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Words from the cryptocurrency world

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Two-factor authentication is a security process where the user provides two authentication factors to verify their identity and provide better protection for their account and resources. This can be done in various ways, such as through email, SMS, entering a Google Authenticator code, or entering a code from a previously created list.

a

Annual percentage yield including reinvestment of income.

This is an economic concept whereby one party has a direct advantage in the efficiency of producing/providing a specific good or service compared to another party.

An investment strategy used by fund managers aiming to outperform the index or the market in order to generate profits.

A line of text indicating the location of a specific wallet in the blockchain. Often, it is a hashed version of the public key.

The distribution of tokens or shares that can be earned, purchased, or set aside for a particular investor, team, group, organization, or other affiliated party.

Structure that includes legal and regulatory procedures aimed at minimizing and restricting the flow of funds obtained from illegal or questionable activities. AML policy requires many exchanges or other crypto applications to "know their customers" (KYC). Customers are required to provide documentation to trade, withdraw funds, or use other features.

Application-Specific Integrated Circuit (ASIC) is a type of integrated circuit created to perform a specific task, such as "mining" Bitcoin. It consumes significantly less energy than graphics cards and has higher efficiency (mines coins faster). It is mainly used for industrial-scale mining.

Live event where assets or services are discussed and traded through a process often conducted by an auctioneer.

One of the goals of cryptography is to ensure that a message or transaction has been sent by the intended sender. Forms of cryptographic authentication include key authentication for public keys and source/user authentication for transaction authorization.

A way to promote cryptocurrency by sending traders free tokens.

An algorithm is a set of rules that must be followed to solve a problem or complete a task.

Altcoin is a term used to describe alternative digital assets such as coins or tokens that are not Bitcoin.

Arbitrage is a strategy where investors buy a currency on one exchange and sell it at a higher price on another exchange to make a profit.

All-time high (ATH) - the highest point (in price, market capitalization) that a cryptocurrency has ever reached in its history.

The lowest point (in price, market capitalization) that a cryptocurrency has ever reached in its history.

Curator of the project, helping him with the development.

The "question-answer" interview format organized by media channels with projects and media personalities, where questions are collected from subscribers in advance, and good questions are usually rewarded with cash prizes and other incentives.

Property, asset, funds. It is what people buy, sell, and hold in their wallets, and it is a financial crypto asset. This concept includes both tokens and NFTs with cryptocurrency.

Assets under management (AUM) are the total market value of investments managed by an individual or entity on behalf of their clients.

ASIC miners are microchips or processors designed for specific tasks. ASICs for Bitcoin are very popular as they allow for more efficient mining, while mining on a regular computer loses efficiency. There are also specialized ASICs for faster mining of specific coins. Their use may become irrelevant if the protocol is updated, making the blockchain "ASIC-resistant."

The very first version of a product from developers. It typically has basic or limited functionality and requires improvements and bug fixes.

An archive node preserves all intermediate/transition/historical states of all blocks added to the blockchain. They may be used for research purposes.

b

The term used to indicate a situation when the market is moving downwards. The term also describes a person who is unsure about the future of a particular market (e.g. cryptocurrency market) and expects its value to decrease. This term can also be used to refer to a person who plans to profit from a downward movement by trading in a short position. Throughout the day, traders' sentiment may change from bullish to bearish, although they usually maintain a consistent position with respect to a particular asset.

A person who holds large amounts of cryptocurrency, or "wallets" in other words. Often used to describe someone who continues to hold their wallets even as the cryptocurrency's price decreases.

The initial purchase price for a trader or investor (including commission). Therefore, when the market price of the asset falls below the paid price, the trader needs to wait for a rise to exit and close the position without profit or loss. After achieving some take-profit targets, traders usually move their initial stop-loss to the breakeven point or beyond its values to make the trade successful.

A beta version is one of the early versions of a program or platform intended for user testing and feedback. The beta stage comes after the alpha stage. In the crypto space, a beta version is perceived positively because compared to many projects that cease to exist at the description stage, a beta version means the project has already started working. Many crypto projects are constantly changing and therefore require ongoing beta testing.

The bid price for an asset is the highest price that someone is willing to pay for that asset.

Bitcoin Dominance - the percentage of Bitcoin's market capitalization compared to the total cryptocurrency market capitalization. It is considered one of the key metrics.

A peer-to-peer, decentralized network that enables users to send units of value to each other without intermediaries or banks. A lesser-known fact is that the Bitcoin network also allows for data (such as text) to be stored on the blockchain.

The most popular story about a pizza that was purchased for 10,000 bitcoins on May 22, 2010. This was the first purchase of a physical item using bitcoins. May 22 is now recognized as "Bitcoin Pizza Day".

The positive price trend on the market. The term is widely used not only in the cryptocurrency space, but also in traditional markets.

Negative price dynamics of the market. The term is widely used not only in the cryptocurrency space but also in traditional markets.

Cryptocurrency created by a developer (or group of developers) under the pseudonym Satoshi Nakamoto. It was the first cryptocurrency, originally described as "a peer-to-peer electronic cash system" that operates using the "Proof-of-work" protocol by utilizing the computing power of nodes across the world.

Refers to the number of confirmations a specific block has. Each block preceding the block it refers to adds one block confirmation to it.

Bear trap is the opposite of a bull trap. In other words, it is a false downward trend. Traders may interpret this as a signal for a short position. However, the price rises, traders fall into the trap and lose money. A group of traders with large positions creates the bear trap. It can also arise on its own due to a deceptive pattern and crowd psychology.

This is a trading method that involves buying a coin that has just experienced a sharp drop, often due to FUD (fear, uncertainty, and doubt). However, sometimes these drops are natural and those who applied BTFD (buy the dip) may end up losing, and therefore are forced to launch a new wave of FOMO (fear of missing out) to quickly recover its price.

A period of unstable market growth due to irrational exuberance, which eventually "bursts" and leads to a market crash. One of the well-known bubbles is the dot-com bubble. Some consider the incredible surge in the cryptocurrency market in 2017 to be a bubble as well.

