Glossary

Altcoins are alternative cryptocurrencies that exist alongside Bitcoin. There are thousands of altcoins developed to fulfill various functions and use cases. Some altcoins offer innovative technologies, while others aim to address specific issues. People use altcoins to diversify their investment portfolios or to support specific applications such as smart contracts or privacy.

Avalanche is a cryptocurrency platform that enables the creation and operation of decentralized applications. The token used on the Avalanche platform is called AVAX. AVAX is used for transactions within the network and also serves to secure the network through staking. Avalanche is known for its scalability and fast transaction confirmations.

Binance USD (BUSD) is a stablecoin issued by the cryptocurrency exchange Binance. A stablecoin is a cryptocurrency whose value is tied to a stable asset, like the US dollar. BUSD was created to provide a stable and reliable digital currency that can be used as a medium of exchange on cryptocurrency exchanges and for trading other cryptocurrencies.

A bear market is a phase in the cryptocurrency market where prices of cryptocurrencies in general are falling. During a bear market, there is often pessimism and a decline in interest. Many investors sell their cryptocurrencies as they expect prices to continue to drop. It can lead to overall market weakness and reduced trading activity, with investor confidence decreasing and a cautious and somewhat uncertain sentiment prevailing.

Bitcoin is the first and most well-known cryptocurrency introduced in 2009. It was developed by a person or group using the pseudonym “Satoshi Nakamoto.” Bitcoin enables direct peer-to-peer transactions without intermediaries like banks. The Bitcoin network is based on a decentralized technology called the blockchain.

Bitcoin Cash (BCH) emerged in 2017 through a fork (hard fork) of Bitcoin. It was designed to overcome some of the challenges of Bitcoin, such as slow transaction times and high fees. Bitcoin Cash aims to enable faster and cheaper transactions.

The Bitcoin protocol is a decentralized digital transaction system based on blockchain technology. It enables peer-to-peer transactions between users without the need for a central authority. Each transaction is recorded in a block on the blockchain and secured through cryptographic methods. The protocol also governs the creation of new bitcoins through a process called mining, which involves users participating in the network.

The Bitcoin white paper was published in 2008 by the person or group using the pseudonym “Satoshi Nakamoto”. It is a document that describes the basic functioning of Bitcoin and explains the technical aspects of the system. The white paper laid the foundation for the development of Bitcoin and served as a basis for many other cryptocurrencies.

The blockchain is a decentralized and transparent database used for recording transactions. It consists of a chain of blocks, with each block containing information about multiple transactions. The blockchain is a central element of many cryptocurrencies as it provides security, transparency, and trust in the system. Each block is connected to the previous block through cryptographic links, ensuring data integrity.

A 51% attack on a blockchain occurs when an individual or group controls more than 51% of the network's computing power. This could allow them to take control of the network and, for example, reverse transactions or perform double spending. A 51% attack is a problem specifically for small blockchain networks, as it can undermine trust in the system and the value of the cryptocurrencies based on it.

BNB stands for Binance Coin, the cryptocurrency issued by the Binance Exchange. Binance is one of the largest cryptocurrency exchanges in the world. BNB is used to pay transaction fees on the Binance platform and offers additional features within the Binance ecosystem.

A crypto broker is a company or platform that allows users to buy or sell cryptocurrencies. Unlike crypto exchanges that enable actual trading of cryptocurrencies, a crypto broker typically offers a simplified buying and selling process, often associated with a higher price. A crypto broker may also offer additional services, such as the ability to exchange cryptocurrencies for fiat currencies or store cryptocurrencies in a wallet. In general, crypto brokers are particularly suitable for beginners with no experience in cryptocurrency trading.

A bull market in the cryptocurrency market is a sustained period where cryptocurrency prices, in general, are rising. In a bull market, optimistic market expectations prevail, and investors show great interest and confidence in cryptocurrencies. It can lead to overall market dynamism and increased trading activity, with investor confidence rising and a positive sentiment prevailing.

ADA (Cardano) is a cryptocurrency and decentralized platform that allows developers to program their own applications and smart contracts. ADA is used for transactions on the platform and is also accepted as a means of payment for services and applications on the Cardano platform. The platform uses a proof-of-stake algorithm, which is more energy-efficient than the proof-of-work algorithm used by Bitcoin and other cryptocurrencies.

