- Cryptocurrency Glossary




An open source p2p currency founded in 2009 by Satoshi Nakomoto.



Software used to store Bitcoins. Records transactions, allows you to sign and verify messages, and in some cryptocurrencies POS, chat, and many other features.



(two factor authentication) – A second method of verifying someone logging into an account is actually the real person.


Peer to Peer

Typically used to describe something. For example, peer to peer file sharing is where files are shared between to end users without no middle man or server.

Cloud mining

Cloud mining

Mining is not done by the miner itself. Instead companies own the actual hardware, and contracts or shares are bought by the miners. It allows miners to own 1/100th of an ASIC for example and not have to put up with electricity or noise.


Block Reward

The coins that are granted when a miner solves a block. The current block reward for Bitcoin is 25, and next block reward will be 12.5 BTC per block.



How hard it is for mining hardware to solve a block. This increases or decreases based on the set block times. If miners are solving blocks faster than block time, difficulty will increase to compensate. Same goes for the opposite scenario.


Double spending

Where the same coin or unit of currency is used in two or more different


Dust transaction

Small transactions that are usually rejected by the blockchain in order to keep the Blockchain free of unneeded transactions.



A website that gives a small amount of Bitcoin (or cryptocurrency).



Where a cryptocurrency is split into different blockchains. This is only usually done when
major changes to the code are made, and a wallet upgrade must be made in order to stay on the correct blockchain.



Stands for Know Your Customer. KYC is a process used by businesses to verify identity
of their clients.


Margin call

Also known as a fed call or maintenance call. It is when a broker requests the investor deposits more money into their account. This usually occurs when the investor is on margin, and one of their investments have fallen below a certain value.


Private key

A key that you should never share with anyone. Allows you to use your wallet and sign transactions; without it you could not send cryptocurrency.


PSP (payment service provider)

A company that allows you to accept payment methods online. For Bitcoin, the two major PSP’s are Bitpay and Coinbase.


Pump and Dump

A common market manipulation move. Usually done when there is hype surrounding a coin. Traders buy massive amounts of coin, driving up or “pumping” the price. Depending on the effectiveness of the hype, other people buy in as well in order to possibly get a profit. When the price reaches a high enough point, the traders sell or “dump” the coin.


Proof of Stake

An algorithm that rewards “holders” (the miners essentially) for holding coins.
POS is essentially interest for holding coins.


Proof of Work

The original algorithm, made popular by Bitcoin. Uses mining hardware to run
algorithms (In Bitcoin’s case, SHA-256) to solve blocks.