The Cryptocurrency Glossary (Volume 1)

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-909704104&q; src=&q;×0.jpg?fit=scale&q; data-height=&q;639&q; data-width=&q;960&q;&g; &a;nbsp;Visual representations of cryptocurrencies, Litecoin, Ethereum and Bitcoins, are seen in this photo illustration on January 13, 2018, in The Hague, Netherlands. (Photo by Yuriko Nakao/Getty Images)

If you&s;re just getting started in&a;nbsp;the world of cryptocurrency, you may be overwhelmed and confused by the jargon used in message boards and the financial media. I&s;ve pulled together a list of some of the most relevant and interesting terms associated with cryptocurrency&a;nbsp;for reference.

This is by no means a comprehensive list, as new words and phrases pop up frequently. Be on the lookout for Volume Two of this glossary sometime in the future.

&l;strong&g;Address&l;/strong&g;&a;nbsp;&l;span&g;&a;mdash;&a;nbsp;&l;/span&g;An online&a;nbsp;location (presented in a random string of numbers and letters) where Bitcoin and other cryptos can be sent to and from.

&l;strong&g;Alt-coin&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; A cryptocurrency alternative to Bitcoin including Litecoin, Ethereum, Dogecoin, XRP (commonly referred to as Ripple), and more.

&l;strong&g;Blockchain&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; An online ledger containing records (also known as &l;strong&g;blocks&l;/strong&g;)&a;nbsp;of every crypto transaction. The blockchain is public and decentralized, and is maintained by a peer-to-peer network of computers.

&l;strong&g;Coinbase&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; A popular website and app used to buy and sell cryptocurrencies.

&l;strong&g;Cold storage&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; Keeping a reserve of crypto offline for security reasons. This could be a private key written on a piece of paper or stored on a USB flash drive. Obviously, this holds the potential for tremendous risk as the physical storage method can be lost, stolen, damaged or thrown out.

&l;strong&g;DYOR&l;/strong&g; – &q;Do Your Own Research.&q; Cryptocurrencies are highly speculative and a potential buyer should be prepared to lose their entire investment. It&s;s essential to do your own research before committing resources to any investment vehicle, especially one as volatile as cryptos.


&l;strong&g;Fiat currency&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; A currency that is usually backed by a government or group and whose value is tied to&a;nbsp;the investing public&s;s confidence in the government that backs it. The United States dollar changed from a fixed currency (backed by gold) to fiat in the 1970&s;s. Cryptocurrencies are fiat currencies that are not backed by any government&a;nbsp;&a;mdash; their value is determined&a;nbsp;by those who trade them and the confidence that the value will increase over time.

&l;strong&g;FOMO&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; &q;Fear Of Missing Out.&q; An emotion experienced by&a;nbsp;those who haven&s;t bought any cryptocurrency and see prices continually rising. Can lead to irrational buying at inflated prices.

&l;strong&g;Fork&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; Splits in the blockchain are possible when two separate computers create a block at the same time. Since both blocks are authentic, new blocks can then be built on the resulting split, known as a fork.

&l;strong&g;FUD&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; &q;Fear, Uncertainty, Doubt.&q; Three powerful emotions that can lead to irrational trading decisions.

&l;strong&g;FUDster&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; Someone who spreads FUD

&l;strong&g;HODL&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; &q;HODL&q; is derived from &l;a href=&q;; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;a drunken typo on a message board&l;/a&g;&a;nbsp;and&a;nbsp;has become a folksy rallying cry for those who have held onto Bitcoin throughout its extreme volatility. Though it was initially a misspelled version of &q;HOLD,&q; an ensuing acronym was created: &q;Hold On for Dear Life.&q;

&l;strong&g;ICO&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; &q;Initial Coin Offering.&q; Similar in theory to an Initial Public Offering (IPO) of a stock, an ICO occurs when someone plans on creating a new cryptocoin and wants to start selling it to the public.

&l;strong&g;LAMBO &l;span&g;&a;mdash;&l;/span&g;&l;/strong&g;&a;nbsp;Abbreviation for Lamborghini. As in, &q;I&s;m going to buy a Lambo with all of my profits trading Bitcoin.&q;

&l;strong&g;Mining&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; The process of creating blocks for the blockchain, which requires an inordinate amount of energy.&a;nbsp;&l;a href=&q;; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;As reported by CBS News&l;/a&g;, &q;&l;span&g;Nearly 10 U.S. households can be powered for one day by the electricity consumed for a single bitcoin transaction, according to figures from The Bitcoin Energy Consumption Index.&q;&l;/span&g;

&l;strong&g;Mooning&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; When the price of a coin rapidly increases in value, it&s;s &q;shooting up&a;nbsp;to the moon&q; or &q;mooning.&q;

&l;strong&g;PoW&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; &q;Proof of Work.&q; &l;a href=&q;; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;According to Decryptionary&l;/a&g;, &q;w&l;span&g;ith proof of work, computers compete to solve a tough math problem. The first computer that does this is allowed to&a;nbsp;create new blocks and record information.&q; The miner is then usually rewarded via transaction fees.&l;/span&g;

&l;strong&g;Satoshi&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; The smallest unit of Bitcoin, named after the creator&a;nbsp;of Bitcoin, Satoshi Nakamoto. One Satoshi is worth 0.00000001&a;nbsp;Bitcoin.

&l;strong&g;Tank&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; The opposite of &q;mooning.&q; When there is a crash in a crypto, it is said to be &q;tanking.&q;

&l;strong&g;Wallet&l;/strong&g; &l;span&g;&a;mdash;&l;/span&g; A place to securely lock away&a;nbsp;your cryptocurrency private keys.

&l;em&g;Disclosure: The author owns Bitcoin, Ethereum and XRP&l;/em&g;&l;/p&g;

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