ICO Acronym for “initial coin offering”.
In order to raise funds, the creator of a cryptocurrency will put an initial batch of its coins up for purchase. This is an initial coin offering.
JOMO
Acronym for “joy of missing out”.
KYC
Acronym for “know your customer”, which refers to a financial institution’s obligation to verify the identity of a customer in line with AML laws.
LAMBO
Shorthand for Lamborghini, which is how someone might refer to themselves if they are getting rich quickly. The idea being there is so much money coming in that they are going to go buy an exotic car.
Ledger
A record of financial transactions. A ledger cannot be changed, it can only be appended with new transactions.
Leverage
A loan of sorts offered by a broker on an exchange during margin trading (see below).
Lightning Network
A peer-to-peer system for cryptocurrency micropayments that is focused on low latency, instant payments. They’re typically low cost, scalable and can work across chains, and transactions can be public or private.
Limit Order/Limit Buy/Limit Sell
If you set a rule whereby a cryptocurrency is sold or bought when at a certain price, you are setting a limit order. When traders place an order for a buy or sell, the system looks for these limit orders.
Liquidity
The liquidity of a cryptocurrency is defined by how easily it can be bought and sold without impacting the overall market price.
Locktime
If a transaction request comes with a rule delaying when it can be processed to a certain time or certain block on the blockchain, that is referred to as the locktime.
Long
When you intend to take a large amount of cryptocurrency and stockpile it with the anticipation that it will grow in value, you are going long (or taking a long position).
MACD
Acronym for “Moving Average Convergence Divergence”.
Margin Bear Position
This is the position you are taking if you are going “short”.
Margin Bull Position
This is the position you are taking if you are going “long”.
Market Capitalization
This is defined as the total number of coins in supply multiplied by the price. Cap = supply x price.
Margin Trading
A risky strategy used by experienced traders where they risk their existing coins to magnify the intensity of their trades. This allows them to buy more than they can afford using leverage provided by an exchange.
Market Order
As opposed to a limit order, a market order does not wait until a certain price to buy or sell; it trades wherever the price is at the time the transaction order is made.
MCAP
Acronym for “market capitalization”.
Mining
The term, somewhat confusingly, given to the process of verifying transactions on a blockchain. In the process of solving the encryption challenges, the person donating the computer power is granted new fractions of the cryptocurrency.
Mining Contract
An investment in mining hardware whereby you rent out the hashing power of mining hardware for a certain amount of time. The renter does not pay for the hardware or the maintenance and electricity required to run it.
Mining Pool
If a number of miners combine their computing power together to try and help complete the transactions required to start a new block in the blockchain, they are in a mining pool. The rewards are spread proportionately between those in the mining pool based on the amount of power they contributed. The idea is that being in a mining pool allows for better chances of successful hashing and therefore getting enough cryptocurrency reward to produce an income.
Money Services Business
A legal term used to represent an entity that transfers or converts money.
Moon
A term used to describe a major price movement upwards. For example, Ripple is mooning.
Moving Average Convergence Divergence
A part of the technical analysis of a cryptocurrency’s value, this tracks the momentum of price change to try and forecast into the future.
MSB
Acronym for “money services business”.
In order to raise funds, the creator of a cryptocurrency will put an initial batch of its coins up for purchase. This is an initial coin offering.
JOMO
Acronym for “joy of missing out”.
KYC
Acronym for “know your customer”, which refers to a financial institution’s obligation to verify the identity of a customer in line with AML laws.
LAMBO
Shorthand for Lamborghini, which is how someone might refer to themselves if they are getting rich quickly. The idea being there is so much money coming in that they are going to go buy an exotic car.
Ledger
A record of financial transactions. A ledger cannot be changed, it can only be appended with new transactions.
Leverage
A loan of sorts offered by a broker on an exchange during margin trading (see below).
Lightning Network
A peer-to-peer system for cryptocurrency micropayments that is focused on low latency, instant payments. They’re typically low cost, scalable and can work across chains, and transactions can be public or private.
Limit Order/Limit Buy/Limit Sell
If you set a rule whereby a cryptocurrency is sold or bought when at a certain price, you are setting a limit order. When traders place an order for a buy or sell, the system looks for these limit orders.
Liquidity
The liquidity of a cryptocurrency is defined by how easily it can be bought and sold without impacting the overall market price.
Locktime
If a transaction request comes with a rule delaying when it can be processed to a certain time or certain block on the blockchain, that is referred to as the locktime.
Long
When you intend to take a large amount of cryptocurrency and stockpile it with the anticipation that it will grow in value, you are going long (or taking a long position).
MACD
Acronym for “Moving Average Convergence Divergence”.
Margin Bear Position
This is the position you are taking if you are going “short”.
Margin Bull Position
This is the position you are taking if you are going “long”.
Market Capitalization
This is defined as the total number of coins in supply multiplied by the price. Cap = supply x price.
Margin Trading
A risky strategy used by experienced traders where they risk their existing coins to magnify the intensity of their trades. This allows them to buy more than they can afford using leverage provided by an exchange.
Market Order
As opposed to a limit order, a market order does not wait until a certain price to buy or sell; it trades wherever the price is at the time the transaction order is made.
MCAP
Acronym for “market capitalization”.
