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The Ultimate Cryptocurrency Glossary

From bitcoin to shitcoin, every term you will come across on your cryptocurrency journey can be found in finder’s A to Z: Ultimate Cryptocurrency Glossary.

Cryptocurrency list lead

When it comes to industries that are confusing to everyday people, the stock market and computer programming worlds would be up there leading the list. Cryptocurrency combines the two! All the nuances of trading in the financial sector, done in the complexity of computer language. And that makes understanding the terminology and the processes behind this amazing new phenomenon doubly difficult to understand.

To help ease you into this landscape, we have created the ultimate cryptocurrency glossary. This not only gives you an overview of the terms used day-to-day in the cryptocurrency world but goes deeper to explain their importance and where they fit into the conversation. We will be updating the Ultimate Cryptocurrency Glossary regularly, so don’t be afraid to bookmark this page. And if you come across something not on our list that you think should be, or that you want explained for you, let us know in the comments.

The Ultimate Cryptocurrency Glossary

51% AttackIf more than half the computer power on a network is run by a single person or a single group of people, then a 51% attack is in operation. This means this entity has full control of the network and can negatively affect a cryptocurrency by halting mining, stopping or changing transactions, and reusing coins.
AddressesEvery cryptocurrency coin has a unique address that identifies where it sits on the blockchain. It’s this address, this location, at which the coin’s ownership data is stored, and where any changes are registered when it is traded. These addresses differ in appearance between cryptocurrencies but are usually a string of over 30 characters.
AirdropThis is a marketing campaign that refers to the expedited distribution of a cryptocurrency through a population of people. It usually occurs when the creator of a cryptocurrency provides their coin to low-ranked traders or existing community members in order to build their use and popularity. They are usually given away for free, or in exchange for simple tasks like sharing news of the coin with friends.
AlgorithmMathematic instructions coded into and implemented by computer software in order to produce a desired outcome.
All Time HighThe highest price ever achieved by a cryptocurrency.
All Time LowThe lowest price ever achieved by a cryptocurrency.
AltcoinsBitcoin was the first and is the most successful of all the cryptocurrencies. All the other coins are grouped together under the category of Altcoins. Ethereum, for example, is an altcoin, as is Ripple.
AMLAcronym for "Anti-Money Laundering"
Anti-Money LaunderingThese are a set of international laws that hope to prevent criminal organisations or individuals laundering money through cryptocurrencies into real world cash.
Application Specific Integrated CircuitA piece of computer hardware – similar to a graphics card or a CPU – that has been designed specifically to mine cryptocurrency. They are built specifically to solve hashing problems efficiently.
ArbitrageThere are multiple exchanges at any given time trading in the same cryptocurrency, and they can do so at different rates. Arbitrage is the act of buying from one exchange, and then selling it to the next exchange if there is a margin between the two that is profitable.
ASICAcronym for “Application Specific Integrated Circuit”
ATHAcronym for "All Time High"
ATLAcronym for "All Time Low"
Atomic SwapA way of letting people directly and cost-effectively exchange one type of cryptocurrency for another, at current rates, without needing to buy or sell.
BagIf you have a large quantity of units in a certain cryptocurrency you'd have a bag of them.
Bear/BearishIf the price of a cryptocurrency has a negative price movement.
Bear TrapThis is a trick played by a group of traders aimed at manipulating the price of a cryptocurrency. The bear trap is set by this group all selling their cryptocurrency at the same time, which bluffs the market into thinking there is a drop incoming. As a result, other traders sell their assets further driving the price down. Those who set the trap then release it, buying back their assets, which are now at a lower price. The overall price then rebounds, allowing them to make a profit.
BitcoinThe very first cryptocurrency. It was first created in 2008 by an individual or group of individuals operating under the name Satoshi Nakamoto. It was intended to be a peer-to-peer decentralized electronic cash system.
BlockThe blockchain is made up of Blocks. Each Block holds a historical database of all cryptocurrency transactions made until the Block is full. It's a permanent record, like a bag of data that can be opened and viewed at any time.