Bearish trend refers to a long-term decline in the market. The "long-term" decline lasts for at least a few months (for example, the bearish trend that began in mid-January 2018) and is represented by indicators such as moving averages with a negative shift (MA).

Bull trap is a false signal indicating that the price is about to rise, when in reality it is about to fall. As a result, bulls end up making bad trades. A typical example of a bull trap is a deceptive or fake breakout, a phenomenon where many people buy an asset thinking that it has broken through a resistance level, but later the "breakout" results in a candle with no follow-through.

A large order to buy at a specific price, which prevents orders at a lower price from being executed. Whales who manipulate the price of an asset or an individual buying a large sum may do this. Walls can create the impression that an asset is in demand and its price will not fall any further. However, buying walls can disappear as quickly as they appear.

The token standard for BSC (Binance Smart Chain).

A person who looks optimistically into the future of a particular market or asset (stocks, cryptocurrencies, bonds, etc.) can be referred to as a "bull."

The amount of coins awarded by a cryptocurrency blockchain protocol to miners for each successfully mined and verified block.

Decentralized digital network that records information about transactions and actions in chronological order using a chain of consecutive blocks.

A computer file that stores data about transactions. They can then be arranged in a linear sequence, which forms a blockchain.

The number used to indicate the position of a specific block in the chain of blocks is called "block height".

Refers to software or programs that trade automatically based on predetermined behavior.

The term used to indicate a positive sentiment towards the market or asset when investors believe there will be an upward price movement is "bullish."

Tokens sent to addresses whose private key is unknown become essentially unusable.

Applications or websites that display information such as transaction status or data contained in a block of a public blockchain network.

A planned or accidental flaw in a cipher design that allows those who know about it to easily bypass the security mechanism is called a backdoor.

Baking is the process that Tezos uses to add new blocks of transactions to its blockchain. It is very similar to Delegated Proof of Stake. Bakers receive rewards for each "baked" block, similar to how Bitcoin miners receive rewards for opening new blocks. A baker is more likely to "bake" a block if they have large sums (at least 10,000 XTZ). To participate in baking, one must register a delegated account and can also bake on behalf of other users who do not meet the 10,000 XTZ requirement.

A person who believes that Bitcoin is the only cryptocurrency with real value or potential. One of the reasons, according to their opinion, is that there are already many software products and services accepting BTC as payment.

Bearish flag is a price chart pattern that resembles an inverted flag with a pole. It indicates that the market is likely to continue falling. The opposite of a "bullish flag".

A portfolio of coins and tokens that you intend to buy or hold. This term is often used to describe portfolios that are not very profitable but continue to be held because the current price is significantly lower than the entry price.

"Bear whale" is a person who holds large sums of cryptocurrency but has a "bearish" outlook. The bear whale takes any opportunity to sell a portion of their coins, which can hinder price growth or even lead to a decline.

The Blockchain Charity Foundation is a non-profit organization whose goal is global sustainable development through the use of blockchain technology.

Binance Labs is the venture arm of Binance, whose goal is to develop, invest, and expand opportunities for entrepreneurs and communities using blockchain and cryptocurrency.

Simple tasks given by coin or token developers. Tasks can be simple, such as subscribing to a Telegram channel or retweeting, or more complex, such as translating text. Participants receive rewards in the form of coins for completing the tasks.

A cryptographic open-source protocol that operates in the Bitcoin network. This protocol establishes the "rules" of the network.

Technical slang for "an error in design or implementation"; an unexpected flaw in a system. Fixing bugs is a common part of system development and interactive design.

"Bull flag" - a technical analysis pattern that indicates a possible continuation of an upward trend in the price chart. In form, the bull flag resembles a flag and pole. It is the opposite of a "bear flag."

The tendency for long-term growth in the market. Everyone defines a trend in their own way, but its duration is measured in months or years, not days or weeks. The trend is associated with indicators such as a positive slope in the moving average (MA).

c

The science of using mathematical theories and computations for encrypting and decrypting information is called cryptography.

In computer science, a shared pool of resources available to multiple users over the Internet.

Candlestick chart is a type of price chart that shows the highest, lowest, opening, and closing prices for a given period. It was invented by Japanese rice traders to track market prices and daily dynamics for hundreds of years before becoming popular in the United States. Each candlestick represents a period (day, hour, 15 minutes, etc.). The "body" of the candlestick represents the opening and closing price. The peaks (wicks) represent the highest and lowest prices over the time period.

A period of high sales when investors and traders liquidate their positions and sell off their assets as quickly as possible is called a "sell-off."

Central Bank Digital Currency (CBDC) is a digital fiat currency issued by central banks, as opposed to a cryptocurrency issued by a non-legislative entity.

A large system that includes one or more ciphers and usually entails much more, including key management, means to support secure boot, storage, use, reuse, archival, key loss, and key destruction. The system may also include means for secure key creation and encryption at the transport layer. Key storage may involve creating a mini-database with the actual key values selected by an open file alias (see: file alias). Key delivery may involve a complete public key component with its own construction, storage, use, loss, and key destruction requirements. This is especially true of some cryptographic key certification, and perhaps a large, complex, and expensive certification infrastructure.

Mining cryptocurrency using shared cloud computing power instead of one's own expensive and energy-consuming mining rig. Sometimes this method is associated with fraud, as it is difficult to prove the existence of certain operations and verify the principles of their operation.

A measure that reflects the number of blocks in the best block chain that would need to be altered to remove or change a specific transaction. A confirmed transaction has one or more confirmations.

The time from when a transaction is sent to the network to when it is recorded in a confirmed block. This time can vary significantly depending on the type of network and its conditions. Higher fees may serve as an incentive for miners to retrieve the transaction more quickly and thus reduce the waiting time. On the other hand, due to a minimum fee, the confirmation time can be significantly increased.

A new transaction in the blockchain must first receive confirmation before it is finally processed. This is done using one of the consensus mechanisms, such as proof of work and proof of stake. The more confirmations, the higher the probability that the transaction is valid and double-spending is no longer possible. Exchanges and applications have different requirements for the number of confirmations needed for a transaction to be considered final. The usability of cryptocurrencies is limited by the fact that confirmation times can vary. However, there are several solutions to this problem.

