A unique string of numbers and letters associated with a wallet or currency used to send, receive or store cryptocurrency. Addresses are public and can be shared as text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, or HNT to a Metamask wallet.
Airdrop
Earning tokens as rewards for doing favors such as tweeting or retweeting company information.
Altcoin
Any digital currency other than Bitcoin
Bitcoin
The first and highest valued cryptocurrency, developed in response to the 2008 stock market crash as an alternative to the traditional banking system. The currency is mined by computers solving complex math problems, in a decentralized worldwide server network. Bitcoin provides an attractive, deflationary alternative to the dollar as a “store of value” and has is now attracting corporate investors such as Square, Paypal and Tesla, as well as recommendations from JP Morgan.
Block
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain
The unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature, and a software protocol. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Centralized exchange
A cryptocurrency exchange owned and controlled by a company. The largest are Binance and Coinbase.
Coins vs Tokens
Many people use coins and tokens interchangeably. However, coins are a form of cryptocurrency awarded by a base network, such as Ethereum which awards ETH, and are therefore the base currency for that network to pay transaction fees. As such, it functions more like a currency. A token is usually issued on top of another blockchain, and is often associated with a utility. $AUDIO is the token of Audius, the network where fans can support musicians, for example. Audius is built on the Solana network, which issues SOL coins.
Coingecko
Coingecko is the largest cryptocurrency data aggregator that tracks 6000 currencies and 400 exchanges and provides reporting charts and tools. Think of Coingecko as Bloomberg for cryptocurrency. It’s also the fastest way to find which wallets work with a coin, just look up the coin and scroll down to see the exchanges where it is traded.
Cold wallet
A cryptocurrency wallet that is physical, composed of hardware or paper. Popular hardware wallets include Tresor and Ledger, they cost about $80 to $200, work with a pin number, and are considered safest because they are offline and cannot be hacked. Paper wallets are also safer, however, if you lose the paper you lose your funds. Also paper requires you to enter long strings of numbers manually.
Consensus
An agreement among blockchain participants, typically on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid. Bitcoin’s consensus algorithm involves contributing power in the form of computing capacity, meaning you can only participate by incurring electricity costs.
Cryptocurrency
Digital currency secured by strong computer code (cryptography), that operates independently of any middlemen or central authorities. The top two are Bitcoin and Ethereum, however, there are now thousands of examples.
Dapp
A decentralized computer application ( DApp, dApp, Dapp, or dapp) that runs on a distributed computing system, such as Ethereum, as opposed to an app, which runs on a centralized server, such as Apple.
Decentralized exchange
An exchange with central ownership governing the network. Decentralized exchanges are jointly managed by all users of the system, and the structure is distributed over a global network of computers. They are much harder to hack, and trades can’t be “halted” in times of high market volatility.
Defi
DeFi, or decentralized finance, is a catchall term for the group of financial tools and applications, typically built upon Ethereum. The end goal is to allow anyone with internet access to lend, borrow and bank without the need for middlemen, and thus disrupting the traditional financial industry built on a banking system. DeFi is recognized as one of the fastest-growing areas of the blockchain and decentralized web space.
Digital exchange
A marketplace for investors to buy and sell cryptocurrency, the crypto equivalent of stock exchanges, such as the New York Stock Exchange. There are many exchanges with their own purposes. Most expert investors stay with the largest ones.
Digital wallet
Any digital way to store and transact money, such as ApplePay is considered to be a digital wallet. However, a digital wall that transacts and stores cryptocurrency records. It does not actually store the currency. The coins are stored on a blockchain. The wallet provides the record of transactions on the blockchain, stores addresses that allow the owners of those addresses to send and receive funds, interacting with the blockchain network.
A unique feature of wallets is that they are not able to receive funds from addresses that belong in a different kind of wallet on a different blockchain. Bitcoin, for example, can not be sent to an ethereum address. So sending tho the wrong wallet can result in losing funds. Check Coingecko.com for the name of the coin and scroll down to see the exchange.
Ethereum is an open-source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether, used for transaction fees, contributor rewards, and other services offered by dapps. Some experts consider it as a highway system since so many other blockchain daps are built on top of it.
Etherscan.io
Etherscan.io is one of the data aggregators that chart gas prices and can illuminate when to place a trade to pay a lower fee.
