Econical crypto glossary

Yes! We have made our own glossary.
It will be updating. But you can always fly into our chat and throw a term at us so that we can add it here.

A

51% Attack — a.k.a Majority Attack is an attack on a blockchain and it occurs when more than 50% of computational power of the network (hash rate) is getting controlled by a single party. Attackers create fraudulent blocks of transactions for themselves and making others transactions invalid in the network. In case of Proof-of-Stake(POS), attackers will need to obtain more than 50% of the cryptocurrency supply to make Majority Attack possible.

All-Time High (ATH)– is the highest price that any coin or token has ever reached. For example, Bitcoin ATH is $ 60,012. This price was fixed on March 13, 2021. The previous ATH was $ 32,947, on January 2, 2021.

All-Time Low (ATL) — is the lowest price that any coin or token has ever reached.

Altcoin — all cryptocurrencies except Bitcoin. Also, bitcoin maximalists often call altcoins shitcoins.

Ask Me Anything (AMA) — is the format of interviews with the CEO or another project representative. Most often takes place on Telegram. AMA is organized by bloggers or the media, pre-collecting questions from subscribers. Sometimes users can get a drop for cool questions.

Airdrop — is a free distribution of project tokens. As a rule, projects make airdrops for early users. Examples: 1inch and Uniswap.

B

Blockchain — database consisting of a chain of serial blocks. Each unit stores information (for example, transactions in Bitcoin). To guarantee what data in past are impossible to replace — each block stores also information about the previous block. As a result, to change something in the past — you need to rewrite all following blocks.

Block — a set of information inside a blockchain. Each block contains information, and data about previous blocks to make it impossible to replace information in past blocks.

Block Explorer — is a blockchain analysis tool that can be used to explore data in blocks, and depending on the blockchain — for example, monitor transactions, wallets, network status, and other blockchain data.

Block Confirmation — is adding a transaction to a block is a confirmation of its success. When there are more blocks after the block with your transaction — the transaction can be considered as fully confirmed and irrevocable

Bitcoin Pizza — a pizza that was purchased for 10,000 bitcoins, on May 22, 2010. It was the first purchase with bitcoins. At the time, those bitcoins were worth $41. And now over $500 million. May 22 is now “Bitcoin Pizza Day.”

Bounty — is a reward, often in project tokens, for completing certain tasks. As a rule, this is an activity in social networks, writing and translating articles, creating video content, memes, and bug reports.

Bear Market — is the time when the crypto market is in stagnation or even falls. Antonym — bull market (or bullrun).

Bitcoin Dominance — is the percentage of capitalization of bitcoin to the rest of the crypto market.

BEP-20 — is a token standard on BSC (Binance Smart Chain) and it’s capable of smart contracts. It’s safe to say that BEP-20 = ERC20 in the Ethereum network. For example, the CAKE token on the PancakeSwap platform is the BEP-20 token.

C

Crypto Tracker — is an application that allows you to track cryptocurrencies in real-time. For example, bitcoin.

Crypto Portfolio — is the place where your assets are. And in which you can trade them. Bitcoin, Ethereum, or XRP. And maybe others, everyone has own tastes.

Cold Wallet — is an offline wallet that used as storage for cryptocurrencies. Cold wallet also stores user’s address, private key and don’t have an access to Internet, that’s why it’s protected form online hacks and exploits. Great examples of cold wallets are: Ledger Nano, Trezor wallet, paper with a private key in your strongbox.

Confirmation time — is the time it takes to add the transaction to the block, which means confirming the transaction

D

Do Your Own Research (DYOR)— is to check the project yourself, make sure of its legitimacy. Well, or understand that the project is a scam.

Dump — is falling market or coins. For example, Bitcoin fell 40%. This is a dump.

Decryption — isa data decryption process.

Dominance — is the percentage of capitalization of a certain coin to the entire crypto market. Most often — bitcoin dominance.

Degen — isthe name of a person who understands DeFi very well. Yes, crypto is toxic.

E

ERC-20 — is a standard for Fungible tokens in Ethereum Network and it’s capable of smart contracts and used in DApps. It’s the most popular standard of the token nowadays and used everywhere. Utility tokens, Governance tokens, Meme tokens and etc — this is all ERC-20 in Ethereum. Examples are UNI, 1inch, 0x, AAVE, COMP, SNX and etc.

ERC-721 — is a standard for Non-Fungible tokens in Ethereum Network and is known as NFT. The main property is that every ERC-721 token unique and can not be replaced. Its often used for collectibles, real estate, paintings and art overall. Crypto Punks, Hashmasks, and “Everydays — The First 5000 Days” by @beeple are ERC-721 NFTs.

F

Faucet — is website or application that give away a small amount of crypto for free for doing simple tasks or just like that. Faucets are often used to receive tokens on testnet networks.

Falling Knife — is a trading term for a rapid drop in the price of an asset. Often used in the phrase “Trying to catch a falling knife,” which means the trader is trying to catch the bottom after a sharp drop. Very often speculators get a second bottom as a gift to the first one.