Mining
The term, somewhat confusingly, given to the process of verifying transactions on a blockchain. In the process of solving the encryption challenges, the person donating the computer power is granted new fractions of the cryptocurrency.
Mining Contract
An investment in mining hardware whereby you rent out the hashing power of mining hardware for a certain amount of time. The renter does not pay for the hardware or the maintenance and electricity required to run it.
Mining Pool
If a number of miners combine their computing power together to try and help complete the transactions required to start a new block in the blockchain, they are in a mining pool. The rewards are spread proportionately between those in the mining pool based on the amount of power they contributed. The idea is that being in a mining pool allows for better chances of successful hashing and therefore getting enough cryptocurrency reward to produce an income.
Money Services Business
A legal term used to represent an entity that transfers or converts money.
Moon
A term used to describe a major price movement upwards. For example, Ripple is mooning.
Moving Average Convergence Divergence
A part of the technical analysis of a cryptocurrency’s value, this tracks the momentum of price change to try and forecast into the future.
MSB
Acronym for “money services business”.
Multipool Mining
If a miner moves from one cryptocurrency blockchain to another depending on the profitability provided by the network at that moment in time, they are engaging in multipool mining.
Multi-Signature (Multi-Sig) Wallets
If, in order for a transaction to go through, more than one user needs to provide their unique code, then it is multi-signature. This system is set up at the creation of the account and is considered less susceptible to theft.
If a miner moves from one cryptocurrency blockchain to another depending on the profitability provided by the network at that moment in time, they are engaging in multipool mining.
Multi-Signature (Multi-Sig) Wallets
If, in order for a transaction to go through, more than one user needs to provide their unique code, then it is multi-signature. This system is set up at the creation of the account and is considered less susceptible to theft.
Network
A network refers to all the nodes committed to helping the operation of a blockchain at any given moment in time.
Node
Any computer that is connected to a blockchain’s network is referred to as a node.
Nonce
When a miner hashes a transaction, a random number is generated, called a nonce. The parameters from which that number is chosen change based on the difficulty of the transaction.
A network refers to all the nodes committed to helping the operation of a blockchain at any given moment in time.
Node
Any computer that is connected to a blockchain’s network is referred to as a node.
Nonce
When a miner hashes a transaction, a random number is generated, called a nonce. The parameters from which that number is chosen change based on the difficulty of the transaction.
OCO
Acronym for “one cancels the other order”.
When two orders for cryptocurrency are placed simultaneously with a rule in place whereby if one is accepted, the other is cancelled.
Oracles
The smart contracts stored on a blockchain are stuck within the network. They can only be reached by the external world through a program called an oracle. The oracle sends the data to and from the smart contract and the outside world as required. Oracles are most commonly found on the Ethereum network.
Overbought
If a large number of purchases have been made on a cryptocurrency, its price will increase for an extended period of time. At this juncture, it is considered overbought and a period of selling is expected.
Oversold
If a cryptocurrency has spent significant time being sold without an upward movement, it is considered oversold. In this condition, there would be concerns about whether it will bounce back.
Acronym for “one cancels the other order”.
When two orders for cryptocurrency are placed simultaneously with a rule in place whereby if one is accepted, the other is cancelled.
Oracles
The smart contracts stored on a blockchain are stuck within the network. They can only be reached by the external world through a program called an oracle. The oracle sends the data to and from the smart contract and the outside world as required. Oracles are most commonly found on the Ethereum network.
Overbought
If a large number of purchases have been made on a cryptocurrency, its price will increase for an extended period of time. At this juncture, it is considered overbought and a period of selling is expected.
Oversold
If a cryptocurrency has spent significant time being sold without an upward movement, it is considered oversold. In this condition, there would be concerns about whether it will bounce back.
Paper Wallet
Storing your wallet code (your private key) on a physical document makes it a paper wallet. It’s also sometimes referred to as cold storage.
P2P
Acronym for “peer to peer”.
Peer to Peer
In a peer-to-peer connection, two or more computers network with each other without a centralized third party being used as an intermediary.
PND
Acronym for “pump and dump”.
Pre-Sale
A period before an ICO goes public when private investors or community members are able to buy the cryptocurrency.
Private Key
A string of numbers and letters that are used to access your wallet. While your wallet is represented by a public key, the private key is the password you should protect (with your life). You need your private key when selling or withdrawing cryptocurrencies, as it acts as your digital signature.
Proof of Authority (PoA)
A private key that gives the holder the right to create the blocks in a private blockchain. It can be held by a single entity or a set number of entities. This is an alternative to the proof-of-work model, as instead of getting multiple random nodes to approve a transaction, a group of specific nodes are given the authority to approve. This is a far faster method.
Proof of Stake (PoS)
Another alternative to proof of work, this caps the reward given to miners for providing their computational power to the network at that miner’s investment in the cryptocurrency. So if a miner holds three coins, they can only earn three coins. The system encourages miners to stick with a certain blockchain rather than converting their rewards to an alternate cryptocurrency.
Proof of Work (PoW)
In order to receive a reward for mining a cryptocurrency, miners must show that their computers contributed effort to approve a transaction. A variable is added to the process of hashing a transaction that demands that effort before a block can be successfully hashed. Having a hashed block proves the miner did work and deserves a reward – hence proof of work.
Protocols
The set of rules that defines how data is exchanged across a network.
Public blockchain
A blockchain that can be accessed by anyone through a full node on their computer.
