Crypto Dictionary – Basic Terms – Part 1
2-Factor Authentication (2FA)
It’s an extra security layer to protect accounts by requiring—in order to log into an account—information that’s only accessible to the owner.
It usually comes in the form of an extra code sent to a phone number or email account
It’s a situation in which over half of a computer’s power to run a blockchain is under the control of only one person or group with ill intentions. Those with the majority of power can use it to manipulate transactions.
A summary of a much larger document.
It’s access granted to a user to a computer, software, website, or app and it lets them use all of its benefits and tools. It usually comes in the form of a username and password, but cryptocurrencies mostly use private keys.
Short for “Address”, the string of numbers and letters used to send and receive cryptocurrencies.
It’s a method for gaining users for a new cryptocurrency. It works by choosing customers with wallets compatible with the new coin and supplying them with it, in hopes that they start sharing it and creating demand for the coin.
A series of steps to solve a problem. Cryptocurrencies use them for handling information, transactions, and most of their functionality.
Something made from letters and numbers in combination.
Any cryptocurrency that’s not Bitcoin. In other words, alternative coins.
Something done by an entity whose identity is unknown.
Anti-Money Laundering (AML)
A set of laws that are designed with the objective of preventing criminals from converting illegal (or “dirty”) money into legal money, or what appears to be legal money.
Application-Specific Integrated Circuit (ASIC)
A computer ship that has been designed and built for only one purpose, making it extremely efficient at it, but useless for anything else. Some cryptocurrencies require ASICs for mining efficiently.
It’s the job of purchasing something in one market for a low price and selling it for a profit in a different market.
It’s a crypto-mining device that functions through and ASIC.
Acronym for “All Time High”, which is the highest point ever reached by an investment.
The ability to exchange different crypto coins directly between two individuals. It’s also used to refer to the technology behind it.
An investor that keeps holding onto an asset despite the fall of its value.
The term refers to the decrease in the value of an asset. It can refer to the falling trend, the investors who benefit from prices dropping, or the general sentiment of a market.
A false impression of dropping prices which makes bear traders invest in the asset right before prices reverse, making them lose money.
An individual with a large amount of cryptocurrency, who uses his large account to drive prices down to profit from the fall.
Brute Force Attack (BFA)
Method for gaining access to encrypted information by guessing all the keys needed to unlock the system.