A
Accumulation: The name given to the situation where cryptocurrencies are in a narrow price range without following periodic uptrends or downtrends.
Address: A cryptocurrency address is like a private account address that an investor has. Investors can share their public addresses (public keys) and perform cryptocurrency transfer transactions among themselves.
Airdrop: This term, which is used in the military in the sense of “delivery of aid from an aircraft”, is the name given to the free cryptocurrency distribution process that is carried out under certain conditions or unconditionally by project owners or companies that issue cryptocurrency.
Algorithm: A set of rules or practices to be followed in problem solving or calculation.
Alpha Code: The version where the codes are at an early stage and in the process of being tested.
Altcoin: An alternative coin. Altcoins are all cryptocurrencies issued as an alternative to Bitcoin.
AML (Anti Money Laundering): Actions taken to prevent money laundering in the cryptocurrency sector.
Angel Investor: Individuals seizing opportunities and taking actions to fund entrepreneurs and start-ups, and expand their assets at the same time.
Annual Percentage Yield (APY): Percentage return on investment in an asset one year later.
API (Application Programming Interface): An interface created for a software to use its functions defined in another software.
Aragon Network: A platform where users can connect using their Ethereum wallets and create their own communities. On this platform, users can establish systems for financing, voting, agreements, payments and rewards with the communities they create.
Arbitrage: Taking advantage of an asset’s price inequality in different markets for the purpose of risk-free profit. In this method, investors can buy an asset at a low price in one market and sell it at a high price in another market.
ASIC (Application-specific integrated circuit): Chips that are designed to solve specific problems.
ATH: All Time High.
ATL: All Time Low.
Audit: Infrastructure auditing of protocols by third-party audit companies.
Automated Market Maker (AMM): The system used in decentralized cryptocurrency exchanges where trading transactions are carried out with smart contracts.
B
Bear Market: A term used for all financial markets, meaning that prices are in a downtrend. Although it is not clearly acknowledged, the reason why it is called a bear is said to be that bears attack and drop their enemies by swinging their claws down.
BECH32: An address format that belongs to Bitcoin. These addresses usually start with “bc1”. Therefore,“BECH32” is also known as “bc1”.
Bitcoin ATM: An ATM that allows Bitcoin transfers and cash withdrawals.
Bitcoin Dominance: If we think of the cryptocurrency market as a pie, we can say that the slice of Bitcoin is the Bitcoin dominance rate. The market value of a cryptocurrency is calculated as the number of the cryptocurrency in circulation x the unit price of the cryptocurrency. The value calculated for each cryptocurrency is summed to calculate the value of the entire cryptocurrency market. Bitcoin dominance is the market value of Bitcoin among all cryptocurrencies. And that is calculated as Bitcoin’s market cap / total cryptocurrency market cap.
Blockchain: A structure in which every data to be processed is encrypted and stored in a structure called a block at certain intervals, in each new block there is a summary of the previous block, and all this data is stored in more than one data storage point.
Block Rewards: A kind of service fee paid to miners for each correct and valid block they approve.
Bollinger Bands: A very popular technical indicator that measures the price volatility of a financial instrument.
Bug Bounty: The reward given to the person who finds a bug on a platform or in a software. In short, it is a software vulnerability reward.
BUIDL: The word buidl is the word “build” as used in the cryptocurrency sector, like the term “Hodl”.
Bull Market: A bull market is a term used for all financial markets, like a bear market. Unlike a bear market, a bull market means that prices are in an uptrend. The reason why it is called a bull is said to be that bulls attack their enemies with their horns and throw them up.
C
Central Bank Digital Currency (CBDC): Central Bank Digital Currency is a currency that can be used as a legal tender and a digital representation of a sovereign currency acknowledged by a Central Bank or a Monetary Authority.
Chain Split: Division of a blockchain into different branches by changing due to a technical or any other impreventable issue.
Cloud Mining: A type of renting out equipment and the mining process itself by paying a person or entity.
Coin Burn: The name given to the process of permanently removing coins from circulation.