Block ExplorerAn online tool for exploring the blockchain of a cryptocurrency, where you can watch and follow live, all the transactions happening on the blockchain. Block explorers can serve as blockchain analysis and provide information such as total network hash rate, coin supply, transaction growth, etc.
Block HeightRefers to the number of blocks connected in the blockchain. For example, Height 0, would be the very first block, which is also called the Genesis Block.
Block RewardA form of incentive for the miner who successfully calculates the hash (verification) in a block. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of these.
BlockchainThe blockchain is a digital ledger of all the transactions in a particular cryptocurrency ever made. It comprises of individual blocks (see definition above) that are chained to each other through a cryptographic signature. Each time a block’s capacity is reached, a new block is added to the chain. The blockchain is repeatedly copied and saved onto thousands of computers all around the world, and must always match each other. As there is no master copy stored in one location, it’s considered decentralized.
BTFDAcronym for "Buy The F$%king Dip"
Bull/BullishIf the price of a cryptocurrency has a positive price movement.
BurnedIf a coin in any particular cryptocurrency has been made unspendable, it is said to be burned.
Buy the F$%king DipA less than savoury phrase used when you're (enthusiastically) telling someone a currency has dipped to a low value and should be bought.
Buy WallWhen a large Limit Order has been placed to buy when a cryptocurrency reaches a certain value, then that is a Buy Wall. This can prevent a cryptocurrency from falling below that value, as demand will likely outstrip supply when the order is executed.
CAPShorthand for Market Capitalisation (see definition below)
Central LedgerWhen a single entity has control of all financial records it is considered to be a Central Ledger. This is how banks operate.
Chain LinkingEach cryptocurrency has its own blockchain – the digital ledger that stores all transaction records. Chain Linking is the process that occurs if you transfer one cryptocurrency to another. This requires the transaction to be lodged in two separate blockchains, so they must link together to achieve the goal.
CipherThe name given to the algorithm that encrypts and decrypts information.
Circulating SupplyThe total number of coins in a cryptocurrency that is in the public tradable space is considered the Circulating Supply. Some coins can be locked, reserved or burned, therefore unavailable to public trading.
Cold StorageAnother term used for a Paper Wallet (see below).
ConfirmedWhen a transaction has been confirmed, it means it has been approved by the network and permanently appended to the blockchain.
ConsensusWhen a transaction is made, all Nodes on the network verify that it is valid on the blockchain and if so, they have a consensus.
Consensus ProcessRefers to those Nodes that are responsible for maintaining the blockchain ledger so that a consensus can be reached when a transaction is made.
Consortium blockchainA privately owned and operated, yet publicly transparent, blockchain.
CryptocurrencyA form of money that exists as encrypted, digital information. Operating independently of any banks, a cryptocurrency uses sophisticated mathematics to regulate the creation and transfer of funds between entities.
Cryptographic Hash FunctionThis process happens on a Node and involves converting an input – such as a transaction – into a fixed, encrypted alphanumeric string that registers its place in the blockchain. This conversion is controlled by a hashing algorithm, which is different for each cryptocurrency.
CryptographyThe process of encrypting and decrypting information.
DAOAcronym for "Decentralised Autonomous Organisation"
dAppShorthand for "decentralised application"
Decentralised ApplicationA computer program that utilises a blockchain for data storage, runs autonomously, is not controlled or operated from a single entity, is open source, and has its use incentivised by the reward of fees or tokens.
Decentralised Autonomous OrganisationRefers to organisations that are run by an application (computer program), rather than direct human input. Control of this application is granted to everyone, rather than a single central entity.
DecryptionTurning encrypted cipher text back into plain text.
DeflationWhen the demand for a particular cryptocurrency decreases, bringing down the price of its economy.
Depth ChartThis graph plots the requests to buy (known as bids) and the requests to sell (known as asks) on a chart. Because you can put a Limit Order on your buy or sell transaction, the Depth Chart shows the crossover point at which the market is most likely to accept a transaction in a timely fashion. It also shows if there are any significant Buy Walls or Sell Walls in play.
