Virtual Currency



For the past few years now Virtual Currency has gained a lot of steam. Since it is relatively new, it tends to be confusing for a lot of people, even for some of those who actively participate in it.
However, what we found is that a lot of times, what is really confiding people is a lack of meaning for this new lingo!

For this reason here is the best vocabulary we were able to find!


  • Address – character string for crypto account “home address”
  • Airdrop – marketing distribution of token or coin
  • Altcoin – any coin not Bitcoin
  • Altfi – nonconventional financial channels, processes and instruments
  • AML – anti-money laundering is a set of regulations designed to inhibit/trace money laundering
  • Bitcoin (BTC) – most famous and popular virtual currency
  • Block – digital record of transaction within block chain
  • Blockchain explorer – online tool investors use
  • Block reward – virtual currency awarded to miner
  • Blockchain – series of blocks
  • Brain storage or brain wallet – memorizing keys rather than writing them down or storing them online
  • Cold storage – storing ownership information independent of an internet connection
  • Crypto-assets – umbrella term used internationally to include payment tokens, utility tokens and security tokens utilizing distributed ledger technology and cryptography
  • Cryptocurrency – digital currency using cryptographic methods
  • Cryptography – making ordinary information unreadable
  • Cryptoverse – universe of cryptocurrency
  • De-Fi – decentralized finance is finance existing outside the typical banking structure
  • DEX – decentralized exchange
  • Digital currency – currency existing only in digital form (no coins/bills)
  • Distributed ledger – digital system recording/storing data across a network of independent computers
  • DLT – stands for distributed ledger technology
  • Exchange – online platform to buy, sell and trade currencies
  • FATF – Financial Action Task Force
  • Fiat – money recognized as legal tender by a government
  • FOMO – fear of missing out (a type of buying behavior)
  • Forex aka FX – foreign exchange market
  • Fork – blockchain split resulting in two separate blockchains
  • Hard cap – maximum number of coins that will ever be created
  • HODL – slang for holding onto a currency rather than selling it
  • Hot storage – a device that stores crypto on the Internet
  • Initial Coin Offering (ICO) – raise funds for new venture
  • Initial Exchange Offering (IEO) – raise funds for new venture
  • Initial Token Offering (ITO) – basically the same as an ICO
  • Keys – establish virtual currency ownership
  • KYC – know your customer; identifying banking clients to adhere to AML regulations
  • Mining – creating blocks by validating transactions
  • NFT – non-fungible token
  • Peer to peer (or P2P) – a transaction not involving an exchange
  • Proof of work – is the original form of mining and is still used by Bitcoin
  • Proof of stake – an alternative to proof of work requiring participants to commit tokens to the network in order to gain rewards
  • Smart contract – an online contractual agreement based on the Etherium blockchain
  • Stablecoins – cryptocurrencies pegged in value to a non-crypto asset
  • Staking – committing coins to a proof of stake network
  • Tokens – cryptocurrencies riding on another blockchain
  • VASP – Virtual Asset Service Provider aka exchange
  • Virtual currency – online store of value, not fiat
  • Wallet – stores keys, either online or offline
  • Wash trade – selling and buying identical coins in order to manipulate the market
  • Whale – participants in the Cryptoverse who are able to influence the market
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