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Bitcoin glossary

A clear glossary of terms to help you better understand the world of cryptocurrencies. Find simple explanations for all important terms.

Altcoin

An altcoin is any type of cryptocurrency that is not Bitcoin. These alternative coins often have different features, technologies, or goals than Bitcoin.

ASIC

An Application-Specific Integrated Circuit (ASIC) is specialized hardware designed to efficiently mine a specific cryptocurrency. These devices are designed to increase performance and reduce power consumption.

ASIC Miner

An ASIC Miner is a device designed specifically for mining cryptocurrencies using ASIC chips. These miners are usually more efficient than GPU or CPU mining systems.

ATH

All-Time High (ATH) is the highest value that a given cryptocurrency or market indicator has reached in its entire history.

Bear/Bearish

A bear market is a period of declining asset prices, including cryptocurrencies. Investors may be bearish because of the expected decline in prices.

Bearish sentiment

Bearish sentiment is a market mood where investors expect asset prices to decline in the near future.

BIP

A Bitcoin Improvement Proposal (BIP) is a document describing a new feature or change to the Bitcoin protocol proposed by the community.

Bitcoin

Bitcoin is the first decentralized cryptocurrency that allows transactions to be made directly between two parties without an intermediary.

Bitcoin address

A Bitcoin address is a unique string of characters that is used to identify the destination for sending and receiving Bitcoins.

Block

A block is a record of transactions in the blockchain that contains data about the transactions performed and other information, including the time and place of the transaction.

Blockchain

Blockchain is a decentralized and distributed accounting system that stores transaction records in blocks linked using cryptography.

BTC

BTC is the abbreviation for Bitcoin, the best-known and most popular cryptocurrency.

Bull/Bullish

A bull market is a period of rising asset prices, including cryptocurrencies. Investors may be bullish because of the expectation of rising prices.

Exchange

An exchange is a marketplace where cryptocurrencies and other assets are traded between various participants at current market prices.

Circulating supply

Circulating supply is the amount of a particular cryptocurrency that is currently in circulation and available for trading on the market.

Coin

Coin is a term used to refer to any cryptocurrency, such as Bitcoin, Ethereum, or Litecoin.

Cryptocurrency decentralization

The decentralization of cryptocurrency means that the network and control over transactions are distributed among many nodes, which increases security and resistance to censorship.

Digital currency

Digital currency is a form of currency that exists only electronically and is not physically represented.

DCA

DCA, or Dollar Cost Averaging, is a strategy of regularly investing the same amount of money that helps reduce the risk of bad market timing.

Digital signature

A digital signature is a cryptographic mechanism used to verify the identity and integrity of digital messages and transactions.

DIP

A dip is a short-term decline in the price of an asset, including cryptocurrencies, usually followed by further growth.

Downtrend

A downtrend is a long-term decline in the price of an asset, including cryptocurrencies, that is characterized by a series of lower highs and lows.

Dump

A dump is the sudden sale of a large amount of cryptocurrencies on the market, leading to a sharp drop in price.

Ethereum

Ethereum is a decentralized platform and cryptocurrency that enables the launch of decentralized applications and smart contracts.

Fiat money

Fiat money is traditional currencies issued by governments, such as the US dollar, the euro, or the Japanese yen.

FOMO

FOMO stands for Fear of Missing Out and describes a psychological condition where investors buy an asset out of fear of missing out on an opportunity to make a profit.

Fork

A fork is a change in a cryptocurrency protocol that results in the blockchain splitting into two distinct branches, often due to disagreement within the community.

FUD

FUD stands for Fear, Uncertainty, and Doubt and describes the tactic of spreading negative information or fears with the aim of influencing the market.

Halving

Halving is an event where the reward for mining a new block in a cryptocurrency’s blockchain is cut in half, which affects supply and price.

Hash

A hash is a cryptographic function that converts input data into a short, fixed-length string of characters that serves as a unique identifier for the data.

Hash Rate

Hash Rate is a measurement of computing power in a cryptocurrency network, which determines the ability of mining devices to solve mathematical problems.

Hodl

Hodl is a slang term that refers to the strategy of holding cryptocurrency instead of selling it, usually despite short-term price fluctuations.

Hodler

Hodler je osoba, která drží své kryptoměnové aktiva dlouhodobě, aniž by je často prodávala, navzdory cenovým fluktuacím.

ICO

ICO stands for Initial Coin Offering and is the process by which new cryptocurrencies sell their coins or tokens to the public to fund the project.

Moving average

A moving average is a statistical indicator that expresses the average value of an asset’s price over a certain period of time and is used to identify trends.

Correction

A correction is a short-term period of decline in the price of an asset, including cryptocurrencies, after a period of growth, often considered a healthy price correction.

Crypto

Crypto is an abbreviation for cryptocurrency or cryptography, used in the context of digital assets or technologies based on cryptography.

Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography to secure transactions and control the creation of new units.

Lightning Network

The Lightning Network is a second layer above the Bitcoin blockchain that allows for fast and cheap microtransactions between nodes without the need to confirm each transaction on the blockchain.

Limit Order

A Limit Order is a type of trading order that specifies the maximum price at which an investor is willing to buy or sell an asset.

Long

A long position is a situation where an investor believes that the price of an asset will increase and therefore buys with the aim of profiting from the increase in price.

Market Cap

Market Cap is the total value of all available coins or tokens of a particular cryptocurrency, calculated as the price of a single asset multiplied by the total number of coins in circulation.

Miner

A miner is an individual or company that operates hardware and uses its computing power to verify transactions and mine new blocks in the blockchain.

