Glossary

Enrich your dictionary with important cryptocurrency terms.


1 SATOSHI (0.00000001 BTC)

Satoshi is a bitcoin cent. Bitcoin is divisible into eight decimal places. 1 Bitcoin = 100,000,000 satoshi. The bitcoin cent was named after Bitcoin founder Satoshi Nakamoto.


ALL TIME HIGH / ATH

The abbreviation ATH represents the highest value that any cryptocurrency has ever reached. ATH stands for All Time High. This term is often associated with a bullish trend and an increase in cryptocurrency market capitalization.


ALTCOIN

Altcoin is an alternative cryptocurrency, an alternative coin. From the perspective of the first cryptocurrency - Bitcoin - in principle each new cryptocurrency is an altcoin, i.e. an alternative cryptocurrency. The most famous altcoins include Litecoin, also called 'Bitcoin's younger brother' and 'digital silver'. There are now numerous altcoins, with new ones being constantly added.


BEARISH TREND

A bear market or bear trend follows from the term BEARISH, which is associated with a pessimistic mood in the markets. In this bearish trend, the value of cryptocurrency or the whole market is expected to decline. The model for this trend is a bear, which is characterized by its bowed head with claws symbolizing a fall in prices.


BITCOIN

Bitcoin is the first, oldest and most famous cryptocurrency. It was created in 2009 by someone known under the pseudonym Satoshi Nakamoto. The identity of the creator or creators remains unknown. Bitcoin is considered digital gold and a store of value. It's also the largest and most used cryptocurrency in terms of market capitalization. The number of Bitcoins is limited - only 21 million can be extracted. The last Bitcoin will be mined in 2140. On stock exchanges, Bitcoin is often referred to by the abbreviation BTC and sometimes the designation XBT.


BITCOIN CASH (BCH)

The term Bitcoin CASH defines a cryptocurrency other than Bitcoin. The Bitcoin currency was separated by forks on 1 August 2017, i.e. one database of transactions was divided into two branches. The history of transactions has been stored. So if Bitcoin was credited to our address on the original network, we had the same number of BCHs at the same address on the network.


BLOCK

Under the term 'block', we can imagine a package of data stored in a blockchain network. This data is permanently stored and defined in the blockchain and cannot be edited or changed in the future.


BLOCK EXPLORER

The BLOCK EXPLORER tool searches for online transactions made on the blockchain. With this online tool, after entering a transaction ID you can verify and check what has been moved from one address to another.


BLOCK REWARD

This is a reward for people who mine cryptocurrencies and keep the network running with the aim to complete one block. Such people are also called 'miners'.


BLOCKCHAIN

Blockchain is a decentralized database that contains all transactions of a specific cryptocurrency. Blockchain is a new technology used by most cryptocurrencies, including Bitcoin. In the blockchain network, the entry of individual information is stored in blocks. These blocks are created by miners, and then interconnected according to defined cryptographic rules. Blockchain is also called an 'open ledger' that, thanks to its decentralized nature, no one can manipulate.


BTC

On stock exchanges, Bitcoin is often referred to by the abbreviation BTC and sometimes the designation XBT.


BULLISH TREND

A bull market, or even bullish trend, is an optimistic mood in markets compared to the bear market. It's associated with expected growth in the value of cryptocurrencies. The model for this trend is a bull, the upward horns of which symbolize rising stock market prices.


COINMARKETCAP

One of the most popular websites that gathers comprehensive information from cryptocurrency world.


COLD STORAGE

This is the offline storage of cryptocurrencies in a wallet. This is the offline storage of cryptocurrencies in a wallet. Examples are paper wallets or hardware wallets such as the Trezor. In their case, there is no threat of a hacker attack and stored funds are considered safe.


COLLATERAL

Refers to an asset offered as a guarantee to repay a loan. For a loan made on the DeFi credit platform, the collateral as a token must be locked. The security is returned after the loan is repaid. If the loan is not repaid, the collateral remains locked on the platform.


