Address
An account you can receive and save. It is often a long string whose structure differs per blockchain. It's all you need to give to others to enable them to send payments via Bitcoin to you.
Airdrop
Distribute a coin or token among as many people as possible, often for free or in exchange for some publicity. The goal is to engage people and build a community.
Algoritm
In the blockchain world, all kinds of algorithms are used. For example, to calculate hashes that serve as signatures for a transaction. Each algorithm has its own characteristics, such as GPU, ASIC or CPU suitability.
Altcoin
All coins or tokens that are not bitcoin.
AML
Anti Money Laundering. Laws designed to prevent money laundering.
ANN
Announcement. The first notification of the existence of a project, often on the forum bitcointalk.org. It shares the principles of the project, sometimes with reference to whitepaper or website.
Arbitrage
If a currency is traded on multiple exchanges, there may be a difference between the rates on the different exchanges. To exploit this difference by buying on one exchange and selling the other is called arbitration.
ASIC
A chip specifically designed and made to perform the calculations necessary for mining a particular group of coins. Some blockchains use an algorithm for which ASICs cannot (yet) be created.
Bagholder
Hold a bag of coin. To own a large amout of a particular coin or token.
Bearish
A bear expects the price to fall. A bear market shows a declining trend. News or developments that have a negative impact on the price, we call bearish. Is the opposite of Bullish (bull). Easy to remember: a bear knocks his claw down and a bull pushes his head up.
Bit
Bit is a generic unit used to denote a sub-unit of one bitcoin. 1,000,000 bits equals 1 bitcoin (BTC). This unit is usually more suitable for pricing, goods and services.
Block
A blockchain consists of blocks. Each block contains a number of transactions that have been audited and bundled by the network. There is also a reference to the previous block that was checked. A chain of blocks - blockchain. On average, a block is added to the blockchain every 10 minutes - thereby confirming a package of transactions - through mining.
Block explorer
Almost every blockchain has an explorer, a site on which you can view and search blocks and transactions. It makes the public ledger transparent for everyone.
Block height
Identification of a block. A number that indicates where a block enters the blockchain. The first block has height 0, the next 1, and so on.
Block reward
The number of coins given as a reward to the participant who publishes a block first according to the rules. It consists of the block subsidy and the transaction costs that participants pay.
Block subsidy
The number of new coins put into circulation in a block as part of the block reward. It rewards miners for securing the network as long as the transaction costs are still insufficient.
Block time
The time between two consecutive blocks. Often between 1 and 10 minutes. The lower the block time, the faster a transaction is confirmed by the network. Proof-of-work keeps the block time constand by adjusting the difficulty level for each block to the hash rate of the network.
Blockchain
A public and chronological log of all transactions. No one is the boss of a blockchain, the participants of the network monitor and confirm the transactions. The transactions are grouped into blocks, hence the name.
BTC
BTC is used to indicate a Bitcoin.
BTFD
Buy the Fucking Dip. If others sell out of fear (FUD), then it can be an ideal time to buy right.
Bullish
A bear expects the price to fall. A bear market shows a declining trend. News or developments that have a negative impact on the price, we call bearish. Is the opposite of Bullish (bull). Easy to remember: a bear knocks his claw down and a bull pushes his head up.
Buy wall
Most exchange order books contain a so-called 'depth chart'. There you will see a graphical representation of the current purchase and sales orders. A buy wall is the representation of a large purchase order waiting to be filled. Often such an order is visible as a vertical line - the buy wall.
Charlie Lee
The creator of Litecoin.
Circulating supply
The number of coins or tokens currently in circulation. This number may increase due to, for example, the reward for mining or further issuance of a token. The number can be reduced by, for example, a token burn.
Confirmation
Each block contains a reference to the previous block, confirming that the network actually accepted the previous block. Each next block is therefore called a confirmation (confirmation). If 20 blocks follow a particular block, that block has 20 confirmations.
Consensus
The network as a whole must reach a consensus on which transactions are actually correct, without a minority being able to make their sense. There are several consensus algorithms, such as proof-of-work and proof-of-stake.
Cost averaging
If the price drops after you make a purchase, you can then buy a little extra to lower the average purchase price. This is called cost averaging, and ensures a greater profit per unit if the price rises later.
Cryptocurrency
Collective name for all coins and tokens whose integrity is monitored by a decentralized cryptography-based system, such as a blockchain.
Cryptografy
Cryptography is the branch of mathematics that provides mathematically proven security. Shops and banks use cryptography to secure their transactions over the Internet. In the case of Bitcoin, cryptography is used to ensure that no one can spend money from someone else's wallet and to prevent anyone from compromising the integrity of the blockchain.
