A token is a form of digital asset native to blockchains and other DLTs. cryptocurrency glossary Stochastic is an indicator for technical analysis of the markets.
Cryptocurrency – Any form of decentralized digital currency that relies on cryptography for security. Consensus – Consensus is reached when all nodes on a network verify that a transaction is valid on the blockchain. Cloud Mining – The process of mining cryptocurrency using the power of a shared, cloud-based processor instead of setting up cryptocurrency glossary an expensive, power-hungry mining rig of your own. Candlesticks – A price chart that displays different variables such as high, low, and closing prices of a cryptocurrency over a set period of time. Bitcoin– A form of cryptocurrency and the first application of blockchain. Often shortened to BTC, it was created in 2009 by Satoshi Nakamoto.
A system on which assets like cryptocurrencies can be bought, sold, and stored. Exchanges can be centralized where a company controls them; or decentralized (peer-to-peer). Personal information like name, address, social security number, and more that are bundled and stored digitally. A peer-to-peer exchange that allows users cryptocurrency glossary to buy and sell cryptocurrency and other assets without the control or fees of a central authority. An automated mechanism that allows blockchain participants to agree on which transactions happened and in which order. Each past block makes a transaction more irreversible because it stores them more deeply in the blockchain.
Distributed Consensus – A virtual agreement between a collective of computers in a decentralized network, allowing for peer-to-peer transactions without governance by a central authority. Crypto Kitties – An adorable digital goods trading game cryptocurrency glossary that lets you adopt, collect, breed, and of course HODL onto virtual kittens on the Ethereum blockchain. Correction – A change in the price of an asset such as cryptocurrency to ten percent or more, usually in the form of a negative drop.
Public Or Private Key
If you share your private keys, be sure to do so only with trusted third parties. PoW – Also known as proof of work, which is used as a way to validate transactions. PoW requires the prover’s computer to perform computational work. PoW is also a means of showing that one’s computer contributed to mining crypto and entitles the miner to a mining reward. Pair cryptocurrency glossary – Also known as a trading pair, this term describes a trade that involves the exchange of one type of cryptocurrency for another. Market Cap – The total number of a cryptocurrency’s coins in supply, multiplied by the crypto’s price. Liquidity – The ease with which a cryptocurrency can be bought and sold relative to the impact on the overall market price.
ICO – Initial coin offering, which typically occurs during early stages of a cryptocurrency venture. Hard Fork – Any alteration to a cryptocurrency’s underlying block structure. A hard fork can be an update on the blockchain’s protocol, or it can be a software update; hard forks are not backward compatible. Halving – Halving occurs as blocks are mined, essentially cutting the minable reward by half after a certain number of cryptocurrency blocks have been mined. Futures Contract – A pre-approved contract that fulfils a predetermined transaction when a cryptocurrency’s value reaches a certain price. Ethereum – An open-sourced cryptocurrency based on blockchain technology. Ethereum is one of the world’s most popular forms of cryptocurrency.
Asymmetric Key Algorithm
- In the meantime, many businesses levy fees to offset the financial risk of zero confirmation transactions, and yet others are refusing to accept them until the technology catches up.
- It has the one major advantage over other algorithms such as SHA-256 in that it’s quicker and easier to use.
- It doesn’t use up as much computer processing space or time, so individual miners can more readily process blocks of data with it.
- Experienced miners know to skip stale blocks, for it would be a waste of their time to try to mine them again.
- Scrypt is a type of mining algorithm, and it’s used by major cryptocurrencies such as Litecoin and Novacoin.
- When a block of cryptocurrency data has been successfully processed by a miner or mining pool, that block of data is considered stale.
Cryptographic Hash Function
The process of applying high amounts of computing power to solve complex equations that verify transactions in a virtual currency. Miners who solve the equations are awarded new units of the virtual currency. Cryptocurrency.A digital currency secured through cryptography, or codes that can’t be read without a key. ZCash / ZEC – ZCash is a confidential form cryptocurrency glossary of cryptocurrency with all transactions based on zero knowledge proof. Wallet – A storage point for cryptocurrency and other digital assets. Volume – A specific amount of cryptocurrency traded within a specified time period, i.e. 24 hours. Volume indicates the movement and direction of the crypto while serving as a predictor of future demand and price.
For larger markets, slippage is usually only encountered by large institutional investors and is sought to be avoided. Short positions are taken by borrowing an asset to sell on the open market. Short positions (also called “shorting”) are taken by traders when they expect price to depreciate. This is a method of trading used to profit when assets decrease in value. A quote is a price determined at a specific instance of time for an asset traded on the market. Another meaning for a premium is the difference between the price paid for a fixed income security and the security’s face value amount at issue.