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51% Attack

Typically when miners or node validators control 51% of the total computational power on the blockchain. If 51% is attained those miners/validators control the blockchain.

A

Absolute Advantage

A concept in economics in which one entity has a complete advantage in producing or having the ability to provide a type of good or service.

Ad Hoc

Means "as the occastion requires"or made for a specific reason. In Latin it means “For This”.

Address

String of numerals and/or characters that signify a specific one-time link to a specific wallet that can receive digital assets.

Airdrop

This is USUALLY a transaction of tokens that are sent to a wallet containing assets to provide awareness for the token being sent. This was extremely popular in the early days of crypto. As of now you should be weary, since a lot of the smart contracts connected to airdrops are unsafe.

Algorithm

A process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer.

All or None Order (AON)

An order that must be sold as a whole or NONE at all. They remain active until executed.

All-Time High (ATH)

The highest price in which a stock or currency hits in its longevity or lifetime.

Allocation

An allotment of tokens or equity, that may be earned, purchased, or set aside for a certain investor, team, group, organization, or other related entity.

Alpha

The first version of a released product. Usually extremely basic and not fully functional.

Altcoin

Any crypto currency that isn’t Bitcoin.

Angel Investor

Individuals who offer new startups funding in exchange for royalties or equity within the company.

Anti Money Laundering (AML)

Regulatory procedures that are meant to protect both consumer and businesses alike. There are three stages: placement, layering and integration stage.

Application Programming Interface (API)

A list of definitions for including and integrating application software. Basically lets products and/or services communicate with other products and/or services.

Application-Specific Integrated Circuit (ASIC)

A machine or application that is made for one purpose only, e.g., ASIC Miners (BTC ETH LTC).

Arbitrage

Taking advantage of prices in different exchanges. An asset is immediately sold and bought to exploit a price for a return in profit.

ASIC-resistant

ASIC-resistant is a property of some types of cryptocurrency that makes ASICs negligible in terms of mining.   

Ask Price

The lowest price a seller will accept for a certain item or service.

Asynchronous

Events that happen together or not at all. Requiring a form of computer control timing protocol in which a specific operation begins upon receipt of an indication.

Atomic Swap

Technology in smart contracts that allows the exchange of one type of cryptocurrency on one blockchain to another on a completely different blockchain.

Attack surface

Vulnerability points software where information and data can be extracted.

Auction

A public sale in which goods or property are sold to the highest bidder.

B

Bags

The amount of tokens or currency one is holding in a portfolio. Often referring to low performing assets that are left over.

Bear Market

A downwards trend in a market over an amount of time. Usually describes a downwards trend of 20%.

Benchmark

A point of reference in which things can be assessed and evaluated. Should be compared to an official standard.

BEP-20

Token standard on Binance Smart Chain that meets the ERC- 20 standard. This defines how a token can be spent, who can spend it and the layer of rules for transactions. This standard is similar to Binance’s BEP-2 And Ethereum’s ERC-20 standard. BEP-20 Is compatible with both chains.

BEP-721

Previous token standard for enter.art. It allows for the creation of Non-Fungible Tokens. This is also an extension of Ethereum’s ERC-721 standard.

BEP-1155

Combines the advantages of BEP-20 and BEP-721 into a single contract. Multi mint standard that is an answer to the ERC-1155. Can be deployed on ecosystems that use both Fungible and Non-Fungible Tokens.

Beta (Release)

A release of software that is in its early stages, usually intended to be released to a subset of users to debug, test and get feedback. Beta releases come after Alpha releases.

Bid Price

The highest price that a buyer or dealer would like to spend on an asset.

Bid-Ask Spread

The difference between the bid price from the buyer and the ask price from the seller that appears on an order book. 

Bitcoin

The legacy crypto that was created by the mysterious Satoshi Nakamoto. It was the first cryptocurrency that facilitated peer 2 peer transactions.

Bitcoin Dominance

The percentage of how much Bitcoin capitalizes in the entire cryptocurrency market.

Bitcoin Pizza

The first known transaction where Bitcoin was exchanged for physical goods. Laszlo Hanyecz paid 10,000 BTC for two pizzas.

Block

Records some or all of the most recent blockchain transactions that have not yet entered any prior blocks. A block is like a page of a ledger or record book.

Block Explorer

An online blockchain webpage that enables users to search transactions and wallets across the network.

