Glossary

Altcoin - Altcoin stands for “alternative coin”, or alternative currency. It arose from modifications to the Bitcoin code, but it has independent blockchain and protocols.

ATH - “All Time High”, the highest historical value reached by an asset. When someone says that Bitcoin's ATH was $69.045,00, this is the highest value Bitcoin has ever reached.

ASICs - Computers specialized in complex calculations, used for mining cryptocurrencies.

Bear (bearish) - “Bear Market” is used to define falling markets. When an investor has a negative sentiment, it signals the “bearish” trend, that is, negative.

Blockchain - The blockchain is the record of all blocks mined in a given cryptocurrency. The “blockchain”, the distributed database that allows a transaction to be transmitted without relying on a centralized agent..

Bitcoin (BTC) - Bitcoin is a decentralized currency, without the need for intermediaries. It is the most well-known cryptocurrency and was created by Satoshi Nakamoto in 2008.

Bitcoin Cash (BCH) - Cryptocurrency resulting from the division, fork (term contained in the glossary) best known of Bitcoin (BTC). It was created with the aim of making payments easier through greater transaction capacity.

Bull (bullish) - “Bull market” is used to define bull markets. So when an investor is feeling positive, he says the trend is bullish.

CBDC - Fiduciary money, but in digital format, issued by governments and Central Banks. There is not necessarily the use of a blockchain, as the issuer and controller have complete freedom to change issuance rules, freeze and reverse transactions, and even ban certain addresses.

Coinjoin - Decentralized protocol that mixes the currencies of different users, allowing for improved privacy. Also known as a mixer, it tries to obfuscate the origin of the currency and its owner's identity through the blockchain's history analysis tools.

Cold Wallet - A Wallet that is not connected to the internet, guarantees security and inhibits possible attacks. It can be a flash drive, a physical digital device (Ledger, Coldcard, Trezor), or even a sheet of paper with the private key written down.

Consensus Mechanism - Also known as consensus algorithm, it is a procedure where all blockchain participants come to an agreement on the distributed ledger.

Cryptoactive - These are online stores of value but there are cases of use for the digital representation of a real asset, for example, a property or diamonds.

Cryptocurrency - A cryptocurrency based on blockchain technology. It can be transacted and transferred with security and traceability.

Custody - The action of keeping, ensuring that an asset is protected.Custody can be done by both companies and individuals. In the case of crypto-assets, the holder of the private keys is considered the custodian.

DeFi - Stands for “Decentralized Finance”, or decentralized finance. The smart contract ecosystem, the smart contracts behind decentralized finance apps.

Don't Trust, Verify - Term that means “Do not trust, verify” and is used for data collection and research valuation.

Ethereum - Ethereum is an open-source network that uses blockchain technology, but offers additional layers that allow the execution of smart contracts.

Exchange - Name used to determine brokers that carry out cryptocurrency transactions.

Fees - Fee charged by miners when a transaction is recorded on the blockchain It can also be used in the case of brokerage fees.

Fomo - Acronym for “Fear Of Missing Out”, or fear of being left out. The term is used to describe the feeling of not feeling outside of a community, investment, or group.

Fork - Fork where a blockchain is generated from the original historical record. In this way, there are two simultaneous and independent blockchains. An example of a fork is Ethereum (ETH) and Ether Classic (ETC).

Fiat - A fiat currency, issued by governments and Central Banks, its value is based on the trust people have in the bond issuer. Includes bank deposits, CDBs, bonds, and paper money.

FUD - Acronym for “Fear, Uncertainty and Doubt”, or Fear, Uncertainty, and Doubt. A term used to define the state of mind caused by negative news, whether true or based on rumors.

GM - It stands for "Good Morning" and is often used in greetings from NFT communities.

Hot Wallet - Wallet that is connected to the internet. It allows for faster shipping, as it does not need additional devices. They are considered less secure than cold wallets due to the ease of invasion and loss of information. So a Cold Wallet is a wallet that is not connected to the internet and a Hot Wallet is a wallet that is connected to the internet.

Halving - Event that halves the miners' reward for mined blocks. In Bitcoin, the halving occurs every 210,000 blocks, approximately every 4 years. The current remuneration is 6.25 BTC for each block found.

Hard Fork - Change in the protocol that makes it incompatible with previous versions. Non-updated nodes now refuse transactions after this fork. An example of a Bitcoin hard fork is Bitcoin Cash (BCH).