Deterministic WalletThis type of wallet is created by producing multiple keys from a seed. If you lose this wallet, your wallet key can be recovered from the seed. Plus, when you make transactions, instead of producing new keys each time, you use variations from the seed, which makes it more transferable and easier to store.
DifficultyWhen someone refers to difficulty in the cryptocurrency space, they are referring to the cost of mining in that moment in time. The more transactions that are trying to be confirmed at any single moment in time, divided by the total power of the Nodes on the network at that time, defines the difficulty. The higher the difficulty, the greater the transaction fee – this is a fluid measurement that moves over time.
Digital CommodityAn intangible, hard to get asset that is transferred electronically, and has a certain value.
Digital CurrencyAnother term for Digital Commodity
Digital SignatureUsed to confirm that a document being transmitted electronically is authentic. They generally appear as a code generated by a public key encryption.
Distributed LedgerA ledger that is stored in multiple locations so that any entries can be accessed and checked by multiple parties. In cryptocurrency, this refers to the blockchain being held on multiple Nodes on the network, all of which are checked simultaneously.
Double SpendThis occurs when someone tries to send a cryptocurrency to two different wallets or locations at the same time.
DumpThe term used to describe selling all (or a lot) of your cryptocurrency.
DumpingWhen a lot of people dump at once, causing a sharp downward movement in a cryptocurrency's price.
Dust TransactionSometimes people will look to slow the network by deliberately flooding it with minor transactions that are incredibly small. These minuscule amounts are referred to as a Dust Transaction.
DYORAcronym for "Do Your Own Research"
EncryptionConverting plain text into unintelligible text with the use of a cipher.
ERCStands for "Ethereum Request for Comments," and is a summation of proposed improvements to the Ethereum system.
ERC-20The standard to which each Ethereum token complies. It defines the way that each token behaves so that transactions are predictable. Other cryptocurrencies also use the ERC-20 standard, piggybacking on the Ethereum network in the process.
EscrowWhen an intermediary is used to hold the funds during a transaction, those funds are being held in escrow. This is usually a third-party between the entity sending and the one receiving.
EthereumOne of the top three cryptocurrencies in the world based on its market capitalisation. Despite being open source and based on blockchain technology, it differs from Bitcoin in two key ways: it allows developers to create dApps and also write smart contracts.
Ethereum Virtual MachineA virtual machine, effectively sitting in the cloud, that is Turing complete and is used by all Nodes on the network during blockchain confirmations. It allows those on the Node to execute random EVM Byte Code, which is part of the Ethereum Protocol.
EVMStands for Ethereum Virtual Machine
ExchangeThe platform through which cryptocurrencies are exchanged with each other, with Fiat currencies and between entities. Exchanges can vary widely on the currency conversions they will enable, and their fee structures.
FAAcronym for "Fundamental Analysis"
FaucetIf you find a website that offers to give you free cryptocurrency for connecting with them, it is termed a Faucet. The majority of these are scams.
FiatRefers to money recognised as legal tender by governments, such as the US dollar, pound, Euro and Australian dollar.
FOMOAn acronym for "Fear of Missing Out"
ForkWhen a new version of a blockchain is created, resulting in two versions of the blockchain running side-by-side, it is termed a Fork. As a single blockchain forks into two, they will both run on the same network. Forks are categorised into two categories: soft or hard.
FrictionlessIf there is no transaction cost and no restraints on trading, then the system is considered Frictionless.
FUDAcronym for "Fear, Uncertainty, and Doubt"
Full NodeSome Nodes download a blockchain's entire history in order to enforce its rules completely. As they fully enforce the rules, they are considered a Full Node.
Fundamental AnalysisA method through which you can attach value to a coin, by looking at similar economic and financial factors, and researching the underlying motives of the creators and market opinion.
Futures ContractThis is a pre-approved contract between two entities to fulfil a transaction when the value of cryptocurrency hits a certain price. It's different from a Limit Order in that the buyer and seller are already nominated and bound. A future contract becomes relevant when a buyer wants to go Short, and a seller wants to go Long on the asset.
