Straight to the point, this can be your tiny cryptocurrency dictionary.
Coins are any cryptocurrency that has its own blockchain. Eg of a coin is Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash etc.
Alternative coins (aka Altcoin) qualifies to be a coin since alternative coins have their own blockchain. However, any coin which is not a Bitcoin is sometimes referred to as an altcoin. Ethereum, XRP, Litecoin, Bitcoin Cash etc are all examples of altcoin.
Tokens are cryptocurrencies that do not have their own blockchain but live on another blockchain. As they live on another blockchain, they benefit from its technology and ecosystem. ERC-20 is an example of a token type which lives on Ethereum blockchain.
An address is a destination where a user sends and receives cryptocurrency. This is basically a public key which you can freely share with anyone.
In its basic form, cryptocurrency wallet is a software program, hardware device or a service which stores the private and public keys. Public key (address) is what you share with others to receive cryptocurrency and private key is never shared and its used to sign the transfer request.
Mining, mining systems and miners
Mining is an action of validating transactions and releasing new currency. When a new block is found, miners who found the block are rewarded with cryptocurrency.
Mining systems are hardware (CPU based, GPU based, ASIC etc) and software systems which facilitate mining. Miners are individuals or companies managing mining systems to earn cryptocurrency.
Mining is an integral part of cryptocurrency ecosystem, without mining there wont be any transactions or cryptocurrency.
A transaction in cryptocurrency is based on the same principle as in other things in life. When you send or receive a cryptocurrency, a transaction is created and recorded on the public ledger (blockchain). There are 2 major differences between cryptocurrency transaction and other financial transactions
- Cryptocurrency transactions are immutable. Meaning, once a transaction is completed it cannot be removed or changed by anyone
- There is no middle man
Most cryptocurrencies (eg Bitcoin, Ethereum, Litecoin etc) are decentralised. Which in its simplest form means that no central authority manages a cryptocurrency. No one can shutdown a cryptocurrency by closing a company, state or even country. See distributes ledger.
Cryptocurrency exchanges are businesses which provide online or in person services to buy, exchange and sell cryptocurrencies.
In traditional finance, a middleman is usually a person, business or a government authority responsible to validate and/or facilitate a financial transaction. Banks, Credit card companies like VISA and Master, transfer facilitators like Paypal are all examples of financial middlemen.
Started as a typo for hold, which later became a byword for 'do not sell, hold your currency'.
FOMO is a fear of missing out an exciting opportunity.
Acronym for fear, uncertainty and doubt.
In cryptocurrency world, a whale is a person or a company who owns a large number of coins. Whales can sometimes change the market direction by selling or buying in large numbers.
To the moon
The term 'to the moon' is generally used when a particular currency is gaining a lot of traction from the buyers resulting in a price jump.
A bag holder is a person or a company holding a large number of currency which has became either very low in value or worthless.
The term rekt is a slang for wrecked which originated from the multiplayer gaming world. It is used when a player gets completely destroyed. As you can imagine, in cryptocurrency world it's used to describe an investor who lost big sums.
A vaporware is a hyped cryptocurrency which is either not yet known or available. Or, the currency with very little substance or a long term advantage.
A person or a company promoting coins or tokens for their personal benefit.
In cryptocurrency world, OCD refers to Obsessive Cryptocurrency Disorder. Usually used when someone is obsessively watching the price movements.