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CRYPTO LINGUISTICS

2 Factor Authentication or “2FA”

2 Factor Authentication or “2FA”, is defined as an additional layer of security requiring information that verifies the owner, and nobody else, is accessing their account.

51% Attack

51% Attack is defined as a situation where more than half of the computer power running a blockchain are controlled by one person or one group of people with evil intentions. That person or group with the majority power can manipulate transactions in their favor.

Abstract

Abstract is defined as a summary of a larger written written document. Abstracts are common in the beginning cryptocurrency technical documents to briefly describe the entire document.

Airdrop

Airdrop is defined as the process of freely distributing a new cryptocurrency to people hopefully creating more demand.

When a new cryptocurrency is created, it needs to gain users. One way of doing this through an airdrop. The group issuing the airdrop hopes new users will begin researching and sharing the coin creating more demand.

Altcoin 

Altcoin is defined as any cryptocurrency except for Bitcoin. “Altcoin” is a combination of two words: “alternative Bitcoin” or “alternative coin”.

There are currently over 5,000 altcoins with many more to be released.

Anti-Money Laundering or AML

Anti-Money Laundering or AML is defined as a set of laws designed to prevent converting illegally earned money into what appears to be legally earned money.

Laundering just means cleaning something that is dirty. Money laundering is the process of making illegally earned money (dirty money) appear to be legally earned (clean money).

Anti-money laundering rules and laws are designed to make it difficult for criminals to launder their money.

ASIC miner

ASIC miner is short “Application-Specific Integrated Circuit miner”, and is defined as a device specially designed to maintain the blockchain, this process is known as mining.

An Application-Specific Integrated Circuit is a computer chip or “integrated circuit” which was built for the single purpose of mining cryptocurrencies.

Algorithm

Algorithm is defined as a series of steps that will solve a problem. In cryptocurrencies, algorithms are used to hide and reveal information.

ASIC

Application-Specific Integrated Circuit is commonly known as ASIC. “Integrated circuit” is just a computer chip. “Application-specific” means it was built for one specific purpose or computer application. An ASIC is used in cryptocurrencies to help record transactions on the digital record or blockchain. This process is known as mining.

Addy

Addy is short for address. Address is the string of letters and numbers that is publicly available and allows cryptocurrency to be received.

ATH

ATH is short for “All Time High”, and is defined as the highest value an investment has ever reached in its history.

Whenever a cryptocurrency price passes its ATH, things can get crazy. While many leading investors thought bitcoin would hit an ATH of over $20,000 by January of 2021, it actually rocketed past that to $40,089 on January 7th, 2021. 

Alphanumeric

Alphanumeric is something made up of both letters and numbers. Alpha- comes from the word “alphabet” and -numeric comes from the word “numerical” meaning relating to numbers.

Arbitrage

Arbitrage is the business of making money by buying something for a low price in one market and selling it in another for a profit. Arbitrage can be done with virtually any product including cryptocurrencies.

Atomic Swap

Atomic Swap is technology that allows two different people to exchange different cryptocurrencies directly. Right now, if you wanted to exchange bitcoin for ethereum, with another, you couldn’t. However, any coin using Atomic Swap can be exchanged for any other coin also using Atomic Swap.

Bag holder

Bag holder is defined as an investor who continues to hold onto their asset even though the price is dropping towards $0. Bag holding comes from the phrase, “holding the bag” which meant, someone was surprised with unwanted responsibility or trouble.

Bearwhale

A bearwhale is a person with large quantities of cryptocurrency that uses his massive account to drive the price down and profit from it. A bear market is a decreasing set of prices for various types of assets and a bearish investor wants to profit from that. A whale is a person or group that hold large quantities of an asset and can because of that, can affect the price based on whether they sell or buy.

Brute Force Attack [BFA]

Brute Force Attack is a method of obtaining secret, unreadable information by guessing at every single possible key that will unlock the security system.

Bit

A bit is the smallest unit of digital, computerized information represented as either a 0 or 1. But bit also refers to a very small amount of bitcoin, specifically, one-millionth of a bitcoin or 0.00000100 bitcoin.

Block Height

Block height is defined as the number of blocks in the chain between any given block and the very first block in the blockchain.

Blockchain is revolutionary technology for creating permanent, secure digital recordings. It can record any information, but it started with recording bitcoin transactions.

