Glossary of Terms for Crypto Players

Bitcoin (BTC)

Bitcoin, introduced in 2009, is the pioneering and most valuable digital currency. It functions on a decentralized network, meaning it isn’t controlled by any central bank or authority. Bitcoin’s value can change drastically, making it a high-risk but potentially high-reward investment.

Altcoin

This term refers to any cryptocurrency other than Bitcoin. There are thousands of altcoins, each designed for different purposes. Well-known examples include Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).

Blockchain

It is the foundational technology behind Bitcoin and most other cryptocurrencies. Imagine a public ledger where transactions are registered in chronological, secure, and tamper-resistant blocks. This ensures transparency and trust within the crypto ecosystem.

Address

Like a bank account number, a cryptocurrency address is a unique string of characters used to send and receive crypto. It’s crucial to protect your address and keep your private key confidential.

Wallet

A wallet is a digital tool or hardware device for storing cryptocurrency. Wallets come in various types, each offering different security features and functionalities. Choose a reputable wallet that matches your security needs and risk tolerance.

Fiat

These are government-issued currencies like US Dollars (USD), Euros (EUR), or Japanese Yen (JPY). Crypto coins aim to provide an alternative to fiat currencies, offering decentralized and potentially quicker transactions.

Mining

It is the process of validating and adding new transactions to the blockchain. Miners utilize powerful computers to solve complex mathematical puzzles, and successful miners are rewarded with new cryptocurrency. Mining helps secure the blockchain and distribute new coins.

Block

It is a data unit on the blockchain that contains information about a set of cryptocurrency transactions. Blocks are linked chronologically, creating an unalterable record of all network activities.

Satoshi (sat)

It is the smallest unit of Bitcoin, akin to cents for USD. One Bitcoin contains 100 million satoshis, allowing for precise transactions with smaller amounts of Bitcoin.

Public Key

It is a part of a cryptographic key pair used to receive cryptocurrency, similar to a public mailbox address. It’s safe to share your public key so others can send you crypto.

Private Key

It is the confidential part of a cryptographic key pair, akin to the key that unlocks your mailbox. You need your private key to access and spend the cryptocurrency at your address. Keep it protected, and never share it with anyone.

Seed Phrase

It is a sequence of random words to recover your cryptocurrency wallet if you lose your device or forget your password. Store your seed phrase securely, as it acts like the master key to your crypto assets.

Decentralization

It is a fundamental principle of cryptocurrencies, meaning no central authority controls transactions or the network. Decentralization aims to enhance security, transparency, and resistance to censorship.

HODL

A term originating from a 2013 Bitcoin forum typo, “hold,” signifies a strategy of holding cryptocurrency for the long term, regardless of market volatility.

FOMO (Fear Of Missing Out)

It is a psychological phenomenon that can drive investors to make impulsive decisions due to fear of missing potential gains. In crypto, FOMO can lead people to buy at inflated prices without adequate research.

ICO (Initial Coin Offering)

It is a fundraising method where a new cryptocurrency project sells digital tokens to investors in exchange for capital. While ICOs can finance innovative projects, be wary of potential scams.

ICO Scam

Some ICOs are fraudulent schemes designed to steal investor funds. Thoroughly research before investing in any ICO, looking for a legitimate team, clear goals, and a detailed roadmap.

Stablecoin

This cryptocurrency preserves a consistent value relative to a fiat currency or another asset. It accomplishes stability using several strategies, including linking its value to a diverse mix of currencies or employing algorithmic modifications.

DApps (Decentralized Applications)

These are applications built on blockchain platforms, aiming to provide functionalities similar to traditional apps but in a decentralized manner, offering potentially greater security and transparency.

Smart Contracts

These are self-executing contracts with the terms directly written into code and stored on the blockchain. They autonomously execute agreements upon fulfilling predefined conditions, removing the necessity for intermediaries and potentially lowering costs.

Gas Fees

These are transaction fees paid to miners or validators on a blockchain network. They compensate for the computational resources required to verify and process transactions. Gas fees can vary based on network demand and transaction complexity.

Bull Run

Bull runs are periods of sustained price boosts in the cryptocurrency market. They are characterized by investor optimism and buying pressure, which can drive prices up significantly, though corrections may follow.

Bear Market

A bear market is a period of sustained price decreases in the cryptocurrency market. Marked by investor pessimism and selling pressure, bear markets can lower cryptocurrency prices, potentially presenting opportunities to buy at lower prices.

ATH (All-Time High)

The highest price a cryptocurrency has ever achieved. Tracking a coin’s ATH helps understand its price history and potential for future growth.

ATL (All-Time Low)

It is the lowest price a cryptocurrency has ever recorded. Knowing a coin’s ATL can provide insight into its risk and reward potential.

KYC (Know Your Customer)

These regulations require crypto exchanges and financial institutions to verify user identities. KYC helps prevent money laundering and other financial crimes, and it typically involves submitting government-issued identification.

AML (Anti-Money Laundering)

These are laws designed to prevent criminals from disguising the origins of illegally obtained funds. Crypto exchanges and financial institutions must implement AML procedures to comply with these regulations.

Fork

A fork is a split in a blockchain that results in two separate chains and creates a new cryptocurrency. Forks can occur due to developer disagreements or changes to the blockchain protocol, leading to new features or functionalities.

Hash Rate

The total computational power used to secure a blockchain network. Miners compete to solve complex puzzles, and the hash rate measures the collective processing power dedicated to this task. A higher hash rate usually indicates a more secure network.

DeFi (Decentralized Finance)

It is a blockchain-based financial system that provides services without relying on conventional intermediaries like banks. DeFi includes lending, borrowing, trading, and asset management conducted peer-to-peer on a blockchain.

This glossary serves as a comprehensive guide for 7BitCasino crypto players designed to equip them with the essential knowledge to navigate the dynamic cryptocurrency niche.