There’s no doubt, the world of blockchain-based cryptocurrencies is expanding terrifically. The industry is still in its cradle, but the allure of being part of what will probably revolutionize the world keeps attracting multitudes.
But amidst their arrival, many get caught up in the middle of bizarre terminologies and crypto jargon only known by those who’ve been in the industry. It is entirely fine for any newbie to feel intimidated by many of these terms since learning them, and their respective meanings later will be fun and exciting.
There are many of them, and it won’t take a while before anyone begins to grasp them, especially if such a person hopes to make some cash out of this now-vibrant industry. For now though, here’s a list of the most popular cryptocurrency lingos that anyone will probably meet out there while trading in crypto and BTC.
Blockchain Glossary & Cryptocurrency Vocabulary Terms
- Bitcoin – with a capitalized B, it stands for the technology, the community, the protocol and software of Bitcoin.
- bitcoin – it merely describes the unit of currency.
- Altcoins – refers to all the other cryptocurrencies apart from Bitcoin – Ethereum, Litecoin, Dash, Monero, Bitcoin Cash, etc.
- Bit – a sub-unit of a bitcoin. One bitcoin has a million bits.
- Satoshi – the smallest unit of Bitcoin equaled to 0.00000001 bitcoin and named after Satoshi Nakamoto.
- XBT or BTC – abbreviations of bitcoin.
- Confirmation – the act of confirming a bitcoin transaction’s validity, done by miners, every 10 minutes after a block has been mined.
- Mining – the process of computer hardware running complex mathematical calculations that confirm transactions and enhance the security of the Bitcoin network. Miners are those who manage this hardware.
- Recovery phrase or seed keywords – random 12, 18 and 24 words used to derive many pairs of private and public keys.
- Cryptography – a branch of mathematics and computer science that gave birth to cryptocurrencies.
- Private keys – secret alphanumeric password or number used to send and spend cryptocurrencies.
- Public key or Bitcoin address – the alphanumeric address that receives the coins.
- Bitcoin wallet – physical or software “purse” that will be used to hold and store the coins and public and private keys.
- Whitepaper – a comprehensive report that details the problem and solution a cryptocurrency ICO project hope to solve.
- Transaction ID – an alphanumeric string that has details of a transfer, including the amount sent, the sending/receiving address and the date of transfer.
- Blockchain – a universal public ledger of all bitcoin transactions to date.
- Cold storage – the idea of storing Bitcoin private keys offline.
- HD wallet – a wallet that generates a hierarchical, tree-like structure of several public and private keys right from the root seed key.
- Hardware wallet – a unique device that store public and private keys.
- Transaction fee – what bitcoin user pays before a transaction is completed.
- Block – a group of transactions waiting to be verified.
- Pump & Dump – the act of buying and selling bitcoins when the price is favorable.
- ICO – Initial Coin Offering
- FUD – fear, uncertainty, and doubt.
- Hard Fork – software update on a blockchain protocol that’s not backward compatible.
- Soft Fork – opposite of Hard Fork.
Other Terms Worth Mentioning
- Hash rate
- Fiat currency
- ASIC Miner
- Blockchain reward
- Crypto exchange
These are just a fraction of the whole terms. They won’t be perplexing once you get immersed in this new world. And other words will undoubtedly come up.