GasGas a is measurement given to an operation in the Ethereum network that relates to the computational power required to complete it. That measurement relates to the fee offered to miners who process that transaction. Other operations have a small cost of 3 to 10 gas, but a full transaction costs 21000 gas.
Gas LimitWhen a user makes a transaction in the Ethereum network, they set their Gas Limit, which is the most they are willing to pay as a fee for that transaction. If the transaction is going to cost more Gas than what is offered, the transaction will not go through. If it costs less, the difference will be refunded.
Gas PriceThe amount you are willing to pay for a transaction in the Ethereum network. If you want miners to process your transaction fast, then you should offer a higher price. Gas prices are usually denominated in Gwei.
Genesis BlockThe first or first few blocks of a blockchain.
Group MiningAnother term used to describe a Mining Pool (see below).
GweiThe denomination used in defining the cost of Gas. So set a Gas Price of 20000 Gwei, for example.
HalvingEvery time miners approve transactions on the Bitcoin blockchain, they earn Bitcoin. As each block on the blockchain fills up with transactions, a certain amount of Bitcoin enter the marketplace. However, the number of Bitcoin that will ever be created is finite; locked at 21 million. In order to ensure this cap is kept, the amount of Bitcoin earned by miners for filling one block is halved at the completion of that block. This is called Halving. For the record, by the year 2140, all 21 million Bitcoin will be in circulation.
Hard CapDuring an ICO, the creator can set a Hard Cap. This is the maximum amount it was to raise, and it will therefore stop offering coins at this figure.
Hard ForkA fork in the blockchain that converts transactions previously labelled invalid to valid, and vice versa. For this fork to work all Nodes on the network must upgrade to the newest protocol.
Hardware WalletA physical device, similar to a USB stick, that stores cryptocurrency in its encrypted form. Considered the most secure way to hold cryptocurrency.
HashThe shorthand for Cryptographic Hash Function (see description above).
Hash RateMeasurement of performance that reveals how many hashes per second your computer is capable of producing. Each hash is an attempt to find a block by creating a unique block candidate and testing it against the network.
Hashing PowerThe Hash Rate of a computer, measured in kH/s, MH/s, GH/s, TH/s, PH/s or EH/s depending on the hashes per second being produced. 1,000 kH/s = 1 MH/s - 1,000 MH/s = 1 GH/s - and so forth.
HODLAcronym for "Hold on for Dear Life"
ICOAcronym for "Initial Coin Offering"
Initial Coin OfferingIn order to raise funds, the creator of a cryptocurrency will put an initial batch of its coins up for purchase. This is an Initial Coin Offering.
JOMOAcronym for "Joy of Missing Out"
KYCAcronym for "Know your Customer" and refers to a financial institution’s obligation to verify the identity of a customer in line with AML laws.
LAMBOShorthand for Lamborghini, which is how someone might refer to themselves if they are getting rich quickly. The idea being, there is so much money coming in, they are going to go buy an exotic car.
LedgerA record of financial transactions. A ledger cannot be changed, it can only be appended with new transactions.
LeverageA loan of sorts, offered by a broker on an exchange during Margin Trading (see below).
Lightning NetworkA peer-to-peer system for cryptocurrency micropayments that is focused on low latency, instant payments. They’re typically low cost, scalable and can work across chains, and transactions can be public or private.
Limit Order/Limit Buy/Limit SellIf you set a rule whereby a cryptocurrency is sold or bought when at a certain price, you are setting a Limit Order. When traders place an order for a buy or sell, the system looks for these Limit Orders.
LiquidityThe liquidity of a cryptocurrency is defined by how easily it can be bought and sold without impacting the overall market price.
LocktimeIf a transaction request comes with a rule delaying when it can be processed to a certain time or certain block on the blockchain, that is referred to as the Locktime.
LongWhen you intend to take a large amount of cryptocurrency and stockpile it with the anticipation that it will grow in value, you are going long (or taking a long position).
MACDAcronym for "Moving Average Convergence Divergence"
Margin Bear PositionThis is the position you are taking if you are going "short".
Margin Bull PositionThis is the position you are taking if you are going "long".