DAPP
A distributed app. An application whose code consists of smart contracts. That code is executed decentrally by the nodes of the blockchain, and not by a central server.
Death cross
In the “death cross” we look at a cross between two “moving averages”, one long and one short term, traditionally 200 and 50 days. In a rising market, the short-term average is higher than the long-term average. If the short-term average falls below the long-term average (and thus the lines intersect) then it confirms a “trend reversal”, we leave a bull market for a bear market.
Decentralized
There is no central authority, no one is the boss of the network. The network exists because there are many participants and control is spread over those participants.
DEX
A decentralized exchange. A trading platform on which traders trade directly with each other, without the intervention of a central party where you have to deposit your money.
Difficulty
In mining, the work done must meet a certain level of difficulty. This is reset by the network at each block to keep the block time constant.
Distributed ledger
A blockchain is a decentralized ledger, an administration of transactions, which is not in one central place, but is distributed over a large network of participants controlling the ledger.
Double spending
A well-functioning blockchain prevents someone from spending their money twice. Participants must therefore check the transactions before accepting them.
DYOR
Do Your Own Research. “It's your money, so you need to investigate for yourself why you invest in something”.
ERC-20
A standard for tokens on the Ethereum network. Many ICOs use ERC-20 tokens.
ETH
Abbreviation for Ether, the currency of the Ethereum network.
Exchange
A stock exchange on which coins and tokens are traded. Projects want to be tradable quickly on the big exchanges, because then more people have access to their coins or tokens.
Fiat currency
Traditional money, like euros and dollars. Fiat money is money where the value is based on people's trust in central banks and governments.
Flippening
The moment when another cryptocurrency becomes larger than Bitcoin in market capitalisation.
FOMO
Fear of Missing Out. Can apply to a specific project or to the crypto market as a whole. Feeling like everyone's in the game, you're missing the boat. The price rises for no fundamental or technical reason. Frequently used term.
Forging
Alternative Proof-of-Stake process, where the miner is not rewarded with a block reward. Instead, he is allowed to keep the transaction costs as a reward.
Fork
Splitting a blockchain into two separate blockchains. They share the history until the split, then they become separate networks. A fork is needed in case of a major change in the rules or structure of a blockchain. Sometimes only one of the two new branches continues because the whole network accepts the new rules.
FUD
Fear, Uncertainty, Doubt. Can apply to a specific project or to the crypto market as a whole. The fear, uncertainty or doubt often stems from rumors and speculation, and causes people to sell or not yet buy. The rate falls for no fundamental or technical reason.
Fundamental analysis
Research into a project or organization to determine whether you want to invest. If the foundation is good, the project may be undervalued (and vice versa, of course).
Gas
A smart contract requires compute time of the nodes that execute the code. The fee they receive for this is called gas (fuel). The more computational time it takes, the more gas is needed.
Gas price
How much ETH per unit of gas you want to pay for a transaction. If you want to pay more, your transaction will be executed earlier, but will also cost more. Often expressed in gwei.
Genesis block
The first block in the blockchain. It is made by the developers and sometimes contains an idealistic message or yields a large reward used by the developers to finance the project.
Golden cross
In the “golden cross” we look at a cross between two “moving averages”, one long and one short term, traditionally 200 and 50 days. In a declining market, the short-term average is lower than the long-term average. If the short-term average rises above the long-term average (and thus the lines intersect) then it confirms a “trend reversal”, we leave a bear market for a bull market.
GPU
The chip on a video card. Some mining algorithms can be calculated quickly and efficiently by GPUs. Mining rigs often consist of a number of GPUs that do the job.
Gwei
A unit of ETH. 1 ETH = 10^9 = 1,000,000,000 Gwei.
Halving
With many blockchains, reward per block decreases as time progresses. With bitcoin, the reward is halved every 210,000 bocks. That moment the “halving” takes place.
Hard cap
The maximum amount you want to pick up with the ICO. When this is achieved, the ICO ends. All ICO coins or tokens are then issued.
Hash
A control number of a set of data, with a fixed length. For example, a block contains the hash of the transactions in that block. The original data cannot be deduced from the hash. There are several hashing algorithms, such as SHA256 and Scrypt.
Hashrate
The number of hashes that a participant (or the entire network) can calculate per second. The hash rate or hash rate is the measure of the total computing power of the Bitcoin network. For security reasons, the Bitcoin network must continue to perform intensive mathematical operations. For example, if the network reaches a hash rate of 10 TH/s, it means that it can make 10 trillion (at trillion, 10,000,000,000,000) calculations per second.