Public Key
This is your unique wallet address, which appears as a long string of numbers and letters. It is used to receive cryptocurrencies.
Pump
This is a term used to refer to an upward price movement, usually driven by whales investing large sums of money in a cryptocurrency.
Pump and Dump
The frowned-upon practice of buying a lot of one cryptocurrency to drive up its price and encourage others to invest, then selling the lot when there is a suitable margin.
Storing your wallet code (your private key) on a physical document makes it a paper wallet. It’s also sometimes referred to as cold storage.
P2P
Acronym for “peer to peer”.
Peer to Peer
In a peer-to-peer connection, two or more computers network with each other without a centralized third party being used as an intermediary.
PND
Acronym for “pump and dump”.
Pre-Sale
A period before an ICO goes public when private investors or community members are able to buy the cryptocurrency.
Private Key
A string of numbers and letters that are used to access your wallet. While your wallet is represented by a public key, the private key is the password you should protect (with your life). You need your private key when selling or withdrawing cryptocurrencies, as it acts as your digital signature.
Proof of Authority (PoA)
A private key that gives the holder the right to create the blocks in a private blockchain. It can be held by a single entity or a set number of entities. This is an alternative to the proof-of-work model, as instead of getting multiple random nodes to approve a transaction, a group of specific nodes are given the authority to approve. This is a far faster method.
Proof of Stake (PoS)
Another alternative to proof of work, this caps the reward given to miners for providing their computational power to the network at that miner’s investment in the cryptocurrency. So if a miner holds three coins, they can only earn three coins. The system encourages miners to stick with a certain blockchain rather than converting their rewards to an alternate cryptocurrency.
Proof of Work (PoW)
In order to receive a reward for mining a cryptocurrency, miners must show that their computers contributed effort to approve a transaction. A variable is added to the process of hashing a transaction that demands that effort before a block can be successfully hashed. Having a hashed block proves the miner did work and deserves a reward – hence proof of work.
Protocols
The set of rules that defines how data is exchanged across a network.
Public blockchain
A blockchain that can be accessed by anyone through a full node on their computer.
Public Key
This is your unique wallet address, which appears as a long string of numbers and letters. It is used to receive cryptocurrencies.
Pump
This is a term used to refer to an upward price movement, usually driven by whales investing large sums of money in a cryptocurrency.
Pump and Dump
The frowned-upon practice of buying a lot of one cryptocurrency to drive up its price and encourage others to invest, then selling the lot when there is a suitable margin.
REKT
Shorthand slang for “wrecked” and a term used to describe a bad loss in a trade.
RSI - Relative Strength Index
A type of technical analysis whereby you determine the momentum of price change over time. It looks at recent changes in price exponentially, with the most recent changes given more weight than older ones. This produces an overall trend of movement for a cryptocurrency that can determine if the market is overbought (a reading higher than 70) or oversold (a reading lower than 30).
Ring Signature
A ring signature is a type of encryption process that retains anonymity for the user. The concept gives the network of nodes the power to approve a transaction on a blockchain without identifying which of the nodes requested the transaction. As a result, it cannot be traced.
Shorthand slang for “wrecked” and a term used to describe a bad loss in a trade.
RSI - Relative Strength Index
A type of technical analysis whereby you determine the momentum of price change over time. It looks at recent changes in price exponentially, with the most recent changes given more weight than older ones. This produces an overall trend of movement for a cryptocurrency that can determine if the market is overbought (a reading higher than 70) or oversold (a reading lower than 30).
Ring Signature
A ring signature is a type of encryption process that retains anonymity for the user. The concept gives the network of nodes the power to approve a transaction on a blockchain without identifying which of the nodes requested the transaction. As a result, it cannot be traced.
Satoshi Nakamoto
The individual, or group of individuals – it has never been confirmed – who created bitcoin.
SATS
This is the smallest unit of bitcoin, which is 0.00000001 BTC. The name SATS is shorthand for Satoshi Nakamoto, which is the fake name used by the creator of bitcoin.
Scrypt
An algorithm that encrypts a key in such a fashion that it takes a serious amount of RAM to hash it. The system makes it challenging to attack for hackers. Despite its spelling, Scrypt is pronounced “ess-crypt”.
Seed
The origin point from which you created your wallet ID. Usually, a seed is a phrase or a series of words that can be used to regenerate your wallet ID if you lose it. Something to keep very secret.
SEGWIT - Segregated Witness
The processes of separating digital signature data from transaction data. This lets more transactions fit onto one block in the blockchain, improving transaction speeds.
Selfish Mining
If a miner finds or creates a new block in the blockchain and then doesn’t share that information with the network, he or she is partaking in selfish mining. This is because other miners are now burning their computational power on an old block, allowing the selfish miner to get a head start on the new block.
Sell Wall
When a large limit order has been placed to sell when a cryptocurrency reaches a certain value, that is a sell wall. This can prevent a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed.
SHA-256
The name of the cryptographic hash function (the hashing algorithm) used by bitcoin. It’s been subsequently used by a number of altcoins too.
Sharding
Sharding is a way of splitting up the full blockchain history so each full node doesn’t need the whole copy of it. It’s considered a scaling solution for blockchains because as they grow larger, it begins to slow the network performance if every node is required to carry the full blockchain.
