crypto. Some coins such as Bitcoin and Etherium can be mined while others can't.
Moon - The destination all crypto investors want the value of their coin to go! Me personally, am not going to settle for the moon. I want to go to the ends of the Cosmos!
Nocoiner - AKA anyone that does not YET own any crypto. As Shakespeare said…To be a nocoiner or not to be a nocoiner, that it the question! Well, a modern-day Shakespeare would.
Node - All crypto currency confirmations are stored on a decentralized ledger. A node contributes to that ledger and contains all transactions since the release of a token. All nodes on the same platform are connected using a P2P network and either share or align themselves with the most up to date version of the protocol.
NVT - Acronym for Network Value to Transaction Volume. Using the NVT of Bitcoin as a benchmark, traders compare it against the NVT of other crypto currencies. If the NVT of another crypto is lower than that of Bitcoin's, then it can be considered to have a solid user base and a healthy amount of transactions and therefore increasing the likelihood of a successful trade. NVT = Current Market Cap / 24 Hour Volume and is considered a tool used in FA.
p - s
Paper Wallet - An offline storage solution that involves printing your private keys on paper. Probably the most protected your crypto can be provided you don't lose the wallet. More info on my Wallets page.
Pi Network - Pi is a new digital currency being developed by Stanford PhD students. The project is exciting and the first of it's kind where you can mine coins using your mobile device using next to zero power consumption. Mining will cease when there is 100 million users. Get in early to maximize your position if the project turns out to be a success. Ohh and it is 100% free! Download the mobile app here.
Power Piggy - A feature on the Bitrue exchange that allows you to earn interest on a number of crypto currencies including BTC, XRP, VET and many more. The base rate is 7.3% per annum (paid daily) which means you earn 1 token every day for every 5000 crypto you have invested. You get 1 XRP for free for joining via this link and even more every day for completing basic rewarded tasks.
Proof-of-Authority - PoA is an algorithm used with blockchains that delivers fast transactions through a consensus mechanism based on the identity of a node as the stake.
Proof-of-Stake - PoS is an another method of validating transactions in blockchain networks. The algorithm factors the number of tokens you have to achieve distributed consensus. PoS was developed as an alternative to PoW.
Proof-of-Work - PoW is a method used to validate transactions in a blockchain by solving complex mathematical problems. This process is otherwise known as mining.
Public and Private Keys - Visit my Wallets page for a detailed look in to Public and Private Keys. Too important for a one liner!
Pump - A sharp and exciting increase in the price of a crypto currency. Hopefully not followed by a dump.
Pump and Dump - A scam orchestrated by a person or group of people who create fake news in order to push up the price of a coin. They then sell their bag at the top, causing the price to quickly spiral back down.
Ripple - The company we can thank for setting the new standard for sending money globally in friction-less fashion. Ripple - The Company * XRP - The Coin * xRapid and RippleNet - The Solutions!
REKT - Originally borrowed from online gaming slang, REKT means to be utterly destroyed or ruined. Bad decisions in crypto like buying at the top of a pump or selling at the bottom of a dump = getting REKT!
Roadmap - The first steps in the journey of a new crypto project. A roadmap details the mission statement of the project and what goals and milestones they hope to achieve, by when and how potential investors can benefit if they were to come along for the ride.
ROI - Acronym for Return on Investment. This is the amount of capital gained from a successful trade.
SAFU - Binance is one of the largest exchanges in the world. SAFU is the name of an emergency insurance fund that Binance implemented for their customers in July 2018. 10% of all trading fees are put in the fund which covers the losses of customers in extreme cases. Just one on many amazing features that make Binance one of the best crypto trading platforms.
Satoshi - A Satoshi or a 'sat' is one unit of Bitcoin. 1 Satoshi = 0.00000001 BTC. The name Satoshi comes from Satoshi Nakamoto, the creator of Bitcoin.
Security - The definition of a security is any proof of ownership that has a value and can be sold or traded. There are debt securities such as banknotes and bonds, equity securities like company stocks and derivatives like futures or options. Securities are centralized (insert sad face) which is why we love crypto!
Sell Wall - Created by large volumes of sell orders at a specific price. The wall is strategically set to prevent sell orders from executing at a higher price than the wall. This causes downward price pressure, usually resulting in a dump.
Shill - Shilling is generally a negative term defined as the act of using propaganda to promote a product or service in return for financial incentives. There are many paid shill masters throughout the crypto community so beware of who you follow.
