Cryptocurrency glossary for newcomers. Bitcoin, Ethereum and other cryptocurrencies are revolutionizing the way we invest, bank and use money. Read this guide for beginners for more information. In essence, cryptocurrencies are decentralized digital currencies designed to be used generally over the internet. Launched in 2008, Bitcoin was the first cryptocurrency and remains the largest, most influential, best-known cryptocurrency. In the decade since, other cryptocurrencies such as Bitcoin and Ethereum have offered a digital alternative to money printed by governments.
Address
It is the point that allows you to send and receive messages in the digital money system. It is similar to a bank account used in traditional money markets. It usually appears as a QR code. However, it is actually a string of letters and numbers. Sample writing is as follows: 1kqHKEYYC8CQPxyV53nCju3kk2ufpQqA2
Altcoin
Altcoins, more than 1000 in number, are types of cryptocurrencies that emerged as alternatives to Bitcoin. The most preferred ones in Turkey are Ripple, Ethereum, Litecoin and IOTA.
Anti Money Laundering
It is the entire system developed to prevent money laundering. In other words, it is the general name of systems that prevent money that has not been obtained through legal means from being shown legally. Financial Crimes Investigation Board (MASAK) carries out anti-money laundering transactions in Turkey.
Arbitrage
If all tradable assets and instruments such as gold, silver, copper, stocks, bonds, money and Bitcoin are available simultaneously at different prices in different markets, they are bought from the low-priced market and sold from the high-priced market.
ASIC (Application-Specific Integrated Circuit)
Its Turkish version is “application-specific integrated circuits”. It is the general name of devices with low energy consumption and high efficiency, produced to perform only one task. Unlike other types of processors, they are both fast and efficient. However, their one-way nature is their most important disadvantage.
ASIC Miner
It is the name given to ASIC systems used specifically for Bitcoin mining. They are frequently preferred due to their low energy consumption and high production capacity.
Attack 51%
It is the name given to the fact that more than 50% of the mining of any crypto currency is done by a single person or organization. Processing power means the “authority of cryptocurrency” as over 50% will be transferred to the person or organization that will produce it.
ATH
It is the abbreviation of the concept of “Highest Level (EYS)”. ATH is very useful for those who follow the digital currency market. Digital currencies are assets that can undergo very sudden changes, and therefore it is useful to keep their IMS in mind. Digital currencies may show a few partial rises on the way before reaching a new high. For this reason, a good follow-up should be done before disposing of cryptocurrencies or purchasing cryptocurrencies.
Bearish
It is a term frequently used in the cryptocurrency market as well as in normal markets. It is often used to describe a sales-oriented market. Basically, people who have the idea that an asset will lose value are called bearish. For example, they may believe that cryptocurrencies will lose value. For this reason, they take a “price-cutting” attitude towards cryptocurrency and often sell.
Block
It is a record that confirms or contains transactions within the blockchain. An average of 6 blocks per hour are added to the blockchain through mining operations. Blogs in a chain also interact with each other.
Blockchain
It is the block chain obtained by combining blocks. It resembles a distributed ledger with the blocks it contains. With the information contained in the blocks, it reaches gigantic sizes and contains a large number of transactions. In order to change the data in a block, approval must be obtained from other blocks. Thus, the data of everyone in the blockchain is protected and malicious people are prevented.
Bullish
It is the exact opposite of the Bearish concept. They are people who adopt a “price-gouging” attitude and usually make purchases, assuming that a stock or cryptocurrency will increase in value.
Consensus
It is used to indicate that all participants in a blockchain agree that transactions are real and transparent. In short, consensus indicates that various participants have the same information.
Cryptocurrency
It is the general name of currencies based on cryptography. The most well-known cryptocurrency in the world is Bitcoin.
DDoS Attack
The type of attack that causes a system on the Internet to be attacked and services to be disrupted temporarily or permanently is called DDoS. In some cases, malicious users can attack services that provide services for cryptocurrencies. In such a case, the systems may not operate at full efficiency.
Escrow
It is the control of financial resources by third parties on behalf of other users. Third parties often do not trust each other during their transactions. In such a case, a provider holds money or any money equivalent in trust. For example, when a user buys a computer on Ebay, the price he pays is kept in the system. If the purchaser does not make any complaints about the computer, the fee is forwarded to the seller.
Fiat Currencies
Fiat, meaning “by decree”, is the name given to banknotes that are printed by an official authority, have no equivalent in materials such as gold or silver, and have security measures such as holograms. Currencies in circulation today, such as the Brazilian Real, Japanese Yen and New Zealand Dollar, are in this category.
Exchange
It is the central point used when exchanging different forms of money or assets. They are basically marketplaces where users can make cryptocurrency transactions.
FOMO
The term “FOMO” means “fear of missing out.” This occurs when investors begin buying a particular asset with the expectation that its value will increase. People involved in the market can easily flock to an asset if it has sharp gains. But getting caught in FOMO can also be dangerous. Because buying an asset because it has recently experienced a significant rise may cause one to be affected by market manipulation.
Fork
It refers to the changes in cryptocurrencies and protocols. Developers update the digital currency’s protocol from time to time. Depending on the duration, nature and structure of the update, it may be permanent or temporary.
FUD
Fear, uncertainty and doubt can be summarized by the term “FUD”. The idea behind this is that people involved in the market spread misleading or false information with the aim of causing the price of an asset to fall. A broker may want the price of an asset to fall. Thus, he can successfully short it or buy it at a lower price and increase his chances of making a profit.
Hard Fork
A permanent fork is a type of fork that creates a permanent change in the protocol or rules of a digital currency. When one of these forks occurs, a completely new blockchain appears that does not accept blocks mined with the old rules. The old chain may survive, but it introduces a scenario where both old and new blockchains may survive.
HODL
It is a term developed by cryptocurrency investors. The abbreviation essentially comes from a misspelling of the word “hold.” The values of cryptocurrencies can be extremely volatile. For this reason, when significant price fluctuations occur, some market investors simply state that they need to “hold on tight” and do not sell the cryptocurrencies they hold.
Long / Long Position
Purchasing goods or securities with the expectation that their prices will rise is called “long position”.
Market Cap
It is the term used for the concept of total market value. For example, multiplying the market value of Bitcoin by the amount of Bitcoin in the market gives the market value. The term can also refer to the aggregate of a group of cryptocurrencies.
Mining
Cryptocurrencies like Bitcoin do not have any center. For this reason, transactions such as buying and selling within the system must be constantly recorded. Mining people and institutions both enable new transactions to be carried out and open areas where new transactions can be made. In return, they are rewarded with cryptocurrency.
Moon
It is a situation where a currency, asset or stock in the market rises sharply. So, if a currency “mooners”, this means that the value of the unit increases rapidly.
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