The following glossary prepared by Nugget’s News is loaded with terms that you will likely encounter while navigating the cryptocurrency and blockchain ecosystem. Keep it handy!
A unique string of letters and numbers to and from which cryptocurrency is sent. An address—which is usually a hashed version of a public key—functions like an email address.
A peer-to-peer network of nodes that maintain a blockchain-based distributed ledger of bitcoin balances. The cryptocurrency native to the Bitcoin network is bitcoin.
The amount of newly minted cryptocurrency and transaction fees automatically awarded by the blockchain protocol to a miner when they successfully validate a new block.
A database created and maintained by a peer-to-peer network of nodes. Blockchains comprise individual blocks that are each cryptographically linked to one another.
An individual or firm (i.e., a brokerage firm) that typically charges a fee or commission for executing buy and sell orders submitted by cryptocurrency investors.
A deliberate misspelling of ‘build’, this term is essentially a reminder to focus on improving the quality of tech and projects occupying the space.
The amount of time it takes for an unconfirmed cryptocurrency transaction to be included into the blockchain by miners. Transaction fee size can greatly affect confirmation time.
The practice and study of encrypting and decrypting information through complex mathematics Cryptography is a significant component of blockchain technology.
Money that has no intrinsic value and is declared legal tender by a government. Examples of fiat currencies include the U.S. dollar, Japanese yen, and Australian dollar.
An acronym for ‘fear of missing out’, FOMO refers to the anxiety that one feels when they believe they’re missing out on a potentially lucrative investment or trade opportunity.
Short for fear, uncertainty, and doubt, FUD refers to any baseless, negative information that is intentionally spread by those seeking to gain—often financially—from FUD-induced hysteria.
A type of derivative contract that represents a binding agreement to buy or sell a given cryptocurrency at a specified price and date. Upon expiration, futures are either cash-settled or physically delivered.
A scheduled event in which the amount of newly minted cryptocurrency awarded for successfully mining a block (i.e., the block subsidy) halves.
A code change in a blockchain protocol so significant that it becomes incompatible with older versions.
A deliberate misspelling of ‘hold’, the phrase originated in 2013 when a user posted to the Bitcoin Forum message board, “I AM HODLING.” It is used to reinforce a long-term outlook by cryptocurrency owners.
The extent to which blockchains are cross-compatible and can leverage other blockchains’ unique properties.
A technique involving the use of borrowed funds (i.e., debt) that allows traders to open a position that is larger than the balance of their account.
The ability to buy or sell a particular cryptocurrency in the market without significantly affecting the price.
A trading position opened by investors and traders who buy a cryptocurrency with the expectation to sell it at a higher market value in the future.
A solution that allows investors and traders to convert cryptocurrencies to fiat currencies. Off-ramps are offered by most leading cryptocurrency exchange operators.
A solution that allows investors and traders to convert fiat currencies to cryptocurrencies. On-ramps are offered by most leading cryptocurrency exchange operators.
A type of derivative contract that gives the owner the right—but not the obligation—to buy or sell an underlying cryptocurrency at a specified price on or before a specified date, depending on the form of the option.
A unique string of letters and numbers that essentially functions as a user’s digital signature. It is vital that private keys are kept secret.
The smallest denomination of bitcoin (i.e., one hundred millionth of a single bitcoin, or 0.00000001 BTC). The plural form—satoshis—is commonly shortened to ‘sats’.
The name used by the person(s) who invented Bitcoin, authored the Bitcoin whitepaper, and published the original Bitcoin client software.
A trading position opened by investors and traders—known as short sellers—who believe the market value of a given cryptocurrency will decline in the future.
Computer code that is able to be stored and executed on a blockchain. Smart contracts self-execute when and if certain predetermined conditions are met.
Bitcoiners use this Matt Odell-coined term to share ways they’ve been accumulating bitcoin. Common examples: buying on Cash App, earning via Lolli, and profitably trading BTC-paired altcoins.