Shit Coin
No points for guessing this one. It’s a term used to describe a cryptocurrency not expected to have a positive future.
Short
Also known as short selling, this is a concept whereby traders sell an asset they don’t have. The hope is that they can then buy the asset at a lower price than which they sold it to complete the deal. Thereby they earn a margin in the interim.
Smart Contracts
When a contract is written in computer code, as opposed to traditional legal language, it is deemed a smart contract. This programmed contract is set up to execute and carry itself out automatically under specified conditions. When a smart contract is on the blockchain, both parties can check its programming before agreeing to it, and then let it do its thing, confident that it cannot be tampered with or changed. It lets two parties agree to complex terms without needing to trust each other and without needing to involve any third parties. This functionality is the defining feature of the Ethereum blockchain.
Soft Fork
A fork in a blockchain protocol where previously valid transactions become invalid. A soft fork is backwards-compatible, as the old nodes running the old protocol will still consider new transactions valid, rather than disregarding them. For a soft fork to work, a majority of the miners powering the network will need to upgrade to the new protocol.
Software Wallet
A common form of wallet where the private key for an individual is stored within software files on a computer. This is the system you are likely to use if you sign up for a wallet online that is not associated with an exchange.
Solidity
A programming language similar to JavaScript but focused on developing smart contracts. It’s exported as bytecode, which is used by the Ethereum Virtual Machine that runs the Ethereum network.
The individual, or group of individuals – it has never been confirmed – who created bitcoin.
SATS
This is the smallest unit of bitcoin, which is 0.00000001 BTC. The name SATS is shorthand for Satoshi Nakamoto, which is the fake name used by the creator of bitcoin.
Scrypt
An algorithm that encrypts a key in such a fashion that it takes a serious amount of RAM to hash it. The system makes it challenging to attack for hackers. Despite its spelling, Scrypt is pronounced “ess-crypt”.
Seed
The origin point from which you created your wallet ID. Usually, a seed is a phrase or a series of words that can be used to regenerate your wallet ID if you lose it. Something to keep very secret.
SEGWIT - Segregated Witness
The processes of separating digital signature data from transaction data. This lets more transactions fit onto one block in the blockchain, improving transaction speeds.
Selfish Mining
If a miner finds or creates a new block in the blockchain and then doesn’t share that information with the network, he or she is partaking in selfish mining. This is because other miners are now burning their computational power on an old block, allowing the selfish miner to get a head start on the new block.
Sell Wall
When a large limit order has been placed to sell when a cryptocurrency reaches a certain value, that is a sell wall. This can prevent a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed.
SHA-256
The name of the cryptographic hash function (the hashing algorithm) used by bitcoin. It’s been subsequently used by a number of altcoins too.
Sharding
Sharding is a way of splitting up the full blockchain history so each full node doesn’t need the whole copy of it. It’s considered a scaling solution for blockchains because as they grow larger, it begins to slow the network performance if every node is required to carry the full blockchain.
Shit Coin
No points for guessing this one. It’s a term used to describe a cryptocurrency not expected to have a positive future.
Short
Also known as short selling, this is a concept whereby traders sell an asset they don’t have. The hope is that they can then buy the asset at a lower price than which they sold it to complete the deal. Thereby they earn a margin in the interim.
Smart Contracts
When a contract is written in computer code, as opposed to traditional legal language, it is deemed a smart contract. This programmed contract is set up to execute and carry itself out automatically under specified conditions. When a smart contract is on the blockchain, both parties can check its programming before agreeing to it, and then let it do its thing, confident that it cannot be tampered with or changed. It lets two parties agree to complex terms without needing to trust each other and without needing to involve any third parties. This functionality is the defining feature of the Ethereum blockchain.
Soft Fork
A fork in a blockchain protocol where previously valid transactions become invalid. A soft fork is backwards-compatible, as the old nodes running the old protocol will still consider new transactions valid, rather than disregarding them. For a soft fork to work, a majority of the miners powering the network will need to upgrade to the new protocol.
Software Wallet
A common form of wallet where the private key for an individual is stored within software files on a computer. This is the system you are likely to use if you sign up for a wallet online that is not associated with an exchange.
Solidity
A programming language similar to JavaScript but focused on developing smart contracts. It’s exported as bytecode, which is used by the Ethereum Virtual Machine that runs the Ethereum network.
TA - Technical Analysis
Using a trading tool to look at historical data on a cryptocurrency in the hope of forecasting its future.
Test Net
When a cryptocurrency creator is testing out a new version of a blockchain, it does so on a test net. This runs like a second version of the blockchain but doesn’t impact the value associated with the primary, active blockchain.
Timestamp
The moment in time when a transaction was encrypted and regarded as proof that the data compiled in that transaction existed.
Token
The “coin” of a cryptocurrency is a token. Effectively, it’s the digital code defining each fraction, which can be owned, bought and sold.
Tokenless Ledger
When a distributed ledger exists but doesn’t need a currency in which to operate. With these blockchains, the miners upholding the network typically don’t get a reward/payment.
TOR
Acronym for “terms of reference”.
Transaction
The value of cryptocurrency moved from one entity to another on a blockchain network.
Transaction Fee
Usually very small fees given to the miners involved in successfully approving a transaction on the blockchain. This fee can vary depending on the difficulty involved in a transaction and overall network capabilities at that moment in time. If an exchange is involved in facilitating that transaction, it could also take a cut of the overall transaction fee.