Market CapitalisationThis is defined as the total number of coins in supply multiplied by the price. CAP = SUPPLY x PRICE
Margin TradingA risky strategy used by experienced traders where they risk their existing coins to magnify the intensity of their trades. This allows them to buy more than they can afford using leverage provided by an exchange.
Market OrderAs opposed to a Limit Order, a Market Order does not wait until a certain price to buy or sell, it does so at the price of the time the transaction order is made.
MCAPAcronym for "Market Capitalisation"
MiningThe term, somewhat confusingly, given to the process of verifying transactions on a blockchain. In the process of solving the encryption challenges, the person donating the computer power is granted new fractions of the cryptocurrency.
Mining ContractAn investment in mining hardware, whereby you rent out the hashing power of mining hardware for a certain amount of time. The renter does not pay for the hardware, or the maintenance and electricity required to run it.
Mining PoolIf a number of miners combine their computing power together to try and help complete the transactions required to start a new block in the blockchain, they are in a Mining Pool. The rewards are spread between those in the Mining Pool proportionately based on the amount of power they contributed. The idea is that being in a Mining Pool allows for more chance of successful hashing, and therefore getting enough cryptocurrency reward to have an income.
Money Services BusinessA legal term used to represent an entity that transfers or converts money.
MoonA term used to describe a major price movement upwards. For example, Ripple is mooning.
Moving Average Convergence DivergenceA part of the technical analysis of a cryptocurrency's value, this tracks the momentum of price change to try and forecast into the future.
MSBAcronym for "Money Services Business"
Multipool MiningIf a miner moves from one cryptocurrency blockchain to another depending on the profitability provided by the network at that moment in time, they are engaging in Multipool Mining.
Multi Signature (Multi Sig Wallets)If in order for a transaction to go through, more than one user needs to provide their unique code, then it is Multi Signature. This system is set up at the creation of the account and is considered less susceptible to theft.
NetworkA network refers to all the Nodes committed to helping the operation of a blockchain at any given moment in time.
NodeAny computer that is connected to a blockchain's network is referred to as a Node.
NonceWhen a miner hashes a transaction, a random number is generated called a Nonce. The parameters from which that number is chosen changes based on the difficulty of the transaction.
OCOAcronym for "One Cancels the Other Order"
One Cancels the Other OrderWhen two orders for cryptocurrency are placed simultaneously, with a rule in place whereby if one is accepted, the other is cancelled.
OraclesThe smart contracts stored on a blockchain are stuck within the network. They can only be reached by the external world through a program called an Oracle. The Oracle sends the data to and from the smart contract and the outside world as required. Oracles are most commonly found on the Ethereum network.
OverboughtIf a large number of purchases have been made on a cryptocurrency, its price will increase for an extended period of time. At this juncture, it is considered overbought and a period of selling is expected.
OversoldIf a cryptocurrency has spent significant time being sold without an upward movement, it is considered Oversold. In this condition, there would be concerns about whether it will bounce back.
Paper WalletStoring your wallet code (your private key) on a physical document makes it a Paper Wallet. It's also sometimes referred to as Cold Storage.
P2PAcronym for "Peer to Peer"
Peer to PeerIn a Peer to Peer connection, two or more computers network with each other without a centralised, third-party being used as an intermediary.
PNDAcronym for "Pump and Dump"
Pre-SaleA period before an ICO goes public, where private investors or community members are able to buy the cryptocurrency.
Private KeyA string of numbers and letters that are used to access your wallet. While your wallet is represented by a public key, the private key is the password you should protect (with your life). You need your private key when selling or withdrawing cryptocurrencies as it acts as your digital signature.
Proof of Authority (PoA)A private key that gives the holder the right to create the blocks in a private blockchain. It can be held by a single entity or a set number of entities. This is an alternative to the Proof of Work model, as instead of getting multiple random Nodes to approve a transaction, a group of specific Nodes given the authority can approve. This is a far faster method.
Proof of Stake (PoS)Another alternative to Proof of Work, this caps the reward given to miners for providing their computational power to the network, at that miner’s investment in the cryptocurrency. So if a miner holds three coins, they can only earn three coins. The system encourages miners to stick with a certain blockchain, rather than converting their rewards to an alternate cryptocurrency.