CORRECTION

A correction defines the decrease in price that usually happens after reaching the All Time High, or a longer-term rise in the value of a cryptocurrency.


CRYPTOCURRENCY

A cryptocurrency is a decentralized digital currency that cannot be controlled or manipulated, and the value of which is not controlled by any central authority (as with FIAT currencies issued by central banks). New cryptocurrencies are added every day. Check out their current ranking at www.coinmarketcap.com


CRYPTOCURRENCY ADDRESS

An address that represents something like an account number in the standard world. A cryptocurrency address is the address of your wallet to which you can send cryptocurrencies. Every cryptocurrency always has a separate address. So for example you can't send Litecoin to your wallet's bitcoin address.


CRYPTOCURRENCY ATM

Cryptocurrency ATM is a self-service device to quickly buy or sell cryptocurrencies. There are two-way or one-way cryptocurrency ATMs. They're often located in shopping centres and busy places in cities. Cryptocurrency ATMs usually have higher fees than exchanges. Globally, there are over 34,000 cryptocurrency ATMs. Find their exact location at https://coinatmradar.com.


CRYPTOCURRENCY EXCHANGE

Cryptocurrency exchange je webová stránka alebo mobilná aplikácia, kde je možné zameniť jednotlivé kryptomeny za peniaze, alebo za inú kryptomenu. Niektoré burzy akceptujú vklady a výbery aj v peniazoch, väčšina búrz však akceptuje vklady a výbery výlučne vo forme kryptomien.


DAY TRADING

The extended buying and selling of assets in order to make a profit within intraday changes in their price. Day traders also try to take advantage of short-term price fluctuations between highly liquid assets. 'Day trading' is generally considered a riskier investment than long-term strategies.


DECENTRALIZATION

Decentralization is associated with cryptocurrencies. It's a system or platform that is not dependent on central authority. Due to the absence of central authority, no one has control over such a system. Decentralized systems are more resistant to attacks because they're not run from one place, but on hundreds or thousands of servers. A decentralized network cannot be easily "shut down" by a government or other authority for example.


DECENTRALIZED APPS (dApps)

Apps running on decentralized technology, mostly using smart contracts, which operate autonomously without the need for central authority. Decentralized apps are abbreviated DApp and usually use the blockchain Ethereum, Solana, or Cardano.


DECENTRALIZED AUTONOMOUS ORGANIZATION (DAO)

An organization whose building is based on smart contracts. Together they form an autonomous system without central authority. The coin holders of such a DAO decide the development of a particular decentralized autonomous organization.


DeFi

DeFi - short for 'decentralized finance'; the system by which financial products are available in the public decentralized blockchain network. Therefore, they can be used by anyone and are performed without the input of third parties - such as banks, the government, or other financial institutions.


ERC-20

It is a token format in the Ethereum network. Most tokens in circulation today run on this standardized format. ERC-20 tokens can be sent to the same Ethereum wallet and are easily interchangeable. But when posting, you need to ensure the exchange supports a particular token. Because if not, you may lose your ERC-20 tokens.


ETHEREUM (ETH)

Ethereum is currently the second most valuable cryptocurrency. Ethereum enables you to create smart contracts or ERC-20 tokens on its blockchain network.


FIAT / FIAT MONEY

State currency without commodity coverage, such as gold. Fiat currency is official currency only because the government has declared it official currency and enacted it by law. Examples of FIAT currencies are the US dollar, the euro, the Czech koruna, etc.


FOMO (Fear of missing out)

The fear of missing out on something. In the cryptocurrency world, this term is associated with the feeling that we see a large increase in the value of a cryptocurrency, and we fear we've missed out. The opposite to FOMO is JOMO (joy of missing out).


FORK

This means splitting the blockchain into two separate networks, as was the case with Bitcoin and the creation of the Bitcoin Cash blockchain. Fork is also referred to as a blockchain rule change.


