Glossary of Terms

Welcome to the Crypto and Wealth Terms Glossary! Here you will find clear and objective definitions of the main terms used in the world of cryptocurrencies and digital finance. This glossary was created to help you better understand the concepts and feel more confident when navigating the crypto world.

A

• Altcoin: Any cryptocurrency other than Bitcoin. Examples include Ethereum, Litecoin, and Ripple.

B

• Blockchain: A decentralized digital ledger that records all cryptocurrency transactions on a network. It is the underlying technology behind most cryptocurrencies.
  Bull Market: A period when cryptocurrency prices are consistently rising, reflecting optimism in the market.

C

• Cryptocurrency: Digital or virtual currency that uses cryptography for security and operates on a decentralized network, such as Bitcoin.
• Cold Storage: A method of storing cryptocurrency offline, on devices that are not connected to the internet, such as physical or hardware wallets, for added security.

D

• DApps (Decentralized Applications): Applications that run on a blockchain network, without the need for a central authority, as is the case with traditional applications.
• DeFi (Decentralized Finance): Financial system built on blockchain networks that allows financial transactions to be carried out without traditional intermediaries, such as banks.
• Digital Wallet: Software or physical device used to store, send, and receive cryptocurrency. This can be a hot (online) or cold (offline) wallet.

E

• Ethereum: Blockchain platform that allows the creation of smart contracts and dApps. It is the second largest cryptocurrency by market capitalization.

F

• Fork: A split in a blockchain that results in two separate chains. This can be a “hard fork,” creating a new cryptocurrency, or a “soft fork,” updating the existing network.

G

• Gas: Fee charged on blockchain networks, such as Ethereum, to perform transactions or execute smart contracts.

H

• Halving: Process by which the reward for mining new Bitcoin blocks is reduced by half. Occurs approximately every four years.

I

• ICO (Initial Coin Offering): A process by which new cryptocurrencies are launched to the public, similar to an initial public offering (IPO) on the stock market.

L

• Ledger: Digital record of transactions in a blockchain, distributed and maintained by a computer network.

M

• Mineração: Processo de validação e registro de transações em uma blockchain, no qual os mineradores são recompensados com novas criptomoedas.

N

• NFT (Non-Fungible Token): A type of digital token that represents ownership of a unique asset, such as digital art, videos, or collectibles.

P

• Proof of Work (PoW): A consensus algorithm used by some blockchains, such as Bitcoin, where miners compete to solve complex mathematical problems.
• Proof of Stake (PoS): A consensus algorithm where the creation of new blocks and the validation of transactions are done by token holders, rather than miners.

S

• Smart Contract: Programs that automatically execute agreements or transactions when certain conditions are met, operating on a blockchain.
• Stablecoin: Cryptocurrency pegged to a stable asset, such as the US dollar, to reduce volatility.

T

• Token: Unit of value issued on a blockchain, which can represent various assets, from cryptocurrencies to company shares.

W

• Whale: Term used to describe an investor or entity that holds a large amount of a particular cryptocurrency, capable of influencing the market..

Y

• Yield Farming: The process of earning rewards by providing liquidity to DeFi platforms. Users lend their crypto assets and receive interest or new tokens in return.

This glossary is continually updated to include new terms and concepts as the cryptocurrency market evolves. If you have any questions or suggestions for terms to include, please contact us at contato@criptoewealth.com.