Hash - Output code, unique and alphanumeric, obtained by applying an algorithm. This hash function takes an input string (a large text or digital file) and creates a validation code, which lets you know if it has been changed.

Hash Rate - Network processing rate, that is, the ability of miners to find the solution to the equation (hash) in a given time interval, usually measured in seconds.

HODL (ou HOLD) - Used in the cryptocurrency world for “buy and hold”, a buy and hold strategy typical of long-term investors. “HODL” arose from a typo of the word “HOLD”, “hold”, by Bitcointalk forum user in 2013.

KYC - Acronym for “Know Your Customer”, or in Portuguese “know your customer”. KYC exchanges require the user to present documentation, validating their identity, hindering fraud and money laundering.

Ledger - One of the leading manufacturers of cold wallets, along with Coldcard and Trezor.

Lightning Network - Decentralized Bitcoin micropayment system that runs on a secondary layer of the blockchain. There is some “work” to convert BTC to Lightning-BTC, and vice versa, but once inside the network transactions are instantaneous and with almost no fees.

Mempool - Short for “Memory Pool”, a set of transactions that have not yet been confirmed on the blockchain. Every transaction is directed to the mempool, and waits for miners to aggregate them in building blocks. Higher fee transactions are usually confirmed first.

Mining - Process of adding transaction records to the blockchain. It uses ultra-complex mathematical problems in which current computers can only get the answer through trial and error, therefore a time-consuming and complex process.

NFT - Acronym for “Not Fungible Tokens”, or “non-fungible tokens”. A solution created to allow representing a certificate of authenticity in the cloud.

P2P Transactions - Transactions between two people, without the intermediation of an exchange. There is no verification of the origin of the resources, nor is there any assurance that the parties involved will receive the agreement.

Private Key - The private key is equivalent to a bank password. It must never be shared and must be stored securely.

Proof of Work (PoW) - “Proof of Work” is the transaction validation system based on solving complex mathematical operations such as cryptocurrency mining.

Proof of Stake (PoS) - “Proof of Stake” is the transaction validation system based on groups of validators, that is, entities that through their nodes reach an agreement on each new block. They usually win a prize stake, but they need to deposit a guarantee in the native cryptocurrency to encourage honest acting.

Public key - Generated from the private key, it is responsible for the addresses on the wallet's blockchain. A single private key can generate multiple public keys. However, without the corresponding private key, no one is able to make withdrawals, ensuring security.

Pump and Dump - The “inflate and dump” technique is a fraud that consists of artificially inflating the price of an asset through false statements and operations, with the aim of selling assets purchased at low cost for a higher price.

REKT - American slang used to say that someone has been totally destroyed. It originates from the world of first-person shooter video games.

Satoshi Nakamoto - Pseudonym of the person (or group) who created Bitcoin in a document called the White Paper. He worked on the initial code and its maintenance for 2 years, but then disappeared, allowing the network to remain decentralized and the mystery to linger.

Satoshis - These are the “cents” of bitcoin. Each bitcoin is made up of 100 million satoshis (or sats), according to standard convention.

Shitcoin - "Shit currency", is the term used to describe altcoins, the alternative currencies, in a pejorative way. In the view of these investors, altcoins are not truly decentralized, and there are not enough complete nodes to ensure the historical record and consensus mechanism.

Smart Contracts - Smart contracts are registered on the blockchain and executed automatically, following established rules. It revolutionized the way of storage and enabled the launch of Bitcoin.

Soft Fork - Changing the protocol of a cryptocurrency that keeps previous versions compatible. The network continues to work even for those who have not updated their nodes.

Stablecoin - Cryptocurrency with a stable value, usually in USD. There are models that work with a real ballast, that is, values ​​deposited in a bank and equivalent, while others work through balancing through smart contracts.

Token - Digital representation of the value of an asset (physical or digital), usually using crypto assets. They are a digital right to a product or service that has a specific function in the ecosystem of a project.

To The Moon - UA strong trend in the cryptocurrency market that means the feeling of believing in cryptocurrency or project bulls.

Trezor - One of the leading manufacturers of cold wallets, alongside Coldcard and Ledger.

Wallet - Mechanism for storing and carrying out transactions, sending and receiving cryptocurrencies. Known as wallet, it can exist in physical format, or 100% digital, through programs and apps.

Whale - These are investors with large amounts of cryptocurrencies. They can be individuals, investment funds, or even banks.

Whitepaper - Technical document describing the properties of a project, common in the cryptocurrency industry.