A
AMA
A format popular with the crypto community for an interview with the CEO or another representative of the project. Usually takes place in text or video format.
ASIC
Specialized devices designed exclusively for cryptocurrency mining.
B
Binance
The world's leading blockchain ecosystem and infrastructure provider for the cryptocurrency industry with a range of financial products.
Burn
Destruction of a certain number of digital coins to reduce their emission. This method is used to fight inflation and increase the value of the cryptocurrency. All token burning operations are recorded in the blockchain as a transaction. Therefore, anyone can verify that the coins have been destroyed.
E
EIP
The smallest unit of bitcoin (0.00000001 BTC). Named after the creator of the cryptocurrency Satoshi Nakamoto.
Ethereum
One of the most popular cryptocurrencies created by programmer Vitalik Buterin. Like bitcoin, it is based on blockchain technology, but in a more advanced form. Its characteristic feature is the ability to create smart contracts.
Exchange
In the field of cryptocurrencies, it is a platform for trading cryptocurrencies and their derivative assets.
F
Fiat
Traditional money such as Ukrainian hryvnia (UAH), American dollar (USD) or British pound sterling (GBP). They are available in paper and electronic form.
G
Gas
A unit of measure of the computational work of transactions or smart contracts performed by miners at their own expense to maintain the operation of the Ethereum network.
H
Halving
Halving the reward for each block created in the bitcoin network. Occurs every 210,000 blocks added (about once every 4 years)
Hashrate
The total processing power that is used to process blocks and transactions on chains using the Proof-of-Work algorithm (Bitcoin, Ethereum classic, Monero, etc.).
HODL
Abbreviation for Hold On for Dear Life. This term describes holders who buy cryptocurrencies for storage and not for immediate sale. They do not react to price changes. The method is designed to generate greater profits through a long-term perspective.
L
Ledger
A popular hardware wallet for storing cryptocurrencies.
Liquidation
In the world of cryptocurrencies, a liquidation is a situation when an exchange forcibly closes a trader's position using leverage due to partial or complete loss of the trader's initial margin. The initial margin is your funds that you need to deposit in order to open a trading position. This is a kind of security, which is like an insurance fund for the exchange in case the transaction goes against the borrower. That is, if a trader does not have sufficient funds to maintain an open transaction, the exchange automatically closes it.
M
Mining Pool
This is a kind of virtual cooperative, which miners join with their own equipment. The pool shares computing power and participates in bitcoin mining. The mined coins are distributed among the participants in accordance with their computing power.
Multisig
The system used in cryptocurrency wallets. Its essence is that the signatures of several people are required to complete a transaction.
N
NFT
NFT is a type of cryptographic tokens, each instance of which is unique (specific) and cannot be exchanged or replaced by another similar token, although tokens are usually fungible in nature.
P
P2P
Peer-to-Peer is a network in which resources (for example, files) are exchanged, bypassing the central system, directly between users.
Pump
Usually a planned purchase of a large number of cryptocurrencies in order to artificially increase its value.
R
Rugpull
Literally, "pull out the carpet." A type of scam in which project developers get all the liquidity provided by users from the pool. In this case, all liquidity providers and token holders lose money: liquidity cannot be returned, and the token loses 100% of its price and is no longer needed by anyone.
S
Satoshi
The smallest unit of bitcoin (0.00000001 BTC). Named after the creator of the cryptocurrency Satoshi Nakamoto
SEC
The US Securities and Exchange Commission (SEC) is an independent regulator of the federal government. He is responsible for investor protection and the fair operation of investment transaction markets. In simple words, the SEC controls everything related to securities.
Smart Contract
Contracts that are written in a programming language and automatically implement predetermined conditions in cryptocurrency transactions. Their main goal is to eliminate the intermediary and allow the parties to interact safely on transparent terms for all.
Stablecoin
A type of token that combines the characteristics of cryptocurrency and fiat money. It works on blockchain technology, but the stablecoin rate is tied to specific assets - currencies, precious metals, etc. The most popular stablecoin is Tether (USDT), which reflects the exchange rate of the dollar.
V
Volatility
The level of price volatility for an asset. Cryptocurrency rates are highly volatile - that is, they are subject to sharp jumps and changes.
W
Whale
A term that refers to people or organizations that own a large amount of bitcoin. The whale has enough cryptocurrencies or tokens to influence market prices if it buys or sells a large amount of assets.
Whitepaper
A document from a startup, institution, or organization. Its purpose is to familiarize people with the project and provide examples of the use of its product or service.