When a transaction is confirmed, it means that the network has approved it and it has been permanently added to the blockchain. Confirming a transaction takes some time. For example, on the Binance exchange, when depositing Bitcoins, the coins will be deposited after 1 network confirmation. Until 2 confirmations are received, the equivalent value of your assets will be temporarily unavailable for withdrawal.

Random number generator (RNG) used for cryptographic purposes. It is used to generate unpredictable sequences for stream ciphers.

Cryptanalysis is the analysis of information systems with the aim of studying their hidden aspects. It is used to break cryptographic security systems and gain access to the content of encrypted messages, even if the cryptographic key is unknown.

A mathematical mechanism that allows someone to prove ownership of a Bitcoin wallet and the Bitcoins stored in it.

A blockchain-based virtual game where players buy, collect, breed, and sell various breeds of virtual cats. It's well known for having flooded the Ethereum network at the height of its popularity, and rare kittens can be worth hundreds of thousands of dollars. There are many similar games on other blockchain networks based on the idea of collecting rare items.

Encryption use. A general term that includes both encryption and decryption.

A financial institution that acts as a monetary authority and manages a country's currency, interest rates, and money supply.

Cryptocurrency or digital currency, independent of any other platform, used as a medium of exchange of value.

Digital currency that is secured by cryptography and functions as a medium of exchange within a peer-to-peer (P2P) economic system.

When the mechanisms of planning and decision-making are concentrated at a certain point within the system.

Encryption and decryption method for messages, which can be divided into symmetric and asymmetric based on their key model.

Consensus is reached in a blockchain system when all participants agree on the contents of the next block to be added to the blockchain.

Displaying changes in price over time on a chart. Each candlestick shows 4 points: the opening price, closing price, high, and low. They are also referred to as "Japanese candlesticks".

One unit of measurement on a price chart that can be set for different time periods (usually from 1 minute to 1 month).

A cryptocurrency wallet that is offline in cold storage.

Wealth in the form of money or other assets owned by a person or organization. Sometimes capital is intended for purposes such as starting a company or investing.

A repeated operation in a sequence such that each result depends on the previous result or initial value. One example is block cipher mode. It is worth noting that a physical chain is not a good analogy for describing multiple encryption because a physical "chain" is only as strong as its weakest link, whereas a sequence of encryption is only as strong as its strongest link.

Ciphertext is text that has been made unreadable, making the information contained in it secret. Ciphertext is the result of encryption and is the opposite of plaintext. Usually, the encrypted text will appear random, with values in the ciphertext being balanced.

"Close" is a financial term that refers to the closing price and signifies the final price at which an asset was sold at the end of a particular period of time. Monitoring closing levels on a chart allows for making trading decisions. This also applies to the cryptocurrency market, but on smaller timeframes. It will be more difficult to predict where the closing will be on the cryptocurrency market chart, as this market is characterized by rapid price changes and the crowd psychology effect.

Pledging something valuable as collateral for the repayment of a loan. Nowadays, many services accept cryptocurrencies as collateral for obtaining loans online, and sometimes offline.

A basic wallet that contains a full copy of the blockchain, allowing users not only to receive, store, and send digital assets, but also to issue commands through the interface and program the blockchain.

A temporary interruption in an upward trend, but then a return to the upward trend. Correction and the formation of support lines are normal features of an upward trend. A rapidly rising market without any pullbacks can crash down as quickly as it went up.

A statistical relationship, not necessarily linear, usually between two variables. Traders and market analysts study correlations between asset classes and various pairs. For example, most cryptocurrencies are typically correlated with the price of Bitcoin.

A way of raising funds where many people contribute small amounts. By receiving 20 dollars from 1000 people, the company can quickly and easily raise 20,000 dollars.

A limited-time public event where people can purchase new tokens or coins. This is usually done by sending coins to a specified address, meaning the system is provided with your address to which the purchased tokens will be sent later.

Assets that utilize cryptography, agreed-upon algorithms, distributed ledgers, peer-to-peer technologies, and/or smart contracts, and serve as a store of value, medium of exchange, unit of account, or decentralized applications.

A bubble occurs when the price of an asset exceeds its intrinsic value and rapidly rises for a prolonged period of time without corrections or support. Few understand cryptocurrencies, so some consider it a "bubble." Some consider the rise of cryptocurrencies in 2017 to be a bubble that then burst, after which prices fell for a prolonged period of time.

The term that describes the overall process of encryption is "cryptosystem". It is a set of cryptographic algorithms that are implemented to achieve a specific security function, most commonly confidentiality (encryption). Typically, a cryptosystem includes three algorithms: one for key generation, one for encryption, and one for decryption.

The method used in blockchain to select valid transactions and what should be recorded in the ledger. Typical examples include Proof of Work, Proof of Stake, Delegated Proof of Stake, and others.

d

A project or company where there is no leadership. All decisions are made by the community, and the operation is autonomous and supported by programs.

Fall in the price of an asset, stock or cryptocurrency.

Creating false data is the deliberate falsification of data for personal gain, which is a form of fraud.

Distorting scientific data in order to create a false representation is known as scientific misconduct. This can involve manipulation of images (such as microphotographs, color filters, X-ray images), removal of inconvenient information or results, alteration, addition, or omission of data points, and so on.

Alternative financial system designed to replace the traditional one. It is based on blockchain and smart contracts - programs that record the parties' obligations and can perform simple actions such as refunds, among others. Smart contracts cannot be altered or hacked as they are embedded in the blockchain.

A financial contract whose value is based on the performance of an underlying asset, index, or interest rate. Many services currently offer derivatives on cryptocurrencies.

A developer is a person who creates software and applications. They write, debug, and test the source code of software applications.

An exchange that does not require users to deposit funds to start trading and does not hold funds for users. Instead, users trade directly from their wallets.

Digital money, electronic money, or e-currency is a type of currency that is only available in digital form, allowing for fast transactions and seamless transfer of ownership rights.

When the market price of an asset and a technical indicator (such as RSI, Volume, MACD) move in opposite directions.

A sharp drop in the market or a specific coin. The opposite of a pump.