Bollinger Bands

Bollinger Bands are a type of price envelope developed by John Bollinger (Price envelopes define upper and lower price range levels.)

 

Bollinger Bands are envelopes plotted at a standard deviation level above and below a simple moving average of the price. Because the distance of the bands is based on standard deviation, they adjust to volatility swings in the underlying price.

Bollinger Bands use 2 parameters, Period and Standard Deviations, StdDev.

 

The default values are 20 for period, and 2 for standard deviations, although you may customize the combinations.

Bollinger bands help determine whether prices are high or low on a relative basis. They are used in pairs, both upper and lower bands and in conjunction with a moving average. Further, the pair of bands is not intended to be used on its own. Use the pair to confirm signals given with other indicators.

How this indicator works

  • When the bands tighten during a period of low volatility, it raises the likelihood of a sharp price move in either direction. This may begin a trending move. Watch out for a false move in opposite direction which reverses before the proper trend begins.

  • When the bands separate by an unusual large amount, volatility increases and any existing trend may be ending. 

  • Prices have a tendency to bounce within the bands' envelope, touching one band then moving to the other band. You can use these swings to help identify potential profit targets. For example, if a price bounces off the lower band and then crosses above the moving average, the upper band then becomes the profit target. 

  • Price can exceed or hug a band envelope for prolonged periods during strong trends. On divergence with a momentum oscillator, you may want to do additional research to determine if taking additional profits is appropriate for you. 

  • A strong trend continuation can be expected when the price moves out of the bands. However, if prices move immediately back inside the band, then the suggested strength is negated.

Browser Extension

Browser extensions are defined as additional software installed to an Internet browser to expand its features. Also known as “Add-ons”.

The word “extension” is normally used for the Google Chrome browser. “Add-ons” usually applies to the Firefox browser.

Bull

Bull market is defined as a continued increase in value for any type of asset. Also known as a “bull run”.

You can think of a bull, swinging his big horned head upwards rocketing prices upwards. An investor who is a bull wants to profit from the movement of increasing prices.

Bear

Bear market is defined as a decreasing set of prices for various types of assets. A bearish investor wants to profit from the movement of dropping prices.

Byzantine Generals’ Problem

Byzantine Generals’ Problem is defined as a situation where collaborators who need to coordinate their behavior or actions face serious difficulties caused by a lack of trust and indirect communication.

Byzantine describes the Byzantine Empire, this was the eastern part of Europe controlled by the Roman Empire from approximately 330 AD to 1,453 AD.

Block Reward

Block reward is defined as money earned by people who are maintaining the blockchain.

Maintaining the blockchain requires computer power and electricity or risking a large amount of cryptocurrency as a guarantee that you are trustworthy. People maintain the blockchain so they can earn money. Anyone doing this work is eligible to earn a reward in digital money and sometimes brand new, virgin cryptocurrency.

Bitcoin ATM [BTM]

Bitcoin ATM, also known as BTM or Bitcoin Automated Vending Machine (AVM), this is a machine that allows people to exchange regular money like US dollars for bitcoin and the reverse, exchange their bitcoin for Fiat Currency.

Bull Trap

A bull trap is an investor who wants to profit from the movement of increasing prices. A bull trap is a false impression that the prices are increasing causing a bullish investor to try to take advantage of that. The price then reverses, going back down causing the him to lose money.

Bear Trap

A bear trap is an investor who wants to profit from the movement of dropping prices. A bear trap is a false impression that the prices are dropping causing a bearish investor to try to take advantage of that. The price then reverses going back up causing the him to lose money.

Block

Block is defined as a single digital record created within a blockchain. Each block contains a record of the previous block, and when linked together these become the “chain”.

Blockchain tech creates permanent, secure digital recordings. It can record any information, but it started with recording bitcoin transactions.

If you imagine the blockchain as a book of records, then each page in that book is what is known as a “block”. Blocks are attached to each other making what is known as the blockchain.

Blockchain

Blockchain is defined as a digital recording, used to prove that a group of people came to an agreement about something. Blockchain records are permanent and very secure, preventing manipulation. The first example of blockchain technology are the initial records of Bitcoin transactions.

Breaking

Breaking is the process of finding a weakness in the system that made information unreadable and secret so the data becomes easier to expose. There are different levels of breaking, where a full break allows you immediate access to the hidden information, partial breaks don’t give you immediate access, instead they make it quicker and easier for you to unlock the information.