Block header

Used to identify a particular block located on a blockchain. This is the information hashed to create “Proof of Work” for mining rewards.

Block Height

The number that differentiates the current block from the genesis block or block 0.

Block Reward

The amount of cryptocurrency that is awarded by the blockchain for every mined and validated transaction/block.

Blockchain

A decentralized, digitized ledger that records transaction information about a cryptocurrency in a chronological order.

BNB

Launched by Binance after an initial coin offering that ended on July 3rd, 2017. Used for receiving exchange trading fee discounts among other utilities.

Bollinger Bands

A technical indicator that, when plotted, gives a good representation of whether the market is overbought or oversold. Made from a moving average and a band above and below the moving average.

Bounty

A reward posted by a group or individual to incentivize certain work, behavior (such as referrals), or development.

Break-Even Point (BEP)

The point where the total cost and revenue are equal.

Breakout

The point when an asset makes an unpredicted move out of a certain range or pattern, usually breaking a resistance or support.

Bull Market

An upwards trend in the market over a certain period of time. Most commonly used in the crypto and stock market.

Buy Wall

Multiple large or a single massive order set at the same price in an order book in a market.

C

Candlestick

A representation in a graph that shows the high, low, open and closing prices in a certain period of time.

Capitulation

To surrender or give up. Usually means when a large group of investors sell all or most of their holdings in a single asset.

Censorship-resistance

The property of a cryptocurrency network that prevents any entity from altering transactions on it.

Central Bank

A national entity that provides banking and financial structure for its country’s commercial banking sector as well as facilitating the government's monetary policy and issuing fiat currency.

Central Processing Unit (CPU)

The brain of a computer. It is responsible for the basic operations of the system. Interacts with the memory, peripherals and manages the system's components.

Cipher

To encode, a secret way of writing; a code. A numeric character.

Circulating Supply

The amount of tokens that are available for trade in an ecosystem.

Cloud

The ability to store, access, and deliver services through the internet. Most common resources include data storage, servers, networking and software.

Coin

A virtual currency that represents an asset or use and is stored on the blockchain.

Collateral

An asset of value used as a security to secure a loan. If the loan is not paid back the asset of value is then forfeited by default.

Colocation

A datacenter in which other businesses can rent space for servers and/or other computer hardware.

Commodity Futures Trading Commission (CFTC)

U.S. governmental entity that regulates derivatives markets, including futures, options, and swaps.

Confirmation Time

The amount of time it takes for validators to record a confirmed block from the time it is submitted to the network.

Confluence

When two or more factors are used to predict a future event.

Consumer Price Index (CPI)

Used to track the difference in price of goods or services over a period of time.

Credentials

Any data that should be used to log into a system. i.e., usernames and passwords.

Cryptocurrency

A virtual currency where transactions are verified by a decentralized system that uses cryptography. 

Cryptography

The study of being able to securely transmit communication or data where only the sender and recipient are able to view its contents.

Custody

The ownership of an asset or funds. Can also be used when a business/entity holds on to an asset.

D

Daemon

A process that runs in the background that will execute when a specific operation is required.

Decentralized Application (DApp)

A software program that uses blockchain and smart contracts to maintain decentralization. Most often stored on cloud platforms and can operate on many systems at the same time.

Decentralized Autonomous Cooperative (DAC)

An organization that is controlled by shareholders rather than a central authority.

Decentralized Autonomous Organization (DAO)

A system of hard-coded rules that define which actions a decentralized organization will take.

Decentralized Exchange (DEX)

An exchange that offers traders to place and trade cryptocurrencies without third party institutions controlling the funds or transaction.

Decentralized Finance (DeFi)

A financial system that operates without the need of traditional banking or financial institutions. Most known for DeFi cryptocurrencies but handle things like investing, insurance, borrowing, and lending in a “trustless” way.

Decryption

The act of converting encrypted data into its original form.

Deep Web

The part of the World Wide Web that is not able to be discovered by conventional search engines.

Delisting

The take down of an asset off an exchange or official register. Can be voluntary or involuntary.

Design Flaw Attack

An attack in which a bad faith actor purposely creates malicious contracts, decentralized markets and other software with knowledge of flaws and inconsistencies to trick users into making transactions in the environment with little to no permissions.

Difficulty

For crypto, unit of measurement of time and efficiency in mining blocks on a blockchain. 

