Address - A unique string of characters that enables payments to an individual or entity via blockchain transactions. As an example, Bitcoin addresses are alphanumeric strings that begin with a 1 or 3 where as Ethereum addresses begin with '0x'.
Altcoin - A cryptocurrency or a category of cryptocurrencies that are an alternative to bitcoin. Many altcoins project themselves as better alternatives to bitcoin in various ways (e.g. faster transaction, lower fees, etc.).
Bagholder - Refers to holding a coin post a pump and dump, or holding a coin that is decreasing in value with not much upside.
Bearish - An expectation that price is going to decrease.
Bitcoin (BTC) - A type of cryptocurrency created by Satoshi Nakamoto in 2009. It was one of the first digital currencies that enabled instant P2P payments.
Bitcoin Cash (BCH) - A type of cryptocurrency that was created in August 2017 and is essentially a clone of the Bitcoin blockchain. This coin represented an updated version of the protocol by increasing the block size capacity (from 1 MB to 8 MB) as a way to solve the scaling problem.
Block - Refers to a collection of data related to transactions that are bundled together with a predetermend size. They are processed for transaction verification and eventually becomes part of a blockchain.
Blockchain - Blockchains are distributed ledgers, secured by cryptography. A decentralized, digital ledger where transactions made in Bitcoin or other cryptocurrencies are recorded chronologically and publicly. The block contains information that becomes part of the permanent and immutable database, connecting to other blocks in the blockchain like the links in a chain.
Instead of the data residing on a single centralized server, the data is copied across thousands and thousands of computers worldwide.
Block Reward - Block reward is the reward allotted for hashing, or solving the mathematical equation related to a block. The reward for mining a Bitcoin block is 25 bitcoins per block mined, which halves every 210,000 blocks!
Bullish - An expectation that price is going to increase.
Circulating supply - An approximation of the number of coins or tokens that are circulating in the public market.
Cold Storage - The process of moving crypto-currency ‘offline’, as a way of safekeeping your crypto-currency from hacking. There are a variety of ways to do this, but some methods most commonly used include paper wallets, USB storage or Hardware Wallets.
Cryptocurrency - A type of digital currency that is generally decentralized and uses cryptography (i.e. data is converted into a format that is unreadable for unauthorized users) for added security, making it difficult to counterfeit or manipulate.
DASH - A type of cryptocurrency based on Bitcoin software but has anonymity features that makes it impossible to trace transactions to an individual and other capabilities. It was created by Evan Duffield in 2014 and was previously known as XCoin (XCO) and Darkcoin.
Decentralized - A state where there is no central control, power or function, or in reference to infrastructure, no central point of failure.
Distributed consensus - Collective agreement by various computers in a network and allows it to work in a decentralized, P2P manner without the need of central authority to deter dishonest network participants.
ERC-20 - A type of token standard for Ethereum which ensures the tokens perform in a predictable way. This allows the tokens to be easily exchangeable and able to work immediately with decentralized applications that also use the ERC-20 standard. Most tokens released through ICOs are compliant with the ERC-20 standard.
Ether (ETH) - A type of cryptocurrency that is used for operating the Ethereum platform and is used to pay for transaction fees and computational tasks. In the platform, transaction fees are measured based on the gas limit and gas price and ultimately paid for in Ether.
Ethereum - An open source, decentralized platform based on blockchain technology created by Vitalik Buterin in 2013. It runs smart contracts on a custom built blockchain that allows developers to create markets, store registries of debts, and so on.
Ethereum Classic (ETC) - A type of cryptocurrency that is a continuation of the original Ethereum blockchain following the DAO attack in June 2016. Ethereum is essentially a hard fork of the blockchain that was formed to refund the money that was siphoned during the attack (around $50 million). Ethereum Classic assumes no hard fork occurred and is supported by those who believe in complete immutability of the blockchain.
Fiat - Refers to currencies that have minimal or no intrinsic value themselves (i.e. they are not backed by commodities like gold or silver) but are defined as legal tender by the government, such as paper bills and coins. ie Australian or US Dollars.
