July 26, 2021
When you start to enter the world of cryptocurrencies, there are many terms and expressions that are not easy to understand. Unfortunately, it can become frustrating and discourage new enthusiasts and investors. Therefore, Bezel Blockchain decided to create a small cryptocurrencies glossary to help our clients to evolve within their own learning curve, mainly because we want you to feel comfortable within our company. If you’re at a point where you don’t know how to understand some things, we have a message for you: trust us and relax! We’ve created a list of cryptocurrencies terms and expressions and it’s sorted alphabetically. We promise that you will begin to understand the meaning of some acronyms and words, understanding our work even better.
It is the set of rules that must be followed to solve a problem or perform a task. There are different consensus algorithms that have advantages and disadvantages. For example, Bitcoin uses a Proof-of-Work (PoW) algorithm and Cardano uses Proof-of-Stake (PoS).
All other alternative cryptocurrencies to Bitcoin. Altcoins can be cryptocurrencies or tokens.
Anti-Money Laundry. It is a system against “money laundering” widely used by various companies and entities such as exchanges, in order to add security to their platform, using systems to confirm user identity or account ownership.
Blockchain and computer network, where all transactions of different cryptocurrencies are carried out. The various blockchains can be public or private.
All Time High. It refers to the highest price ever achieved for a cryptocurrency. Often referred to also indicate a time point in which this happened.
It is a type of investor who keeps and accumulates a certain cryptocurrency without ever selling it and may eventually lose the opportunity to make a profit and make money.
Bear market. It refers to a negative market trend where prices are continually falling. Quite associated with financial crises or long-term fixes.
Bull market. It refers to a positive market trend where prices are continually rising, often abruptly. Quite associated with the fear of investors losing an opportunity and the entry of capital volume in the market.
Represents the same as a currency exchange. It is often confused with a brokerage. Back in the days, an exchange is just a way of exchanging cryptocurrencies with each other and does not present other assets or financial products, such as stocks, options or CFD’s and ETF’s, more associated with trading instruments. An exchange allows you to exchange fiat currency for cryptocurrencies (eg Coinbase) or exchange cryptocurrencies for other cryptocurrencies (eg Binance). However, nowadays, cryptocurrencies exchanges have a lot of different financial products. Some are good but another are not so good. (And that’s why Bezel Investments exist).
Trust or state currency. They represent most of the currencies of each country or central banks, such as the euro (€) or the US dollar ($), among many others.
Fear Of Missing Out. Fear of being left out and losing the opportunity to enter a certain market or acquire a cryptocurrency. This behavior is often observed when there is positive news about a cryptocurrency and it usually precedes each bull market.
Separation of a cryptocurrency into two parts due to different visions regarding the future of the project by the development teams. A practical example is the case of Bitcoin (BTC) and Bitcoin Cash (BCH) that occurred in 2017, in which BCH became representative of a larger block size: 8 MB. However, the original Bitcoin remains as BTC.
Fear, Uncertain and Doubt. A term widely used to refer to people, news or speeches that promote fear, uncertainty and doubt regarding a project, often with the aim of lowering the price, so that you can buy cheaper later or because there are doubts about some point proposed and ends up having a negative reaction from the community.
Know Your Costumer. It is the acronym used by the entities to refer to a practice referring to the gathering of information about their client: know your customer. It is intended to store customer data in order to ensure the security of each account and control each process.
It is the name given to the process of mining a cryptocurrency. It needs specific hardware, which can be physically performed or monetized through cloud services: cloud mining. Usually done by people with a programming experience in order to monetize electricity in cryptocurrencies, working in any case that uses a PoW (Proof-of-Work) consensus algorithm.
Bitcoin creator’s first name: Satoshi Nakamoto. Name used as Bitcoin unit of measure. 1 Bitcoin represents 100,000,000 satoshis.
English word referring to “scheme”. It is intended for any website or project that shows signs of a Ponzi scheme or promotes a product or service related to cryptocurrencies that guarantees profits using peoples contacts and money. Usually connected to multilevel marketing. Commonly used by hackers to steal money from users of these dubious platforms.
To the Moon
Term used by enthusiasts to refer to the exponential price increase that a cryptocurrency can achieve, meaning a huge profit. To the moon!
It is a wallet for storing cryptocurrencies. The term wallet is used universally by the community and has become increasingly common. It is used for both types of wallets: hot wallet and cold wallet.
Name given to large investors with the ability to cause large swings in the market, moving huge amounts of capital and brutally increasing volatility. Usually associated with millionaires, large companies and corporations with investment capacity capable of transacting on a large scale. It’s a term that can also be meant for people with large amounts of cryptocurrencies stored in wallets.