Fiat currency
The dollar, or any currency that a government has declared to be legal tender. Cryptocurrency is not legal tender. Fiat roughly means, “let it be done.” Cryptocurrency implies, “a decentralized and digital medium of exchange governed by cryptography.”
Funding a wallet
To put funds into a wallet so that you can transact, you can use the “buy” button to upload fiat currency from a credit card, or else connect to an exchange that is holding cryptocurrency.
A fee paid to run transactions, dapps and smart contracts on Ethereum. The gas rewards participants who process transactions and pay for the computing energy used. In other words, the money is used to reward blockchain participants who process your transactions. The more gas an operation consumes, and the busier the network, the more ether you’ll have to pay. Simple processings may take about (~3-10), while more complex instructions can cost you as much as 21,000 gas. On the Ethererum Mainnet, actual fees are paid in Ether. Other networks are based on other tokens.
Halving
Halving cuts the reward for successfully mining a block by half. Bitcoin network members who mine a block, for example, will see their rewards halve every 210,000 blocks, about every 4 years, capped at 21 million. Helium also halves its mined token on a set schedule, decreasing the rewards but driving up the price.
Hodler
Someone who holds a cryptocurrency long-term. From HODL which originated as a typo on a crypto forum, when a Bitcoin enthusiast accidentally misspelled the word HOLD. Today it is used to describe a long-term investment strategy. HODLers resist the urge to sell during dips in the market.
Hot wallet
A cryptocurrency wallet that is either online or software-based.
ICO (Initial Coin Offering)
An ICO is the first public crowd sale of a new digital coin used to raise capital from supporters for an early-stage crypto venture. Coins are offered in exchange for already established cryptocurrencies like Bitcoin and Ethereum. Typically, ICOs are unregulated and so there are lot of risks associated with them, including “pump and dump” schemes to make sure the founders are doxxed and have a track record.
Insurance
Insurance some cryptocurrencies use is actually only insurance against being hacked or downtime. If not insured, if the project is hacked you lose it all. However, it does not mean you are insured against loss if the value of the project goes down.
Mining
Like digging for gold, mining is the act of accumulating tokens as rewards for fulfilling requirements. This could mean solving a complex math equation to validate a blockchain transaction, or using specialized software to validate wifi network coverage. the blockchain equivalent of digging for gold.
Node
Any computer computing device on the blockchain network. Nodes have specialized software that verifies activities and relays them to other nodes. They can be regular PCs with specialized software or pre-configured machines that serve only one purpose, mining a particular token.
Online Custodial versus non-custodial wallets
A custodial wallet is one that is owned by a centralized exchange, so your coins are held by that company. A non-custodial wallet is one that connects to a decentralized network.
Protocol
A particular currency is sometimes simply referred to as a protocol, a protocol is actually the set of rules embedded in the software design and smart contracts. Bitcoin, Ethereum, Ripple and Hyperledger, have and may be referred to as protocols since all are software entities that embody different sets of rules.
Smart contract
A self-executing, digital contract with the terms of agreement written into the code. The contract makes decisions based on pre-set rules without ever involving a third party. Smart contracts were first introduced and made popular through the Ethereum blockchain.
Software wallets
Software wallets are a type of online wallet that is an application or DAPPs that can be installed, such as Metamask, which is installed on a browser extension, rather than a hard wallet that stores crypto in a physical device.
Stablecoins
Stablecoins are pegged to the dollar, it’s never going to change front the dollar and a safer way to stake money if you are working about a crash. It will always be worth the same as a dollar.
Staking
Acquiring a position in or loaning tokens to a currency in return for the reward of additional tokens. Staking is a simpler alternative to traditional mining by proof of work, and thus requires less energy and high-powered devices. All the investor needs to do is hold the required amount of coins and follow the rules.
Token
A unit of value in a cryptocurrency. Often exchangeable with the word “coin,” although technically it refers to second-layer tokenization.
Uniswap
The largest decentralized exchange for investors to trade cryptocurrencies. Distinguished also by the ability to add most coins.
Wallet
A file that stores all your digital currency, and which communicates with the blockchain to perform transactions, such as sending and receiving coins. A digital wallet has a private key. Coinbase and finance have their own wallets with a password, while Metamask wallets can be used with multiple exchanges that provide a wider range of altcoins. Its password is non-recoverable.
Whale
An investor that holds such a large amount of cryptocurrency that they can affect prices and manipulate the market.
Next:
Tools: Using Twitter for crypto research.
Tools: Using Cryptomarketcal.com