Cold Storage: Storing cryptocurrencies without an internet network.
Cold Wallet: A type of wallet without an internet connection. It works offline.
Commodity Channel Index (CCI): A method used to help determine when an investment instrument had reached an oversold or overbought condition.
Consensus: Each blockchain has a method of working, and these methods are called consensus. The most used consensus mechanisms are Proof of Work and Proof of Stake.
Curve Finance (CRV): A liquidity aggregator. A protocol focused on providing users with a platform to easily exchange Ethereum-based assets.
D
DDoS Attack (Distributed Denial of Service Attack): A malicious attempt to disrupt the infrastructure of a server, service or network with a stream of internet traffic.
Decentralized Autonomous Organization (DAO): Organizations that are decentralized and run on encoded protocols. The goal of DAO is to eliminate human error and manipulation of large investor funds by giving an automated system and mass community the decision-making power of developers.
DeFi (Decentralized Finance): DeFi is the general name of the services, which allow us to perform any transactions in the field of traditional finance, in a decentralized way with smart contracts.
Deterministic Wallet: A system of deriving keys from a single starting point known as a seed. A user who has lost his main wallet can access it from the backed up deterministic wallet system that is built on a specific algorithm and seed.
Dex (Decentralized Exchange): Decentralized exchanges that operate independently and are open-source. Users can trade by mutual agreement.
Digital Signature: In a sense, it is an electronic fingerprint. A digital signature, as a virtual encoded message, securely associates a signer to a document in a recorded transaction. It is a mathematical technique used to verify authenticity and integrity.
Distributed Ledger System: The name of the system in which users keep a common data in different ledgers independently and agree on the accuracy of this data. The significance of this system is that it is decentralized, the records are stored in different places in order to be verified by random different sources safely and protected by attacks.
Double Spending: The attempt to transfer the same digital asset or token more than once at the same time. Even though it is rare, double-spending is a potential hazard in blockchain networks.
Dump: It means lowering the price of a cryptocurrency by selling it in a short period of time.
DYOR (Do Your Own Research): A frequently used term that means it is healthier to do your own research than hearsay.
E
Earnings Per Share (EPS): It shows how much profit a company is making from each share. It is calculated with the following formula: (net income - dividend on preferred stocks) / total number of shares.
Emission (of Coin): A momentum indicator that helps determine when a trading asset has reached an overbought or oversold position.
Enterprise Ethereum Alliance (EEA): A group of organizations working collectively to advance and expand the cryptocurrency Ethereum.
ERC-20: This protocol standard, which stands for Ethereum Request for Comments, contains the rules and standards for creating tokens on the Ethereum network.
ExenPay: A payment system where you can shop, pay bills and make all your other payments, track your expenses, and thus combine all your financial transactions on a single platform, while taking advantage of numerous discounts, campaigns and instant returns.
F
Fear, Uncertainty and Doubt (FUD): The method of spreading alarming news to influence crypto transactions. With this method, transactions may be adversely affected.
Fiat Currency: The currency that derives its value from the government, which prints the fiat money and distributes it to the market, rather than an underlying asset or product. The validity of these coins is supported by law.
FOMO: Fear of Missing Out, or FOMO, is the fear of missing out on opportunities.
Fork: Splits that occur as a result of conflicts, such as a disagreement on a project. These splits could be Soft or Hard.
Free Margin: The amount of money you can use to open a new position other than your current positions.
Full Node: A node that contains a copy of all transactions made in a blockchain.
Fungibility: As a commercial/economic term, it means interchangeability. It is the property that ensures that the goods or assets have the same market value and can be exchanged for other assets of the same type.
G
Gas: The unit of fuel which is required to use the computation power on the Ethereum network. On the Ethereum network, gas is a must for any transaction to be processed.
Gas Fee: Each gas unit is called GWEI. GWEI is the easier to understand form of WEI. And WEI is the smallest Ethereum unit.