FUD (Fear, uncerainty, doubt)

Fear, uncertainty and doubt. Due to the volatility of cryptocurrencies, this feeling is relatively common for newcomers to the cryptoworld. FUD especially kicks in when value decreases rapidly. You consider whether the bubble has burst and if to sell your cryptocurrencies, even at a big loss.


GENESIS BLOCK

This is the very first block in a given blockchain. It's then followed by all other blocks.


HALVING

This relates to the miners that mine cryptocurrency. Halving is a reduction in the reward for using one block. An example is Bitcoin, for which halving takes place every 210,000 blocks.


HARD FORK

Modifications or changes to any blockchains, and implementation of new rules incompatible with the previous protocol version. For example, a hard fork is to change the parameters of emerging blocks that have different parameters than previous ones. For example, when enlarging a block from 1 MB to 8 MB.


HARDWARE WALLET

An offline electronic device that connects to a computer via USB. It is used to store Bitcoins or other cryptocurrencies. A hardware wallet is a physical device, not just software on your computer. Private keys are securely stored in the hardware wallet and separated from the Internet. The best-known hardware wallets are Trezor and Ledger.


HASH

A computer function that encrypts data - resulting in a combination of letters and numbers of a certain length.


HASH RATE

The performance of a cryptocurrency mining device measured in the number of hashes per second.


HODL (Hold on for dear life)

A typo from the English word "hold" has become popular—it means long-term holding, i.e., if someone HOLDS a cryptocurrency, they want to own it for the long term and do not plan to trade it in the near term because they believe in growth in the long term. In English, the words "hold" and "hold" sound very similar, and perhaps because of this, this humorous typo has become an established term.


KYC

Know Your Customer. This is a regulation based on which a user's identity is verified in the investment and financial sphere. Whilst previously a matter of investor protection, today this regulation is required to tackle money laundering. Most exchanges require identity verification by uploading an identity card or passport.


LIGHTNING NETWORK

The speeding-up of bitcoin network transactions. This solution is the 'second layer' above the standard Bitcoin network, where transactions can be conducted at low fees.


LIQUIDITY

This is the ability to readily convert certain assets into money. This indicator shows how quickly you will get cash for your assets. Bitcoin has high liquidity just like other cryptocurrencies. In contrast, collecting antiques has low liquidity because its monetization could take a very long time.


LITECOIN (LTC)

One of the oldest cryptocurrencies, modelled on bitcoin, is now a leading altcoin. Due to its numerous similarities to bitcoin (digital gold), litecoin is considered 'digital silver'. The maximum number of LTCs is 84 million, which is four-times the maximum number of Bitcoins. LTC transaction fees are much lower than Bitcoin fees.


MARKET CAP

The total market value of a given cryptocurrency can be found on CoinMarketCap.


MAXIMUM SUPPLY

This is the maximum number of parts of a given cryptocurrency that should exist. Some cryptocurrencies have a limited amount and enter the circulation gradually. In this case we refer to a deflationary currency. Other cryptocurrencies have an unlimited amount. The maximum number of Bitcoins in circulation will be 21 million.


METAVERSE

A virtual digital 3D space inhabited by avatars, in which cryptocurrencies, blockchain, NFT, and smart contracts play an important role.


MINING

The solving of cryptographic calculations. This process aims to verify and create a block. If a block is successfully closed and thus the "cryptographic puzzle" is solved, the miner receives a reward as a certain number of cryptocurrencies.


MONERO (XMR)

One of the best-known anonymous cryptocurrencies, designed for maximum privacy. Its transactions aren't trackable or traceable.


NFT

A non-fungible-token can be any asset, art, or something unique. NFTs are a unique asset in the digital world.


PAPER WALLET

A paper wallet is a secure form of cryptocurrency storage. In the case of a paper wallet, the user prints the private key and public address, for example with a QR code on paper. And if you want to send cryptocurrencies from this wallet, you must import its private keys to another wallet. Then you can continue to work with your funds.