Flipping - A type of investment strategy (popular in real estate investing) where you buy something with the goal of reselling for a profit later, usually within a short period of time. In the context of ICOs, flipping refers to the strategy of investing in tokens before they are listed on the exchanges and reselling them for a profit when they are trading in the secondary market.
FOMO - An acronym that stands for 'Fear Of Missing Out' and in the context of investing, refers to the feeling of apprehension for missing out on a potentially profitable investment opportunity and regretting it later.
Fork - A situation where a blockchain splits into two separate chains. Forks generally happen in the crypto-world when new ‘governance rules’ are built into the blockchain’s code.
FUD - An acronym that stands for Fear, Uncertainty and Doubt. It is a strategy to influence perception by spreading negative, misleading or false information about something, as opposed to reasoned criticism.
Gas - A measurement of how much processing is required by the ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.
Gas limit - A term used in the Ethereum platform that refers to the maximum amount of units of gas the user is willing to spend on a transaction. The transaction must have enough gas to cover the computational resources needed to execute the code. All unused gas is refunded at the end of the transaction.
Gas price - A term used in the Ethereum platform that refers to the price you are willing to pay for a transaction. Setting a higher gas price will make miners more incentivised to prioritise and validate that particular transaction ahead of those set with a lower gas price. Gas prices are typically denominated in Gwei.
Genesis block - The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1.
Hard cap - The maximum amount that an ICO will be raising. If an ICO reaches its hard cap, they will stop collecting any more funds.
Hardware Wallet - A device that can securely store crypto-currency. Hardware wallets are often regarded as the most secure way to hold crypto-currency.
Hash - A computational puzzle that a cryptocurrency 'miner' must solve in order to add the next block on the blockchain
HODL - A type of passive investment strategy where you hold an investment for a long period of time, regardless of market volatility. The term was made famous by a typo made in a bitcoin forum. Also referred to as 'buy and hold' or 'hold on for dear life'.
ICO - Initial Coin Offering - Similar to an IPO (Initial Public Offering) from the non crypto world.
Initial coin offering (ICO) - An unregulated means by which a cryptocurrency venture, typically early stage, can raise money from supporters by issuing tokens. It is often referred to as a crowdsale as ICO participants may potentially earn a return on their investments (as opposed to crowdfunding, where supporters donate money to a project or cause).
IOTA (MIOTA) - Refers to the cryptocurrency and the name of an open source distributed ledger founded in 2015 that does not use blockchain (it uses a new distributed ledger called the Tangle). It offers features such as zero fees, scalability, fast and secure transactions, and so on. It is focused on the Internet of Things.
Ledger Nano S / Trezor - Two of the most popular hardware wallets.
Lightning Network - A low latency, off chain P2P system for making micropayments of cryptocurrencies. It offers features such as instant payments, scalability, low cost and cross-chain functionality. Participants do not have to make individual transactions public on the blockchain and security is enforced by smart contracts.
Litecoin (LTC) - A type of cryptocurrency that was created by former Google employee Charlie Lee in 2011. It offers features such as Segregated Witness and the Lightning Network which allows for faster processing at lower cost.
Liquidity - the availability of liquid assets to a market or company (example - money locked in your house vs. in a savings account)
Market capitalisation (market cap) - The market value of a company, market or sector at a point in time commonly used to rank relative size. In cryptocurrency investing, it refers to either price multiplied by the circulating supply or price multiplied by the total supply.
Maximum supply - An approximation of the maximum number of coins or tokens that will ever exist for a cryptocurrency or crypto asset.
Mining - A process where transactions are verified and added to a blockchain. It is also the process where new bitcoins or certain altcoins are created. In theory, anyone with the necessary hardware and access to the internet can be a miner and earn income, but the cost of industrial hardware and electricity has limited mining for bitcoins and certain altcoins today to large-scale operations.
Monero (XMR) - A type of cryptocurrency created in 2014 that is focused on privacy and scalability, and runs on platforms like Windows, Mac, Linux and Android. Transactions on Monero are designed to be untraceable to any particular user or real world identity.
Multisig - Refers to multi-signature to approve a transaction.This is beneficial for a company receiving money into a BTC Wallet. To help protect one employee from having sole access to a transaction, multisig allows for a transaction to be verified by two separate people before it is completed.