Short - To 'short' a crypto currency means to initially sell it with the intention of buying back in at a lower price to realize a profit.
Smart Contract - AKA a Crypto Contract which is basically a computer program that controls the transfer of digital currencies or other assets between parties under certain conditions. The contracts are stored on blockchain technology. It is said that this technology could replace some of the roles that lawyers perform.
Spread - A price spread is the difference between the highest buy order and the lowest sell order on an exchange. The actual value of any crypto currency is simply the average of all the spreads across its exchanges globally.
Stablecoin - Some crypto currencies are made for the purpose of price stability where the price moves only marginally with close to zero volatility. TUSD, USDC, DAI and USDT are a few of the stablecoins you will encounter in the market.
Stop Loss - Stop loss orders are buy or sell orders set at a specific amount or percentage below your buy in price to limit the amount of loss to that amount if the trade is unsuccessful. For example, setting a stop order at 10% below the price in which you initially bought in at, limits your loss at 10%. Using a stop loss is an important part of trading risk management.
Strong Hands - In it for the 'long' haul. These people stay strong through rough tides to get to their destination no matter what. In crypto terms, these people are the HODLers. They plan to buy and hold and don't stray from their plans and no matter how many bear markets they endure along the way, they don't sell until they reach their target goal.
t - z
TA - Acronym for Technical Analysis. Traders use TA to help find trading opportunities by examining a tokens historical movement such as volume, moving average and various other indicators. They do this to increase the likelihood of a successful trade.
Token - Token, Coin and Altcoin are more often than not used interchangeably and that is fine. There are some bigger nerds than me out there that will tell you there are differences between them but that's not why were here. Now…when moon?
Total Supply - The amount of coins in existence right this very second. This is the coins max supply minus any coins that have been verifiably burned.
Use Case - What the tech behind the coin actually does to better our world. Bitcoin use case = A store of value. Etherium use case = Enabling the production of DApps and smart contracts. XRP use case = Lightning fast, low cost and friction-less global remittances.
Utility - By definition means 'the state of being useful, profitable or beneficial'. The utility a crypto currency possesses is its ability to provide a real-world solution that takes us forward.
Volatility - This is the measure of how the price of a crypto currency fluctuates. If a particular crypto fluctuates heavily over short periods of time then it is highly volatile.
Volume - Volume is one of the most important and prominent metrics in crypto. It is the amount of a coin that has been traded over a period of time usually measured over 24 hours.
Wallet - An online or offline location where you can store the private keys which give you access to your crypto. See my Wallets page for more detailed information.
Weak Hands - The term given to investors and traders who make trade plans but lack the conviction to stick with their plan or lack the resources to execute them.
When Moon? - When Moon? Another term widely used in the crypto community and means 'When is my coin going to skyrocket' and go to the moon?
Whale - A person fortunate enough to own a s#!t tonne of crypto. Probably got onto Bitcoin when it was worth pennies, these people are lucky enough to have the power to manipulate the market and unfortunately, they sometimes do.
Whitepaper - A document that holds all the technical details behind a crypto currency project. The document includes how it works, token information, team members behind the project and the stakeholders backing it.
XRP - Founded by Chris Larsen and Jed McCaleb, XRP is the fastest and most scalable digital asset, enabling real-time global payments anywhere in the world. XRP is the standard!
XRP Community - My favorite people in the world (after my wife and daughter). Most prominent on Twitter, Reddit and Telegram, these people are bullish about XRP and Ripple and help share and explain the breaking XRP news.
XRP Tip Bot - A bot created by Wietse Wind, a software developer from The Netherlands, that enables users on Reddit, Twitter and Discord to send up to 5 XRP to anyone via a comment or tweet. Users can also send up to 500 XRP via the app. Tipping or micro-donations are a fantastic way to thank a fellow socialite or content creator for sharing something informative, amusing or educational. Learn more about the XRPTipBot.
Zerp - If there isn't enough slang getting around throughout the crypto community, Zerp is another slang term which means XRP. Zerp is the resulting sound when trying to pronounce XRP (I know you're doing it right now). XRP again by the way…Is the standard!
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Disclaimer: This content is for entertainment and educational purposes only.
This content is not financial advice and should not form the basis of any financial investment decisions, nor be seen as a recommendation to buy or sell any good or product. Trading crypto currency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should take the time to learn how trading works and carefully consider whether trading crypto currency is right for you. You should only ever trade with money you are prepared to lose and If in doubt, you should seek independent financial advice before making a decision.