FUD – this term has been around forever and still means “Fear, Uncertainty, and Doubt”. In crypto, FUD refers to someone spreading negativity cryptocurrency lingo in order to cause the price of something to drop. In crypto, as in anything, don’t just take someone’s word for something.
Nocoiner
Staking Participation in a proof-of-stake system to put your tokens in to serve as a validator to the blockchain and receive rewards. Stablecoin A cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency.
Soft Fork (blockchain)
Burned Cryptocurrency tokens or coins are considered “burned” when they have been purposely and permanently removed from circulation. Bull A person that is optimistic and confident that market prices will increase, this person is also known to be “bullish” about the market or price. Bubble A bubble describes a situation where market participants drive prices up above their value, which is usually followed by a steep, rapid drop in prices as the market corrects.
Hard Fork (blockchain)
It’s concerned also by retail consumers’ inadequate understanding of cryptoassets and the lack of a clear investment need for investment products referencing them. Referencing certain types of cryptoassets in its proposal last week, the FCA said it is looking to address harm to retail consumers from their sale. The UK’s Financial Conduct Authority has proposed banning the sale of derivatives and exchange traded notes . The satoshi represents one hundred millionth of a bitcoin, the smallest unit of a bitcoin.
In 2014, Mt. Gox was shut down after about 850,000 bitcoin was declared lost or stolen. Mt. Gox was created in 2006 by Jed McCaleb who named it after Magic The Gathering Online Exchange where users could use the cards like stocks. A mining rig could be a dedicated piece of hardware for mining, or a computer with spare capacity that can be used for other tasks, only mining part time. Microtransaction A business model where very small payments can be made in cryptocurrency lingo exchange for common digital goods and services, such as pages of an ebook or items in a game. Margin Call When an investor’s account value falls below the margin maintenance amount. The broker will then demand that the investor deposit additional money or securities to meet the minimum required maintenance amount to continue trading. Leverage A loan offered by a broker on an exchange during margin trading to increase the availability of funds in trades.
What Is The Total Market Cap?
Shilling The act of enthusiastically promoting a cryptocurrency or ICO project. Segregated Witness A Bitcoin Improvement Proposal that aimed to fix transaction malleability on Bitcoin. In the past, when changing the “witness” information on blocks, it would change the transaction ID and its subsequent hash. SegWit was aiming cryptocurrency lingo to fix this by segregating signature and block content a side effect of this change was smaller block sizes and the ability to support second layer solutions. Second-Layer Solutions A set of solutions built on top of a public blockchain to extend its scalability and efficiency, especially for micro-transactions or actions.
Ledger A record of financial transactions that cannot be changed, only appended with new transactions. Inflation A general increase in prices and fall in the purchasing value of money. Infinite Approval Pre-approving smart contracts to enable the platform to spend any amount of your coins. Hidden Cap Hidden cap is an unknown limit to the amount of money a team elects to receive from investors in its initial coin offering .
Ecosystem- A developer will use this word to make his shitcoin seem sophisticated and complex. It is a sophisticated and complex system designed to separate you from your money.
Deciphering Cryptocurrency Jargon
This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not, be taken as a reliable indicator of future results.
A Peer-to-Peer Electronic Cash System and a digital asset conceptualized by Satoshi Nakamoto. HODL – The act of holding on to a coin for the long term instead of selling it. 大佬 (Dà lǎo) — “Boss.” Refers to a trader with a lot to invest. 币圈 (Bì quān) — Literally “coin circle.” Refers to the cryptocurrency lingo crypto space. New technology is upending everything in finance, from saving to trading to making payments. With innovative investment tools and a collaborative trading community, eToro empowers millions of users in over 140 countries to trade and invest in a simple and transparent way.
Depth Chart A graph that plots the requests to buy and the requests to sell on a chart, based on limit orders. The chart shows the point at which the market is most likely to accept a transaction. Delegated Proof-of-Stake A consensus cryptocurrency lingo mechanism where users can vote for delegates producing blocks on the blockchain, with votes proportional to their stake. It aims to increase efficiency and environmental friendliness of blockchain consensus protocols.
Smart Contract A smart contract is a computer protocol intended to facilitate, verify, or enforce a contract on the blockchain without third parties. Short A trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit.
Chargeback A demand made by a credit-card provider for a retailer to make good on the loss on a fraudulent or disputed transaction, reversing said payment or money transfer after it was authorized. Candlesticks A candlestick chart is a graphing technique used to show changes in price over time. Each candle provides 4 points of information opening price, closing price, high, and low.
DeFi DeFi is the creation of an ecosystem of financial tools built on blockchain. Cryptographic Hash Function Cryptographic hashes produce a fixed-size and unique hash value from variable-size transaction input. The SHA-256 algorithm is an example of a cryptographic hash function. Crypto-jacking The use of another party’s computer to mine cryptocurrency without their consent.
- Some sources claim that the current bitcoin design is very inefficient, generating a welfare loss of 1.4% relative to an efficient cash system.
- However, the efficiency of the bitcoin system can be significantly improved by optimizing the rate of coin creation and minimizing transaction fees.
- This translates into users being willing to accept a cash system with an inflation rate of 230% before being better off using bitcoin as a means of payment.
- The current value, not the long-term value, of the cryptocurrency supports the reward scheme to incentivize miners to engage in costly mining activities.
- The main source for this inefficiency is the large mining cost, which is estimated to be 360 Million USD per year.
- In an ICO campaign, a percentage of the cryptocurrency (usually in the form of “tokens”) is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, often bitcoin or ether.
No-coiner A no-coiner is someone who has no cryptocurrency in his or her investment portfolio and firmly believes that cryptocurrency in general will fail. Mt. Gox Mtgox or Mt. Gox was one of the first websites where users could take part in fiat-to-bitcoin exchange .
The advantage of hardware wallets is that your private keys are isolated from your computer, keeping your risk of theft near zero. Software wallets, on the other hand, are still connected cryptocurrency lingo to the Internet and expose you to some risk. Bitcoin Maximalist- these people have a great vision for our future. Imagine Mad Max meets the rapture- but everyone only takes bitcoin.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilising publicly-available information. Tezos is more insular than Bitcoin and is governed by centralised regulations. Bitcoin is still widely considered the Wild West of financial assets, susceptible to volatility according to its trading history. Today, tax-advantaged retirement accounts – Checkbook SDIRA, Checkbook 401k & Checkbook QRP – are undoubtedly the most effective vehicle to manage & eliminate crypto tax liability. As a result of US Tax Reform, for 2018 tax year and onward, 1031 like-kind exchanges apply to real estate only. Prior to US Tax Reform implemented in 2017, some US crypto investors took the position that crypto-to-crypto trades were exempt from tax as 1031 Like-Kind Exchanges. Traditional SDIRAs, Traditional QRP & Traditional 401k crypto investing will eliminate all crypto tax filing requirements and all crypto tax liability.