Turing Completeness
If a machine is capable of performing all conceivable programmable calculations, then it is Turing complete. This machine can process any computable function and includes most modern computers.
Using a trading tool to look at historical data on a cryptocurrency in the hope of forecasting its future.
Test Net
When a cryptocurrency creator is testing out a new version of a blockchain, it does so on a test net. This runs like a second version of the blockchain but doesn’t impact the value associated with the primary, active blockchain.
Timestamp
The moment in time when a transaction was encrypted and regarded as proof that the data compiled in that transaction existed.
Token
The “coin” of a cryptocurrency is a token. Effectively, it’s the digital code defining each fraction, which can be owned, bought and sold.
Tokenless Ledger
When a distributed ledger exists but doesn’t need a currency in which to operate. With these blockchains, the miners upholding the network typically don’t get a reward/payment.
TOR
Acronym for “terms of reference”.
Transaction
The value of cryptocurrency moved from one entity to another on a blockchain network.
Transaction Fee
Usually very small fees given to the miners involved in successfully approving a transaction on the blockchain. This fee can vary depending on the difficulty involved in a transaction and overall network capabilities at that moment in time. If an exchange is involved in facilitating that transaction, it could also take a cut of the overall transaction fee.
Turing Completeness
If a machine is capable of performing all conceivable programmable calculations, then it is Turing complete. This machine can process any computable function and includes most modern computers.
Unconfirmed
When a transaction is proposed, it is unconfirmed until the network has examined the blockchain to ensure that there are no other transactions pending involving that same coin. In the unconfirmed state, the transaction has not been appended to the blockchain.
Unspent Transaction Output
This refers to the amount of cryptocurrency sent to an entity but not sent on elsewhere. These amounts are considered unspent and are the data stored in the blockchain.
UTXO - Acronym for “unspent transaction output”.
Volatility
The fluctuation in an asset’s price is measured by its volatility. Cryptocurrency prices are notoriously volatile compared to other assets, as dramatic price shifts can happen quickly.
Wallet
A wallet is defined by a unique code that represents its “address” on the blockchain. The wallet address is public, but within it is a number of private keys determining ownership of the balance and the balance itself. It can exist in software, hardware, paper or other forms.
Whale
A term used to describe extremely wealthy investors or traders who have enough funds to manipulate the market.
Whitelist
Prior to an ICO, interested parties can sign up/register their involvement and intent to purchase or even purchase under pre-sale conditions. The list of these parties is referred to as the whitelist.
White Paper
A detailed explanation of a cryptocurrency, designed to offer satisfactory technical information, explain the purpose of the coin and set out a roadmap for how it plans to succeed. It’s designed to convince investors that it’s a good choice ahead of an ICO.
Zero Confirmation Transaction
Alternative phrasing for an unconfirmed transaction.
When a transaction is proposed, it is unconfirmed until the network has examined the blockchain to ensure that there are no other transactions pending involving that same coin. In the unconfirmed state, the transaction has not been appended to the blockchain.
Unspent Transaction Output
This refers to the amount of cryptocurrency sent to an entity but not sent on elsewhere. These amounts are considered unspent and are the data stored in the blockchain.
UTXO - Acronym for “unspent transaction output”.
Volatility
The fluctuation in an asset’s price is measured by its volatility. Cryptocurrency prices are notoriously volatile compared to other assets, as dramatic price shifts can happen quickly.
Wallet
A wallet is defined by a unique code that represents its “address” on the blockchain. The wallet address is public, but within it is a number of private keys determining ownership of the balance and the balance itself. It can exist in software, hardware, paper or other forms.
Whale
A term used to describe extremely wealthy investors or traders who have enough funds to manipulate the market.
Whitelist
Prior to an ICO, interested parties can sign up/register their involvement and intent to purchase or even purchase under pre-sale conditions. The list of these parties is referred to as the whitelist.
White Paper
A detailed explanation of a cryptocurrency, designed to offer satisfactory technical information, explain the purpose of the coin and set out a roadmap for how it plans to succeed. It’s designed to convince investors that it’s a good choice ahead of an ICO.
Zero Confirmation Transaction
Alternative phrasing for an unconfirmed transaction.
Cryptocurrency Mining Hash Algorithms
First, we need to understand what is “Hash”?
Hash is a “message digest” – a number generated from a string of text, the hash itself is smaller than the text, it is almost not possible to generate another string of text with the same hash value
Second, we need to understand what is it “Mining Hashing Algorithm”
A hashing algorithm is a cryptographic hash function, the mathematical algorithm that maps data of arbitrary size to a hash of a fixed size. Hashing algorithm being used for digital signatures and authentication.
