Cryptocurrency Glossary: A Complete List of Crypto Terms

Cryptocurrency Glossary: A Complete List of Crypto Terms

Imagine you are a knight and you have only your sword and shield to defeat a dragon.

There are tons of things you can do.

But if you really want to be successful, you might have to find a way to avoid the dragon fire, break his teeth and claws etc.

The same rule applied if you want to become an expert Crypto trader or using a Cryptocurrency exchanger.  To become successful, you need to know a lot of things. One of them is to know your crypto glossary.

So it is a no-brainer that you have to know your terms.

This guide is perfect for you if you are:

  • Looking for a complete list of cryptocurrency terms?
  • Do you want to understand cryptocurrency better?

Then you have to take time to learn certain words that describe different things in that world.

It is exactly like the different terminologies used in different fields to explain certain things. They are a lot; however, the top ones that you are likely to encounter more have been picked for this article.

 

The A-Z of Crytpo Terms You Should Know

Address: Addresses consist of between 26 and 35 characters and represent a unique wallet ID on the blockchain, much like an account number. They are used when conducting transactions on the network, including the receipt, remittance, and storage of cryptocurrency.

Altcoin: This usually refers to any cryptocurrency coin other than Bitcoin, which was the original cryptocurrency. There are over 1,000 other cryptocurrencies in the market.

Blocks: These are packages of permanently-recorded data on the blockchain network.

Blockchain: This is a distributed ledger secured using cryptography. It’s a database that’s accessible for everyone to read. Therefore, data can only be changed by ledger owners. Data isn’t stored on a centralized server but is instead shared by thousands of computers around the globe.

Confirmation: When a transaction has been verified by miners and added to the blockchain, it receives a confirmation.

Consensus: Consensus is reached when all network participants approve the validity of the transactions by ensuring that ledgers are exact copies of one another.

Cryptocurrency: This is a type of digital asset used as a medium of exchange in business transactions. Cryptography is used to maintain the security of transactions and control the creation of additional currency coins or tokens.

Digital Asset: Not all cryptocurrencies trade as coins or currencies. If they are digital stores of value, they are termed digital assets. These can be freely exchanged or not.

Fiat currency: A fiat currency is any currency that’s issued by a government or a central bank, such as the dollar.

Fork: This term applies to a blockchain that’s split into two separate chains, normally to accommodate new governance rules.

Genesis block: This describes the very first block in any blockchain.

Going long/going short: These terms describe a margin trade that profits when the price either increases or decreases.

Hash algorithm: This transforms a large amount of data into a fixed-length hash or string of characters for a cryptographic key. Hash algorithms are central to blockchain and cryptocurrency transactions.

Hash rate: This refers to the speed at which a piece of hardware can decrypt hashes. This is the basis of cryptocurrency mining.

Hot wallet: A hot wallet is connected to the internet and used to hold cryptocurrency for everyday transactions. Because of the increased security risk over a cold wallet, a hot wallet should not store large amounts of currency

Laddering: Investors who set incremental buy or sell orders are said to be laddering.

Mining: Cryptocurrencies aren’t printed like traditional currencies – they are mined. This process uses computer hardware to solve complex mathematical problems and decrypt hashes. Miners are rewarded for their work with cryptocurrency coins.

Mining rig: Cryptocurrency mining requires a huge amount of power. Mining rigs consist of Multiple Graphic Processors (GPUs) to increase processing power.

Moon: When a cryptocurrency coin goes on a market run and drives the price up quickly, it’s referred to as mooning.

Multi-signature, or multisig: This refers to a situation where multiple signatures are required to authorize a transaction. This increases the security of cryptocurrency transactions and reduces the risk of theft.

Node: A blockchain isn’t stored in a central location. In fact, it’s distributed to any number of computers – called nodes – which host it. Each node is instrumental in verifying the ledger within the blockchain.

Private Key: This is the key – or password – which unlocks a wallet. It shouldn’t be shared with anyone.

Public Key: A public key is a wallet address that can be shared with other parties to effect transactions.

Pump and Dump: This is a form of market manipulation by traders who artificially inflate prices and then exit the market, thus causing a collapse in the price.

Spoofing: Spoofing occurs when investors with large holdings trade with themselves to create the illusion of volume.

Volatility: Market or price volatility refers to the movement in the price of a cryptocurrency over time. The cryptocurrency market typically experiences wild swings between high and low prices. 

Wallet: In the cryptocurrency sector, a wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance.

Whales: Whales are investors who hold a significant number of coins or other cryptocurrencies. They can have a marked influence on market movement.

 

If you want to move from a newbie in Crytpocurrency or Bitcoin trading, then you need to have a grasp of the terms that are used. Knowing your terms ensures that you are able to make the right decisions at all times.