Gas Limit: The maximum limit a user is willing to pay for the computation power he wishes to use. According to the statement in one of the Ethereum prospectuses, each transaction must be worth at least 21,000 Gas.
Genesis Block: The first block processed in any blockchain network. In other words, it is the starting block of a blockchain. Bitcoin is the world's first example of a Genesis block.
Goerli TestNet: Launched in September 2018, it is the first cross-client Proof-of-Authority testnet that synchronizes Parity Ethereum, Geth, Nethermind, Hyperledger Besu (previously known as Pantheon) and EthereumJS. It is a completely open source, community-based project.
H
Halving: The process of halving the mining rewards in certain intervals in cryptocurrency projects operating with the Proof of Work protocol.
Hard Fork: Crossroad on a blockchain. It means giving up the old rules on a blockchain and transitioning to a new path divided by new rules.
Hash: The process of encrypting a text, making it algorithmically unpredictable.
HODL: A term coined by a user on the Bitcointalk forum in 2013 when the word Holding was misspelled. It is used in the sense of not selling and keeping the cryptocurrency one has.
Hot Wallet: Wallets that work online with an internet connection.
I
ICO (Initial Coin Offering): The term “initial” in Initial Coin Offering means the first issue of a coin to the public. In order to raise funds, projects can offer tokens or cryptocurrencies that they have issued.
Indicator: Statistics used to measure current conditions and predict financial or economic trends.
Inflation: The constant increase in prices and the decrease in purchasing power.
Initial Decentralized Exchange Offering (IDO): Fundraising methods through a decentralized platform.
Initial Exchange Offering (IEO): The process of checking and issuing the initial sale of a token by a cryptocurrency exchange.
K
Know Your Customer (KYC): The process by which users transmit their identity, address, etc. documents to the platforms where they transact for account security purposes.
L
Ledger: A hardware wallet used to store digital assets.
Lightning Network (LN): Introduced by Joseph Poon and Thaddeus Dryja in 2015, Lightning Network is essentially an application running on the Bitcoin blockchain, instead of recording all transactions on the blockchain network. Integrated to the Bitcoin network, it is a second layer that allows off-chain transactions to be made between parties more easily, quickly and cost-effectively without delay. It is designed to speed up transaction times and minimize the associated costs of the Bitcoin blockchain.
Limit Order: An order made to trade an asset at a specified price or better. A buy limit order can only be executed at the limit price or at a lower price. A sell limit order can only be executed at the limit price or at a higher price.
Liquidity: The extent to which an asset can be converted to another one without deviating from market prices.
Liquidity Mining: Earning income in exchange for providing liquidity.
Liquidity Provider: Individuals who provide liquidity to the DeFi platforms to earn income.
Long: Buying and storing cryptocurrency considering that its value will increase.
M
MACD Indicator: A trend-following momentum indicator showing the relationship between two exponential moving averages (EMAs) of prices. It is calculated by subtracting the 26-day EMA from the 12-day EMA. The signal lines on the MACD indicator are used as triggers for buy and sell signals. MACD indicator was developed by Gerald Appel in the 1970s.
Mainnet (Ana ağ): It means that a project has its own blockchain network.
Margin Level: It is calculated by the following formula: (Equity/Used Margin) X 100
Market Cap: It indicates the total market value of a financial asset. The market cap value is measured by multiplying the unit price of a cryptocurrency with the amount circulating in the market.
Market Momentum: In a sense, the market momentum sets trends in a market, and it can be used in technical analysis. It is the situation that occurs at the point of uptrends, downtrends or return points in certain periods. It is not only related to market prices, but also to transaction volume.
Maximum Supply: The best estimate of the maximum number of coins that will exist during the lifetime of a cryptocurrency.
Merged Mining: The process of mining two or more cryptocurrencies at the same time, not different from the general mining logic. Each hash made by a miner adds to the total hash rate of all currencies in merged mining.
Mining: The name given to the cryptocurrency production process.
Mining Pool: It refers to the miners directing the computing power, which they use for verifying transactions, to generate the next block of a chain. In the mining pool system, miners split rewards according to agreements.