Difficulty Bomb

The increasing level of difficulty in crypto mining that also results in a substantial increase in time to mine a block on a blockchain. Specifically Ethereum.

Divergence

When market price and graph indicators are heading in separate and opposite directions. Basically a disagreement in price between price and signals.

Diversification

The ability to move funds and assets to different markets that do not impact one another, thus creating opportunities that are independent of one another.

Do Your Own Research (DYOR)

Read this. Read it again. One more time. :) This is the biggest fundamental in all types of investing. Be knowledgeable about the space you want to occupy.

Dollar Cost Averaging (DCA)

Making multiple transactions of equal amounts over a period of time, regardless of price.

Double Spending

A potential flaw in crypto currency in which an amount of tokens can be spent multiple times. The most important thing to watch out for during a 51% attack.

E

Eclipse Attack

A cyber-attack in which a bad faith actor will make sure that his target's connections are surrounded and made on an attacker controlled node. Meant to isolate the target and manipulate what information they receive.

Efficient Market Hypothesis (EMH)

A financial theory that suggests that all known information about investments is already factored into those securities. If that holds true. No market analysis can give an individual an edge.

Encryption

Taking plain text and scrambling it into an unreadable format. This is the basis of blockchain.

ERC-20

Ethereum’s token standard for creating and making smart contracts.

ERC-721

Ethereum token standard for Non-Fungible Tokens. They can have a different value but on the same smart contract.

ERC-1155

Deemed "The Next Generation of the multi-token standard. Uses a single contract to make various types of NFTs and gives the ability to multi mint.

Exchange

A marketplace for cryptocurrencies where users can buy and sell coins.

F

Fakeout

When a trader enters a position with anticipation of a future signal or price movement, but the signal or movement doesn’t develop and moves in the opposite direction intended. 

Falling Knife

A caution signal. This is a sharp drop but no duration or magnitude. Investors are recommended to wait for the security at its lowest point before investing again.

Fear Of Missing Out (FOMO)

The feeling of missing out on an opportunity after a substantial rise in price.

Fear, Uncertainty and Doubt (FUD)

A strategy to evoke emotions in an investor to put a competitor at a disadvantage.

Fiat

Currency that has been disseminated from a central authority.

Fill Or Kill Order (FOK)

A buy or sell order which must be executed immediately in its entirety or else it will be cancelled.

First-Mover Advantage (FMA)

The advantage of being first in a market or space. Being first typically allows that company or entity to bring about brand recognition and customer loyalty before it has a chance to be split among other companies.

Fiscal Policy

Policy on how monetary matters are realized and managed within an ecosystem.

Flippening

The point when one legacy currency overtakes another in market value. For example, when/if Ethereum overtakes Bitcoin in overall market capitalization.

Forced Liquidation

When assets are sold without permission to create cash flow because of an uncontrollable or unforeseen event.

Forex (Foreign Exchange Markets)

As currencies rate of trade are always “floating”. This is an exchange of one currency into another for a specific rate.

Formal Verification

Use of mathematical analysis to affirm or deny the correctness of algorithms in an underlying system with certain formal variables or properties using recognized methods of mathematics.

Fundamental Analysis (FA)

A way of measuring a “fair market” value in an asset or security.

Fungibility

The ability to interchange one asset for another. Meant to simplify the trade process. Implies that the assets are of equal value.

Futures Contract

A contract that is an agreement to buy an asset or good at a specific time and date for a fixed price.

G

Gas

The fee that is incurred for a user sending a virtual currency. Depending on blockchain type gas and fee can be extremely different. Gas was introduced by the Ethereum blockchain. Increasing that gas limit will front run your transaction. 

Gas Limit

The maximum fee a user will pay to initiate a transfer of virtual currency.

General Public License

Free license that is used with software. Allows all users to make changes and share all versions. Generally used for open-source users developing software.

Genesis Block

The very first block in a blockchain. Denoted as 0 or null.

Golden Cross

A pattern that develops in which an uptrending short term moving average crosses the long term moving average. This is a bullish signal. Long term signals generally carry more weight, however a cross indicates a bull market is close.

H

Halving

The point where the rewards are cut in half in a proof of work blockchain.

Hard Cap

The ceiling of funds that a project, IPO, or ICO want to collect during a fundraising event.

Hash

An essential function of crypto currency. Hash outputs are always the same length regardless of input. This is the conversion of input to output.

