Alt-Coin – Any alternative cryptocurrency to the leading one today; Bitcoin. Bitcoin was created in 2009, and Altcoins refer to any cryptocurrencies created after 2009, such as Litecoin and Dogecoin. Alt-coins typically attempt to present themselves as more potentially successful than Bitcoin, incorporating advances and advantages to the original coin.
Bit-coin (BTC) – Created in 2009, Bitcoin is the first and leading cryptocurrency and digital payment system today. Bitcoin is based on Blockchain technology, which is based on encryption techniques which are used to regulate the units of currency being generated as well as the transactions themselves and the verification and transfer of funds. Bitcoin operates independently in a decentralized way, possibly opening a new era of global finance and banking.
Bitcoin Cash (BCH) – A type of cryptocurrency launched in August 2017 which was created to tackle the scaling issue that the original BTC has. It is essentially a copy of BTC, and has increased block size capacity significantly from 1MB to 8MB.
Block·chain – A piece of technology based on "blocks" of information, recording processes using cryptograohy. Each block has a timestamp and is chronologically recorded from one block to the next. In the context of cryptocurrencies, blockchain facilitates Bitcoin and is in essence a digital public ledger in which transactions made are recorded chronologically and transparently; being an open-source ledger. Blockchain creates a permanent and unchangeable record of these processes.
Centralised – To concentrate (control of an activity or organization) under a single authority, such as the way conventional banking is typically overseen by central banks and governments.
Circulating Supply – The estimation of the number of coins currently circulating the public market.
Cryptocurrency - A digital asset (digital currency) which is created to operate as a medium of exchange and a payment system, using cryptography to secure the transactions, and regulate the creation of new currency in a transparent, decentralized way. Encryption techniques are used to facilitate the cryptocurrency market, which operates independently of all central banks. This is a new concept which is currently taking the world by storm and could change the face of global finance as we know it.
Decentralised - A structure that consists of a network of various technical devices that enable investors to create a marketplace without a centralized location. In a decentralized structure, there is no central control or power; but the control is distributed and transparent for anyone to monitor and therefore trust.
Ether – A cryptocurrency used to facilitate the Ethereum platform. This cryptocurrency is used to pay for transactional fees and computational tasks, and these fees are summed up based on the "gas limit" and "gas price", and then paid for using Ether itself.
Ethereum – A decentralized platform based on blockchain technology which was created in 2013. Ethereum facilitates smart contracts which allow developers to store much information in a categorical manner.
Fiat Currency – Conventional currencies as we know them. Fiat money (bills/coins) has minimal intrinsic value but are defined as legal tender by governments and are publicly recognized worldwide; hence their value. Fiat currencies are regulated by central banks and by global organizations.
ICO – Stands for Initial Coin Offering. An endeavour for a newly established cryptocurrency to raise money from supporters by issuing tokens. Investors could potentially earn return on their investment, which distinguishes this from crowd funding.
Market Cap – Also known as Market Capitalization refers to the total value of an asset; in relative terms. In the world of cryptocurrencies, Market Cap refers to one of two meanings:
Free-float Market Cap (price X circulating supply)
Fully diluted Market Cap (Price X total supply)
Mining – The process of creating new Bitcoins or Altcoins, using necessary hardware. This also refers to the process where transactions are verified and added to the Blockchain.
Segregated Witness (SegWit) – the increase of the limit on blockchain, which frees up further capacity. This entails the splitting (segregation) into two segments: original segment and the "witness" segment.
Token – Tokens were made popular through the rise of Ethereum, and are created over an ICO, being representative of a certain holding of value.. A token, as opposed to a coin, is hosted on another currency's blockchain rather than have its own blockchain.
Trading Platform – A trading platform is an arena that connects buyers and sellers. The platform attempts to be the fastest, most professional and with the leading tools amongst all competitors. Trading platforms charge a fee from each transaction made on it; whether buying or selling.
Wallet – An online storage mechanism of digital assets such as cryptocurrenices. There are also "cold wallets" which are offline. To use any cryptocurrency, you will need to use a cryptocurrency wallet.
Whitepaper - A detailed proposal by the development team which outlines the purpose and mechanics of the coin.