The most universal advice in cryptocurrency trading and in a broader investment context. DYOR suggests that financial decisions should only be made after traders exercise due diligence to be confident that they are not being swayed by FUD, FOMO, or any other act of disseminating malicious or simply incorrect information. The only commonality among all successful traders is that they spend time on DYOR.

Delisting is the removal of an asset from an exchange, either at the request of the project team or by the exchange's decision.

Allocation of funds across different types of assets and jurisdictions to reduce overall risk.

The action of changing the encryption process in such a way that the unreadable data (encrypted text) can be transformed into readable data (plaintext).

The percentage of market capitalization of a particular coin to the entire cryptocurrency market.

A parameter that characterizes the difficulty of mining, i.e. the difficulty of solving a specific cryptographic problem.

An open-source application that has no single point of failure and generates tokens according to cryptographic algorithms.

Data compression is the reduction of the number of bits needed to represent data. Data compression saves storage space, increases file transfer speed, and reduces the cost of storage system equipment and network bandwidth.

Data refers to quantities, letters, or symbols upon which operations can be performed, that can be stored and transmitted in the form of electronic signals, and recorded onto magnetic, optical, or mechanical media.

A symmetric key algorithm for encrypting digital data. The algorithm has had a strong influence on the development of cryptography, although the short key length of 56 bits makes it insecure for use in modern applications.

The amount of money a company (usually on an annual basis) pays out to its shareholders from its profits (or reserves). Dividends are also inherent to some tokens that offer regular payouts to their owners. These payments may be a part of the platform's revenue or fees.

The block size refers to the amount of space that a cryptocurrency can store in each block. For example, currently, each block in the Bitcoin blockchain can hold 1 MB of data, meaning that the size of a Bitcoin block is 1 megabyte. This places a limit on the number of transactions that can fit into Bitcoin blocks, based on the data contained in the specified transactions.

Day trading. Day traders make multiple trades throughout the day and profit from small market fluctuations. The opposite of swing trading, where traders take longer positions.

A small price increase after a significant decline, giving false hope of further growth.

Decryption is the process of revealing information or plaintext from an encrypted message (provided that the correct key is available and the procedure is correct). It is the opposite of encryption.

A general term for extracting encrypted information.

Deflation - a decrease in the overall level of prices in the economy (as opposed to inflation). A shortage of cryptocurrencies can lead to price increases.

An intangible asset that has a certain monetary value and can only be transferred through an electronic medium.

A network in which computing power and data are distributed across nodes without a centralized data processing center or governing body.

e

The process of converting information into unreadable form to preserve its confidentiality. Encryption has existed for thousands of years. Nowadays, with the advent of computers, breaking a cipher without a key has become much more difficult. Mathematics and computer code (cryptography) help protect confidential data, such as digital wallets, private keys, and personal information, from unauthorized access.

Depositing is a legal agreement in which a third party receives and distributes money or documents from the main participants of a transaction, and the release of funds depends on the conditions of the parties to the transaction. The process can be automated through smart contracts on the blockchain. Many peer-to-peer cryptocurrency exchanges for exchanging cryptocurrencies into fiat currencies use deposit mechanisms to ensure the security of both parties.

The transformation of information or data into secure code to prevent unauthorized access to the information or data.

ERC-20 (Ethereum Request for Comment 20) is a technical standard used for issuing and implementing tokens on the Ethereum blockchain, proposed by Fabian Vogelsteller in November 2015. It supports smart contracts and is used in dApps.

Technical standard for non-fungible tokens based on Ethereum. It is the standard for non-fungible tokens (NFTs) on the Ethereum network. Each ERC-721 token is unique and not interchangeable. It is often used for collectibles, real estate, art, and other unique items.

Virtual Machine (VM) is a distributed computer responsible for executing algorithms in the Ethereum network, which are called smart contracts.

An online platform where you can exchange bitcoins for traditional (fiat) currency.

Emission is the process of releasing new digital coins into circulation. It largely determines the value and potential use cases of a cryptocurrency.

An investment instrument that includes a variety of assets and tracks a base index or assets. Usually, ETFs can be purchased on traditional exchanges. A digital ETF would allow investors to invest in the underlying digital asset without the need to manage it or engage in crypto trading.

The underlying network of ETH, which was launched on July 30, 2015 with 72 million Ethereum. It became the leading smart contract network.

f

Forex stands for foreign exchange markets. It is a global market for trading fiat currencies.

Fundamental analysis of an asset is based on its intrinsic characteristics and features in an attempt to determine its underlying value.

FUD refers to the practice of bad actors trying to bring down the price of a coin by any means possible. FUD often takes the form of misinterpreted or outright fake news in an attempt to persuade coin holders to sell their holdings. For example, false news about China banning Bitcoin was FUD.

Money that the government has declared as legal tender.

The moment when Ethereum surpasses Bitcoin in market capitalization.

Margin call - when a trader's leveraged position is forcibly closed because it no longer meets the required margin requirements.

Standardized version of forward contracts that are used as a legal agreement to buy or sell an asset in the future at an agreed-upon price and date.

FOMO stands for Fear Of Missing Out, which is the fear of missing out on potential profits when investing in cryptocurrency, or the decision to sell coins (the fear of missing out on profits).

A computer that fully implements all the rules of the underlying blockchain network and fully verifies transactions and blocks on the blockchain is called a "full node".

The trading term that denotes a rapid decline in the price of a token. It is often used in the phrase "trying to catch a falling knife," which means an attempt by a trader to catch the bottom after a sharp decline. Often, catchers receive a second bottom as a gift alongside the first.

The launch of a project for money from the community in exchange for tokens, without the involvement of external investors and venture funds.

A portal that provides the opportunity to earn cryptocurrency by completing various tasks.

In technical analysis, it is believed that when markets move in one direction, they often retreat to certain levels before the trend continues. These levels correspond to ratios expressed in Fibonacci numbers (23.6%, 38.2%, 50%, 61.8%, and 100%).

When one blockchain splits into parts to create a new project. This new blockchain is created based on a fully copied source code, with some modifications. A bright example of a fork in cryptocurrencies is Litecoin. This cryptocurrency was created by modifying the Bitcoin code.

