Crypto Glossary

2FA

Two-Factor Authentication is an extra layer of security used to make sure that people trying to gain access to an online account are who they are. This security is frequently used in the Cryptocurrency world. Within a first step a user will enter their username and a password. Secondly, they will be required to provide another piece of information. They often provide QR code via for example Google Authenticator.

Altcoin

It is an abbreviation of an English expression Aternate coin. Altcoin (Alt) are all other cryptocurrency which are not Bitcoin (BTC). Bitcoin is the main index of the cryptocurrency market. If an exchange rate of Bitcoin raises, other cryptocurrency – Altcoins rise and vice versa.

ATH

ATH is an abbreviation of an English expression All Time High. It is the highest historical price of concrete cryptocurrency.

Bag Holder

It is an informal investment term which is using to describe of an investor who possesses an opened business position. The position decreases a cost of their account until the account is worthless.

Bearish

This expression comes from „bear run“. It means that a cost of assets decreases. Why do people use that expression? It is because of the position of a bear during its attack. The bear usually attacks from the top down. If you remember it, you will allways know that a bear market is decreasing.

Blockchain

Blockchain is one of them most confusing names in the cryptocurrency world. It is a technology which enables running cryptocurrency. In the IT environment it is known to be a special kind of distributed decentralized database. The database stores a growing list of records which are protected against an unauthorized encroachment from an external or knots of a peer-to-peer net. The most common application of blockchain is usage it like a ledger of cryptocurrency which stores transactions done by an owner. A combination the ledger with cryptography can declare anonymity of operations and obviate unauthorized transactions. Each transaction can be found on the website www.blockchain.info. Blockchain also means a solution of a mathematical task. This task is known as the Problem of Byzantine generals. It is a gradually added list of payments. Blockchain is simply the public register where all transactions are recorded and confirmed by miners anonymously. It is the chronological register of all transactions which is shared among many users. The most important fact is that added/recorded information can not be changed. If a user wants to change any information, they must hack all users of the Cryptocurenncy in one moment but this action is not possible. Blockchain is actually a ledger.

BTFD

An abbreviation BTFD comes from Buy the Fucking Dip. It is actually a recommendation to buy a Cryptocurrency to other businessmen. Reason of this action is that a price of the Cryptocurrency is relly low and it might not be lower. BTFD is appeared after FUD.

Bullish

Bullish comes from „bull run“. It means that prices of assets are increasing. Why do we use the expression Bull in this time? It is related to an offensive position of the bull. The bull attacks from below to upward. Therefore a bull trade is increasing which is an opposite of a bear trade.

BUY/SELL Wall

It is a wall which is created from a huge amount of limit payment order with same price. The best illustration of the wall is in a graph of the depth of market.

Captcha

You certainly know this term. It is about Turing test which is a machine´s ability to exhibit intelligent behavior equivalent, or distinguish human from machine input. It is an acronym of „completely automated public Turing test to tell computers and humans apart“. You absolutely have met a small window with a simple task, for example to copy a test, to click on a picture or to select pictures which contain car.

Circulating Supply

This expression means how many coins are in circulation. If you multiply Circulating Supply by a price of one coin, you get Market CAP.

Coin

Coin means Coin/ Coins.

DDoS

It is an abbreviation of Distributed Denial of Service. It is a kind of hacker attack which is able to stop or slow down a webside.

Deposit

If you own a bank account, you certainly know this term. If you want to start to make a business in a stock exchange or use service of a broker, you must have a financial means for buying business products.

DIP

It is about a temporary decrease of a price in a rising graph. If DIP appears in such a graph, you have an ideal opportunity to buy cryptocurrency with a discount.

Diversification

It is an effort to decrease a risk. An investor does not rely on only one product, but they divide their activities to different branches, their assets to different companies, currencies etc. It is about a layout of investments.

Dump

It is a significant price drop or correction (from – 20%). The price drop is caused by an influence of a common sale of products.

DYOR

It is an abbreviation of „Do Your Own Research. This phase is often used by unexperienced investors which ask for advice to experienced investors. On the other hand, each investor should learn to find the most proper and interesting product or project to which they will invest their money. These investors will believe in it and have confidence to it.

