A 51% attack is an attempt on the blockchain integrity when a single person or group takes control over half of the network hash rate. They get enough mining power to bypass the consensus algorithm and act maliciously, i.e. commit double-spending or reverse transactions order.
An airdrop is a term in the cryptocurrency ecosystem that means the sharing of digital assets to the public. It’s usually executed through the free but limited distribution of a particular token.
All-Time High - a term relates to the highest price than an asset has reached. $BTC set an ATH in mid-December 2017 during the bull-run with the price = $19 902. The concept of All-Time High may also be applied to the values of market capitalization (market cap).
An altcoin is any cryptocurrency except Bitcoin. Since Bitcoin was the first of its kind, all later crypto assets are considered to be “alternate” or “alternative” coins and tokens.
API (Application Programming Interface) is a software intermediary that allows applications to share information with each other. With APIs, developers can use ready-made functionality without the need to build it themselves.
ASIC (application-specific integrated circuit) is special hardware designed to mine specific cryptocurrencies. In brief, mining is a process of verifying transactions to be added to the blockchain. The coins that cannot be issued this way are known as ASIC-resistant.
A bear market is a term that reflects a negative rend in the prices on the market. It reflects a powerful market downtrend of dropping prices for a short time. The term is used for both cryptocurrency and traditional markets, including stocks, bonds, and commodities.
Bid-ask price is the difference between the sell order (lowest asking price) and the buy order (highest bid price). It’s either created by a trader to monetize their services or shaped by the difference between the limit orders set by traders on the open market.
Bounty means the distribution of rewards for performing certain actions, i.e., social media activity, coding, translation, and so on. A bounty program is usually held during the ICO stage and is aimed at promoting the project.
Bitcoin Dominance refers to the ratio between the market capitalizations of Bitcoin to the rest of the cryptocurrencies in the market. Market cap reflects the relative size of a crypto and is calculated by multiplying the price of a certain coin by its circulating supply.
A bull market is a term that means a positive trend in the prices on the market. It reflects a powerful market uptrend of increasing rates for a short time. The term is applied for both cryptocurrency and traditional markets, including stocks, commodities, and real estate.
Central Bank is a financial institution that supervises and implements a country's monetary policy. It issues fiat currency and determines interest rates, thus managing a nation’s money supply. Primarily, the organization strives to create a sound currency system.
Centralization is the type of power distribution within an organization where a handful of individuals practices planning and management. As opposed to a centralized system, a decentralized one includes no single authority in charge of decision-making.
CFTC (Commodity Futures Trading Commission) is a US regulatory entity supervising the derivatives market that includes futures, swaps, and options. The organization aims to promote a financially stable and transparent market and to protect the rights of its participants.
Cold storage refers to any cryptocurrency wallet that IS NOT connected to the internet. Generally cold storage is more secure, but they don’t accept as many cryptocurrencies as do many of the hot wallets. Cold storage devices (aka. Trezor, Ledger) also cost close to $80 USD, whereas hot wallets are free.
DYOR (Do Your Own Research) is the acronym used to incentivize investors to properly study the info on crypto assets before acquiring them. DYOR has gained popularity because an increasing number of projects are appearing and not all of them are trustworthy.
FOMO stands for the “Fear Of Missing Out” and describes the anxiety about failing to benefit from something. In terms of trading, FOMO refers to the fear of missing out on a profitable investment or trading opportunity. Such a feeling is common when an asset price goes up.
A hard fork (or hardfork), as it relates to blockchain technology, is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software.
HODLing is the refusal to sell one’s assets, no matter their market performance or volatility level. The acronym stands for “Hold On for Dear Life” and is often used during the bear market or prolonged price slumps.
Hot wallet refers to any cryptocurrency wallet that is connected to the internet. Generally hot wallets are easier to set up, access, and accept more tokens. But, hot wallets are also more susceptible to hackers, possible regulation, and other technical vulnerabilities.
KYC (Know Your Client) is a customer identity verification used for operations in the international finance field. KYC prevents corruption, terrorist financing, money laundering, and makes users’ accounts safer.
A maker is a person who places an order that will not be executed instantly but will remain in the order book and wait for someone else’s order to match it later.
A paper wallet is an offline cold storage method of saving cryptocurrency. It usually involves printing the private key onto a piece of paper. Such a wallet is considered an extremely secure way to keep one’s funds safe from cyber-attacks, malware, etc.
Phishing is a common cyber-attack technique used in an attempt to acquire sensitive information (usernames, passwords, credit card details, etc.). Targets are usually contacted by email, telephone, or text by someone posing as an actual institution or person.
A soft fork is a backward-compatible upgrade, meaning that the upgraded nodes can still communicate with the non-upgraded ones. What you typically see in a soft fork is the addition of a new rule that doesn’t clash with the older rules.
A taker is a person who places an order immediately matching the corresponding order in an order book.
Trade walls are the big buy and sell orders. A buy wall is a healthy trend for crypto. It is the result of one or a number of big buy orders that are put in an order book and have the same price. When this occurs to a healthy coin, the orders to buy are filled quickly.
A sell wall is one large sell order or a number of sell orders at one price in an order book. It prevents the market price from going up until the entire sell volume is complete.
White papers are documents that are mainly given out by companies to describe technical information and data, study results, performance or process operations. Their purpose is to inform readers quickly and accurately and to present theories and concepts to support or disprove. To this end, they are written in a scholarly style. Its scope is limited usually to a few pages.