Mining

Mining is the process of verifying transactions and creating new blocks in the blockchain using computing power.

Moon

The term “moon” is used to describe a sudden and dramatic increase in the price of a cryptocurrency or other asset.

Node

A node is a device or program that runs as part of a decentralized cryptocurrency network and maintains a copy of the entire blockchain.

Off-chain

Off-chain is a term used to describe transactions that take place outside of a cryptocurrency’s main blockchain, typically using second-layer solutions.

Open Source

Open Source refers to software that is available with open source code and allows the community to contribute to its development.

Peer-to-peer

Peer-to-peer (P2P) is a network model in which there are direct connections between nodes in the network without a central intermediary.

Wallet

A wallet is software or device that allows you to store, manage, and use cryptocurrencies.

Pool/Mining Pool

A Mining Pool is a group of miners who share their computing power and rewards for mining new blocks to increase their chances of winning a reward.

Price action

Price action is the analysis of the price movement of an asset over time, often focusing on graphic patterns and price behavior in the market.

Private Key

A Private Key is a secret cryptographic key that allows a user to access their cryptocurrency funds and sign transactions.

Proof of Work (PoW)

Proof of Work is a consensus mechanism that requires miners to solve complex mathematical problems to verify transactions and create new blocks in the blockchain.

Proof of Stake (PoS)

POS (Proof of Stake) is a consensus mechanism that allows validating nodes to verify transactions based on the amount of cryptocurrency they own.

Pump

A pump is a sudden and dramatic increase in the price of a cryptocurrency or other asset, usually caused by market manipulation.

Pump & Dump

Pump & Dump is a manipulation tactic where individuals or groups artificially increase the price of an asset (pump) to then sell their positions at higher prices, causing a dramatic drop in price (dump).

Range

A range is a period when the price of a cryptocurrency or other asset moves between certain price limits without moving significantly in one direction.

Resistance

Resistance is a price at which resistance is expected to be encountered against an asset’s price increase, which may cause difficulty in overcoming this level.

RIG

A RIG is a computer system or device that is specifically designed for cryptocurrency mining and may contain multiple mining cards or ASIC chips.

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonym or group of people who created Bitcoin and published its white paper in 2008.

Satoshi

Satoshi is the smallest unit of Bitcoin, equivalent to 0.00000001 BTC, named after Satoshi Nakamoto.

Scam

A scam is a fraudulent activity that may involve fake projects, cryptocurrencies, or investment opportunities that aim to rob innocent investors.

SHA-256

SHA-256 is a cryptographic hash function used in the Bitcoin protocol to verify transactions and mine new blocks.

Shitcoin

Shitcoin is a pejorative term used to refer to a low-quality or worthless cryptocurrency with low value and little potential.

Short/to short

Shorting is a trading strategy in which an investor sells an asset that they do not yet own with the aim of buying it back at a lower price and thereby making a profit.

Smart Contract

A Smart Contract is a programmable code that runs on a blockchain and automatically and irreversibly executes transactions according to predefined conditions.

Spread

The spread is the difference between the buying and selling price of an asset and represents a commission or profit for the trader.

Stop or Stoploss

A Stop or Stoploss is a type of trading order used to minimize losses by specifying the price at which an asset should be sold if it reaches a certain price drop.

Support

Support is a price that is expected to provide resistance to a decline in the price of an asset, which may lead to price support or a bounce from it.

Swing trading

Swing trading is a trading strategy that focuses on short-term fluctuations in asset prices and typically uses technical analysis to determine entry and exit points.

TA

TA stands for technical analysis and is a method used to predict asset prices based on historical price and volume data and various technical indicators.

Testnet

A testnet is an alternative blockchain or network that allows developers and users to experiment with new features and applications without the risk of losing value.

Miner

A miner is a person or company that operates hardware and uses its computing power to verify transactions and mine new blocks in the blockchain.

Mining Farm

A mining farm is a facility or operation that brings together a large amount of mining hardware for efficient mining.

Mining Pool

A mining pool is a group of miners who share their computing power and rewards for mining new blocks to increase their chances of winning a reward.

Token

A token is a digital asset that commonly runs on an existing blockchain network and can have various functions, such as voting, ownership, or the right to services.

Trading

Trading je proces nákupu a prodeje aktiv za účelem zisku, obvykle na finančních trzích, včetně trhu s kryptoměnami.

Trend line

A trend line is a line that connects the tops or bottoms of price movements on a chart and helps identify the direction of the market.

Trezor

Trezor is a hardware wallet that allows users to store and protect their cryptocurrencies offline.

Market sentiment

Market sentiment is the mood or view of the investment community towards a given market or asset, which can influence price and trading decisions.

Uptrend

An uptrend is a period of rising prices for an asset, including cryptocurrencies, that is characterized by a series of higher highs and lows.

Node

A node is a device or program that runs as part of a decentralized cryptocurrency network and maintains a copy of the entire blockchain.

Whale

A whale is a term used for an investor or entity that holds a large amount of cryptocurrencies or other assets and can have a significant influence on the market through its transactions.

Volatility

Volatility is a measure of the variability of an asset’s prices over a certain period and serves as a measure of the risk associated with trading a given asset.

Volume

Volume is the amount of assets traded during a certain period of time and is used to assess the level of interest or activity in the market.

Wallet

A wallet is software or device that allows users to store, manage, and use cryptocurrencies.

Weak Hands

Weak Hands is a term used to describe an investor who has a low tolerance for risk and often reacts to short-term price fluctuations by selling their positions.