The Most Common Cryptocurrency Mining Algorithms
SHA-256 Algorithm:
SHA stands for “Secure hash Algorithm” (SHA-256) generates a unique 256-bit (32-byte) signature for a text string. Block processing time for SHA-256 generally ranges from six to ten minutes and requires hash rates at the Giga hashes per second (GH/s). SHA-256 hash rate is measured by GH/s: Gigahashes per second, or one billion hash computations per second. SHA-256 algorithm mining can be performed on an ASIC hardware
The SHA -256 cryptocurrency algorithm is used to mine:
BitcoinCash (BCH)
Bitcoin (BTC)
21Coin (21)
Peercoin (PPC)
Namecoin (NMC)
Unobtanium (UNO)
Betacoin (BET)
Bytecoin (BTE)
Joulecoin (XJO)
Devcoin (DVC)
Ixcoin (IXC)
Terracoin (TRC)
Battlecoin (BCX)
Takeicoin (TAK)
PetroDollar (P$)
Benjamins (BEN)
Globe (GLB)
Unicoin (UNIC)
Snowcoin (SNC)
Zetacoin (ZET)
Titcoin (TIT)
Scrypt Algorithm
Scrypt algorithm requires large amounts of memory and there was a need to design it to perform large-scale custom hardware attacks. The Scrypt algorithm is more simple and quicker than the SHA-256 algorithm.
Scrypt’s hash rate is measured by KH/s: Kilohashes per second, or one thousand hash computations per second.
Scrypt algorithm mining can be performed on a computer CPU, Graphics Processing Unit (GPU), there is some ASICs hardware that is available for Scrypt mining.
The Scrypt cryptocurrency algorithm is used to mine:
Litecoin (LTC)
Dogecoin (DOGE)
Novacoin (NVC)
WorldCoin (WDC)
Latium (LAT)
FeatherCoin (FRC)
Bitmark (BTM)
TagCoin (TAG)
Ekrona (KRN)
MidasCoin (MID)
DigitalCoin (DGC)
Elacoin (ELC)
Anoncoin (ANC)
PandaCoins (PND)
GoldCoin (GLD)
X11 Algorithm
The X11 hashing algorithm created by Dash core developer Evan Duffield. The X11 uses a sequence of eleven scientific hashing algorithms for the proof-of-work. One of the biggest benefits of using X11 algorithm is energy efficiency, GPUs require approximately 30% less wattage and run 30-50% cooler than they do with Scrypt.
X11’s hash rate is measured by MH/s: mega hashes per second, or one million hash computations per second.
The X11 cryptocurrency algorithm is used to mine:
Dash (DASH)
CannabisCoin (CANN)
StartCoin (START)
MonetaryUnit (MUE)
Karmacoin (Karma)
XCurrency (XC)
Cryptonight Algorithm:
The Cryptonight algorithm was designed to be suitable for PC CPUs, it was implemented in an open-sourced protocol that allows increasing privacy in cryptocurrency transactions – “CryptoNote”.
Unlike the Scrypt algorithm, the Cryptonight algorithm depends on all the previous blocks for each new block.
Cryptonight’s hash rate is measured by H/s: Hashes per second, hash computations per second.
The Cryptonight cryptocurrency algorithm is used to mine:
Monero (XMR)
Bytecoin (BCN)
Boolberry (BBR)
Dashcoin (DSH)
DigitalNote (XDN)
DarkNetCoin (DNC)
FantomCoin (FCN)
Pebblecoin (XPB)
Quazarcoin (QCN)
First, we need to understand what is “Hash”?
Hash is a “message digest” – a number generated from a string of text, the hash itself is smaller than the text, it is almost not possible to generate another string of text with the same hash value
Second, we need to understand what is it “Mining Hashing Algorithm”
A hashing algorithm is a cryptographic hash function, the mathematical algorithm that maps data of arbitrary size to a hash of a fixed size. Hashing algorithm being used for digital signatures and authentication.
The Most Common Cryptocurrency Mining Algorithms
SHA-256 Algorithm:
SHA stands for “Secure hash Algorithm” (SHA-256) generates a unique 256-bit (32-byte) signature for a text string. Block processing time for SHA-256 generally ranges from six to ten minutes and requires hash rates at the Giga hashes per second (GH/s). SHA-256 hash rate is measured by GH/s: Gigahashes per second, or one billion hash computations per second. SHA-256 algorithm mining can be performed on an ASIC hardware
The SHA -256 cryptocurrency algorithm is used to mine:
BitcoinCash (BCH)
Bitcoin (BTC)
21Coin (21)
Peercoin (PPC)
Namecoin (NMC)
Unobtanium (UNO)
Betacoin (BET)
Bytecoin (BTE)
Joulecoin (XJO)
Devcoin (DVC)
Ixcoin (IXC)
Terracoin (TRC)
Battlecoin (BCX)
Takeicoin (TAK)
PetroDollar (P$)
Benjamins (BEN)
Globe (GLB)
Unicoin (UNIC)
Snowcoin (SNC)
Zetacoin (ZET)
Titcoin (TIT)
Scrypt Algorithm
Scrypt algorithm requires large amounts of memory and there was a need to design it to perform large-scale custom hardware attacks. The Scrypt algorithm is more simple and quicker than the SHA-256 algorithm.
Scrypt’s hash rate is measured by KH/s: Kilohashes per second, or one thousand hash computations per second.
Scrypt algorithm mining can be performed on a computer CPU, Graphics Processing Unit (GPU), there is some ASICs hardware that is available for Scrypt mining.