CBDC stands for "Central Bank Digital Currency" and refers to a digital currency issued by a central bank. Unlike cryptocurrencies, which are decentralized and not controlled by any central authority, a CBDC is issued and regulated by a government or central bank.

Chainlink (LINK) is a decentralized oracle network that enables the integration of external data into blockchain networks. It connects smart contracts with real-world data sources, such as weather or price information, to enhance the automation and efficiency of blockchain networks. Chainlink utilizes a system of nodes to collect and verify data to ensure data integrity. Chainlink also has its own cryptocurrency, LINK, which is used as a means of payment for using the platform.

A coin is a digital unit or currency stored in a blockchain. Coins can be used for various purposes, such as digital currency, assets, or participation in a decentralized network.

In the cryptocurrency market, cold storage refers to the secure storage of cryptocurrencies offline without an internet connection. Private keys, which provide access to the cryptocurrencies, are stored on physical devices such as hardware wallets or paper wallets. Cold storage minimizes the risk of hacks and online attacks. The Cryptonow Wallet is an example of a cold storage wallet.

Collateralized Coins (C-Coins) are cryptocurrencies backed by a security or asset, such as a fiat currency or another cryptocurrency. The goal is to maintain the value of C-Coins stable and reduce the risk of volatility. C-Coins can be used for payments, trading, or as collateral in lending transactions.

The Cosmos Hub is the core component of the Cosmos Network, which aims to enable interoperability between various independent blockchains. Cosmos utilizes a system of Inter-Blockchain Communication (IBC) protocols to establish connections between networks and facilitate seamless exchange of digital assets and data. ATOM is the cryptocurrency of the Cosmos Network and is used for transactions and security measures.

A cryptocurrency is a digital currency secured by cryptography and based on a blockchain. Cryptocurrencies are decentralized systems in which transactions are conducted directly between participants without a central intermediary. Cryptocurrencies can be used as a medium of exchange or serve as an asset that can be held or traded.

Kryptografie ist eine Methode, um Informationen sicher zu verschlüsseln und zu entschlüsseln. Sie schützt Daten vor unerlaubtem Zugriff und sorgt dafür, dass nur berechtigte Personen darauf zugreifen können. Kryptografie spielt eine wichtige Rolle in der Sicherheit von Kryptowährungen und Blockchain-Technologien, indem sie Transaktionen und Daten vor Manipulation und Betrug schützt. Sie hilft dabei, das Vertrauen in digitale Systeme zu stärken, indem sie sicherstellt, dass Informationen vertraulich, integritätsgeschützt und authentisch sind.

A cyber attack refers to illegal activities in which hackers or cybercriminals attempt to access computer systems or networks to steal information or cause harm. In the context of cryptocurrencies, a cyber attack may involve the theft of cryptocurrencies, attacks on crypto exchanges, or manipulation of transactions.

Dai is a decentralized stablecoin based on the Ethereum blockchain. Unlike most cryptocurrencies, Dai aims to maintain a stable value by being pegged to the US dollar. Dai is stabilized through a combination of smart contracts and Collateralized Debt Position (CDP) mechanisms.

Decentralization: Decentralization refers to the distribution of power, control, and data among various participants in a network. In the context of cryptocurrencies, decentralization means that there is no central authority or institution controlling the network. Instead, control is distributed among many participants, making the network more resistant to censorship and manipulation.

Deflation refers to a price correction occurring when there are more goods and commodities available on the market than there are buyers. The supply exceeds the demand. People no longer have enough money to purchase the goods, resulting in falling prices. Deflation can have positive effects like lower prices for consumers and higher profits for businesses, but it can also have negative impacts such as a downward spiral of low demand and declining economic activity. Governments and central banks often take measures to combat deflationand promote economic stability.

A digital currency is a type of currency that exists entirely in digital form and has no physical presence. Cryptocurrencies are an example of digital currencies that are secured and managed through the use of encryption technology.

Distributed Ledger Technology (DLT) is a method of storing and managing data across multiple computers in a network rather than storing it on a central server. A well-known example of DLT is blockchain technology, where transaction data is recorded in blocks connected through cryptographic mechanisms. DLT can help enhance the security and transparency of data by reducing vulnerabilities present in centralized systems.

DOGE (Dogecoin) is a decentralized digital cryptocurrency, often referred to as a memecoin, based on the internet meme "Doge." It was initially created as a joke but has gained popularity over the years and is now used by many as a form of digital tipping or alternative payment for goods and services. The number of Dogecoins is not limited, making it more susceptible to inflation compared to some other cryptocurrencies.