PEER TO PEER

A data transfer between two or more parties that operates directly without a central node. Data, files and any other information can be shared this way.


PoS (Proof-of-Stake)

The Proof of Stake consensus isn't based on mining (like Proof of Work) and is less energy intensive. The blockchain transaction verification mechanism is based on validators who lock their coins and receive a reward as transaction fees for this verification.


PoW (Proof-of-Work)

The Proof of Work consensus means that the miners that mine the cryptocurrency run the network. They receive a reward for their work. But of course, this reward isn't physical. Miners use computing power, and after calculating the hash function and creating a new block, they are rewarded for extracting the cryptocurrency. PoW uses, for example, Bitcoin or Litecoin for its operation.


PRIVATE KEY

A secret key that uniquely identifies a particular account and should only be known by its owner. This combination of letters and numbers enables access to the cryptocurrencies in your wallet.


RIPPLE (XRP)

A controversial cryptocurrency that is not decentralized. Many people don't even consider this cryptocurrency to be a cryptocurrency. It saw huge growth in 2017, much bigger than BTC itself, and was one of the fastest growing cryptocurrencies of 2017. There are 35 billion coins on the market. However, there are as many as 100 billion of them—most of them (up to 62%) are owned by the private company that founded the cryptocurrency.


ROADMAP

Key cryptocurrency milestones and future plans are on the timeline. Such roadmap typically also shows past milestones and events.


SATOSHI NAKAMOTO

The pseudonym of the figure behind Bitcoin - the first and oldest cryptocurrency. The real identity of Satoshi Nakamoto remains elusive. There's also speculation as to whether it is an individual or a group of people. The smallest bitcoin unit is named after Satoshi Nakamoto.


SMART CONTRACT

An autonomous, automatic and smart contract between two or more parties entered into permanently on a blockchain. It's executed automatically when registered conditions are met.


SOFTWARE WALLET

A software wallet is an app for smartphones and computers that can work with cryptocurrencies.


STABLE COIN

This is a stable cryptocurrency with almost fixed value that is not subject to volatility. Stable coins are often pegged to standard currencies (such as the dollar or euro) or gold.


STAKING

Cryptocurrency staking is one of the possibilities for achieving a passive cryptocurrency income. The term originated after a new consensus mechanism called Proof of Stake was established. As a term used nowadays, staking represents any locking of a certain number of tokens or coins. The user gains the right to validate the Proof of Stake consensus transactions or other benefits for them.


TOKEN

The cryptocurrency world includes blockchains that enable the formation of other cryptocurrencies, i.e. Tokens. So such cryptocurrencies don't have their own blockchain. Instead they use - for example - the blockchain Ethereum, Cardano, or Solana.


TREZOR

One of the most popular hardware wallets. It's made in Czechia.


VESTING

Vesting is a gradual release of locked tokens. This procedure is usually associated with a pre-sale phase when investors obtain a certain number of tokens at a discounted price. Release rules vary; the release may be single or phased at specific intervals.


VOLATILITY

This indicates the fluctuation and rate of change of an asset's exchange rate. Cryptocurrencies are associated with major volatility. It is common for them to increase in value and fall rapidly by several tens of percent.


WALLET

To use cryptocurrencies in everyday life, a cryptocurrency wallet is a must. This can be hardware, software, or paper. Each wallet has its own address under which we can picture the account number. Every wallet needs to be properly set up, backed up, and secured to ensure funds are not stolen and can be restored in the event of loss.


WEB 3.0

The new generation of the Internet. It should bring a more secure and freer virtual space based on new features as well as decentralized systems. This is the next stage in the Internet's evolution, including its apps and architecture.


WHITEPAPER

This is a document that aims to inform readers about a company, product, components, specific technology, future plans, etc. In the case of cryptocurrencies, this is usually the standard document that will present the entire project: from the team to the company's specific cryptocurrency.