Hash Rate

The rate in which computational power is measured. Usually referenced in “per second”. Basically the measurement of calculations by miners/validators that can be realized.

Hashed TimeLock Contract (HTLC)

Type of smart contract to eliminate risk by ensuring the facilitation of time constrained transactions.

High-Frequency Trading (HFT)

The use of high-powered main frames to conduct trading at a faster rate than is generally recognized. Systems that are capable of doing many transactions per second.

HODL

HOLD ON FOR DEAR LIFE. Other than DYOR, this is the most important acronym in the crypto space. 

I

Immutability

Unchanging. The basis of blockchain and keeping a ledger. Data in a blockchain cannot be changed as the block before reinforces the transactions after.

Index

A system that keeps track of assets or a conglomeration of assets.

Initial Coin Offering (ICO)

The initial public offering of a coin to gain traction and fundability.

Interoperability

“Cross chain capability”. The function of users being able to send data and information across decentralized systems without any third party.

InterPlanetary File System (IPFS)

How files are able to move across blockchain networks. Uses existing protocols and enhances the way we use and share media.

J

Jager

The smallest measurable unit of BNB. 1 Jager = 0.00000001 BNB.

K

Know Your Customer (KYC)

The function of verifying one's identity. Requirements of the AML required of all financial institutions.

L

Layer 2

A solution that overlays an existing blockchain to provide better scalability and use case.

Ledger

A physical or virtual “book” or list of transactions that is tracked and recorded. For most blockchains the ledger is open and can be accessed by anyone.

Liquidity

The function of converting or realizing an asset into ready cash or fiat.

M

Mainnet

A completely interdependent system running its own ecosystem with its own technology and variables.

Margin Trading

Borrowing money from a broker to purchase an asset. This can be dangerous as you can wipe out your whole portfolio.

Market Capitalization

The total value of an asset in a market. In crypto, coin/token x the price = total value. The calculation of what a company is worth on the open market.

Market Order

An order in a market book for a sell or buy for the markets best price at the current time.

Maximum Supply

The initial supply of tokens that were created for a certain cryptocurrency.

Merged Mining

The function of mining two or more cryptos at the same time without surrendering performance or profitability.

Metadata

Information that describes such variables as date created, file size, and keywords relating to a specific document.

Multisignature

The process in which a transaction requires multiple signatures to complete a transaction.

N

Node

A participant on the blockchain that validates transactions. This secures and ensures the integrity of the blockchain and ecosystem.

Non-Fungible Token (NFT)

Proof of ownership that is minted on the blockchain. The most secure way of proving that you own a specific digital asset, media, or potentially a physical asset.

O

Off-chain

Transactions that occur on a cryptocurrency network that moves the absolute value outside of the blockchain.

Open-Source Software (OSS)

Software or apps that are open to any user to modify and share. Meant to facilitate and be distributed to any user that wants access.

Order Book

A list of transactions of buys and sells for a given asset. Generally electronically generated and ordered by price. Shows the number of shares that are being bid on.

P

Paper Wallet

A way of storing private keys for cryptocurrency by writing it on paper. It allows you to keep your crypto in “cold storage”. It can be a handy security measure to keep your private key or seed phrases safe.

Peer-to-Peer (P2P)

Two or more participants that transfer data, information or financial assets without a third party or intermediary. The basis of why cryptocurrency and blockchain was invented.

Pegged Currency

A cryptocurrency that is designed to remain the same value regardless of supply.  Also referred to as a stablecoin. i.e., 1 USDT, BUSD = 1 USD.

Phishing

A bad faith practice that generally uses emails to access information. These emails appear to be from reputable companies to trick the user into giving important information such as credit card numbers and passwords.

Price Action

The movement of price for an asset or good over a given period of time. Generally the basis for all technical analysis of the stock and cryptocurrency markets.

Private Key

A form of cryptography that gives access and ability to sign transactions on the blockchain. One of the most important factors in blockchain and cryptocurrency. Used to encrypt and decrypt data.

Private Sale

An opening stage for investors to buy a certain asset for new projects. Can also be referred to as an ICO (Initial Coin Offering).

Proof of Stake (PoS)

Blockchain concept in which a user accumulates tokens by holding them, which helps validate and process transactions.