Now over to you. Which of these terms don’t you know before now and which terms do you think we missed. Drop your suggestion in the comment before and we are sure to add it.

9 Top Cryptocurrency Exchanges for Trading Cryptocurrency 2019

9 Top Cryptocurrency Exchanges for Trading Cryptocurrency 2019

Wondering what the best platform for trading Cryptocurrency is?

Remember when we had to take a large amount of cash around in order to make transactions?

Think about how transactions are made easier and faster with a cashless society. Now imagine how it is with cryptocurrency, which is even a decentralized digital currency without a middle man (a bank, in this case).

A lot of people have realized this and opted for the convenience that comes with trading with cryptocurrency, especially as it is also a means of investment. So, there is really no better time than now to get with the program. However, in order to get started, you will need to identify cryptocurrency exchange platforms that you can sign up to.

There are so many cryptocurrency exchange platforms online (both on the website and mobile app) and what might appeal to one person might not appeal to the other. But whatever the case, some are better than some, especially as it relates to reputation and security. So, we have taken the time to list the top 10 cryptocurrency exchange platforms, so you can make an informed choice.

  1. Crespo 

Crespo is an online platform for cryptocurrency exchange. It aids with the trading of cryptocurrencies by combining the ease of traditional crypto assets with fiat to allow new traders to follow the trend or footstep of established traders so they can make a profit.

Top post on the blog of the platform – What is Bitcoin (A Beginner’s Guide): The article largely throws more insight on everything you need to know about bitcoin as a beginner.

  1. Coinbase

Headquartered in San Francisco, California, Coinbase is a digital currency wallet and platform for an easy and fast way to purchase bitcoin and other coins such as ethereum, litecoin and others. One of the most popular cryptocurrency exchange platforms, it has presence and users in over 30 countries including all of Europe (except Germany), the United States, Australia and Canada amongst others.

Top post on the blog of the platform – The United States of Crypto: The article was summarily to commemorate the U.S Independence Day on July 4th and uplift US ideals, especially the pursuit of economic freedom.

  1. Coinmama 

Coinmama is a popular cryptocurrency platform that has since 2013 made it easy for users to sell and buy digital currency such as bitcoin, ethereum, litecoin and other digital coins, anywhere in the world. The platform charges 6% on each transaction. Coinmama supports customers in almost all countries and available in English, German, French, Italian and Russian.

Top post on the blog of the platform – Beginner’s Guide to Bitcoin and Crypto: The article provides a guide to beginners on bitcoin and other cryptocurrencies.

  1. Binance 

Founded by Changpeng Zhao and Yi He, Binance is a cryptocurrency exchange used to trade in digital coins. Although still quite young, it has the most volume of all cryptocurrency platforms and one of the lowest trading fees. The platform has a mobile app and its site is available in multiple languages, especially Asian languages such as Chinese, Japanese, Korean as well as English and French.

Top post on the blog of the platform – You Can Now Use Hardware Security Keys on Binance: The article talks about the security efforts by Binance to tightly secure your Binance account.

  1. Bitmex

Launched in 2014, Bitmex is an international P2P cryptocurrency trading platform. Founded by HDR Global Training Limited, the platform does not allow fiat wire transfer. The platform also has a mobile app.

Top post on the blog of the platform – Libra: Zuck Me Gently: This article gives an insight into Facebook’s foray into Libra, a stablecoin backed by a basket of fiat currencies.

  1. Bittrex

Founded in 2014, Bittrex is a digital assets trading platform that supports high-quality exchange with a lot of coins. Built on cutting-edge technology, Bittrex basically has good volume across all its parts, so it is a convenient option for both large and small users on the platform. Every digital asset listed on the platform is available to international customers as well as international partner exchange platforms.

Top post on the blog of the platform – What Role Does Bittrex International Play in IEOS?: The post focuses on initial exchange offerings (IEOs) and how Bittrex comes into the play as well as what customers can expect in the future.

  1. Coinsquare 

Coinsquare was founded in 2014 as a digital currency and asset market for trading in bitcoin, ethereum, litecoin, dogecoin and other digital coins. The system is built on the same technology as that of the New York Stock Exchange. Based in Canada, Coinsquare maintains a ledger themselves to properly monitor where every coin is every time.

Top post on the blog of the platform – Stellar Lumens (XLM): A Simple Guide on How to Buy and Sell XLM: The post, in summary, sheds more light on buying and selling XLM, which is a blockchain based platform launched in 2014 to ensure global cross-asset transfers as well as quicken transactions.

  1. Kraken 

Kraken is a US-based cryptocurrency exchange platform founded in 2011 by Jesse Powell. It is currently the largest bitcoin exchange in Euro volume and liquidity. It supports different currencies for transactions, including Euros, US Dollars, Yen, Pounds as well as Canadian Dollars. Trading can also be done in other coins apart from bitcoin.

