Cryptocurrency Glossary
Welcome to Pelicoin’s guide to crypto terms! Whether you’re new to cryptocurrency or need a quick refresher, this glossary explains key concepts in simple language.
A–Z Cryptocurrency Terms
A
Altcoin
Any cryptocurrency other than Bitcoin. Examples: Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE).
ASIC (Application-Specific Integrated Circuit)
A specialized hardware device used for mining cryptocurrencies like Bitcoin. ASICs are powerful but expensive.
ATH (All-Time High)
The highest price a cryptocurrency has ever reached.
B
Bitcoin (BTC)
The first and most widely recognized cryptocurrency, created in 2009 by Satoshi Nakamoto.
Blockchain
A decentralized digital ledger that records transactions across a network of computers. The foundation of most cryptocurrencies.
Buy the Dip
An investment strategy where traders purchase an asset (like Bitcoin) after its price drops, anticipating future gains.
Bitcoin ATM (BTM)
A kiosk (like Pelicoin’s machines) that lets you buy/sell crypto with cash or debit cards.
C
Cold Wallet
Offline storage for crypto (e.g., hardware wallets like Ledger). Ideal for long-term security.
Coin
A term for any cryptocurrency (e.g., Bitcoin, Ethereum).
Cryptography
The practice of securing information through encryption, ensuring only authorized parties can access it.
Consensus Mechanism
A method for validating transactions on a blockchain. Examples: Proof of Work (PoW), Proof of Stake (PoS).
D
dApp (Decentralized Application)
An app built on blockchain that operates without central control. Examples: Uniswap, decentralized social media platforms.
DeFi (Decentralized Finance)
Financial services (loans, trading) on blockchain, eliminating banks or brokers.
DAO (Decentralized Autonomous Organization)
A community-led organization governed by smart contracts (e.g., Bitcoin’s development network).
Double Spend
A potential flaw where a digital token is spent twice. Blockchain prevents this via transaction validation.
E
Ether (ETH)
The native cryptocurrency of the Ethereum blockchain.
Ethereum
A blockchain platform supporting smart contracts and decentralized apps (dApps).
Exchange
A platform to buy, sell, or trade crypto (e.g., Coinbase). Pelicoin ATMs act as physical exchanges.
Encryption
Converting data into a secure code to prevent unauthorized access.
F
Fiat Currency
Government-issued money (e.g., USD, EUR) not backed by physical assets.
Fork
A change to a blockchain’s protocol. Hard forks create new blockchains; soft forks upgrade existing ones.
FUD (Fear, Uncertainty, Doubt)
Negative sentiment that may influence crypto prices.
G
Gas
A fee paid to process transactions on Ethereum.
GPU (Graphics Processing Unit)
High-performance hardware used for mining cryptocurrencies.
H
Hash Rate
The computational power used to mine and secure a blockchain. Higher hash rates = greater security.
Hot Wallet
An online-connected crypto wallet (e.g., MetaMask). Convenient but less secure than cold wallets.
HODL
Slang for holding crypto long-term despite market volatility.
I
ICO (Initial Coin Offering)
A fundraising method where new crypto projects sell tokens to investors.
Immutable
Unchangeable. Blockchain transactions cannot be altered once confirmed.
K
KYC (Know Your Customer)
Identity verification processes used by exchanges and Pelicoin ATMs for security.
L
Liquidity
How easily an asset can be bought/sold without affecting its price.
Ledger
A record of transactions. Blockchains are decentralized ledgers.
M
Mining
Validating transactions on a blockchain (e.g., Bitcoin mining) for rewards.
Meme Coin
A cryptocurrency based on internet jokes (e.g., Dogecoin).
Market Cap
The total value of a cryptocurrency: Price per coin × Circulating supply.
N
NFT (Non-Fungible Token)
A unique digital asset representing ownership (e.g., art, collectibles).
Node
A computer participating in a blockchain network by validating transactions.
P
Private Key
A secret code to access your crypto. Never share this!
Public Key
A wallet address (like an account number) used to receive crypto.
Proof of Stake (PoS)
A consensus method where validators “stake” crypto to secure the network (e.g., Ethereum 2.0).
Proof of Work (PoW)
A consensus method requiring miners to solve complex puzzles (e.g., Bitcoin)
S
Smart Contract
Self-executing code on a blockchain (e.g., Ethereum) that automates agreements.
Stablecoin
A crypto pegged to a stable asset (e.g., USD). Examples: USDC, Tether (USDT).
Satoshi
The smallest Bitcoin unit (0.00000001 BTC). Named after Bitcoin’s creator.
Seed Phrase
A 12–24-word backup to restore a crypto wallet. Store offline!
T
Token
A digital asset built on another blockchain (e.g., ERC-20 tokens on Ethereum).
Transaction Fee
A small fee paid to process crypto transactions. Displayed upfront at Pelicoin ATMs.
V
Volatility
Rapid price fluctuations common in crypto markets.
Validator
A participant in a PoS blockchain who stakes crypto to verify transactions.
W
Wallet
A tool to store and manage crypto. Types: hot, cold, paper.
Whitepaper
A technical document outlining a crypto project’s purpose and technology.
Z
Zero Confirmation
A transaction broadcast to the network but not yet confirmed.
How to Use This Glossary
For New Users: Start with basics like Bitcoin, Blockchain, and Wallet.
For Investors: Dive into DeFi, Liquidity, and Stablecoins.
For Security: Focus on Cold Wallet, Private Key, and 2FA.
Need Help? Visit Pelicoin’s FAQ or call 855-PELICOIN.