The property of an asset where individual units of the asset are indistinguishable from each other in terms of value and functionality.

This is the process of earning tokens as a reward for providing liquidity to a project by depositing a certain token pair into a pool.

g

Making a profit when the price of an asset falls. There are several ways to short an asset: buying put options, borrowing the asset from a broker, immediately selling it, and then buying back the same amount of the asset - possibly at a lower price - to repay the broker's debt. A less risky way to pseudo-short a cryptocurrency is to sell a certain amount of your own cryptocurrency holdings, expecting the price to drop, and then buy back the same amount at a lower price.

The very first block in the blockchain - a decentralized blockchain system.

A little-known cryptocurrency with significant, if not gigantic, potential. By investing in it, traders expect a multiple increase in its value, or, as they say, "big X's".

The maximum price that a cryptocurrency user is willing to pay as a fee when sending a transaction or executing a smart contract function is called gas limit.

Gas Price Mechanism - a pricing mechanism used in the Ethereum blockchain to calculate the cost of smart contract operations and transaction fees.

The term GameFi is formed by combining the words "game" and "finance". It refers to blockchain games that operate on a play-to-earn model and offer monetary rewards.

The amount of Ether needed to spend on each unit of gas in a transaction. The initiator of the transaction chooses and pays its gas price. Transactions with higher prices are given priority.

Bullish chart pattern where a short-term moving average crosses above a longer-term moving average.

The purchase of an asset with the intention of selling it at a higher price. This does not necessarily mean that you will hold the position for an extended period of time. For example, day traders "go long" when they buy stocks and then sell them at a higher price within hours. Going long also indicates a bullish sentiment towards a particular asset or currency.

h

In the cryptocurrency space, the term "halving" refers to the process that reduces the rate at which new coins are issued. More specifically, halving is a periodic reduction in the reward for a block provided to miners.

The term "hash rate" refers to the speed at which a computer can perform hashing calculations. In the context of Bitcoin and cryptocurrencies, hash rate represents the efficiency and performance of a mining machine, determining how quickly the mining hardware can work to calculate a valid block hash.

The type of fork where the rules of the blockchain are changed in such a way that transactions of the previous version are no longer valid in it. It requires software updates by all participants in the chain.

The output generated by a hash function after processing a piece of data. It may also be referred to as a hash value, hash code, or digest.

HODL is a crypto-slang term that encourages investors to hold onto their assets rather than selling them.

An online wallet that allows a user to store, send, and receive tokens (such as MetaMask).

The maximum amount of funds that a project aims to raise during its fundraising campaign (ICO/IEO/STO).

A type of cold storage. It is an external technology similar to a memory card that stores private keys. They are immune to viruses and often have buttons to confirm transactions, so the funds are only accessible if the password is known and the device is physically available.

This is also called hash rate; it is a term used to measure the overall computing power in a blockchain network for continuous operation.

Online storage of private keys that provides faster access to cryptocurrencies, but is more vulnerable to attacks and other forms of fraud. The opposite of cold storage.

Allows for the use of both Proof-of-Stake and Proof-of-Work as distributed consensus algorithms. This approach combines the security and consensus management of PoW, and the energy efficiency and community involvement of PoS.

A hash function collision is when two different input data blocks x and y for the hash function H result in H(x) = H(y). Collisions exist for most hash functions, but for "good" hash functions, their frequency of occurrence is close to the theoretical minimum.

i

The process of a company transitioning from private to public, meaning the moment when the company's shares become available for public trading.

Margin balance distributed by position. Traders can manage risks by limiting the amount allocated to each position.

Decentralized fundraising events conducted on decentralized platforms. Typically, startups raise funds and then add liquidity to a pool, for example, on Uniswap or SushiSwap.

The issuance by a project or company of a cryptocurrency intended to be used as payment for goods and services offered by that project or company in the future.

An increase in the overall price level, caused by an overflow of the channels of circulation of the money supply beyond the needs of trade, leading to a devaluation of the monetary unit and rising prices.

A fundraising event that is conducted and controlled by a centralized exchange, such as Launchpad on Binance.

A request to buy or sell a large amount of an asset, split into multiple contracts to hide the total order size. Such orders are common on traditional exchanges and are rarely used on crypto exchanges.

Increasing the amount of borrowed assets to multiply profits. Increasing leverage is considered risky. If the price starts moving in the opposite direction of the desired outcome (even shortly before a reversal), it can lead to significant losses or even liquidation.

Financial instrument for tracking the price of an asset.

j

Jager in cryptography may refer to the smallest unit of Binance Coin (BNB). Most cryptocurrencies are divisible to decimal places as specified in each cryptocurrency protocol. This type of unit often receives its own name. For example, in Bitcoin, it is called Satoshi.

This refers to a trader who is glad that they did not enter a particular position. It is often said after a significant price drop or when the project turned out to be a fraudulent scheme.

k

A sequence of special characters in a cryptography algorithm. It is used in encrypting and decrypting messages, establishing and verifying digital signatures, as well as for identification.

The principle of financial institutions that requires them to verify a person's identity before allowing them to perform transactions.

l

This is the time between sending a transaction to the network and receiving the first confirmation of its acceptance by the network.

Blockchain as a software system consists of two layers: the program and the implementation. The program layer is responsible for the components visible to users, while the implementation layer pertains to everything that makes the program work, such as protocols and code. In the context of designing a block cipher, a layer is a specific transformation or set of operations applied to the entire block.

Physical book or digital computer file where financial transactions are tracked and recorded.

The second layer payment protocol that operates on top of existing blockchains. LN is a peer-to-peer system of off-chain micro-payments with low-latency. Transactions, which can be public or private, are characterized by low fees, scalability, and can work in chains.

This is a "second layer" or off-chain payment protocol that operates on top of the blockchain. It provides increased transaction speed between participating nodes. It is one of the proposed scaling solutions.

A popular open-source operating system created by Linus Torvalds in 1991. It is used on a wide range of devices worldwide.

Liquidity is a property of a commodity or asset that characterizes the ability to sell it quickly at market price. The faster an asset can be sold, the more liquid it is considered.