Q

Quantum Computing

Study of how to perform calculations based on an object state before it is measured. Measured in qubits. Unlike bits where data is computed with 1’s or 0’s these integers can be superpositional. More data can be realized and expressed compared to the computational system we use now.

R

Ransomware

Bad faith software in which the only intent is malicious. Access to the system is compromised and blocked until a monetary sum is paid.

Relative Strength Index (RSI)

Financial indicator in technical analysis that measures price change. Indicator to tell if a market is overbought or oversold at a given time. Will also actualize the momentum of a given asset.

Resistance

A function is technical analysis that generally provides a ceiling to a particular asset for investment. A level in which an asset needs to break though generally opposing a sell wall.

Return on Investment (ROI)

The amount that is needed to even out the cost vs profit that is usually measured in time. A good measure of how to gauge how profitable and/or efficient an asset or investment is. 

Roadmap

A common practice that lays out goals and objectives that a project, company or individual sets before them to achieve within a certain period of time.

S

Satoshi

The smallest unit of a Bitcoin. 1 Satoshi =  0.00000001 BTC.

Satoshi Nakamoto

The mysterious creator of the first cryptocurrency, Bitcoin. No one knows the true name of this person.

Securities and Exchange Commission (SEC)

National governmental agency that is responsible for regulating corporate entities, securities, investments and market places in the U.S. Charged with protecting the public's interest in investing.

Security Audit

An analysis done by a company to prove the security and value of a project. Done by an independent party that examines and scrutinizes the infrastructure and establishes that the project complies with security policy and procedures. Usually gives recommendations for changes and countermeasures to give the project a higher level of security.

Seed Phrase

Series of words that gives you access to a cryptocurrency wallet. They are randomly generated to give the best possible security. NEVER EVER GIVE THIS TO ANYONE.

Sell Wall

One huge or multiple large sells on a market book for the same price. Tends to suppress assets and forces them to be traded within a specific range. This can be a bearish market indicator.

Smart Contract

A program or application stored on a blockchain that is fulfilled when predetermined conditions are met. Meant to take out intermediary and third parties.

Snapshot

A capture of data at a certain time and date.

Stablecoin

A type of cryptocurrency that keeps value regardless of market fluctuation. See pegged currency. 1 USDT = 1 USD.

Staking Pool

A pool or merge of resources that is used to validate blocks and receive rewards for holding or locking up assets for a period of time. The more that is staked the larger the rewards.

Store of Value

An asset, commodity, or security that manages to keep and maintain its value. There is no depreciation of value.

T

Ticker

The trading 'symbol' or shortened name (typically in capital letters) that refers to a coin on a trading platform. For example: BNB.

Token

A stand in for another asset. Generally, used for investments to store value or to make purchases. Not to be confused with a “coin”.

Token Lockup

Refers to a hold on an asset or currency for a determined amount of time where it cannot be transferred.

Total Supply

The amount of tokens that are available to be spent, whether in a liquid state or locked.

Transaction ID (TXID)

A string of characters or numerals that defines a transaction. Used in all areas of finance and banking. In crypto it is the ID used to access information on a transaction.

Transactions Per Second (TPS)

The number of transactions that a blockchain network is capable of processing each second.

Trustless

The core concept of blockchain, cryptocurrency and smart contracts. This means that there is no need for a third party, and transactions can be done without an intermediary.

U

Unit of Account

Standard measurement of value of services, goods, and assets.

User Interface (UI)

The way in which a user and software, website or hardware interact. The objective is to be effective and demand the least amount of effort for the user to make the most out of a specific outcome.

V

Virtual Machine

Uses software rather than hardware, usually from a cloud computing platform, in order to provide accessibility to a user from anywhere in the world. i.e., running multiple operating systems on a single computer.

Volatility

The amount of change that occurs in an ecosystem of an asset or security. Gauge of movement in positive or negative means.

Volume

The amount of currency, token, or coins that is traded in a specific amount of time, usually 24 hours. Generally the higher the volume, the more liquidity is provided.

W

Wallet

An app that enables users to send and receive transactions without a third party or intermediary.

Weak Hands

Anyone who sells an asset before full functionality and use case is realized. (Author's opinion.)

Whale

A user or group of users that holds a large amount of specific cryptocurrency. At times, in some markets, they are able to manipulate the price action.

Whitelist

A list of users that can be trusted or accepted to do transactions in an ecosystem. These users are usually predefined and accepted by an administrator or moderator.