Bitcoin [BTC]

Bitcoin is defined as an early digital cash that started the cryptocurrency movement. It was created in 2009 by an unknown person or group who went by the name, Satoshi Nakamoto. 

Bitcoin is unique because it does not rely on government/bank created money. In addition, transactions occur directly between pseudonymous people (their real names are not known), meaning there are no banks or middlemen.

Each transaction is recorded on a digital record kept by many people across the world known as the “blockchain”. The data on the blockchain is publicly available and stored on many computers.

 

Because there are so many copies being simultaneously maintained, the transaction and banking data is very safe and virtually impossible to manipulate.

Individuals protect their bitcoins using their digital wallet. A wallet is software that can only be accessed by using a key, which is a long string of letters and numbers.

 

Bitcoin’s price has risen into the thousands of dollars, but you can still own bitcoin by purchasing a fraction of it for dollars.

Because of bitcoin’s popularity, it has become an anchor in the cryptocurrency market. That means, as the price of bitcoin goes up and down, the prices of other cryptocurrencies move too.

Bubble

Bubble is a large increase in prices for the whole economy or a part of the economy, followed by a massive, rapid drop.

It’s important to notice that a bubble is only a bubble if it applies to an entire economy or part of the economy. If the massive price swings are just between you and your circle of friends, it’s probably not a bubble.

Famous historical examples of bubbles are the Dutch Tulip bubble of the 1630s, the Dot-Com bubble of the 1990s, the housing bubble of the early 2000s and some like to say the Bitcoin bubble of 2017.

Candlesticks

Candlesticks are defined as a representation on a chart used to show changes in price over time. Each candle provides 4 points of information, the opening price, the closing price, the high, and the low. Also known as ‘candles’ and ‘Japanese candlesticks’.

The Japanese developed this type of chart hundreds of years ago while trading rice and so it was named after them. Today, many investors prefer candles because they are easy to understand and provide a lot of quick information.

Candles have two parts, the body (it can be hollow or filled) and the long thin lines drawn above and/or below. The lines are also called “wicks”, “shadows”, or “tails”.

  • The body is used to show the opening and closing price for that time period.

  • The wicks are used to show the highest price and lowest price reached for that time period.

Candles are often red or green, where red indicates a price started high and ended low and green indicates a price that started low and ended high.

 

Some candles are black and white, where black indicates a price that started high and ended low and white indicates a price that started low and ended high.

Candles represent a single time period. For example, if you are looking at a 1 hour chart, each candle represents 1 hour of trades.

Some candles are long and some candles are short. Long candles tell you there was a lot of pressure to buy or sell and short candles tell you there was very little pressure.

Central Processing Unit [CPU]

Central Processing Unit, processor or CPU is defined as the brains of the computer. It makes the different parts of a computer work together.

Most CPUs are a small, black square with many tiny metal wires on the bottom side. 

The CPUs are usually what we describe when talking about computer speed. This speed, also called clock speed, is measured in gigahertz or GHz for short. If a CPU had a clock speed of 1 hertz, it could do 1 very simple task every second.

Most smartphones today have processors that measure more than 1 GHz. A 1 GHz processor can handle more than 1 billion tasks every second.

In addition to clock speed, the number of CPUs can affect the speed and power. The more CPUs a computer has, the more tasks it can process.

  • 1 CPU = Single core processor

  • 2 CPU = Dual core processor, it can handle twice as much as a single core.

  • 4 CPU = Quad core processor, it can handle twice as much as a dual core and four times as much as a single core.

Circulating Supply

Circulating supply is the number of coins currently available and in the hands of people. Coins that are locked, reserved or not able to be sold and traded are not included in the circulating supply.

Coinbase

Coinbase is a cryptocurrency exchange that allows people to trade regular money like US dollars for bitcoin, litecoin, ethereum. Coinbase also has software that lets businesses accept cryptocurencies as payment.

Consensus

Consensus is defined as agreement by the majority of people about something.

Consensus requires at least 51% of the people agree on something. Consensus is a very important part of cryptocurrency technology.

  • With consensus, the digital records maintained by the network of computers, known as the blockchain, can be agreed upon as correct.

  • With consensus, decisions can be made on how to fix or upgrade the cryptocurrency technology without relying on one single leader.

Consensus is a necessary feature in a decentralized organization like cryptocurrencies.

Correction

Correction is defined as a change in price of an asset (stocks, cryptocurrency, etc.) by 10% or more.