HODL
A corruption of “hold”, which means “hold”. A trading strategy where you buy a coin to keep it for a long time. You're speculating on a major increase in value in the long term. Where's this coming from?On December 18, 2013 user GameKyuubi posted on bitcointalk.org:” I AM HODLING”. Other users wondered: what does HODL mean? He indicated with his post that he no longer wanted to be a daytrader, but his Bitcoin wanted to “hold” or “keep”. At the time of posting, he makes a typo (according to rumors because he was tipsy).
ICO
Initial Coin Offering. A way to put a coin or token into circulation by selling it for a certain period of time.
Immutability
Something written once cannot be changed. A blockchain is immune because an accepted and confirmed block can no longer be modified. Censorship is therefore not possible.
KYC
Know Your Customer. Laws that require organizations to keep records of their customers. Intended to limit illegal activity.
Lightning network
A network that allows transactions to be made outside the blockchain. These transactions are fast and cheap, without specifying the security the blockchain offers.
Limit order
You buy something for the maximum price (or buy for the minimum price) you specify. If the current offer cannot fulfill your order, your order will wait in the order book until this is the case.
Liquidity
How much supply and demand there is. If the liquidity is high, then large quantities can be bought and sold without the price moving much, because there is enough supply and demand.
Long
If you go long, you benefit from a rising price. This can be done by buying a coin, or a derivative that increases in value when the currency rises in value.
Margin trading
Act with a lever. You give capital as collateral. You'll lose that if the course goes too much in the wrong direction. Very risky at high volatility.
Market cap
The total value of all tokens or coins of a given project currently in circulation. The market cap is an important means of determining whether a project is undervalued or overvalued. Always compare the market cap of projects, never the value of one unit of the currency.
Market order
You buy or sell something for the price at which it is currently traded.
Master node
A master node is a special participant in the network and is allowed to perform special functions, such as voting and privacy transactions. The owner must secure a large capital in order to be a master node, and in return he receives part of the block rewards. There are similarities with proof-of-stake, but not every POS network has master nodes and vice versa.
Maximum supply
The total number of coins or tokens that will ever be created. With a blockchain, this number is fixed in the code of the blockchain and cannot be changed.
Mining
A blockchain based on proof-of-work needs miners to check and confirm transactions. They bundle new transactions into a new block that meets the current level of difficulty. Miners get some new coins as a reward. Hence the reference to the “mining” of gold.
Mining pool
For many blockchains, it takes a long time for an individual miner to find a block, and get the corresponding reward. Sometimes weeks or months. A lot of miners work together in a pool. Everyone does a piece of work, and the proceeds are shared.
Mining rig
A computer built specifically for mining cryptocurrency. The design is optimized for cooling and energy consumption.
Moon
To the moon. A coin or token is going to increase in value enormously.
Node
Participant in the network. Checks and confirms transactions. It takes a lot of participants to make sure that no one is in charge of it alone.
Order book
The collection of all purchase and sale orders given on a particular exchange. You can often view the order book and therefore get an idea at which price there is demand and supply.
Permissionless
Many blockchains are permissionless. Anyone can join the network and view and control the content of the entire blockchain. No approval from a central authority is required. Regulation and censorship is therefore more difficult.
Pre sale
A limited pre-sale of a coin, prior to the ICO. This will gauge the interest and verify whether the pricing is correct. The presale is sometimes decided or by invitation, and often with a substantial discount.
Private key
The secret key associated with a public key. This allows you to encrypt or sign data, for example transactions. Anyone can then check with the public key that you signed it without knowing your private key.
Proof-of-stake
A way to have different participants in a blockchain network check and confirm transactions together. If they secure some of their coins for a certain period of time, they can vote on the validity of a block. In return, they get a reward.
Proof-of-work
A way to have different participants in a blockchain network check and confirm transactions together. All of them are looking for a solution that must meet a certain high standard. The first person who can provide that proof (proof-of-work) gets the reward. The search for that solution is called mining.
Public key
The public key associated with a private key. This allows anyone to verify that you have encrypted or signed something without knowing your secret key.
Pump and dump
The artificially increase the price by buying together and then artificially crashing the price by selling it all. The people who are the first to know that there will be a pump and dump, deserve the most.
P2P
A peer-to-peer network is a system that behaves like an organized collective in which individual systems communicate directly with each other, rather than through a central server. In the case of Bitcoin, the network is so organized that each user broadcasts the transactions he knows about to all other users. An important feature of this establishment: no bank or other third party is required.
