Cryptocurrency Terms and Definitions

Mt. Gox is one of the first and largest Bitcoin exchanges, based in Japan. Its closure after a major loss of funds became one of the most famous events in the history of cryptocurrencies.

Multisignature is a technology in which carrying out a transaction requires not one but several signatures with different private keys. It noticeably increases the security of storing crypto assets.

Instamine is an unfair distribution of coins at the very earliest stage of a project's launch, when a large share of the issuance ends up with a narrow circle of participants. This undermines trust in the currency.

An API is a software interface that allows developers to use the ready-made functions of one service inside another application. In the crypto industry, APIs are used to connect data from exchanges, wallets, and analytics.

Chop is short-term price swings within a narrow price range that, as a rule, do not lead to a sustained move up or down. The price seems to "dangle" between nearby levels.

Ether (Ether, ETH) is the native cryptocurrency of the Ethereum blockchain platform, the second most important in the industry. In traders' jargon there are playful distortions of the name — "kefir," "efir," "zemfir" — but they always refer to one asset.

A whale (Whale) is a large holder of cryptocurrency whose volumes can noticeably influence the market. The trades of such participants often move the quotes of individual coins, so other traders watch their wallets closely.

A client (Client) is a program that enables a user to interact with a blockchain network: transfers, balance checks, and data synchronization. The most familiar example of a client is a cryptocurrency wallet.

A coin (Coin) is a unit of cryptocurrency that runs on its own independent blockchain. This is exactly what distinguishes a coin from a token, and the word itself is often part of the names of many cryptocurrencies.

Compounding is the reinvestment of accrued interest or rewards, in which income is added to the principal and itself begins to generate profit. It is the practical application of the principle of compound interest.