The Scrypt cryptocurrency algorithm is used to mine:
Litecoin (LTC)
Dogecoin (DOGE)
Novacoin (NVC)
WorldCoin (WDC)
Latium (LAT)
FeatherCoin (FRC)
Bitmark (BTM)
TagCoin (TAG)
Ekrona (KRN)
MidasCoin (MID)
DigitalCoin (DGC)
Elacoin (ELC)
Anoncoin (ANC)
PandaCoins (PND)
GoldCoin (GLD)
X11 Algorithm
The X11 hashing algorithm created by Dash core developer Evan Duffield. The X11 uses a sequence of eleven scientific hashing algorithms for the proof-of-work. One of the biggest benefits of using X11 algorithm is energy efficiency, GPUs require approximately 30% less wattage and run 30-50% cooler than they do with Scrypt.
X11’s hash rate is measured by MH/s: mega hashes per second, or one million hash computations per second.
The X11 cryptocurrency algorithm is used to mine:
Dash (DASH)
CannabisCoin (CANN)
StartCoin (START)
MonetaryUnit (MUE)
Karmacoin (Karma)
XCurrency (XC)
Cryptonight Algorithm:
The Cryptonight algorithm was designed to be suitable for PC CPUs, it was implemented in an open-sourced protocol that allows increasing privacy in cryptocurrency transactions – “CryptoNote”.
Unlike the Scrypt algorithm, the Cryptonight algorithm depends on all the previous blocks for each new block.
Cryptonight’s hash rate is measured by H/s: Hashes per second, hash computations per second.
The Cryptonight cryptocurrency algorithm is used to mine:
Monero (XMR)
Bytecoin (BCN)
Boolberry (BBR)
Dashcoin (DSH)
DigitalNote (XDN)
DarkNetCoin (DNC)
FantomCoin (FCN)
Pebblecoin (XPB)
Quazarcoin (QCN)
Dagger Hashimoto – Ethash Algorithm:
Dagger Hashimoto is a proposed spec for the mining algorithm for Ethereum and builds on two key pieces of previous work:
1. Dagger: algorithm by Vitalik Buterin, Dagger was meant to be an alternative to existing memory-hard algorithms like Scrypt, which are memory-hard but are also very hard to verify when their memory-hardness is increased to genuinely secure levels. However, Dagger was proven to be vulnerable to shared memory hardware acceleration by Sergio Lerner and was then dropped in favor of other avenues of research.
2. Hashimoto: algorithm by Thaddeus Dryja which intends to achieve ASIC resistance by being IO-bound, ie. making memory reads the limiting factor in the mining process. Hashimoto uses the blockchain as a source of data, simultaneously satisfying.
Dagger Hashimoto’s hash rate is measured by MH/s: mega hashes per second, or one million hash computations per second.
The Dagger Hashimoto – Ethash algorithm is used to mine:
Ethereum (ETH)
Ethereum Classic (ETC)
Expanse (EXP)
Dagger Hashimoto is a proposed spec for the mining algorithm for Ethereum and builds on two key pieces of previous work:
1. Dagger: algorithm by Vitalik Buterin, Dagger was meant to be an alternative to existing memory-hard algorithms like Scrypt, which are memory-hard but are also very hard to verify when their memory-hardness is increased to genuinely secure levels. However, Dagger was proven to be vulnerable to shared memory hardware acceleration by Sergio Lerner and was then dropped in favor of other avenues of research.
2. Hashimoto: algorithm by Thaddeus Dryja which intends to achieve ASIC resistance by being IO-bound, ie. making memory reads the limiting factor in the mining process. Hashimoto uses the blockchain as a source of data, simultaneously satisfying.
Dagger Hashimoto’s hash rate is measured by MH/s: mega hashes per second, or one million hash computations per second.
The Dagger Hashimoto – Ethash algorithm is used to mine:
Ethereum (ETH)
Ethereum Classic (ETC)
Expanse (EXP)
Introduction to Wallets
A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchains to enable users to send, receive, and store digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.
#1 Bitcoin Hadware Wallet : Ledger Nano S
A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchains to enable users to send, receive, and store digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.
#1 Bitcoin Hadware Wallet : Ledger Nano S
Ledger Nano S Package
Ledger Nano S comes in a neat little package which contains the following:
+ Ledger Nano S
+ 1 micro-USB cable
+ Lanyard for wearing the device around the neck
+ One keychain and a keyring
+ Recovery sheet for writing down the seed keyword.
Ledger Nano S is a widely-used hardware wallet developed by the French company ledger. A hardware wallet is a type of cryptocurrency wallet where you can store your private keys in a secure physical device. The cryptocurrencies stores in the wallet are stored offline, so they can’t be hacked. If you are not that well-versed in coding and technical details, the hardware wallet is a great way to store the majority of your cryptos.
Ledger Nano S comes in a neat little package which contains the following:
+ Ledger Nano S
+ 1 micro-USB cable
+ Lanyard for wearing the device around the neck
+ One keychain and a keyring
+ Recovery sheet for writing down the seed keyword.
Ledger Nano S is a widely-used hardware wallet developed by the French company ledger. A hardware wallet is a type of cryptocurrency wallet where you can store your private keys in a secure physical device. The cryptocurrencies stores in the wallet are stored offline, so they can’t be hacked. If you are not that well-versed in coding and technical details, the hardware wallet is a great way to store the majority of your cryptos.