Adding an asset to an exchange can be done either at the request of a project team or at the exchange's discretion.

An order to buy or sell a token at a pre-determined price set by the buyer.

A type of token trading where the investor profits from the price increase. The opposite of shorting.

Buying and providing in-use of a project's native token in pair with another (usually popular) token, so that new users can buy it from a decentralized exchange.

A credit offered by a broker or exchange for margin trading. In other words, it is borrowed funds to increase potential profits or losses from investments. Today, most cryptocurrency exchanges offer leverage.

m

The main network of a specific blockchain. Only in this network the token has value.

Moving average is a technical analysis method for smoothing out small fluctuations in an asset's price: it is the average price of an asset over a specified number of periods. Moving averages can act as support or resistance when the current price touches them.

Market capitalization, often shortened to "market cap", is the total value of all of a company's outstanding shares. In the crypto industry, market capitalization is used to determine the value of an asset and its growth in a broader perspective. Market capitalization in the crypto market is calculated by multiplying the price of the company's issued asset/token by the total number of tokens issued.

Market order is a type of order to buy or sell an asset at the current best available price. Market orders are executed when buyers and sellers are ready to trade. This is the opposite of limit orders, where cryptocurrency is sold at a specified price. Market orders are placed when there is an urgent need to buy or sell, and a limit order may not guarantee execution due to price volatility.

Small transactions that are relatively low in value. Microtransactions using banks as intermediaries can be expensive as the fees often exceed the value of the transaction. Distributed ledger technology has enabled the transfer of valuable assets for pennies from anywhere in the world to anywhere in the world and in minimal time.

This is a process in a cryptocurrency network. Its essence is to add new blocks to the blockchain. This is how coins are issued. Therefore, this process is very important and necessary in the life of each coin.

A special node located within a network. It mixes transactions, thereby improving user anonymity.

A popular cryptocurrency wallet, a browser extension.

Metaverse is a virtual space where users can interact with each other in a computer environment.

The combination of resources from multiple miners to achieve higher mining power and thus obtain a greater reward for mining blocks is called "mining pool."

The reward for providing computing resources for processing transactions.

Trading with borrowed funds - please note: this is a high-risk strategy and should only be used by experienced investors.

Mining farm is a device (or several devices) capable of performing calculations for cryptocurrency mining.

Users who perform multiple functions in the blockchain such as storing copies of the blockchain and thus protecting information from loss or forgery; register, verify, and confirm transactions, thereby maintaining the system's operation. And it is to them, for their efforts, that you pay transaction fees.

This includes a description of any file of interest (file creation date, author or editor name, version, as well as technical specifications).

This is a short position taken with borrowed funds.

This is a long position taken with borrowed funds.

A decline in portfolio value below the minimum margin requirement. In this case, the broker or exchange requires the investor to deposit additional funds in order to continue trading.

A market taker is a market participant who accepts the order price listed in the order book and immediately executes a trade at that price.

The algorithm used by a cryptocurrency to sign transactions. They vary depending on the cryptocurrency. For example, Bitcoin's mining algorithm is SHA256, while Litecoin's algorithm is Scrypt.

Investment method in Bitcoin mining equipment where a miner rents out a predetermined amount of hashing power for a specific period of time. The mining service includes equipment maintenance, hosting expenses, and electricity costs, which simplifies the task for investors.

The measure of how difficult it is to mine a new block for the blockchain. Each blockchain has its own difficulty, which can be viewed in real-time using various statistical services.

A wallet for storing cryptocurrencies on mobile devices. Such wallets are convenient for making purchases in real life. Most wallets scan the QR code of the seller's public address, and the transaction takes place in just a few clicks.

If a miner moves from one blockchain to another based on the profitability of the network, they participate in mining on multiple pools. The majority of equipment mines some coins better than others. Miners keep an eye on network difficulty and coin prices to switch to the most profitable ones at the moment.

n

Non-Fungible Token (NFT) is a type of cryptographic token on the blockchain that represents a unique asset. NFTs can be fully digital assets or tokenized versions of physical assets. NFTs are unique and non-interchangeable, which is why these tokens are often used as proof of authenticity and ownership rights in the digital world.

Nodes are computers connected to the network that ensure its operation. More precisely, nodes are software that allows interaction with the network. Nodes play an important role in the blockchain, namely, confirming transactions and blocks, verifying blocks, and thus ensuring network security and reliability.

All the functioning nodes of the blockchain at the current moment in time. In a broader sense, all the participants of the blockchain.

Nocoiner is a person who does not hold any cryptocurrency in their investment portfolio and firmly believes that it has no future.

o

Oracles are third-party services that provide smart contracts with connections to external sources of information; they act as a bridge between blockchains and the outside world.

Cardano proof-of-stake algorithm. This algorithm selects a node to generate a new block based on their relative economic stake in the network. Time is divided into "epochs" and then "slots" where leaders are selected.

Open-source software.

The trading term that refers to observing a specific candle in real-time on a chart.

p

This is a blockchain operating algorithm where transaction confirmation can only be performed by miners with frozen funds in their wallets.

Pooling of market participants in the form of transferring a portion of assets to a common fund. The profit received from joint activities is distributed among the participants according to a pre-established proportion (quotas) determined upon entry.

Blockchain that is available to everyone. The opposite of a private blockchain, which is only accessible to authorized users, such as employees of a specific company. An example of a public blockchain is the Bitcoin blockchain.

A planned purchase of a large amount of cryptocurrency in order to artificially increase its value.

When two or more computers are connected and share a workload or resources without relying on a centralized server, it is called decentralized computing.

Phishing is a type of internet fraud aimed at obtaining users' personal identification data, including passwords, credit card numbers, bank accounts, and other confidential information.

Private key is a combination of characters generated through an encryption algorithm, which provides access to the stored cryptocurrencies in an account. This key must be kept very securely, as having the private key allows access to the wallet and the ability to manage the assets. If you lose the private key, you will lose your funds forever.

A public key is a combination of cryptographic characters created from a private key, which also serves as a wallet address. The public address/key can be safely shared with others and used to receive funds.

