Question 1

ACH

Accepted Answer

ACH payments are electronic payments made from one bank to another through the Automated Clearing House network. Many people already use ACH payments and may not know it, such as with direct deposit or paying bills online with checking accounts. ACH payments are a popular option for buying cryptocurrency for members on Uphold.

Question 2

ADDRESS

Accepted Answer

A cryptocurrency address is used to send and receive transactions into Digital Wallets. Similar to a routing number, wallet owners share this address with anyone they wish to receive funds from.

Question 3

ALTCOIN

Accepted Answer

Altcoins are abbreviated from “bitcoin alternatives”. It’s used to describe any single cryptocurrency that is not bitcoin. Most popular altcoins use the same fundamental building blocks as bitcoin.

Question 4

AML

Accepted Answer

AML is an acronym for “Anti-Money Laundering.” AML regulations were originally designed around traditional centralized banking systems, and have since needed to adapt to account for Bitcoin and other cryptocurrency transactions.

Question 5

AML BITCOIN

Accepted Answer

AML Bitcoin is a relatively new cryptocurrency aimed at fully complying with US regulatory authorities. Its proponents claim that it is fully compliant with the USA PATRIOT Act, the Bank Secrecy Act, and the US Office of Foreign Assets Control. Since it meets the standards of US regulatory agencies, AML Bitcoin also complies with many other government regulations from around the world.

Question 6

ARBITRAGE

Accepted Answer

Arbitrage is a technical term from the world of finance and economics. It is a form of trading that capitalizes on the price difference between two or more markets. For example, a trader practicing arbitrage might buy a currency in one market and sell it in another market at a higher price, earning a profit from a temporary difference in prices. The difference between the prices is called a spread.

Question 7

ASICs

Accepted Answer

ASICS are application-specific integrated circuits designed to process only a specific kind of application. An ASIC is programmed to do one thing only, and it does this much faster and more efficiently than multi-purpose processors. Bitcoin mining ASICs are tailored to mining bitcoins quickly and efficiently.

Question 8

ATH

Accepted Answer

ATH is an acronym for “all-time high.” In cryptocurrency discussions, ATH refers to the highest valuation reached to date for a particular currency.

Question 9

BASIC ATTENTION TOKEN (BAT)

Accepted Answer

The Basic Attention Token (BAT) from Brave Software is a cryptocurrency designed to reinvent online advertising where users can pay content creators and publishers directly.

Question 10

BEAR MARKET

Accepted Answer

Bear Market refers to a market where the prevailing trend is falling prices, encouraging selling. Bearish is used to describe speculators and analysts who have an outlook that assumes falling prices are likely to occur in the near future. The opposite of bearish is bullish.

Question 11

BITCOIN (BTC)

Accepted Answer

is the world’s first peer-to-peer decentralized digital currency. As the leading cryptocurrency, the Bitcoin network is a payment system that functions without an intermediary, unlike banks and other conventional payment administrators.

Question 12

BITCOIN CASH (BCH)

Accepted Answer

Bitcoin cash is a hard fork of the Bitcoin network, meaning a new cryptocurrency with altered rules was spun off from the original bitcoin. Bitcoin cash is designed to be faster and more efficient in the processing of transactions and payments.

Question 13

BITCOIN GOLD (BTG)

Accepted Answer

Bitcoin gold is another hard-fork off of Bitcoin. Bitcoin gold is designed to be more decentralized than bitcoin for miners. One of the major critiques of Bitcoin is the centralization of its mining power, which some analysts believe undermines the democratic foundation of the currency. Bitcoin Gold, on the other hand, is ASIC-resistant.

Question 14

BITSTAMP

Accepted Answer

Bitstamp is a Luxembourg-based cryptocurrency exchange. One of the oldest cryptocurrency exchanges, Bitstamp facilitates trading in bitcoin, litecoin, ether, ripple, bitcoin cash, US dollars, and Euro.

Question 15

BITTREX

Accepted Answer

Bittrex is one of the major cryptocurrency exchanges based in the United States. It facilitates trading of more than 190 different cryptocurrencies including bitcoin, ether, blackcoin and gambit.

Question 16

BLOCK

Accepted Answer

Blocks are where unalterable data from the network is stored, mainly the data for transactions.

Question 17

BLOCK REWARD

Accepted Answer

The block reward is the prize miners receive for successfully validating a new block and adding it to the chain.

Question 18

BLOCKCHAIN

Accepted Answer

Blockchain refers to the public ledger that records cryptocurrency transactions. A blockchain is a linear, chronological list of transaction records called blocks. The blocks are linked together and secured against tampering using cryptography. A blockchain is not stored in a single set of central servers controlled by one entity. Instead, a blockchain is spread around the globe using a vast network of private computers that simultaneously store data and execute computations.