Fundamental analysis (FA)

It is about basic factors which influence an exchange rate of a financial product such as economy of the company of a joint stock. Global fundamental analysis focuses on an influence of a whole economy and an inner value of a joint stock.

Faucet

It is website which is able to send a small amount of money to your bank account because of several clicks. A target of those activities is a promotion and spreading of Cryptocurrencies, or raising a profit through an advertisement.

Fee

A fee is the price one pays for services.

Fiat

It is about a state currency such as CZK, EUR, USD and many others.

Fibo

It is an abbreviation of Fibonacci retracement which is a technical analysis. It helps to determine spots graph where a price turns.

Fill or Kill

It is about a Limit Order which must be filled immediately or never. It is used when somebody sell an amount of product with a price which you demand. Otherwise the order is canceled automatically.

FoMO

It is an abbreviation of Fear of Missing Out. It is about feeling which you have when a value of Cryptocurrency is significantly increasing and you did not buy this Cryptocurrency before. Because of it you will start to sell everything you have and buy the biggest possible amount of this Cryptocurrency. FoMo mostly affect thousands of investors and it can influence a price of this financial product. It is only human fear of a lost opportunity to earn a big amount of money.

Fork

Fork is actually a crossroad of two alternative branches. In the Crypro world Fork means that one of currencies divide in two currencies or a blockchain could divide in more branches. Each branch has own rules. The most main forks of Bitcoin are Altcoins – Bitcoin Cash (BCH) and Bitcoin Gold (BTG). In case of Fork, owners of an original currency get a same amount of coins for free of the new cryptocurency. For example, all owners of Bitcoins get a same amount of altcoin Bitcoin Cash or Bitcoin Gold.

FUD

FUD is an abbreviation of Fear Uncertainty and Doubt. It is an intentional dissemination of false and negative information about an instrument for a purpose to discredit it or decrease its value. Sometimes you can see FUD in media where Bitcoin is slandering. Due to the value of Bitcoin is decreasing and big investors can buy it by a lower price. These slanders are often false and they are created to achieve a higher profit.

HODL

HODL means „Hold On for Dear Life“. It is about the typing error which got to the Crypto world after using this error in bitcointalk by a drunken user. It means that despite all adversity investors should persevere in the market and should not sell their cryptocurrency with a loss. There is the main principle that you should invest money which you do not need.

HODLER

It is deduced from the expression Hodl. A person who buys coins and possesses these coins for a long time without any intention to sell them is connected with this expression.

HYIP

It is an abbreviation of High Yield Investment Program. It is basically a synonym for Scam, but the main difference is that HYIP is payed out. This program is an investment with a high profit. On the other hand, it can be connected with a high risk.

HW wallet

It is a hardware wallet where you can save Cryptocurrencies. For example: Safe or Ledger.

ICO

It is an abbreviation of Initial Coin Offering. It is about an advance sale of coins by start-up companies to increase their capital. ICO mostly runs before starting up a blockchain (in time when a Cryptocurrency is not functioning).Coins in ICO are bought frequently for earning a high amount of money. When they appear on the first stock echange, they are sold immediately.

Instrument

It is a marketable asset or marketable item such as stocks, forex, futures, options, commodities, bonds, derivates, indexes or other items serving like a background for derivates. For example: BMW, APPL, wheat, gold, DAX or SP5OO.

Correction

It is a short term decline of price after a fast increase (for hours, days and exceptionally up to months).

Cryptography

Cryptography is about constructing and analyzing protocols that prevent third parties or the public from reading private messages

Cryptocurrency

It is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Because of this, it is not possible to forge or hack virtual money. It is essential that there is no central institution like the government which could control Cryptocurrency. Cryptocurrencies are actually independent and safe. They enable sending financial means to everyone in the world immediately.

Ledger nano s

It is about a hardware wallet for digital currencies. It is assigned for safe and long-term storage of Cryptocurrencies. Currently Ledger nano s supports eight Cryptocurrencies (Bitcoin, Litecoin, etc.). It is assumed that other Cryptocurrencies will be added such as wallet has display, USB-C, micro SD and an interface for administrative. It looks like a key ring. It is actually Trezor which is produced by another producer.

Legit

It means that a website is able to sent earnings and the website is not presented like a scam.