Mining Reward: All cryptocurrencies produced as a result of the verification of transfer transactions and fees paid for transfers recorded in a block.
Multi-Signature: It consists of a combination of different signatures, often requiring at least two or more keys for security purposes to authorize a transaction.
N
Node: Internet-connected computers that keep records of transactions on a blockchain, disseminate information to the network, and ensure the security and decentralization of the network.
Non-Fungible Token (NFT): NFTs, which are unique tokens, can be generated a certain number of times based on ERC-721. Therefore, they are unique and available in limited numbers. They are widely preferred in artistic activities on blockchain.
O
Oscillator: A type of indicator that detects correction levels within the trend while prices move horizontally in markets where a trend has not yet occurred.
P
Paper Wallet: A cryptocurrency storage method. In this method, Public and Private Keys are physically printed on paper.
Parity: It describes the ratio of currencies of countries to one another. Interest rates and economic conditions of countries affect parities.
Partial Node: A node containing a copy of transactions made during a specific period of time in a blockchain network.
Peer to Peer: Also known as P2P, Peer to Peer means person to person. It describes transactions that take place directly between two parties without a third party in between.
Price-earnings Ratio (P/E): It determines the worth of a company by comparing the company’s share prices with the HBK results. It is often used to determine whether a stock is overvalued or undervalued. It is calculated by the following formula: Share price / earnings per share
Private Key: All data records can be viewed on Public Blockchains. When performing a transaction on a blockchain, Public Keys can be shared with anyone and are visible as a sender or receiver in transfers. For this reason, the system signs the desired transaction with the help of a Private Key so that individuals can gain control over the data. In short, Private Keys are authorization keys that enable these transactions to take place.
Profit: The account value remaining after subtracting profits or losses from the balance.
Proof of Authority: Consensus algorithm system that offers fast and effective solutions to private or blockchain networks. It was introduced by Ethereum co-founder Gavin Wood in 2017.
Proof of Stake: A system created as an alternative to Proof-of-Work (POW), the original consensus algorithm in the blockchain technology that is used to confirm transactions and add new blocks to the chain.
Proof of Work: An algorithm-based mechanism that is used on a network by Bitcoin miners to confirm and authenticate transactions by adding a new block to a blockchain. This algorithm, which is run on a blockchain network, has been developed to confirm transactions, to generate new blocks to add to a chain and to prevent threats such as attacks and spam messages that may come from outside.
Protocol: Fundamentally, it is a basic level of code that tells something how to work. The way each blockchain works is determined by a protocol.
Public Key: Cryptocurrencies are stored in accounting records on blockchains. The concept of wallets is actually connecting to a blockchain network and viewing data records, and all data records can be viewed on Public Blockchains. In this context, Public Keys are a type of key that can be shared with anyone and appear as a sender or recipient in transfers.
R
Rekt: It is the internet usage of the word “wrecked” that means total financial loss in cryptocurrency.
Relative Strength Index (RSI): A performance momentum indicator used in technical analysis to evaluate overbought or oversold conditions of an asset.
S
Sat: Short for Satoshi.
Scalability: The ability of a system to grow to meet increasing demand.
SEC: It stands for the U.S. Securities and Exchange Commission. It was established on June 6, 1934 to regulate the stock market as an independent government agency.
Security Token Offering (STO): STOs are like ICOs, but tokens that provide ownership are offered in STOs. STOs emerged as a safer and more regulated alternative to ICOs. Unlike ICOs, in STOs, tokens represent assets that provide real ownership such as stocks, bonds and funds.
Short: On the contrary of a long position, it means selling considering that the value of the relevant crypto currency will decrease.
Simplified Payment Verification (SPV): A simplified payment verification feature using only block heads instead of downloading an entire blockchain.
Smart Contracts: Contracts that present the terms of an agreement between the seller and the buyer, in code strings, based on computer protocols. They are also defined as digital contracts running on blockchain.