Question 19

BULL MARKET

Accepted Answer

A term used to refer to a market where the prevailing trend is rising prices, encouraging buying. Bullish is used to describe speculators and analysts who have an outlook that assumes raising prices are likely to occur in the near future. The opposite of bullish is bearish.

Question 20

COIN

Accepted Answer

Traditionally, the term “coin” has referred to small, flat, round piece of metal or plastic that serves as a medium of exchange and/or legal tender. With the rise of cryptocurrencies, the term “coin” has come to refer to individual units of account within a particular cryptocurrency.

Question 21

COINBASE

Accepted Answer

Coinbase is a digital currency exchange and wallet based in San Francisco, California. They broker transactions of bitcoin, bitcoin cash, ether, litecoin, and other cryptocurrencies with traditional currencies in 32 countries. They also manage cryptocurrency transactions on behalf of merchants, particularly online retailers.

Question 22

COLD STORAGE

Accepted Answer

Cold storage refers to a method of storing a reserve of cryptocurrency offline. Cold storage eliminates the risk of theft from hackers, but creates new problems and risks of its own. Some of most popular cold storage methods include:  USB drive or other digital data storage medium kept in a secure physical location A piece of paper On a bearer item such as a physical coin A specially designed offline cryptocurrency hardware wallet, such as Ledger Nano

Question 23

CONFIRMATION

Accepted Answer

Confirmation refers to the process of verifying a bitcoin transaction on the blockchain. When a new block is created and added to the blockchain by miners, it records new transactions that have occurred since the last block was created. A transaction that is verified and recorded in a block has been confirmed.

Question 24

CRYPTOCURRENCY

Accepted Answer

A cryptocurrency is a digital currency that uses cryptography and encryption techniques to regulate the generation of units of currency and to verify the transfer of funds. Like traditional currencies, cryptocurrencies are designed to function as a unit of account, store of value, and medium of exchange. Unlike traditional currencies, cryptocurrencies are decentralized from a governing authority.

Question 25

CRYPTOGRAPHY

Accepted Answer

Cryptography is the practice and study of techniques for secure transmission and storage of data. It includes a wide variety of methods for storing and transmitting data in a form readable only by those who are intended to read and process it. Cryptography is the basis for all cryptocurrencies.

Question 26

DASH

Accepted Answer

Dash is a cryptocurrency that emphasizes transaction speed. Dash maintains a two-tier architecture with miners and “masternodes” that allow the Dash network to perform near-instant transactions (known as InstantSend). Dash network functions are handled in two different ways. Creating new blocks is handled by Dash miners in a manner that is similar to other altcoins. The second tier of the Dash network is a set of “masternodes” which perform PrivateSend, InstantSend, as well as some governance functions.

Question 27

DAY TRADING

Accepted Answer

Day trading refers to a financial activity in which individuals or organizations buy and sell financial instruments within the same trading day or very frequently. Because day traders only hold on to the securities they purchase over the short term, day trading is considered highly speculative.

Question 28

DIGITAL MONEY

Accepted Answer

Digital money refers to only those types of currency that are available exclusively in digital form. Digital currencies do not exist in the physical realm, and therefore do not circulate as banknotes and metal coins.

Question 29

DISTRIBUTED LEDGER

Accepted Answer

A distributed ledger refers to a database of transactions that is stored and updated in a large network of computers and servers. This means that transactions are public, and recorded at each network point, or “node”.

Question 30

ERC-20

Accepted Answer

ERC-20 is the Ethereum token standard used for Ethereum smart contracts (associated with tokens). ERC-20 gives developers the ability to understand in advance how any new token based on the standard will behave on the Ethereum platform. Ethereum-based apps can then easily adapt to any new cryptocurrency or token that follows the ERC-20 protocol..

Question 31

ETHER

Accepted Answer

Ether is the primary value token of the Ethereum blockchain and distributed computing platform.

Question 32

ETHEREUM

Accepted Answer

Ethereum is a distributed public blockchain network similar to Bitcoin. However, there are important differences between the two. Ethereum uses smart contracts and gives developers resources to raise funds. Ethereum also has a faster transaction speed than the Bitcoin network.

Question 33

EXCHANGE

Accepted Answer

An exchange is marketplace that matches buyers’ and sellers’ orders on currency, securities, commodities, and financial instruments. Think of the famous trading floor on the New York Stock Exchange, where buyers and sellers search for mutually agreed upon deals. In the cryptocurrency world, exchanges are where cryptocurrencies are bought and sold by traders, much like in traditional stock exchanges.