Corrections usually interrupt upward trends with negative drops of 10% from the recent highest price. A correction is smaller than a bear market (averaging a 20% reduction) and shorter than a recession (averaging 6-18 months).

Crypto

Crypto is short for cryptography or cryptocurrency. Crypto- comes from the Greek word meaning “hidden”.

Cryptography

Cryptography defined as the study of making ordinary information unreadable.

The purposes of cryptography can include:

  • Proving that the sender actually sent the message.

  • Keeping information confidential until an approved identity is provided.

  • Preventing theft and alteration.

 

There are many types of cryptography including hiding words in images, using micro dots and computer programs. With cryptocurrencies, we hide money and the people who sent them in a scrambled, unreadable form.

The information can be unlocked and made readable using a code also known as a key. The key is made up of a string of letters and numbers.

Currency

Currency is a system and its units for exchanging value. The value of each unit is agreed to be worth something. Currency is used to pay for things and services as well as debts. The history of the word currency comes from current, meaning in use now. Currency is usually in use now because the government or banks produced it and we all agree it has value.

Centralized

Centralized describes a system or organization that is controlled by a Government a person or a specific group. Companies are centralized organizations.

Cipher

A cipher is any series of steps that will make information unreadable so it can be kept secret and can be used to make the information readable again. Ciphers including those used in cryptocurrencies also use a secret key made up of letters and numbers that must be used to unlock the cipher.

Code

A code is a method of making information unreadable so it can be kept secret and can be used to make the information readable again. By replacing the meaning of the information with something meaningless, the message becomes unreadable. Codes use a secret key made up of letters and numbers that must be used to unlock the code.

Cold Storage

Cold storage is defined as a type of digital data storage that takes longer to access and quite often is not connected to the Internet. Also known as a “cold wallet”.

Unlike hot storage, cold storage is typically not connected to any computer, network, or the Internet. Cold storage always has longer access times than hot storage. Longer access times means greater control and security.

There are many ways to set up cold storage. The common techniques include:

  • Putting the data in an unplugged computer.

  • Purchasing and using a designed and secure USB known as a “hardware wallet”.

  • Storing the access codes on a piece of paper known as a “paper wallet”.

Central Processing Unit [CPU]

Central Processing Unit, processor or CPU is defined as the brains of the computer. It makes the different parts of a computer work together.

Most CPUs are a small, black square with many tiny metal wires on the bottom side. 

The CPUs are usually what we describe when talking about computer speed. This speed, also called clock speed, is measured in gigahertz or GHz for short. If a CPU had a clock speed of 1 hertz, it could do 1 very simple task every second.

Most smartphones today have processors that measure more than 1 GHz. A 1 GHz processor can handle more than 1 billion tasks every second.

In addition to clock speed, the number of CPUs can affect the speed and power. The more CPUs a computer has, the more tasks it can process.

  • 1 CPU = Single core processor

  • 2 CPU = Dual core processor, it can handle twice as much as a single core.

  • 4 CPU = Quad core processor, it can handle twice as much as a dual core and four times as much as a single core.

Cryptojacking

Cryptojacking is the secret use of your computer to mine cryptocurrency for someone else.

In the beginning, cryptojacking was limited a program installed on the victim’s computer and that secretly mines cryptocurrency. However, the latest type of cryptojacking is done in your Internet browser.

 

The website doing the cryptojacking uses your computer power to earn crypto for it.

 

Sometimes the owners of website doing the cryptojacking aren’t even aware of what’s going on! A thief installs cryptojacking software on the website and steals from the customers.

Chain Split

A chain split is a break in the digital recordings, known as blockchain, created by computers running cryptocurrency technology. With cryptocurrencies, only one recording (block) should be made at a time. However, if the network of users managing cryptocurrency technology disagree on how the blocks should be made, they may split off, each forming their own chain of recordings. This happened recently with Ethereum on November 11, 2020. 

Ciphertext

Ciphertext is text that has been made unreadable so the information it contains can be kept secret.

Core Wallet

A core wallet contains the entire blockchain as opposed to a piece of it and allows users to not only receive, store and send digital money but also program on or with it.

 

Bitcoin transactions are kept on a digital record, known as the blockchain, and the blockchain is maintained by thousands of people around the world. This digital record is growing larger every day and in 2016, it exceeded 100 gigabytes.

 

A wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money.