The No Bull Cryptocurrency Glossary
Sometimes the Cryptocurrency space can be downright confusing, even to established investors.
If you’re struggling with terms like Proof-of-Stake vs Proof-of-Work, can’t tell your Merkle Tree from your MimbleWimble, or are just trying to make sense of a white paper, our glossary will help you make sense of it all. Our glossary is a regularly updated work in progress. Let us know if you want us to explain anything that isn’t listed here.
A is for Address
Address – A name given to your wallet understandable by computers, normally represented by an unpronounceable string.
ASIC – Specialised hardware chips designed to do one thing and one thing only. In the case of cryptocurrencies this usually means mining currencies using specific hashing algorithms. ASICs are often used to perform specific hardware functions but are very expensive to make and integrate. If an ICO suggests they’ll need an ASIC added to hardware for mass adoption, it may be a sign of significant execution risk.
B is for Blockchain
Bag Holder – Derogatory term to describe someone who is holding a an investment considered worthless, low-value or depreciating in value.
Bitcoin – The first mainstream cryptocurrency to reach adoption.
Bitcoin Cash – A Bitcoin ‘fork’ whereby certain technical elements of the software were changed to improve network performance. Not to be confused with Bitcoin.
Bitconnect – An investment scheme offering ‘guaranteed returns’ that collapsed in early 2018. See Ponzi scheme.
Blockchain – A computer data structure, a bit like a spreadsheet but where data can only be added and then validated. See our guide to blockchain.
C is for Cryptography
Cryptocurrency – A digital currency, usually but not always decentralized. Used as a store of value or medium of exchange across the Internet.
Cryptography – The application of mathematics to provide proof of confidentiality or integrity of something. Normally used to protect secrets, but also verify that things are true (such as that a transaction occured). The ‘crypto’ part of cryptocurrencies.
Currency Risk – A term used to describe a range of ways to lose money simply by holding or converting between multiple currencies. See our guide to currency risk.