The concept of video games in which players receive cryptocurrency for achievements in the game. These assets can then be sold or traded.

This is a cryptocurrency consensus algorithm based on proof of work - miners solve a problem to form a block and confirm transactions between all participants in the network. The main criterion is the computing power of the device used.

Also known as indexing. An investment strategy that is not dependent on market timing. Instead, investors track market indices such as the S&P 500 or Dow Jones Industrial Average (DJIA). Essentially, the idea of passive management is that people are unlikely to outperform the market, so they should passively "ride along with it."

This is a digital location that makes it easy to request payment. Technically, a public address can be thought of as a cryptographic hash associated with a specific public key.

r

A popular social platform in the cryptocurrency community. The website has topics called subreddits. Visitors can post and reply to messages. Coins often have their own subreddits where forum members can communicate, and the project team posts news or developments.

Price points or ranges of an asset (stocks, cryptocurrencies, etc.) that serve as upper and lower price barriers. These ranges are determined by historical prices and can overlap. When they intersect, they switch places: support becomes resistance and vice versa.

A term in technical analysis (TA). When a rising price encounters resistance, usually compared to previous highs.

Free tokens that are given out for participating in the launch of a project to the first users who provide liquidity.

The word that denotes the whole spectrum of failures leading to losses, from scams and hacks to sharp drops in token prices is "disaster".

The wallet address that needs to be entered to receive a refund. It is often requested to be entered on a conversion website in case the transaction fails.

The rules and laws of an authoritative organization for controlling activities, the violation of which may result in fines.

s

An open public protocol that handles blockchain transactions that support them. Contracts are most often written in the Solidity native language.

Seed phrase (also called recovery phrase or mnemonic phrase) is an ordered set of 12-24 words randomly generated by your cryptocurrency wallet. The seed phrase can be used to recover your wallet if something happens to it (such as it being damaged, stolen, etc.) or if you lose access to it (forgot your password, etc.).

SHA-256 is an encryption algorithm that underlies Bitcoin mining and the mining of some other cryptocurrencies. It is a cryptographic hash function that transforms an arbitrary set of data elements (such as information about transactions) into a fixed-length value. In mining, network participants find this sequence by brute-force search.

A coin without potential value or use case. A coin with a low market capitalization. Investing in a shitcoin is dangerous, but day trading it can bring decent profits.

This is a contract for the purchase or sale of assets. It refers to a public trading platform where crypto assets can be sold for immediate settlement. Most exchanges, in addition to spot trading, offer margin and futures trading. Spot trading is less risky and easier for beginners.

A unit of measurement, the smallest divisible unit of Bitcoin. 1 Bitcoin is equal to 100 million satoshis.

The pseudonym of the creator or creators of the Bitcoin protocol and technical description.

A cryptocurrency that is pegged to fiat currencies or commodities.

Computer code that determines how software will function based on a list of instructions and statements is called "source code."

Staking - the process of holding (often with a lock-up period) funds in a cryptocurrency wallet to support the operations of a blockchain in order to receive rewards.

Pumping - promotion or publicity of a project/token with the aim of increasing its value.

Shorting - a type of token trading in which an investor profits from a price decrease. The opposite of going long.

The type of order that limits potential losses. It is used to set a specific price level at which an existing order will automatically close if the price touches it. This is called a stop-loss order.

Spot market, where crypto assets can be sold for immediate settlement. The opposite of the futures market, where settlement occurs at a later date.

Scalability - the ability of a cryptocurrency to handle constantly increasing transaction volumes.

Sharding is a scaling strategy that allows breaking up a blockchain into partitions with states and transaction histories. Shards can be processed and stored in parallel to each other.

A person who speculates on the price of Bitcoin or other assets in order to make a profit. This is a vague term with negative connotations. However, there is no clear distinction between traders and speculators.

Spread is the difference between the lowest price a seller is willing to accept and the highest price a buyer is willing to pay for an asset. Liquid assets, such as Bitcoin, have a smaller spread compared to less liquid assets with lower trading volume.

A pool in which interested parties join forces to increase the chances of validating a new block. Similar to the concept of a mining pool for PoW, but applies to PoS.

t

The term borrowed from traditional financial markets, describing strong negative financial indicators of a specific asset.

Technical analysis (TA) is an approach to market analysis that uses mathematical models and indicators to predict prices. Some analysts believe that TA is the only tool for successful market analysis, as prices are subject to speculation. TA is the opposite of fundamental analysis, but both methods are recommended for longer-term investments. For day trading, TA is usually the only method used.

Abbreviated as "Test Network," test networks are alternative blockchain networks that mirror the consensus protocol of the main network (Mainnet). Test networks are useful for developers or people who want to experiment with transactions, smart contracts, or various other operations in a testing environment without risking the loss of cryptocurrency.

Tether's ticker is USDT. It is a "stablecoin" that is not government-regulated and is valued at approximately 1 US dollar. TETHER Limited claims that the value of the digital money they issue is always guaranteed 100% by reserves, which include traditional currency reserves such as the US dollar, the euro, offshore Chinese yuan, and their equivalents, as well as gold, and from time to time may also include other assets and receivables from loans extended by Tether to third parties (collectively referred to as "reserves").

An event where tokens are removed from circulation without the possibility of verification.

A period of time during which tokens or coins cannot be sold or traded to prevent a sharp decline in their prices after a mass sale. This setting can also be applied to tokens that are not intended for exchange, such as those that provide voting rights to specific individuals. For example, a portion of the BNB tokens had a lock-up period in the initial stage.

Transaction per second (TPS) is the number of transactions that a blockchain can process per second. In the cryptocurrency market, transactions per second are an important area of research, as maintaining high speeds is difficult in a decentralized blockchain. For example, VISA's technology offers the fastest transaction speed per second of any cryptocurrency, but it is centralized.

Turing completeness is a property of modern computer systems that provides universality, meaning any intended program can be executed on the computer. It is named after the famous British computer scientist Alan Turing, whose work on breaking the German Enigma cipher during World War II laid the foundation for modern computers. Most modern programming languages are Turing complete. Ethereum is a Turing-complete blockchain, along with most other smart contracts.