Snapshot: The name given to the process of taking a snapshot of a system. It is used with the same logic in the cryptocurrency market. It is the process of taking a snapshot of a blockchain that is on a specific level.
Soft Fork: It means changing the existing rules and protocols on a blockchain, but the change is backwards compatible. In a soft fork, a new blockchain is not formed, an existing one is modified.
Solidity: The programming language to write and implement Smart Contracts running on the Ethereum blockchain.
Spread: The difference between the buying price and the selling price.
Stablecoins: Stable cryptocurrencies indexed to a value of another asset. Stablecoins can be indexed to different types of assets such as SD Coin (USDC), Paxos (PAX), and TrueUSD (TUSD), and they are tokens backed 1 to 1 by money held in bank accounts.
Staking: The name given to the process of earning rewards by locking cryptocurrencies into the system. The more network-accepted cryptocurrencies you lock on a blockchain network, the higher your chance of being selected as a validator for the next transaction.
Stop Loss: A type of order to sell when the price of a cryptocurrency reaches a predetermined level.
T
Take Profit: A type of order that is placed for a point above the current price and allows you to close your position profitably at that level.
TestNet: Blockchains created by blockchain developers for testing purposes as an alternative before switching to MainNet.
Token: A cryptocurrency of a project that does not have its own blockchain but operates on another blockchain network. For example, there are many projects and their tokens running on the Ethereum blockchain.
Total Supply: Total number of goods and services available to meet total demand in any economic order. In that context, it is the total number of coins available in the cryptocurrency economy.
Transaction Fee: Transaction fee paid to miners for safe execution of transactions in cryptocurrency transfers.
Transaction ID: Cryptographic abbreviation for transactions in cryptocurrencies containing the summary of the transaction.
Transactions Per Second (TPS): A hardware metric showing the number of transactions per second by a system. It is measured with the following formula: T (number of transactions) ÷ S (number of seconds) = TPS (transactions per second)
Trend: The direction of an asset in a specific period of time. If the asset you track descends within a certain range, it is called a downtrend, and if it ascends within a certain range, it is called an uptrend.
Trend Channel: A corridor of change consisting of two parallel lines showing the current trend in the market.
Trust: In its simplest form, an association of partnerships formed by obtaining the share certificates of various partnerships operating in the same field by a partnership and transferring their management to the group that manages this partnership.
U
Uniswap: Uniswap is a DEX, in other words, a decentralized exchange developed on the Ethereum blockchain. As an exchange, it allows trading a variety of ERC-20 tokens in a decentralized way.
Unpermissioned Ledger: It means an account cannot be permanently monitored or controlled by a bank or tax office.
Unspent Transaction Output (UTXO): Output of a transaction on a blockchain that is unspent and can be used as an input for a new transaction.
V
Validation: Transactions are made through validation on blockchains. Although validations vary depending on the consensus of existing blockchains, they are made by nodes or individuals called miners.
Volatility: The variation in the price of a financial asset over a period of time. Volatility is at high levels when uncertainty is high. It is usually calculated using variance and standard deviation.
W
Wallet: Digital software that stores Private Keys that prove any digital asset belongs to an individual, and sends and receives currency.
Whale: An individual with a lot of crypto assets. It is thought that investors called whales direct the market with their assets.
White Paper: An explanatory and informative document about a project that includes the management style of the project, the solutions it brings to the problems, the area of interest, the opportunities it offers to its users and the technical details of interaction.
Wrapped Token: The name given to cryptocurrencies that have the same value but operate on different blockchains or contracts. These tokens are equal to the price of the cryptocurrency to which they are equivalent and their prices move at the same level.
Y
Yield Farming: The way of earning rewards with permissionless cryptocurrencies using liquidity protocols.
Z
Zero Knowledge Proof: A non-confidential protocol that works without sharing any information, password or transaction by a sender or a receiver. It is used by government agencies that do not need to prove the source of information or data. In blockchain technology, it is a formation with a high usability rate thanks to highly secure encryption.