Limit Order

It is about a payment order for purchase or sale by a specific future price. You determine a price which will be in this order. When the price gains this value, the order is filled and sent.

Long

It is an investment term which is about a purchase of a Cryptocurrency. If you are interested in a Cryptocurrency for a long time, you are able to buy it. The reason of your intention is that you believe that a price of a Cryptocurrency is going to increase in future. You speculate about a price increase.

Margin

Margin is the difference between the total value of securities held in an investor’s account and the loan amount from a broker. Buying on margin is the act of borrowing money to buy securities. The practice includes buying an asset where the buyer pays only a percentage of the asset’s value and borrows the rest from the bank or broker. The broker acts as a lender and the securities in the investor’s account act as collateral. You can multiply your profit or loss also.
Market CAP

It is an indication of the total market capital of a certain Cryptocurrency. A calculation is done by multiplying a price and a number of coins in a circulation. It is the best way to compare of Cryptocurrencies between themselves.

Mining

Mining is primarily related to cryptocurrencies and there are no principal diferencies from mining precious metal. For both activities you need a certain amount of capital to buy corresponding instruments. Consequently, you will undergo a certain risk then you gain a required asset. Mining is a process that uses computing power to process transactions, network security and synchronize all users in the network. It could be perceived as a data center for certain Cryptocurrencies. This center is designed to be decentralized miners are over the world. Therefore no onecan take control of the network. This procces is called mining and it is the mechanism which is able to add new coins to the network. Miners will receive the award (Cryptocurrency which they mine) in exchange for the useful computing power that is needed to secure the network.

Miner

Miner is a person who mines Cryptocurrencies.

Mining pool

In the context of cryptocurrency mining, a mining pool is the pooling of resources by miners, who share their processing power over a network, to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A “share” is awarded to members of the mining pool who present a valid partial proof-of-work. Mining in pools began when the difficulty for mining increased to the point where it could take centuries for slower miners to generate a block.[1]The solution to this problem was for miners to pool their resources so they could generate blocks more quickly and therefore receive a portion of the block reward on a consistent basis, rather than randomly once every few years.

Moon

In the Crypto World Moon means increase of a price of a certain Cryptocurrency. It is used when a price rises and it is able to gain almost the Moon. A graph curve rise strongly.

P2P, peer-to-peer

It is a kind of computer nets where clients can communicate. It is actually a decentralized communicate model where each sides have same opportunities and can start communication. Opposite of P2P is a server model where a client must require for a service and the server fulfills the requirement.

Pump

It is about a significant increase of a price (+ 20% and more). A higher amount of capital is put to Cryptocurrency and its price rises.

Pump and Dump

It is about a cycle of Altcoins when their prices significantly rise and after that falls down immendiately. These movements often occur with a small amount. Businessmen, which do this practice, create a purchase order of a high amount of coins. Consequently, FoMO of uninformed investors causes to increase of prices. This is Pump. After that businessmen, which have provoked Pump, start to sell everything and prices decrease. This is Dump.

Rekt

It is an abbreviation of „get wrecked“. This expression is used when you make a bad investment and lost a significant part of your deposit.

Resistance

It is a price level where businessmen refuse to pay this price and higher one. A market can not rise. If the market defeats this resistance of businessmen, the price can significantly increase (only in case of not a false courageous).

Satoshi

The satoshi is currently the smallest unit of the bitcoin currency recorded on the block chain.[1] It is a one hundred millionth of a single bitcoin (0.00000001 BTC). The unit has been named in collective homage to the original creator of Bitcoin, Satoshi Nakamoto.

Scam

It is about a fraudulent webside which stopped to pay out earned money to its clients. It is common in the environment of higher profitable investment systems which declare ten percents of income per year or month. Higher risk is connected to websides which do not have a possibility of investment.

Seeds (seedy)

It is a number of words which serve as a backup for example for TREZOR or other HW wallets.

Shitcoin

Advocates of Bitcoin use this expression for all Altcoins. Otherwise advocates of Altcoin use Shitcoin for calling Cryptocurencies which are too young or have a small market capitalization.