Double spending refers to the attempt to spend the same unit of cryptocurrency twice. In decentralized networks, this problem is solved through cryptographic mechanisms and confirmation of transactions to ensure that a unit of cryptocurrency can only be spent once.

The European Central Bank (ECB), headquartered in Frankfurt am Main, is the central bank of the Eurozone and is responsible for monetary policy in the currency union. The ECB plays a crucial role in setting benchmark interest rates and monitoring the growth of the money supply to maintain price stability in the Eurozone.

ETH (Ethereum) is a decentralized platform that allows developers to program their own applications and smart contracts. The currency of Ethereum is called Ether and is used to perform transactions on the platform. Ethereum is more flexible than Bitcoin and enables developers to create customized applications on the platform.

ETC (Ethereum Classic) is a cryptocurrency and blockchain platform that emerged as a fork of Ethereum. The fork occurred after a major theft of Ethereum coins in 2016, and the Ethereum community decided to reverse the transactions to recover the stolen coins. A portion of the Ethereum community opposed this decision and remained with the original blockchain, which later became known as Ethereum Classic. Ethereum Classic has its own cryptocurrency, ETC, which is used as a means of payment on the platform and can also be used for executing smart contracts and decentralized applications (DApps).

A crypto exchange is a digital platform where users can buy, sell, and trade cryptocurrencies. There are centralized and decentralized exchanges, with centralized exchanges being a centralized company that has control over users' funds, while decentralized exchanges are based on blockchain technology and have no central control. Some exchanges also offer advanced features such as margin trading and staking.

Fear of Missing Out (FOMO) refers to the fear of missing out on potential gains. FOMO can lead investors to act impulsively without sufficient research or proper risk assessment. This behavior can result in irrational decisions and excessive buying, which in turn can lead to inflated prices and potential losses.

Fear, Uncertainty, and Doubt (FUD) refers to the spread of negative information, rumors, or uncertainties to create doubt or fear among investors and diminish the value of a particular cryptocurrency or the cryptocurrency market as a whole.

Fiat money refers to a national currency such as the Euro, US Dollar, or Swiss Franc that is not backed by a commodity like gold or silver. The value of fiat money is largely based on public trust in the issuer of the currency, typically the government or central bank of the respective country.

Filecoin (FIL) is a decentralized storage protocol launched in 2020. The protocol allows users to rent storage space from other users to store their data. In return, users who provide storage space receive FIL tokens as rewards. Filecoin is based on blockchain technology and utilizes a proof-of-storage protocol to ensure the integrity of stored data.

Book money is a form of money that exists only in accounting and computer databases and is not physically present. It is created by crediting balances to bank accounts and can be used through transfers and card payments. Unlike cash, book money is not legal tender, but it is widely used in daily payment transactions.

First-layer cryptocurrencies refer to digital currencies developed on their own blockchain platform, serving as the primary layer or base of the crypto ecosystem. These cryptocurrencies use their own native cryptocurrency as fuel to process transactions within the network and maintain network security through consensus mechanisms like proof-of-work or proof-of-stake. Some examples of first-layer cryptocurrencies are Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.

The goldstandard is a monetary system where the value of a currency is backed by a fixed amount of gold. In such a system, people can exchange their banknotes or coins with the central bank for an equivalent amount of gold. The gold standard has been applied in various forms throughout history, but its heyday was in the 19th and early 20th centuries.

Government bonds are debt securities issued by governments to borrow money from investors. They allow governments to finance their budgets and support projects. Investors receive interest payments and get back the invested capital at the end of the bond's maturity.

A hot wallet in the cryptocurrency market is a wallet that is connected to the internet and used for quick access to cryptocurrencies. It allows users to manage their cryptocurrencies online and perform transactions rapidly. However, since a hot wallet is connected to the internet, it carries a higher risk of hacks and theft compared to cold storage. Hot wallets are often used for daily use and small amounts, while larger amounts of cryptocurrencies are kept more securely in cold storage.

Inflation refers to the increase in the general price level of goods and services in an economy over a specific period. This leads to a decrease in the purchasing power of money. Inflation can have various causes, such as increased demand, rising production costs, or loose monetary policy. Moderate inflation can have positive effects, such as incentives for consumption and investment, while high or uncontrolled inflation can have negative impacts like uncertainty and asset devaluation.