Rekt
Wrecked, a.k.a. demolished. The value of your coin after a bad transaction. Or the value of your portfolio after a market crash. Or the value of a project after a massive fall.
Roadmap
A document describing the plans for the coming period as concretely as possible. Often the plans are placed on a timeline. With a good roadmap, the plans will be very concrete and measurable in the near future, and more abstract in the future.
Satoshi Nakamoto
The creator of Bitcoin. Probably not existing but a pseudonym for an unknown person or group of persons.
Sats
The smallest unit in which bitcoin is traded is the satoshi. It is 1/100.000.000-th of a bitcoin, or 0.00000001 BTC. Small altcoins are often priced in sats.
Scam
Fraude. In the still unregulated and whimsical crypto world, people try to earn money by scamting others. For example, with fake ICOs or copied blockchains. A fake coin is also called scamcoin.
SegWit
A change in the code of bitcoin that provides more security and more capacity. A prerequisite for the lightning network.
Sell wall
Most exchange order books contain a so-called 'depth chart'. There you will see a graphical representation of the current purchase and sales orders. A sell wall is the representation of a large sales order waiting to be filled. Often such an order is visible as a vertical line - the sell wall.
Sharding
A way to make blockchains scalable. Originally nodes within a blockchain contain a copy of the entire blockchain. By using sharding it is possible to store part of the blockchain on a node. As a result, the speed of the network increases.
Shilling
Shill a project. Recommend a project. Often used by experienced traders with many followers.
Shitcoin
A coin or token with (yet) no clear function or value. The course is therefore entirely based on speculation.
Short
If you're going short, you'll benefit from a falling price. This can be done by buying a derivative that increases in value when the currency falls in value.
Smart contract
A programmable address. If money is sent there, the code is executed to determine what needs to be done with it. For example, distribute to other addresses or return a number of tokens.
Soft cap
The minimum amount you want to collect with the ICO. If this is achieved, then the ICO is a success. If the proceeds are lower than this amount, a project is sometimes cancelled, and everyone gets their deposit back. Unsold tokens are often destroyed (token burn).
Soft fork
With a soft fork, the rules within the blockchain are tightened. There will be less admission than before. However, the tightened rules are compatible with the rules that were active before it. Therefore, a split of the blockchain is not necessary (as with a regular (hard) fork).
Solidity
The most common programming language for smart contracts for Ethereum.
Spec mining
Speculative mining. The mining of a currency that has little value or is not even tradable, in the expectation that it will be worth a lot in the future.
Stable coin
Stable coins are generally meant cryptocurrency with low volatility. This means that the price is relatively stable; the degree of mobility is low. The most stable currency to trade with is at the time of writing Tether (USDT).
Technical analysis
The movement of the course is due to supply and demand. These are the result of the emotions and expectations of buyers and sellers. And that turns out to follow certain patterns. Examine what happened to the course, and you might be able to predict what's going to happen.
Token
The terms “token” and “coin” are often used interchangeably. In practice, a token often has a very specific function within a specific application.
Also, a token often does not have its own blockchain, but lives for example on the Ethereum, NEO or Waves blockchain.
Token burn
If a token is removed from rotation, or destroyed, it is “burned”. That reduces the number of tokens in circulation, the tokens become scarcer, and that often increases the price.
Total supply
The total number of coins or tokens currently created. Part of it may have been reserved or held until a certain moment in the future, and is not yet in circulation. Uncirculated coins or tokens count in the total supply, but not in the circulating supply. Coins or tokens that have not yet been created do not count in the total supply, but in the maximum supply.
Vitalik Buterin
The creator of Ethereum.
Volatility
The motility of a course. Volatility is often higher when there is turmoil or if the price drops rapidly. Even if there is little trading, volatility is higher because a relatively small purchase or sale already has an impact on the price.
Wallet
The wallet for crypto coins and tokens. There are many different species. For one or more types of coins. With one or more addresses. In the form of a USB flash drive or as a software.
Wei
The smallest unit of ETH. 1 ETH = 10^18 = 1,000,000,000,000,000,000 wei.
Whale
Someone or a party with a lot of money or coins that can influence the exchange rate.
White list
Some ICOs require you to sign up in advance to participate. You'll be whitelisted.
White paper
A document describing the philosophy, goals, technology and people of a project. Important for fundamental analysis. With a good project you can read here why the project is valuable and promising.
51% attack
If one person or entity holds more than half of the network, it can reach consensus on what happened on its own, and thereby invent transactions.