Short

A short, or short position, is selling first and then buying later. The trader’s expectation is that the price will drop; the price they sell at is higher than the price they buy it at later. The difference between the sale price and the buy price produces a profit or loss.

Signals

They are short and mostly charged messages which recommend buying Cryptocurrencies.

Spread

It is the difference between the bid and the ask price of a financial product.

Startup, start-up

A startup is the company that is in the first stage of its operations. These companies are often initially bankrolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand. Generally, these companies are „young“ firms which are created by maximally 40 year old employees. They are ambitious and selfconfident. These companies often start to run their business with zero capital but after a short time they are able to earn a huge amount of money.
Stop loss

It is actually a bond. It is about an action which can automatically sell Cryptocurency when this Cryptocurency drop below a setting price limit. Stop loss is a bond against a sudden stock market crash.

Strong Hands

Future-contract holders which are a well-financed speculator. They are experienced businessmen which can influence a market. They are able to keep their business positions opened for a long time than weaker businessmen give up their positions. Consequetly, the trend of market will change and these strong businessmen make more money.

Support

It is actually support of a price level. In time of decreasing this supported price has tendency to stop its fall and it is able to bounce back up.

Technical analysis (TA)

Technical analysis studies trends and uses them to forecast price movements of both single commodities and entire commodities alike. The goal of TA is determine future development of prices, the end or turn of the trend. There are different instruments in graphs such as Bollinger Brands, CCI, RSI, volume and trend lines which can seek trade signals. These signals will be convenient for opening a new trade position (short or long).

Take Profit

Take profit is a defined profit which you want to gain. A take-profit order (T/P) is a type of limit orderthat specifies the exact price at which to close out an open position for a profit. Most traders use take-profit orders in conjunction with stop-loss orders (S/L) to manage their open positions. If the security rises to the take-profit point, the T/P order is executed and the position is closed for a gain. If the security falls to the stop-loss point, the S/L order is executed and the position is closed for a loss.

Token

Token is something as a stock. It is about a share of a certain project or company. Tokens (cryptoassets) reside on their own blockchains and represent an asset or utility.

Trader

Trader is a person that is able to detect and use business opportunities and falling markets.

Trading

It is about making business within capital markets (a stock market). Trader makes an effort to detect the best business opportunity by a technical analysis or a fundamental analysis.

Trailing stop (TS)

A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor, but closes the trade if the price changes direction by a specified percentage.

Trezor

TREZOR is a hardware wallet providing advanced security for handling bitcoin private keys. It is produced by the Czech company SatoshiLabs. TREZOR is basically a small computer. It is designed to protect your private keys from possible online and offline risks. In order to do this, TREZOR keeps the private keys away from the Internet and confirms the transactions in-device.It has a display, USB-C support, micro SD and interface for administration. It looks like a key ring.

Wave

A pattern of a behavior marked by noticeable increases and decreases. Waves can be identified in stock price movements and in consumer behavior. Investors trying to profit from a market trend could be described as “riding a wave.” Investors use low and high parts of waves. In the low part you should do a purchase and in the high part you should sell your instrument. Daily checking the trade market is necessary as there is a possibility of a significant movement of the instrument. If the instrument moves then you expected, it could mean a high financial loss for you. This method is really difficult for beginners in the business environment.

Volume

Volume is the number of shares or contracts traded in a security or an entire market during a given period of time (mostly 24 hours). For example: If 24h volume of Electroneum cryptocurrency is $4,155,520, it means, that this cryptocurrency was sold for more than 4 milions dollars during 24 hours.

Weak Hands

In the financial markets, investors or traders have weak hands when they lack either the conviction to stick with an investing or trading plan or they lack the resources to carry them out.Traders with weak hands are not able to hold their positions. Therefore they sell them with a loss. After that, they regret their previous actions as the price will increase again very soon. Traders which have weak hands are mostly beginners.

Whale

Generally, Whale is an expression for a succesfull trader with a high capital that can cause great changes of a price. A bitcoin whale is term in the cryptocurrency world used to refer to individuals or entities that hold large amounts of bitcoin. Bitcoin whales could also have a disproportionate impact on prices, fueling speculation that some of BTC’s recent wild price swings were due to price manipulation by the whales.

Withdraw

Withdraw is an action which represents a withdraw of your financial means.