Crypto Academy

Definitions

definitions

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Increase your vocabulary by exploring crypto definitions with bit4you Academy

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Cryptocurrency

    • Altcoins are alternative cryptocurrencies that were launched after the success of bitcoin. Altcoins are created by diverging from the fundamental rules of the cryptocurrency’s network or by developing a new cryptocurrency from scratch.
    • Bitcoin (BTC) is the first peer-to-peer digital cryptocurrency in the world, based on blockchain, launched in 2009 by Satoshi Nakamoto.
    • Cryptocurrency is a type of digital currency based on cryptographic methods and blockchain technology.
    • Ethereum (Ether) is an open-source, blockchain-based, decentralized software platform, launched in 2015 by Vitalik Buterin and used for its cryptocurrency, ether. It enables SmartContracts and Distributed Applications (DApps) to be built and run without any downtime, fraud, control, or interference from a third party.
    • FUD is acro of «Fear, Uncertainty, and Doubt». When the crypto community calls some news FUD, it means that the news is probably not an objective assessment, but a rumor that can affect the price of bitcoin.
    • Scammer is a hacker or “thief” in the crypto world.
    • Token is the unit of cryptocurrency. Tokens are a kind of shares of new companies and cryptosystems. They can be received with the help of buying it during ICO or when entering exchanges.
    • White paper a document describing the main issues and methods of their solution within the framework of the presented project. White paper usually contains a detailed description, information about the current market situation and growth forecasts, conditions for the issuance and use of tokens, a list of team members and project consultants.
    • Initial coin offering (ICO) is an investment attraction procedure based on the sale of the company’s assets. Assets can be either tokens or a cryptocurrency received by emission.

Mining

    • ASIC (Application Specific Integrated Circuit) is used in the process of mining cryptocurrency using special equipment. Asics are created specifically for mining crypto. ASICs are engaged in decoding the blockchain and creating new blocks. ASIC calculations are carried out using special chips, and ASIC power is higher
    • Cloud mining is a type of mining that does not imply the purchase of equipment. The company buys necessary mining equipment and rents it out remotely.
    • Complexity of mining is a parameter that determines how much computing power is required to find a block in the coin network. The difficulty of mining grows as the hash rate increases.
    • Miner is a person who is mining cryptocurrency blocks with the help of special equipment.
    • Mining is the process of finding a block in the coin’s blockchain.
    • Mining pool is collectively mining cryptocurrency. Many devices are combined to find a block, the reward is shared among all participants.

Blockchain

    • Block is a list of transactions for a certain period of time. Miners receive a reward for the confirmation of these transactions. Blocks are mined and embedded in the blockchain sequential.
    • Blockchain is data storage technology in the form of a list of checked blocks, each of the blocks refers to the previous ones; the storage devices are not connected to the shared server.
    • Fork is a process of creating an alternative blockchain from an existing one. During a soft fork, a modification is made to change the original blockchain.
    • A hard fork splits the original blockchain into two independent ones. The result is a new cryptocurrency.
    • Halving is a process that lowers the reward for mining cryptocurrency. For example, on the Bitcoin network, halving occurs approximately every four years.
    • Key is a password for a cryptocurrency wallet. It consists of a particular list of characters. There is a possibility to lose your crypto in the case of losing the key.
    • Pending transaction is a transaction that has already entered the blockchain and is awaiting processing by miners.
    • Smart contract is a specific algorithm based on the blockchain. Smart contracts are used to conduct complex transactions such as exchanging assets through decentralized applications.
    • Transaction is the process of transferring funds from one account to another.
    • Wallet is a method of storing bitcoins for future use. The wallet stores private keys linked to bitcoin addresses.

Trading

    • «to the Moon» is the very rapid growth of price on crypto-asset.
    • All Time High (ATH) is the historical maximum of the value of the crypto-asset.
    • Attack 51% are cryptocurrency blockchain manipulations, which will make it possible to take control over the blockchain. A hacker or a group of hackers connects powerful mining equipment to the network to capture more than 50% of the computing power. It allows them to process transactions that are beneficial to the fraudster, for example, spend more money from the wallet than it has.
    • HODL is a strategy that presupposes buying and keeping an asset for some time, with the hope of its growth in the future. It is an abbreviation from the misspelling of the word “hold” on the forum. 
    • Investment strategy is an approach for the crypto investor to get the best profit, guided by the specific method of investment, assessing risks, capital needs, and goals.
    • Technical Analysis is a set of approaches that allows the assessment of the crypto market and its tendencies by monitoring and analyzing charts, graphs, and indicators. It requires special skills. 
    • Trading strategy is a plan or approach for traders in order to make a profit from deals.
    • Volatility is a rate at which the price of crypto-assets increases or decreases for a given set of returns. Sometimes, it can be turned to make a profit for investors or traders.
    • Whale is a significant market participant with a large amount of funds. It may have enough capital to manipulate the price of the asset in the crypto market. 

Conclusions