Top post on the blog of the platform – Breaking Down Crypto Mining: The post provides an insight into mining cryptocurrency.

  1. Changelly 

Changelly is one of the fastest cryptocurrency exchange process that is also different because you do not need to deposit coins. The system is programmed to get the type of coin you want to purchase as well as how much of it you want and it will tell you how much of the coin you are buying with to send. It is especially great for fast or urgent transactions.

Top post on the blog of the platform – Libra – Meet Facebook Global Cryptocurrency Coin: The post is throwing light to Libra, which is a stablecoin announced by Facebook at the beginning of 2019 and launched on June 18, 2019.

  1. Luno 

Luno is a digital asset exchange platform launched in 2014 in Singapore but expanded to Europe and is currently headquartered in London. It supports trade in bitcoin through credit, SOFORT, Ideal and SEPA transfer. The platform provides free deposits and low withdrawal fees. It also has an app that is available for Android and iOS.

Top post on the blog of the platform – The Truth about Making Money with Crypto: The article provides insight into making money with crypto. 

ICO - A Beginner's Guide to Initial Coin Offering

ICO - A Beginner's Guide to Initial Coin Offering

Do you know what ICO is?

In knowing the ICO to invest in, it is of great essence to understand what it really is and what situations can predispose a user to an ICO and what platform you can leverage for your cryptocurrency exchange.

An ICO, also known as An Initial Coin Offering (ICO), is the cryptocurrency space's rough equivalent to an IPO (it differs from this in that in IPO, investors own shares in the company)in the mainstream investment world. ICOs act as means of some sort of fundraising; an organization seeking to create a new coin, app, or service launches an ICO. After that, interested investors buy in to the idea/plan, either with fiat currency or with preexisting digital tokens like bitcoin or ether. In return for their support, investors receive a new cryptocurrency token specific to the ICO. Investors hope that the token will perform exceptionally well in the nearest future, affording them a bountiful return on investment. The company holding the ICO makes use of the investor funds as a means of achieving its goals, launching its product, or starting its digital currency. ICOs are used by startups to bypass the tedious and guided capital-raising process asked of by venture capitalists or banks.

What is Bitcoin

What is Bitcoin

What is Bitcoin?

That is what we will answer in this introductory guide to bitcoin.

Some millenniums ago, trading was done through the barter system.

The early man exchanged goods and services through the barter system whereby one type of good or service was exchanged for another.

Then, it evolved to coins before cash was introduced as well. In the 20th century, the card system was introduced which has been gradually taking over cash and welcoming a cashless society.

However, as of recent times, we now have the cryptocurrency, one of which, is bitcoin.

 

What is bitcoin?

Bitcoin is credited to be the first cryptocurrency in the world.

A cryptocurrency is a form of electronic cash, a digital currency that is transacted directly from user to user or peer to peer.

The major attraction of bitcoin is the fact that it is decentralized, that means the transaction is done without intermediaries; no central bank needed to regulate transactions.

Bitcoin is said to be invented in 2009 by an unknown person or group of persons that goes by the name, Satoshi Nakamoto. It is also said bitcoin emerged after big banks were accused of misusing borrower’s money by Occupy Wall Street and this is the reason why transactions are done without intermediaries.

 

How does bitcoin work?

Bitcoins are created through a process of mining, which is basically a reward for volunteers, who are called, miners. The miners solve mathematical puzzles to win bitcoins.

The miners also constantly verify and update transactions through a public distributed ledger system known as, blockchain.

After a specific amount of transactions are verified, a new block is added to the blockchain and the cycle continues.

Bitcoin is reminiscent of the barter system because bitcoin can be exchanged for goods, services, and even other currencies. In this case, however, goods and services are not being exchanged but goods and services for bitcoin. In simple terms, when you need to buy a particular good, instead of paying cash for it or using your card, you can pay from it using your bitcoin wallet.

The bitcoin wallet is a software-generated collection of your bitcoin addresses. It could be likened to a bank account. A bitcoin address is a string of alpha-numeric characters that confirms that a certain address belongs to you. The address is used to send a message to the miners, who are in charge of verifying and updating transaction, to send coins to a new address indicated by you.

 

What is Bitcoin Used for?

You can use bitcoin for particularly anything because it is a currency and currencies are used as a means of exchange to get goods or services. But you can use bitcoin further to get physical currency; all you have to do is sell your bitcoin for actual currency. So in this case, some of the people who use bitcoin use it as a form of investment.

They get bitcoins at a lower price and sell later when the value of bitcoin increases. Although bitcoin is now very popular, not everybody or company transact with bitcoin, so if you want to transact with certain companies now, you will have to use the physical currency. However, there are others that accept bitcoin for transactions.

 Companies like Microsoft, Dell, Overstock, Expedia, Etsy, CheapAir, PizzaForCoins, OKCupid amongst others trade in Bitcoins.

