Glossary

Key terms and concepts explained.

A

Address
A cryptographic identifier that allows cryptocurrency to be sent to a specific destination on a network.
Altcoin
Any cryptocurrency other than Bitcoin.
ATH (All-Time High)
The highest price point a cryptocurrency has ever reached.

B

Bitcoin (BTC)
The first and largest cryptocurrency, created by Satoshi Nakamoto in 2009.
Block
A container that records transactions on a blockchain.
Blockchain
A distributed ledger technology that records transactions across multiple computers.
Block Explorer
A tool that allows users to view details about blockchain transactions and addresses.

C

Consensus Mechanism
The method by which blockchain nodes agree on the validity of transactions.
Cryptocurrency
Digital or virtual tokens that use cryptography for security.
Custody
The act of holding and securing cryptocurrency assets.

D

DeFi (Decentralized Finance)
Financial applications built on blockchain technology that don't rely on traditional intermediaries.
Decentralized
Not controlled by any single entity or authority.
DApp (Decentralized Application)
An application that runs on a blockchain network.

E

Ethereum
A blockchain platform that supports smart contracts and decentralized applications.
Exchange
A platform where users can buy, sell, and trade cryptocurrencies.

F

Fiat
Government-issued currency that is not backed by a physical commodity.
Fork
A split in a blockchain that results in two separate versions.
FUD (Fear, Uncertainty, and Doubt)
Negative sentiment or misinformation spread to manipulate market sentiment.

H

Halving
The process by which the block reward for mining new Bitcoin units is cut in half approximately every four years.
Hash
A fixed-length string of characters produced by a cryptographic hash function.
Hash Rate
The measure of computational power used to mine and process transactions on a proof-of-work blockchain.

L

Layer 2
A secondary protocol built on top of a blockchain to improve scalability and reduce transaction costs.
Liquidity
The ease with which an asset can be bought or sold without affecting its market price.

M

Market Cap
The total value of all coins in circulation, calculated by multiplying the current price by the circulating supply.
Mining
The process of validating transactions and creating new blocks on a proof-of-work blockchain.
Minting
The process of creating new tokens, often through proof-of-stake or other consensus mechanisms.

N

Node
A computer that participates in maintaining a blockchain network.
NFT (Non-Fungible Token)
A unique digital asset that represents ownership of a specific item.

P

Private Key
A secret string of characters that allows access to cryptocurrency in a wallet.
Proof of Stake (PoS)
A consensus mechanism where validators are chosen to create new blocks based on their stake in the network.
Proof of Work (PoW)
A consensus mechanism that requires miners to solve complex mathematical problems to validate transactions.
Public Key
A cryptographic key that can be shared publicly to receive cryptocurrency.

S

Satoshi Nakamoto
The pseudonymous creator of Bitcoin.
Scalability
The ability of a blockchain network to handle an increasing number of transactions.
Self-Custody
The practice of holding your own cryptocurrency in a wallet you control.
Smart Contract
Self-executing contracts with the terms directly written into code.

T

Token
A digital asset that represents a utility or asset on a blockchain.
Transaction
A transfer of cryptocurrency from one address to another.

W

Wallet
A software program or hardware device used to store and manage cryptocurrency.
Whale
An individual or entity that holds a large amount of cryptocurrency.
Whitepaper
A document that outlines the technical details and goals of a cryptocurrency project.
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