I realized that it was time to create a dictionary of crypto-currency terms.
I will analyze and explain the basic terms related to crypto currency that investors, traders and miners need to deal with.
I suspect that some of the following things will become obsolete rather quickly, as events in the crypto-currency market are developing rapidly and what appeared yesterday as an unshakable truth may look like a doubtful or even strange fact tomorrow.
As we know, the crypto currency community is very active in generating new slang words very quickly.
General concepts in the crypto currency
Below are general terms that are normally always heard, regardless of what you do or how you relate to the crypt.
Crypto currency and crypto
Crypt is a new generation currency based on cryptographic encryption algorithms and in particular the "block chain" technology. Many believe that this currency, thanks to its qualities and new technologies, will be the next evolutionary link in the financial system, replacing the old "fiat" money. Decentralization, anonymity and reliability are perhaps the three big whales on which this belief is based.
Blockchain
Blockchain literally means "block chain". This is a technology for recording and distributed storage of information in which a database is copied and synchronized on several computers according to a specific algorithm. When we talk about crypto currency, the system here looks like this: All transactions (records of who, when, how much, and to whom) are grouped into blocks, which are then combined into chains. Each next block is anchored to the previous and then to the next block. And all this simultaneously on a large number of computers (network nodes). Thanks to decentralization and a clever algorithm for writing blocks, the effect of the practical impossibility of falsifying the transaction register and distorting the data stored in the block chain is achieved.
Decentralization
One of the three whales on which the human belief in the life-giving crypt is based. The term refers to the fact that there is no single center in the system and therefore the possibility of centralized control. You can also say that if the system is truly decentralized, it is resistant to various attacks and the information stored in it is reliably protected. The block chain is usually decentralized - copies of it are stored on several servers.
Volatility
An indicator that determines the degree of volatility of the rate of an asset, especially a crypto currency. A crypto currency is volatile - this means that its rate jumps like a wounded trot, as they say in the Navy. This is because the crypto currency is not yet tied to something more or less real and stable and is not provided with anything. The most curious person will probably immediately ask how the same dollar is covered by and large. Well, at least by the power of the U.S. economy and its army, which will pounce on those who will not accept these candy wrappers with Franklin's portrait for payment. Yes, yes, everything is so prosaic, if you don't know.
Mining
Mining is another common way to make money with crypto currency. Thereby crypto is mined with special devices. The algorithms of many crypto-currency projects have a mechanism for generating new coins - the system distributes them to those people who spend computer resources on calculating certain mathematical problems. This process is named in analogy to the extraction of gold or minerals - there miners wash tons of sand, search for grains of gold - computers plough day and night, sort millions of numbers and try to find the right one for which they are credited with coins. Mining is a much less risky activity compared to trading, but it is also possibly less profitable.
ICO or Token Sale
ICO is a sale of a new coin before it goes public. The term itself originated in analogy to IPO (Initial Public Offering) - the first public sale of shares in a public company. ICO stands for Initial Coin Offering. This event is held by the developers of a new coin to attract investment in their project. At the same time, in addition to the money collected, they keep a part of the issued coins for themselves. Sometimes you can make good money with aisio, because the coins bought by investors after entering the exchange can immediately cost considerably more. However, this is not always the case. Crowdsales now (early 2018) are a very fashionable topic, new ones start almost every day. There are many open bubble collectors among them. In the cryptocurrency community the already known term "scam" is behind it.
Roadmap
Roadmap is a roadmap for the development of a crypto currency project. Perhaps another essential component without which no crowdsale with self-respect begins. The roadmap outlines what is planned, where the project will develop and in what time frame. Usually a period of 1-3 years is involved. The phases that have already passed - from the appearance of the idea to the present day - can also be described.
Token
Token is a rather vague concept, which means almost the same as a crypto coin. But what is the difference? There are several opinions on this topic. One of the most common statements says that tokens are bought at ICO and can only be called coins after entering the stock exchange, when there is a possibility to trade them. In general, it seemed at first that the token is the obligation of the cryptocurrency project that issued it to the holder - the person who has the token in his hands. The team that organizes the sale of tokens (ICO) accepts money from investors and in return gives them tokens that promise to use them in a certain way in the future. Now there are several main types of tokens:
Equity tokens - an analog of the company's shares, which bring certain dividend income;
Utility Tokens - some points within a certain platform, which have certain functions and purposes (internal currency, reputation or rating, voting instrument, etc.);
Asset-backed tokens are tokens secured by something real, namely digital commitments that grant rights to certain real goods or services (a kilogram of potatoes, a one-hour cab ride, one square meter of real estate in Dubai).
It is assumed that a token differs from a crypto-currency only in its advertising, liquidity and ability to exchange it for any product or service. Well, for example, many things can now be bought for Bitcoin, but for a WINGS coin - not very much. So, conditionally, BTC is a crypto currency, and WINGS is just a token for the time being.
Bounty programs or bounty campaigns
Bounty are campaigns organized by crypto developers to draw attention to their project and make it public. In short, the team that organizes the ICO is willing to pay with its coins to people who help promote and advertise their idea. This is called a bounty - from the English. Bounty is a reward.
Airdrop
A drop of air is almost the same as a bounty, but usually with the difference that tokens are distributed here for free, just for registration, without any additional actions. In general, bounties and air drops are a very interesting topic (of course you only donate money).
Crypto Currency Faucet
Websites that spend crypto currency free of charge - usually to solve captchas or to view ads. The income there is begging, in the article under the link above I talked about it in detail.
Hodler
The person who holds the crypt. Or simply hodlit. In principle, this is a synonym for a cryptoinvestor, especially in his emphatic opposition to a merchant. Investors in the crypt preach the view that those who "go" get the cream over time. Those who are not so patient and twitch at the slightest pretext get many times less.
Cloud mining
Cloud mining is essentially a kind of HYIP project, the legend of which says that they use investors' money to buy crypto-mining equipment. At the same time, they take a part of the profit for themselves and pass a part on to the investors. I would treat such proposals as hype, except maybe only in cases where these mining companies are somewhere in the zone of your permanent reach where you can feel them.
When moon or when lambo
Rhetorical exclamations that are often found in crypto chats or crypto forums - mainly among the middle-class audience. This questioning interjection shows the speaker's interest in the fate of the coin and its future. Of course, this interest is primarily due to the fact that the crier is most likely the owner of this coin (Hodler) and can hardly wait for it to become "otzemunit", provide him with a brand new Lamborghini of the latest model or simply go to a popular stock exchange where it will be possible to buy / sell humanely.
Shitcoins or Slagcoins
Shit coins are coins that do not represent any value (according to the subjective opinion of the pronunciation of this term). As a rule, this means primarily the technological value - not the exchange rate and capitalization.