2FA – See Two Factor Authentication
AML – Anti-Money Laundering. A term used for regulatory requirements.
ATH – All Time High
Bag Holder – Investors that have bought when the coin was valued on a high, and has since fallen.
Bitfinex – the day traders love this exchange. A minimum of $10,000 is required to open an account. Trades USD, JPY, EUR, GBP, bitcoin, ethereum, ripple, zcash, dash, litecoin and many others.
Bittrex – an exchange that has its head office in Seattle. A relative new comer to the exchange market, but is growing exceptionally fast. Can trade with USD, Bitcoin, ethereum, tether and many other pairings.
Blockchain is a decentralized digital chain that supports the authenticity of a cryptocurrency.
BTC – abbreviation of Bitcoin
BTFD – Buy the F@#king Dip
Coinbase – an exchange which is one of the most popular in the world. Can trade with bitcoin, bitcoin cash, litecoin and ethereum. They also trade traditional fiat currencies such as USD, EUR and GBP.
Cold Wallet – a wallet that is not connected to the internet.
Cryptocurrency is a digital currency that can be used to purchase goods and services just like traditional (fiat) currencies. Cryptocurrencies aim to solve the issue of outdated payment methods such as credit cards and wire transfers, remove the transaction cost of going through brokers, agents and banks, inefficient and slow processing, financial inequality around the world, and inaccessibility of financial services.
The success of a cryptocurrency requires a sustainable number of people using it, service and good providers must be willing to accept it as a form of payment, the community must consider the cryptocurrency having value at present and in the future.
Cryptocurrency reduces illegal activity, removes corruption, does not allow for massive quantities being created or printed, allows people to control their money, reduces inefficiency and cost through banks, brokers and agents, and is accessible to the broader community.
Cryptocurrency Wallet is a storage facility for the private and public keys of cryptocurrencies. Hardware, paper and online wallets are available, each with different levels of security and convenience.
Cryptocurrency Exchange is an online service where traditional money can be used to buy cryptocurrency, cryptocurrency can be used to buy other cryptocurrency, and cryptocurrency can be sold to purchase traditional money. Some exchanges also offer the ability to store cryptocurrency as an online wallet. Some exchanges behave as a traditional service of connecting buyers with sellers, others behave as brokers and agents, and some even offer margin lending, derivatives and other financial products.
Cryptocurrency Investing requires diversification, both from traditional investments and among digital currencies as well. Diversification means spreading risk among several types of investments. Cryptocurrency investment risks include volatility leading to capital gains (losses), scams, exchange hacking, wallet hacking, theft, loss of wallet or wallet codes, liquidity, obsolete and redundancy, government and regulatory. and taxes. Profiting through investing in cryptocurrency is via capital appreciation. The value of the cryptocurrency increasing, when compared to tradition fiat money. Users invest in cryptocurrencies knowing that there is potential to appreciate.
Diversify – to spread the risk through investing in several different financial assets. The intention is to not carry all the eggs in one basket.
Fiat – Traditional currencies such as U.S dollar, the British Pound, Euro, Australian Dollar etc.
FOMO – Fear Of Missing Out
FUD – Fear Uncertainty Doubt
Gemini – With head office in New York with extremely strict regulations in the State. Can trade with bitcoin, ethereum, ZCash and USD.
HODling – Hold On for Dear Life.
Holding – similar to staking, but storing the coin in any wallet and removing the coin from circulation.
Hot Wallet – a wallet that is connected to the internet
ICO – see Initial Coin Offering
Initial Coin Offering (ICO) – a fund raising mechanism for a new start up, however the start up is regarding a cryptocurrency. The funds are raised normally with fiat currency, but in return tokens are issued which equate to the cryptocurrency. If the idea is successful, then the value of the tokens rise. In essence, if you familiar with the issuing of shares as equity in a company, tokens replace the the shares. If the company succeeds the value of the tokens increase.
Know Your Client – Government regulations require Exchanges to comply with Know Your Client policy. This often requires a user of an Exchange to provide Proof of ID.
Kraken – multi crypto and fiat trading exchange. Accepts USD, EUR.
Liquidity – the ability to buy and sell a financial asset due to the number of buyers and sellers. If there are many buyers and sells, that liquidity is high. If there are very few buyers and sellers than liquidity is low. Liquidity is an investment risk because low liquidity could result in an adverse impact to profit.
Peer to Peer Exchange – an exchange that directly connects a buy and a seller of cryptocurrency and fiat together. The exchange is completed without the need of a middle person.
Proof-of-stake (PoS) – stake a coin, long term holders of a cryptocurrency coin that don’t use it to purchase or transact. And is therefore out of circulation. Show proof that you own the money. the more crypto you have the more mining power. PoS offers no block reward, instead receive transaction fees.
Self Managed Super Fund – An Australian term for a self managed pension scheme. The Self Managed Super Fund is permitted to invest in cryptocurrencies in Australia.
Staking – storing coins to remain outside of circulation in a designated specific coin wallet, with a dividend in the form of coins.
Two-Factor Authentication – A user is required to not only enter a username and password, but also to use a mobile phone or third-party authentication device when logging in. This is a form of security to protect users of an Exchange with preventing unauthorised access.
Robinhood – began as share trading app, but has now expanded into cryptocurrencies. Offers trading in bitcoin, ethereum, dash, ripple, stellar and many more. Quite popular due to the ease of use.