Proof of Work (PoW)In order to receive a reward for mining a cryptocurrency, the miner must show that their computer contributed effort to approve a transaction. A variable is added to the process of hashing a transaction that demands that effort before a block can be successfully hashed. Having a hashed block proves the miner did work and deserves a reward – hence Proof of Work.
ProtocolsThe set of rules that defines how data is exchanged across a network.
Public blockchainA blockchain that can be accessed by anyone through a full Node on their computer.
Public KeyThis is your unique wallet address, which appears as a long string of numbers and letters. It is used to receive cryptocurrencies.
PumpThis is a term used to refer to an upward price movement, usually driven by whales investing large sums of money in a cryptocurrency.
Pump and DumpThe frowned upon practice of buying a lot of one cryptocurrency to drive up its price encouraging others to invest, then selling the lot when there is a suitable margin.
REKTShorthand slang for "wrecked" and a term used to describe a bad loss in a trade.
Relative Strength IndexA type of technical analysis whereby you determine the momentum of price change over time. It looks at recent changes in price exponentially, with the most recent changes given more weight than older ones. This produces an overall trend of movement for a cryptocurrency that can determine if the market is Overbought (a reading higher than 70) or Oversold (a reading lower than 30).
Ring SignatureA Ring Signature is a kick of encryption process that retains anonymity for the user. The concept gives the network of Nodes the power to approve a transaction on a blockchain, without identifying which of the Nodes requested the transaction. As a result, it cannot be traced.
RSIAcronym for "Relative Strength Index"
Satoshi NakamotoThe individual, or group of individuals – it has never been confirmed – that created Bitcoin.
SATSThis is the smallest unit of bitcoin, which is 0.00000001 BTC. The name SATS is shorthand for Satoshi Nakamoto, which is the fake name used by the creator of bitcoin.
ScryptAn algorithm that encrypts a key in such a fashion that it takes a serious amount of RAM to hash it. The system makes it challenging to attack for hackers. Despite its spelling, Scrypt is pronounced "ess-crypt."
SeedThe origin point from which you created your wallet id. Usually, a seed is a phrase or a series of words that can be used to regenerate your wallet id if you lose it. Something to keep very secret.
Segregated WitnessThe processes of separating digital signature data from transaction data. This lets more transactions fit onto one block in the blockchain, improving transaction speeds.
SEGWITAcronym for "Segregated Witness"
Selfish MiningIf a miner finds or creates a new block in the blockchain, and then doesn't share that information with the network, they are partaking in Selfish Mining. This is because other miners are now burning their computational power on an old block, allowing the selfish miner to get a head start on the new block.
Sell WallWhen a large Limit Order has been placed to sell when a cryptocurrency reaches a certain value, that is a Sell Wall. This can prevent a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed.
SHA-256The name of the Cryptographic Hash Function (the hashing algorithm) used by bitcoin. It's been subsequently used by a number of altcoins, too.
ShardingSharding is a way of splitting up the full blockchain history so each full node doesn’t need the whole copy of it. It's considered a scaling solution for blockchains because as they grow larger, it begins to slow the network performance if every Node is required to carry the full blockchain.
Shit CoinNo points for guessing this one. It's a term used to describe a cryptocurrency not expected to have a positive future.
ShortAlso known as Short Selling, this is a concept whereby a trader sells an asset they don't have when it is at a low price. The hope is that selling it will further drive the price down. They can then buy the asset at an even lower price than which they sold it to complete the deal. Thereby they earn a margin in the interim.
Smart ContractsWhen a contract is written in computer code, as opposed to traditional legal language, it is deemed a smart contract. This programmed contract is set up to execute and carry itself out automatically under specified conditions. When a smart contract is on the blockchain, both parties can check its programming before agreeing to it, and then let it do its thing, confident that it cannot be tampered with or changed. It lets two parties agree to complex terms without needing to trust each other, and without needing to involve any third parties. This functionality is the defining feature of the Ethereum blockchain.