Investing refers to the purchase of assets such as stocks, bonds, or cryptocurrencies with the goal of making a profit in the long term. It involves a willingness to take risks and invest capital over an extended period.

The benchmark interest rate in the financial sector is the rate at which the central bank of a country lends or accepts money from commercial banks. The benchmark interest rate serves as a tool of monetary policy and influences the overall interest rate structure in the economy. When the central bank lowers the benchmark interest rate, money becomes more available and cheaper, stimulating lending and investment. Conversely, an increase in the benchmark interest rate makes borrowing more expensive and can dampen economic activity. The benchmark interest rate affects, among other things, interest rates for loans, mortgages, and investments, and has implications for the economic activity and financial market of a country.

Know Your Customer (KYC) in the crypto market refers to the process of verifying the identity and customer information by exchanges and platforms. It is a measure to combat money laundering, terrorism financing, and other illicit activities. Users are required to prove their identity by submitting personal documents such as identification documents or address proofs to access certain features or higher trading limits.

LEO Token is a cryptocurrency token issued by the crypto exchange Bitfinex. The token was developed to enable a range of functionalities on the platform, such as trading cryptocurrencies, paying fees, and financing margin trades. LEO Token is also used for participating in Bitfinex's Initial Exchange Offerings (IEOs) and receiving discounts on trading fees.

The Lightning Network is a second-layer scaling solution for Bitcoin transactions that enables fast and low-cost transactions by conducting transactions off-chain and directly between participants. The Lightning Network uses smart contracts and multisignature addresses to build a secure and scalable transaction infrastructure. The Lightning Network is a significant step toward improving the scalability and user-friendliness of Bitcoin and other cryptocurrencies.

LTC (Litecoin) is a decentralized digital cryptocurrency based on Bitcoin technology but with some technical differences. It was designed to enable faster transactions and lower transaction fees than Bitcoin. Litecoin uses a proof-of-work consensus mechanism and has a higher block generation rate than Bitcoin, resulting in faster transaction confirmations. Litecoin is used as a medium of exchange for goods and services and can be traded on various cryptocurrency exchanges.

The metaverse refers to a virtual world or ecosystem composed of interconnected virtual worlds inhabited by a community of users. It can be seen as a form of augmented reality where users create digital avatars, interact with others, possess digital assets, and utilize services in the virtual world. The metaverse has the potential to transform many areas such as gaming, social media, education, healthcare, and commerce, and is considered by some as the next step in the evolution of the internet.

Money creation refers to the process of introducing new money into an economy. In traditional fiat money systems, this is achieved through central banks and the credit process by commercial banks. In cryptocurrencies, money creation is achieved through mining or staking.

Nodes are participants in the network of decentralized systems like blockchain that receive, validate, and propagate data and transactions. Each node has a copy of the blockchain, which is constantly updated, and all transactions stored in the blockchain are verified by the nodes to ensure they comply with the network's rules. Nodes can be either full nodes, which hold a complete copy of the blockchain, or lightweight nodes, which store only certain parts of the blockchain to save storage space. Nodes play a vital role in maintaining the integrity and security of the network by ensuring all transactions are correct and consistent.

A peer-to-peer transaction is a direct transaction between two parties without a central authority acting as an intermediary. This means that the transaction takes place directly between the two parties without any third party monitoring or authorizing it. Peer-to-peer transactions can be used in various areas, including financial technology, where they enable users to send and receive payments without the need for a bank or other payment processor. In the context of Bitcoin, the peer-to-peer network of the Bitcoin protocol allows for direct transactions between users without requiring a central authority.

Stablecoins are cryptocurrencies whose value is pegged to a stable asset such as the U.S. dollar, gold, or other fiat currencies. This is done to minimize fluctuations in the value of the cryptocurrency and provide a stable basis for payments and investments. Stablecoins can be traded on cryptocurrency exchanges and enable investors to hold cryptocurrencies without being exposed to high volatility.

A token is a digital unit created on an existing blockchain platform, usually used to enable specific functionalities within that platform. Tokens can serve as digital assets, means of payment, or participation rights within a network or platform. Examples of tokens are Filecoin for storage and Brave's BAT for application purposes in a web browser. Utility tokens are typically necessary to access certain features or provide incentives for using an application or platform.