A method of fundraising for cryptocurrency projects through an ICO by trading new tokens on the open market.

A set of tools for issuing a digital asset.

It means a rapid increase in the exchange rate.

Tokens (not to be confused with coins) are digital units issued on a blockchain. They can have value or be redeemed for assets.

The amount of cryptocurrency that has been sold in the last 24 hours.

A temporary software restriction on any actions. Often imposed on users of projects with large rewards to limit dumping or on developers to limit liquidity exit.

This refers to the economy of a project - how many tokens are distributed to whom, when, and in what proportions

The type of order that locks in potential profits. It is the opposite of a stop-loss order, where you set a price above your entry point, and if the token's price reaches it, your order is triggered.

Transaction fees charged by miners for transactions and trades.

A platform for investment management on Ethereum, which became famous when in June 2016 hackers breached its security and stole cryptocurrencies worth $50 million. To refund the investors, a hard fork of Ethereum was performed.

A trader is a participant in exchange and over-the-counter trading who makes trades with the aim of profiting from changes in asset prices.

The total volume of cryptocurrency trading on exchanges. This figure is often subject to questions, as some exchanges report incorrect data and bot trading occurs.

Trading bot - an algorithm that trades on an exchange or a crypto exchange instead of a human trader. Trading bots are popular among both professionals and amateurs. Using a bot requires a deep understanding of markets and exchanges.

Trading between one cryptocurrency asset and another, for example, BTC/USDT.

The time of token release and its announcement to the public for further acquisition.

Trading "symbol" or abbreviated name (usually in capital letters) of an asset. Sometimes the asset can be guessed from the ticker, while other times they may look completely different. For example, the ticker for Cardano is ADA, while for Stellar it is XLM.

A distributed blockchain ledger that does not require a token or any other proprietary digital currency to operate or conduct transactions. Typically, in such blockchains, network miners do not receive rewards in the form of coins or tokens.

The number of fiat-crypto and crypto-crypto trading pairs across all exchanges. The more trading pairs, the better the asset. For example, the total list of trading pairs on Revain is over 10.

A trend line is a line that an asset's price often touches but does not cross. If the trend line is crossed, a more active price movement often follows. Trend lines are drawn by connecting the highs and lows.

u

A transaction that is still being processed and has not yet been included in a block. Unconfirmed transactions are often labeled as incoming in the recipient's software, which provides confidence in the correctness of the addresses. However, the funds cannot be spent until the transaction receives a certain number of confirmations.

A token whose primary function is different from transferring value, paying dividends, or investing. It is not a token for collateralization or for use as a financial instrument. Well-known examples include Revain, Golem, Augur, Basic Attention Token, and others. Golem offers a marketplace for computer resources for tasks that require high computational resources, Augur allows participation in prediction markets, and BAT is used to incentivize the Brave browser ecosystem. Revain offers a tool for improving the quality of company products and services by receiving feedback from users through published reviews, hashed in the blockchain.

Changes to the blockchain protocol that are accepted by the majority of full nodes. The opposite of a fork initiated by miners.

Microbitcoin, also known as the abbreviation uBTC, is one millionth or 0.000001 of a bitcoin.

Stablecoin Coinbase. It is a fully collateralized coin on the Ethereum blockchain of the ERC20 standard that is pegged to the US dollar at a 1:1 ratio. This is a coin with a stable price, and you can always redeem it for 1 US dollar.

v

Volatility is the increase or decrease in the price of an asset over a certain period of time.

A validator is an individual or organization that proposes and validates blocks in a Proof of Stake network. Validators can stake their own coins, receive delegations from other holders, or both.

A code sent to a second device to verify that someone is logging into an account. Used for two-factor authentication.

The measurement of the number of individual units of an asset that have changed hands in the market over a certain period of time.

A form of private equity financing for small firms with high potential but associated with risk.

A high-risk investment fund that focuses on working with innovative enterprises and projects.

A form of private equity financing for small firms with high potential but associated with risk.

The function of some anonymous cryptocurrencies, such as ZCash, that allows users to maintain anonymity while selectively disclosing transactions without risking the private key.

In simple terms, "virgin" or "clean" bitcoins refer to freshly minted coins that have not been involved in any transactions yet.

w

Inexperienced or hesitant traders or investors who lack the confidence to hold their assets for long-term gains or stick to their trading plans. This often occurs due to emotions that hinder productive trading.

A white paper is a technical document in which the creators of a cryptocurrency describe the goals of the project, methods for achieving them, and the mechanism of how the project will work. This document is released so that users can understand what they are investing in and evaluate the potential of the cryptocurrency.

Someone who owns a large amount of cryptocurrency and has the ability to manipulate the market.

A program that enables transactions to be made from a specified address. The wallet can also be used to check its balance.

The term is usually used in situations where there is hope that markets and coins will start to rise, or when a lot of good news is coming out.

This is a list of people authorized to buy (or sell) coins at an early stage of a particular project. Random people who complete tasks can get included in this list.

Market manipulation tactic in which investors create artificial activity in the market by repeatedly buying and selling the same assets.

Ethereum that can be converted into ERC-20 tokens at a 1:1 ratio. Sometimes, Ethereum itself cannot be used inside smart contracts where an ERC-20 token is required. In such cases, Ethereum is "wrapped" into WETH.

A line on a candlestick chart that indicates the fluctuation of an asset's price in relation to its opening and closing prices. Also known as a "shadow" or "wicks".

y

A more technical version of a white paper, which provides a detailed description of the technical aspects of a project.

z

Also known as "unconfirmed transaction". This is a transaction that has been broadcast to the network nodes but has not yet been included in a block. It may show up as an incoming transaction and be marked as gray, which means the funds cannot be spent yet.

о

Refers to a trading method that does not involve an exchange service. In OTC trading, buyers and sellers come to an agreement on the exchange rate for a particular currency and often use a trusted escrow agent to directly transact with each other. Over-the-counter trading is often prevalent among teams buying or selling to large private investors.

с

Offline wallet used as a storage for cryptocurrencies. Since it has no internet access, it is considered secure from online hacks and exploits. This includes hardware wallets as well as a piece of paper with a private key stored in your safe.