Cryptocurrency Dictionary

Bear vs. Bull Market: Basic investment outlooks of how the market is going to perform. Bearish investors believe that the market/prices are going to decrease. Bullish investors believe prices will increase and will then likely be eager to buy.

Blockchain: BlockchainA public record of anonymous transactions scored by a group of computing networks. Popularized as the platform that cryptocurrencies are processed through. Think of it as the accounting of transactions that are stored on a network of computers. You ofter hear ‘distributed’ along with blockchain because the blocks are distributed among the network of computers.

Coin vs. Token: Wait there’s a difference? Discreetly different, tokens are an asset used for trading and operational costs for an application on a blockchain. Whereas, coins are currencies featuring their own blockchain platform which can be bought and sold between persons. 

Cryptocurrency: Digital currency secured by computer code solving, thus making it immune to counterfeiting or government manipulation. cryptocurrencies (1).jpg

HODL: Term used by investors for holding an asset despite temptations to sell during major market fluctuation.

ICO: Initial Coin Offering; unregulated pooling through sales of new cryptocurrency to consumers, thus raising a firm’s capital.

Screen Shot 2017-12-31 at 1.52.36 PMMining/Proof of Work: Creation of online ledgers for transaction confirmations by computer calculations in a shared network. Expensive due to high levels of power consumption.

Smart Contract: An unchangeable/immutable digital contract stored as a computer program on a blockchain. Helps to automate the third-party in a transaction. 

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Wallet: Secure digital ‘location’ to send, receive, and save cryptocurrencies in.