Crypto Asset Glossary
Take a look at some of the most common terms relating to crypto assets
Crypto-assets (crypto), also known as digital assets, cryptocurrencies, coins, or tokens, is an emerging type of asset class. These assets do not exist physically as traditional bank coins and notes, but as digital tokens. These digital tokens rely on cryptography and technology such as blockchain for security and other features.
| Time | Session |
|---|---|
| Altcoin | Altcoins are generally considered to be any cryptocurrency other than Bitcoin. Examples include Ethereum, Ripple, and Litecoin. |
| Bitcoin (BTC) | The first decentralized cryptocurrency, created by an anonymous entity known as Satoshi Nakamoto in 2009. It serves as a digital currency. |
| Blockchain | A decentralised digital ledger that records all cryptocurrency transactions across a network of computers. It ensures the integrity and transparency of data without a central authority. |
| Cryptocurrency Wallet | A digital wallet used to store, send, and receive cryptocurrencies securely. Wallets can be hardware-based or software-based. |
| Decentralised Applications (DApps) | Applications that run on a P2P network of computers rather than a single computer. Rather than operating under the control of a single authority, dApps are spread across the network to be collectively controlled by its users. |
| DeFi (Decentralised Finance) | Financial services using smart contracts on blockchains, without the need for intermediaries such as banks. |
| Ethereum ( ETH) | Ethereum is a decentralised blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform.
|
| Exchange | Platforms where users can buy, sell, or trade cryptocurrencies or tokens. These can be centralised (managed by a company) or decentralised (P2P). |
| Fiat | Government-issued currency that is not backed by a physical commodity, like US dollars or euros. |
| Hash Rate | A measure of the computational power per second used when mining. Higher hash rates increase the chances of finding the next block. |
| Initial Coin Offering (ICO) | A company seeking to raise money to create a new blockchain app or service with a cryptocurrency can launch an ICO as a way to raise funds. |
| Ledger | The record-keeping technology behind the blockchain that keeps a record of all transactions. |
| Mining | The process of validating new transactions and recording them on a blockchain. Miners use computational power to solve complex cryptographic challenges. |
| NFT (Non-Fungible Token) | A type of cryptographic token on a blockchain that represents a unique asset or good, often used for digital art and collectibles. |
| Proof of Stake (PoS) | An alternative to Proof of Work, this consensus mechanism allows block validation based on the number of coins a validator stakes. |
| Proof of Work (PoW) | A consensus mechanism that requires participants to perform a significant amount of computational work to propose a new block to the blockchain. |
| Satoshi Nakamoto | The pseudonymous person or group of people who created Bitcoin. |
| Smart Contract | A protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract without third parties. |
| Stablecoin | A type of cryptocurrency that is pegged to a stable asset like gold or fiat currencies, aimed at reducing price volatility. |
| Token | A unit of value issued by a project, representing various utility or asset-based claims on a blockchain. |
Source: These definitions are sourced from platforms and news sources such as the Ethereum Foundation, Bitcoin.org, Investopedia, and CoinDesk. For exact definitions, visiting these platforms or accessing blockchain-specific resources like the official documentation of cryptocurrency projects would provide the most detailed explanations.
Considering your financial goals?
A professional can help you plan, start the conversation now.