Ledger Nano S Supported Coins
As per Ledger’s website, the Nano S natively supports 1184 coins. These include most of the major coins like:
Bitcoin (BTC)
Bcash (BCH)
Binance Coin (BNB)
Cardano (ADA)
Dash
Dogecoin
Eos
Ethereum
Ethereum Classic
Litecoin
Monero
Ripple (XRP)
Stellar
Tether (USDT)
Tron (TRX)
Zcash
Ledger Nano S Pros and Cons
Pros
+ The setup is pretty simple and straightforward.
+ Ledger Nano S is capable of running third-party apps and currently, as per the site, there are 18 installable apps.
+ Ledger Nano S supports a vast variety of coins.
+ Integrates with a large number of software wallets.
+ It is a very affordable hardware wallet ($59), giving a very high-value proposition.
+ The entire recovery process can be done from the device only without even connecting it to a computer.
+ Features Ledgers secure chip technology.
+ Pretty inconspicuous looking since it resembles a simple pen-drive. Plus, it is pretty lightweight, so can be easily carried around.
Cons
- Not open-source hardware.
- The recovery sheet can be stolen or replicated if enough care isn’t taken.
⚠️
Note: Please always buy from the official store. As these hardware wallets can be tempered, there were reports hackers soled modified hardware wallets on ebay. So always use official store to buy and keep safe
As per Ledger’s website, the Nano S natively supports 1184 coins. These include most of the major coins like:
Bitcoin (BTC)
Bcash (BCH)
Binance Coin (BNB)
Cardano (ADA)
Dash
Dogecoin
Eos
Ethereum
Ethereum Classic
Litecoin
Monero
Ripple (XRP)
Stellar
Tether (USDT)
Tron (TRX)
Zcash
Ledger Nano S Pros and Cons
Pros
+ The setup is pretty simple and straightforward.
+ Ledger Nano S is capable of running third-party apps and currently, as per the site, there are 18 installable apps.
+ Ledger Nano S supports a vast variety of coins.
+ Integrates with a large number of software wallets.
+ It is a very affordable hardware wallet ($59), giving a very high-value proposition.
+ The entire recovery process can be done from the device only without even connecting it to a computer.
+ Features Ledgers secure chip technology.
+ Pretty inconspicuous looking since it resembles a simple pen-drive. Plus, it is pretty lightweight, so can be easily carried around.
Cons
- Not open-source hardware.
- The recovery sheet can be stolen or replicated if enough care isn’t taken.
⚠️
Note: Please always buy from the official store. As these hardware wallets can be tempered, there were reports hackers soled modified hardware wallets on ebay. So always use official store to buy and keep safe
Secure way to create Bitcoin paper wallet
If you’re really serious about safeguarding your Bitcoins you have to make sure you create an ultra secure paper wallet. The process is a bit tedious but if we’re talking about a large amount of money, it’s worth the effort.
The necessary tools
Here’s what you’ll need to download to your computer before getting started:
Ubuntu download (latest version) – The operating system we’ll use
LiLi download (latest version) – A software to install Ubuntu on our flash drive
BitAddress download – The software to create the paper wallet You will also need a brand new (or completely formatted) flash drive.
Step 1 – Install Ubuntu on your flash drive
IMPORTANT: This step will erase everything you have on the flash drive.
Open up LiLi and insert your flash drive. Make sure you’ve selected the correct drive (click refresh if drive isn’t showing).
Choose “ISO/IMG/ZIP” and select the Ubuntu ISO file you’ve downloaded in the previous step. Make sure only “Format the key in FAT32” is selected. Click the lightning bolt to start the format and installation process
If you’re really serious about safeguarding your Bitcoins you have to make sure you create an ultra secure paper wallet. The process is a bit tedious but if we’re talking about a large amount of money, it’s worth the effort.
The necessary tools
Here’s what you’ll need to download to your computer before getting started:
Ubuntu download (latest version) – The operating system we’ll use
LiLi download (latest version) – A software to install Ubuntu on our flash drive
BitAddress download – The software to create the paper wallet You will also need a brand new (or completely formatted) flash drive.
Step 1 – Install Ubuntu on your flash drive
IMPORTANT: This step will erase everything you have on the flash drive.
Open up LiLi and insert your flash drive. Make sure you’ve selected the correct drive (click refresh if drive isn’t showing).
Choose “ISO/IMG/ZIP” and select the Ubuntu ISO file you’ve downloaded in the previous step. Make sure only “Format the key in FAT32” is selected. Click the lightning bolt to start the format and installation process
Step 2 – Go offline and test the printer At this point you should disconnect your computer from the Internet whether it has Wi-Fi or a LAN connection. Make sure there’s no way remote access can be granted to the computer. When finished, make sure you are still able to print a test page so you’ll know your printer is functional.
Step 3 – Run your computer using Ubuntu from your flash drive Restart your computer. Clicking F12 or F1 during the boot-up process will allow you to choose to run your operating system from your flash drive (#6 in the image below).
Step 3 – Run your computer using Ubuntu from your flash drive Restart your computer. Clicking F12 or F1 during the boot-up process will allow you to choose to run your operating system from your flash drive (#6 in the image below).
Step 4 – Setup a printer on the Ubuntu operating system At this point you will want to set up your printer on the Ubuntu OS:
•Click on System Settings (a monkey wrench and cog wheel icon)
•Click on “Printers”
•Click on “Add” Add your printer Print out a test page
•Click on System Settings (a monkey wrench and cog wheel icon)
•Click on “Printers”
•Click on “Add” Add your printer Print out a test page