NEM (XEM) - Refers to the cryptocurrency and the name of a platform for management of a variety of assets, including currencies, supply chains, ownership records, etc. It offers additional features to blockchain technology such as multi-signature accounts, encrypted messaging.
NEO - Refers to the cryptocurrency and the name of a China's first open source blockchain that was founded in 2014 by Da Hongfei. It is similar to Ethereum in its ability to execute smart contracts or dApps but has some technical differences such as coding language compatibility.
NODE - A computer that has a full copy of the blockchain and forms part of the decentralised network.
Order Book - An order book is an electronic list of buy and sell orders for a specific item
P2P - Short for Peer to Peer. It is the secret to decentralisation of the blockchain.
Pre-sale - A sale that takes place before an ICO is made available to the general public to participate.
Private Key - This is your top secret passphrase or passkey that controls access to your crypto wallet. As the name suggest, you want to keep this private. Access to this will give full access to the holder of your wallet. KEEP IT SAFE.
Proof of Stake (PoS) - An algorithm that rewards participants that solves difficult cryptographic puzzles to achieve distributed consensus. Unlike proof of work or PoW, a person can validate transactions and create new blocks based on their individual wealth (i.e. stake) such as the total number of coins owned. One of the key advantages that PoS has over PoW is lower energy consumption.
Proof of Work (PoW) - An algorithm that rewards the first person that solves a computational problem (i.e. mining) to achieve distributed consensus. Miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain. It prevents spam and cyber attacks such as DDoS as it requires work (i.e. processing time) from the service requester.
Protocol - a set of rules governing the exchange or transmission of data between devices, agreed upon by the participants (ex. HTTP)
Public Address/Key - This is the public address of your wallet. This is required when you need to deposit or transfer crypto currency into a wallet.
Pump and Dump - The cycle when a coin is hyped up without fundamental basis in order to pump up the price of the tokens temporarily and then sells their holdings immediately after launch to earn a profit.
ROI - Return On Investment. Measured as a percentage on how much money has been made compared to an initial investment.
Ripple (XRP) - Refers to the cryptocurrency and the name of an open source payment platform where the cryptocurrency (Ripple or XRP) can be transferred. The vision for the platform is to enable real-time global payments anywhere around the world. The Ripple payment protocol was built by OpenCoin which was founded in 2012.
Segregated Witness (SegWit) - The process where the block size limit on a blockchain is increased by removing digital signature data and moving it to the end of a transaction to free up capacity. Transactions are essentially split (or 'segregated'), into two segments: the original data segment and the signature (or 'witness') segment.
Smart contracts - An automated mechanism involving two or more parties where digital assets are put in and redistributed at a later date based on some preset formula and triggering event. The contract can run as programmed without any downtime, censorship, fraud or third party interference.
Soft cap - Generally refers to the minimum amount that an initial coin offering (ICO) needs to raise. If the ICO is unable to raise that amount, it may be cancelled and the collected funds returned to participants.
Software wallet - Storage for crypto-currency that exists purely as software files on a computer. Software wallets can be generated for free from a variety of sources.
TA - Trend Analysis or Technical Analysis. The process of examining current charts in order to predict the direction of the market.
Two Factor Authentication - Refereed to as 2FA. A security measure that requires and SMS code or Authenticator App code so there is no single point of login. This helps increase your security and reduces your ability to be hacked.
Token - Crypto tokens enable the creation of open, decentralized networks, and provides a way to incentivise participants in the network (with both network growth and token appreciation). This innovation, made popular with the introduction of Ethereum, has given rise to a wave of token networks and token pre-sales, or ICOs.
Total supply - The total number of coins or tokens that are in existence, including those circulating in the public market and those that are locked or reserved.
Wallet - A store of digital assets such as cryptocurrencies, and is essentially your digital bank account. You can have multiple wallets and they can be categorised into 2 broad categories. Hot storage and Cold storage.
Whale - Someone that owns a LARGE amount of cryptocurrency.
Whitelist- A list of registered and approved participants that are given exclusive access to contribute to an ICO or a pre-sale.
Whitepaper - An informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative. Whitepapers are often provided before the launch of a new coin or token and are a great source of research that should be completed prior to any investment.