Question 34

EXCHANGE RATE

Accepted Answer

An exchange rate is the value of a currency in terms of another currency. Also known as a currency pair, exchange rates capture a moment in time when traders are willing to pay x amount in one form of currency for y amount of another form of currency. As orders are entered to buy a currency and sellers agree to sell at that price this sets Exchange Rates.They change constantly depending on movements in the market and even world events and news headlines.

Question 35

FIAT CURRENCY

Accepted Answer

Fiat currency refers to currency without any intrinsic value other than by legal decree. Fiat currencies are usually regulated and controlled by a government or central bank.

Question 36

FINTECH

Accepted Answer

Fintech refers to a technological innovation in the financial sector, from education to cryptocurrency.

Question 37

FOMO

Accepted Answer

A slang acronym that stands for “Fear of Missing Out.” Cryptocurrencies that are quickly rising in value often draw interest from investors due to the fear of missing out (FOMO) on a chance to get in when prices are still low. Many market analysts advise against making investment decisions based purely on emotional reactions.

Question 38

FOREX

Accepted Answer

The abbreviation for Foreign Exchange, Forex is a decentralized global marketplace for trading in all of the world’s FIAT currencies. Famous for never closing, Forex allows trading 24 hours a day, 7 days a week from anywhere in the world. With a daily trading volume of $5 trillion or more, it’s the largest, most liquid market in the world. Forex does not officially support trading in bitcoin or other cryptocurrencies, but some Forex brokers will trade in cryptocurrencies under certain circumstances.

Question 39

FORK

Accepted Answer

A fork occurs when a cryptocurrency’s existing code is changed. A hard fork splits a blockchain into two divergent chains, which why two distinct cryptocurrencies arise, such as BTC and BTG. A soft fork is only results in one coin.

Question 40

FUD

Accepted Answer

FFUD is an acronym for “Fear, Uncertainty, and Doubt”. In cryptocurrency discussions, FUD refers to negative analysis that stimulates investors to step back from the market. FUD can cause the perceived value of a cryptocurrency to drop.

Question 41

GEMINI

Accepted Answer

Gemini is a cryptocurrency exchange based in New York. On Gemini, you can only trade between US dollars, bitcoin, and ether. Founded by the Winklevoss twins, Gemini has distinguished itself with an embrace of regulation and legal compliance. Gemini is regulated by the New York State Department of Financial Services (NYSDFS).

Question 42

GENESIS BLOCK

Accepted Answer

A Genesis Block is the first block created on a blockchain. All cryptocurrencies begin with a Genesis Block. Bitcoin’s Genesis Block was the first-ever block of blockchain technology.

Question 43

GOING LONG

Accepted Answer

Going long is a term used to describe when an investor purchases an asset with the assumption that the asset price is likely to rise in the future. Also called a long position, going long is the action of an investor with bullish expectations about a given asset. Going long on bitcoin means purchasing bitcoin because the price is believed to rise in the near future. The opposite of going long is going short.

Question 44

GOING SHORT

Accepted Answer

Going short is a term used to describe a position when an investor expects an asset to lose value. Going short involves borrowing an asset from a broker, then immediately selling the asset at the current price. Once the asset loses value, the investor can repurchase the asset and pay back the broker with it. The investor profits off the difference between the asset’s value when it was initially borrowed and the lowered value when the asset was paid back. Going short is the opposite of going long.

Question 45

HASHRATE

Accepted Answer

The hashrate is the measuring unit for the processing speed of a given cryptocurrency network. The higher the hashrate, the faster the cryptocurrency network will complete transactions and other operations.

Question 46

HEDGING

Accepted Answer

Hedging describes an investment meant to reduce risk of price movements in a related asset. Investors will hedge their positions by purchasing assets or futures contracts that will offset their losses if their investment positions fail to pan out as expected. For example, an equities investor may buy gold to hedge against a possible stock market crash.

Question 47

HODL

Accepted Answer

HODL is a slang trading term that means holding on to a cryptocurrency for the long term rather than selling it for a profit when it hits a certain valuation. Investors who HODL often will not sell their assets even in falling markets.  One interesting fact is that HODL is not an acronym but rather a term based on a misspelling of the word “hold” due to an infamous typo by a bitcoin trader in the earlier days of the cryptocurrency.

Question 48

HOT WALLET

Accepted Answer

A hot wallet is a method of keeping a cryptocurrency reserve or wallet connected to the internet. Digital money platforms like Uphold offer both hot wallets and cold storage of cryptocurrency assets, which makes access and trading easier and more efficient. The trade-off is that hot storage is more vulnerable to hackers and other malevolent online factors than cold storage.

Question 49

INITIAL COIN OFFERING (ICO)

Accepted Answer

An initial coin offering (ICO) involves selling a newly created cryptocurrency or token to raise money for a startup, software project, or blockchain network. Investors generally buy tokens from ICOs which they hope to sell on an exchange for a profit later.