 

What is Bitcoin mining?

As stated above, miners are volunteers who compete to be rewarded bitcoins. They solve mathematical puzzles and the winner gets bitcoins created for them. Miners are not actual humans bent over and working vigorously to solve the puzzles; hardware is used for bitcoin mining.

Everyone on the network agrees on the reward but generally, it is usually 12.5 bitcoins in addition to the fees they get from users sending transactions. Miners are also in charge of making the system works because they are in charge of verifying and updating the blockchain.

In simple terms, once a transaction is logged in by a user, they verify and confirm the transaction to make sure the bitcoin is sent between users and also add the transaction to the blockchain, the public distributed ledger. This whole process is called Mining. The process of mining or mathematical puzzle is becoming increasingly complex to solve and it is also becoming more competitive, so entering the race will require adequate computing knowledge and the necessary capital to fund the processes.

 

How to open a Bitcoin account?

Opening a bitcoin account is very simple, as simple as opening an account online. Opening a bitcoin account confers on you a bitcoin wallet, where you keep your bitcoin addresses. A bitcoin address is proof that a certain number of bitcoins belongs to you.

The wallet can be kept offline or online; it is either kept in a physical device, software or web account. There are a number of paid web-based wallet options as well as free options; depending on which you prefer.

However, because your private key is like the lifeline to your coins, you should read reviews before going with one because when you use a web-based option, you automatically give a third-party access to your private key.

  • When you go to any of the bitcoin exchange websites or web-based wallet option, click on ‘get wallet’ or ‘get new wallet’ or any of the variances.
  • Enter your email address and password (the one you are likely not to forget).
  • Read the terms of service thoroughly before agreeing to it.
  • Click on get started and the wallet is automatically generated.
  • You can now generate bitcoin address by requesting for it. Also, you will need an exchange account to buy coins.
  • Once you have bitcoins in your address, you can proceed to send bitcoins by clicking ‘send.’

 

Bitcoin Apps

The bitcoin app is the web-based alternative of the bitcoin wallet. The bitcoin wallet is almost operated as a bank account; it is the software from where you can receive, store and send bitcoin. However, unlike a bank where cash is kept, the bitcoin wallet contains bitcoin addresses, which is simply a string of alpha-numeric characters that confers the ownership of a certain number of bitcoins on you.

As mentioned above, your wallet can be kept offline or online. Offline can be in a physical device like a paper or a hard disk where your private key (bitcoin address) is written. The online alternative, however, will be using web-based options that either comes free or paid.

The app can also be likened to bank apps where you do banking transactions without visiting the bank. With the bitcoin app, you can make transactions (buy and sell bitcoins).

 

How Safe is Bitcoin

Bitcoin is safe because it is decentralised and the miners verify transactions before confirming, so it is relatively safe. However, there is nothing that is totally safe. There are risks associated with bitcoin as well, especially as it relates to protecting your private key.

The bitcoin addresses consist of the public key and the private key. The public key is like your account number that you can share with others to send coins with you. The private key, on the other hand, is like your pin, that you have to protect because if it gets to the wrong hands, it can be used to transfer your bitcoins. You save your bitcoin addresses in a bitcoin wallet.

Both the offline and online bitcoin wallet have their merits and demerits. The disadvantage of the offline wallet is that since your private key is stored on a physical device (paper or hardware device), it can get lost easily and you won’t be able to access your coins without them or it can get stolen.

The online wallet also stands the risk of being hacked, the site shutting down or you can stand the risk of falling into the hands of the wrong web-based exchange platform. You can ensure your offline wallet is safe by guarding it with your life and you can protect the online wallet by making sure to read reviews before going with a platform and also backing up your information somewhere safe. If you can do this, then bitcoin is very safe and secure.

 

How to buy Bitcoin

You can buy bitcoin from exchange platforms online. Be sure to read reviews before using any. The bitcoin exchange platforms are like an online marketplace where bitcoins are traded. You can also get bitcoins directly from a user through transfer. In both cases, you will transfer actual currency to the seller and once the transaction is confirmed, you can get the bitcoins equivalent of the currency.

 

What is a Bitcoin exchange?

Bitcoin exchange can be likened to a marketplace where goods and services are exchanged for money. In this case, bitcoin is exchanged for good, services or physical currency. This is done through bitcoin exchange platforms, that is basically a bank, but for bitcoins. Bitcoin exchange platforms oversee the process of selling, storing or buying bitcoin.

There are different popular bitcoin exchange platforms online. Some of them include coinbase, bittrex, coinmama, binance and gemini, amongst others. Whichever you decide to use, make sure you do enough research about them and read reviews from other users before making up your mind. Watch out for reputation, consistency, payment methods, security and privacy as well as any other quality that you prioritise.