Fear of Missing Out (FOMO)— is a feeling when you see a gigantic green candle in the chart of the coin you don’t hold and want to get into this rocket or when you don’t buy next 100x gem after TGE. Overall, it’s the feeling that you missed some great opportunities, events or trades.

Flippening — is a term for describing the moment when Ethereum overtaking Bitcoin in the future in terms of Market Cap. When Ethereum Maxis can said “Ethereum NUMBA WAN”.

Fear, uncertainty and doubt (FUD) — is the spread of deliberately false, or simply negative news and facts, in order to tarnish the reputation of the project.

Fiat — the designation of ordinary money — rubles, dollars, euros, etc. Usually, traders enter and exit crypto through fiat.

G

Gas — is the unit used to measure the price of a transaction is the commission to miners. For example, in ETH it is called gwei. 1 Gwei = 0.000000001 ETH. And vice versa 1 ETH = 1 billion gwei!

Gas limit — is the limit of gas that can be spent to perform a transaction. Like a maximum amount of gas that will be spent

H

Hot Wallet — is an online wallet that allows user to store, send and receive coins and tokens. Hot wallets have public and private keys and requires to write down and remember your seed phrase consisting 12 or 24 words. Great examples of hot wallets are: Metamask, 1inch wallet, Rainbow and Argent.

Hodl/Hodler — slang definition of those who buy cryptocurrencies and keep them no matter what happens.

Halving — is the process of cutting half of rewards that miners/validators are getting for their work — adding transactions to the blockchain. For example, previous halving was in 2020 and rewards for miners diminished from 12.5 BTC to 6,25 BTC.

Hard Cap — is a maximum fundraise goal that crypto startup can receive from investors on ICO/IDO/IEO and etc. Fun fact — there was no hard cap on Ethereum ICO.

Hard fork — is a process of big changes in networks’ protocol that make previously valid blocks invalid. After hard fork to continue using protocol users and nodes have to upgrade to the latest version of the software.

Hash — is a function that satisfies the encryption requirements for blockchain computations. It is a fixed-length alphanumeric code that is used to represent words, messages, and data of any length.

Hashrate — is a total computational power that is being used in order to process blocks and transactions in Proof-of-Work chains (Bitcoin, Monero, Ethereum and etc.).

K

KYC — is a user verification process. For example, on Binance or Bitfinex, a trader must provide pics of the documents in order to increase withdrawal limits.

L

Listing — is the process when a particular coin first appears on an exchange. When coins are listed on popular exchanges, such as coinbase, they often go to the moon.

M

Mainnet — isthe core network of a particular blockchain. Only in this network does the asset have value.

Market Order — is a fast buy / sell order at the current market price. For example, a market sell order will match the cheapest buy limit order available in the order book. The order will go through the entire glass until it is closed, so do not forget to look at the liquidity.

N

NGMI — is an acronym for “not gonna make it”. It is usually used to describe a situation when a person does not want to buy Bitcoin or another token, because he is afraid of losses. And that’s why he won’t make money in the future.

P

Pump — is planned and sharp pumping of the value of the coin, then to sell it at the highest possible price. As a rule, pumps are typical for coins with low capitalization. Therefore, manipulators are trying to attract as many people as possible to the project in order to control the price.

Pump and Dump — is astrategy to pump and dump the coin. Whales artificially pump up the value of a coin in order to sell it at the highest possible price to small traders. As a result, the value of the coin goes down, and investors lose money and become hamsters.

Private Keys — are a combination of characters created by using an encryption algorithm that provides access to the cryptocurrencies stored on the account. These keys need to be stored very securely, since whoever knows the private key has access to the wallet and can manage the assets.

S

Stop-loss order — isan order type that limits potential losses. Traders use this type of order to set a specific price level at which an existing order will automatically close if the price touches it.

Soft Cap — is the lower limit of fundraising at the ICO / IDO / IEO stage, etc. If the project does not reach it, it is canceled and the funds are returned to investors. But in reality, the project may not return the funds and try to work with what they got.

Seed Phrase — is a set of 12–24 words in a specific order that provides access to the cryptocurrencies stored in the account. This phrase needs to be stored very securely, since whoever knows it has access to the wallet and can manage assets. Seed phrase, mnemonic, seed phrase, mnemonic words, seed phrase are all synonyms.

T

Testnet — an alternative network for experimentation and testing. A crypto on the testnet has no value on the mainnet, and vice versa. Many products launch testnets at an early stage and thank their testers with drops.

W

WAGMI — is an acronym for “we all gonna make it”. It is usually used in a situations when there’s a hope for market or coins to rise, or when there’s a lot of good news coming about the market.

Whale — is a participant of the market with large amount of assets. Usually it is early bitcoin users, ethereum investors, exchanges and other wealthy guys.

Whitelist — is a list of participants who are admitted to various kinds of events: sales, IDOs, IEOs and other forms of fundraising. Approving members can be done via email, telegram or discord accounts, wallet address.

Whitepaper — is a document that crypto startups compose at an early stage. It outlines the main problem that a startup solves, the solution to the problem, the main mechanisms of the platform and tokenomics. For example, you can check the Bitcoin WP (Whitepaper) published in 2008 or the Ethereum WP published in 2015.

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