Question 50

IOTA

Accepted Answer

IOTA is a distributed ledger platform and one of the few prominent cryptocurrencies that does not rely on blockchain technology. IOTA does not need to be mined and is completely blockless. Instead, the platform verifies transactions by confirming previous transactions across IOTA wallets.

Question 51

JOMO

Accepted Answer

JOMO is an acronym that stands for the “Joy of Missing Out.” JOMO is the opposite of FOMO. It occurs when an individual is glad they didn’t invest in a cryptocurrency that proved to be less valuable than initially imagined.

Question 52

KYC

Accepted Answer

KYC is an acronym that stands for “Know Your Customer” or “Know Your Client”. KYC is used to refer to the methods a business deploys to verify and record the identity of its clients. Anti-money laundering regulations that govern financial transactions are sometimes known as KYC laws.

Question 53

LAMBO

Accepted Answer

Lambo refers to a an attitude or individual associated with significant financial success due to cryptocurrency trading. It may be derived from the story of Peter Saddington, who bought a Lamborghini with part of his bitcoin holdings originally valued at $115. Many cryptocurrency-related memes feature photos of Lamborghinis, referred to as “lambos.”

Question 54

LEDGER NANO

Accepted Answer

A Ledger Nano is a type of hardware wallet for storing cryptocurrencies. It can connect to any computer or device with a USB port. A Nano Ledger allows for the cold storage of cryptocurrencies, allowing you to access and manage your account using a computer.

Question 55

LIMIT ORDER

Accepted Answer

A limit order is a term from finance used to describe an order to buy or sell an asset at a specific price or better. For example, a client or firm may give an individual trader a limit order, which authorizes the trader to execute a purchase or sale as long as certain price conditions are met.

Question 56

LITECOIN

Accepted Answer

Litecoin is a cryptocurrency founded in 2011, making it one of the oldest coins after bitcoin. Envisioned as a lightweight alternative to bitcoin, it has maintained a consistent presence in the top 10 cryptocurrencies since its inception. Compared to bitcoin, litecoin has shorter time intervals between the addition of new blocks to its blockchain.

Question 57

LONG

Accepted Answer

A long position refers to when a party has invested in an asset with the expectation that the asset’s price will rise.

Question 58

MARGIN TRADING

Accepted Answer

Margin trading refers to the practice of investing in assets with money borrowed from a broker. For example, buying on margin would be borrowing money to purchase a security or other asset such as a cryptocurrency.

Question 59

MARKET CAP

Accepted Answer

Short for Market Capitalization, this refers to the total value of all securities or assets related to a specific entity. In traditional financial markets, the market capitalization of a company like Apple would refer to the total value in US dollars of all outstanding shares of the company. In cryptocurrency markets, the market capitalization of a cryptocurrency refers to the total value measured in US dollars of all the coins in a given cryptocurrency. For example, the market capitalization of Bitcoin refers to the current total value of all bitcoins in existence.

Question 60

MEMPOOL

Accepted Answer

Short name for “Memory Pool”. The mempool is the pool of unconfirmed transactions on the Bitcoin network. After a transaction happens, it is first placed in the mempool before it gets picked up confirmation.

Question 61

MINER

Accepted Answer

While traditional currencies are printed by central banks, bitcoins are “minted” by Bitcoin miners. In this way, bitcoin resembles gold. Like gold, there is only a limited amount of bitcoins out there to find. The original Bitcoin protocol permanently limited the total number of bitcoins to 21 million.  In order to get bitcoins, miners must solve complex mathematical problems that require lots of computing power and time to solve. Also, bitcoins are awarded to miners as a form of payment for carrying out the task of validating bitcoin transactions on the blockchain nodes which they maintain.

Question 62

MINING POOL

Accepted Answer

A mining pool facilitates the sharing of resources over a network (such as processing power/hashrate) among a given set of cryptocurrency miners, who then split the rewards of mining according to the contributions of each of them to the pool. Miners in pools benefit because they often get more cryptocurrency working together then they would when mining on their own.

Question 63

MONERO

Accepted Answer

Monero is a privacy-focused cryptocurrency first developed in 2014. It has gained popularity among users who wish to remain completely anonymous. Monero utilizes innovative technical features such as ring signatures and stealth addresses to protect the identity of individuals on its network. Ring signatures blend together an individual user’s account keys with public keys from the blockchain, resulting in a range of possible signers. This prevents anyone analyzing the blockchain from discovering the identity of the parties in a given transaction.

Question 64

MULTISIG

Accepted Answer

Multisig is short for multisignature. It is a security mechanism that requires more than one person to authorize access to a system. Most cryptocurrencies support both single signature and multisig transactions. Multisig is useful for organizations that do not want a single individual in total control of its cryptocurrency wallet.