Glossary
139 terms to sharpen your crypto trading knowledge
Paper Wallet
A paper wallet is a physical document containing a public address and private key for a cryptocurrency, kept entirely offline as a form of cold storage.
Peer-to-peer
Peer-to-peer (P2P) refers to a network model where participants interact directly with one another without a central authority, forming the architectural foundation of Bitcoin and many cryptocurrency exchanges.
Pegged Currency
Pegged currencies are cryptocurrencies designed to maintain a stable value by being tied to an external asset like the US dollar, providing price stability in an otherwise volatile market.
Price Action
Price action is the study of how a cryptocurrency's price moves over time, used by traders to identify trends, patterns, and key levels that inform entry and exit decisions.
Private Key
A private key is a secret cryptographic string that proves ownership of a cryptocurrency wallet and authorizes outgoing transactions — whoever holds it controls the funds.
Proof of Authority (PoA)
Proof of Authority (PoA) is a consensus mechanism that relies on a small group of pre-approved, publicly identified validators to confirm transactions, prioritizing speed and efficiency over decentralization.
Proof of Stake (PoS)
Proof of Stake (PoS) is a consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they have staked as collateral, rather than through computational work.
Proof of Work (PoW)
Proof of Work (PoW) is a consensus mechanism where miners compete to solve complex mathematical puzzles to validate transactions and earn block rewards, forming the foundation of Bitcoin's security.
Public Key
A public key is a cryptographic string derived from your private key that serves as your shareable address on the blockchain, allowing others to send you cryptocurrency securely.
Pump and Dump
A pump and dump is a scam where coordinated buyers artificially inflate an asset's price, then sell en masse, leaving other investors with significant losses.