Soft ForkA fork in a blockchain protocol where previously valid transactions become invalid. A Soft Fork is backwards-compatible, as the old Nodes running the old protocol will still consider new transactions valid, rather than disregarding them. For a Soft Fork to work, a majority of the miners powering the network will need to upgrade to the new protocol.
Software WalletA common form of wallet where the private key for an individual is stored within software files on a computer. This is the system you are likely to use if you sign-up to a wallet online that is not associated with an exchange.
SolidityA programming language similar to JavaScript, but focused on developing smart contracts. It’s exported as bytecode, which is used by the Ethereum Virtual Machine that runs the Ethereum network.
TAAcronym for "Technical Analysis"
Technical AnalysisUsing a trading tool to look at historical data on a cryptocurrency in the hope of forecasting its future.
Test NetWhen a cryptocurrency creator is testing out a new version of a blockchain, it does so on a Test Net. This runs like a second version of the blockchain but doesn't impact the value associated with the primary, active blockchain.
TimestampThe moment in time when a transaction was encrypted and regarded as proof that the data compiled in that transaction existed.
TokenThe “coin” of a cryptocurrency is a Token. Effectively, it's the digital code defining each fraction, which can be owned, bought and sold.
Tokenless LedgerWhen a distributed ledger exists but doesn't need a currency in which to operate. With these blockchains, the miners upholding the network typically don't get a reward/payment.
TORAcronym for "Terms of Reference"
TransactionThe value of cryptocurrency if moved from one entity to another on a blockchain network.
Transaction FeeUsually very small fees given to the miners involved in successfully approving a transaction on the blockchain. This fee can vary depending on the difficulty involved in a transaction and overall network capabilities at that moment in time. If an exchange is involved in facilitating that transaction, they too could take a cut of the overall transaction fee.
Turing CompletenessIf a machine is capable of performing all conceivable programmable calculations, then it is Turing complete. This machine can process any computable function and includes most modern computers.
UnconfirmedWhen a transaction is proposed, it is unconfirmed until the network has examined the blockchain to ensure that there are no other transactions pending involving that same coin. In the Unconfirmed state, the transaction has not been appended to the blockchain.
Unspent Transaction OutputThis refers to the amount of cryptocurrency sent to an entity, but not sent on elsewhere. These amounts are considered unspent, and is the data stored in the blockchain.
UTXOAcronym for "Unspent Transaction Output"
VolatilityThe fluctuation in an asset’s prices is measured by its Volatility. Cryptocurrency prices are notoriously Volatile compared to other assets as dramatic price shifts can happen quickly.
WalletA Wallet is defined by a unique code, which represents its "address" on the blockchain. The Wallet address is public, but within it is a number of Private Keys determining ownership of the balance, and the balance itself. It can exist in software, hardware, paper or other forms.
WhaleA term used to describe extremely wealthy investors or traders who have enough funds to manipulate the market.
WhitelistPrior to an ICO, interested parties can sign-up/register their involvement and intent to purchase, or even purchase under pre-sale conditions. The list of these parties is referred to as the Whitelist.
WhitepaperA detailed explanation of a cryptocurrency, designed to offer satisfactory technical information, explain the purpose of the coin and set out a roadmap for how it plans to succeed. It’s designed to convince investors that it’s a good choice ahead of an ICO.
Zero Confirmation TransactionAlternative phrasing for an Unconfirmed transaction.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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Chris Stead is the innovations editor at Finder. He is a gaming, tech and sports journalist with more than 24 years of writing and editing experience. He has previously worked at Game Informer, GamePro, Maxim, MCV Pacific, Gameplayer, Grab It, the University of New South Wales, Krash, It Girl and Fortnite Magazine. He has contributed to IGN, GameSport, NBN, Rooster Teeth, Fandom, Sydney Morning Herald, FilmINK, Brag, Popular Science, Foxtel, PC World, Hyper and Red Bull. Chris has a Bachelor of Advanced Science in Biology from the University of Sydney. A father of three, Chris has a passion for travel, photography and surfing. See full bio

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