7BitCasino Glossary for Bitcoin Gamblers

Bitcoin (BTC)

Launched in 2009, Bitcoin is the original and most valuable cryptocurrency. It works on a decentralized network, implying no central bank or authority governs it. Its value can fluctuate greatly, making it a high-risk, high-reward investment.

Altcoin

Any virtual currency other than Bitcoin falls under this category. There are thousands of altcoins, each serving different functions. Common examples include Litecoin (LTC), Ethereum (ETH), and Ripple (XRP).

Blockchain

The core technology behind Bitcoin and most other cryptocurrencies, blockchain, is like a public ledger that records transactions chronologically, securely, and tamper-proof. This enhances transparency and trust within the crypto ecosystem.

Address

Like a bank account number, a cryptocurrency address is a unique string of characters for sending and receiving crypto. It’s essential to protect your address and keep your private key secure.

Wallet

A wallet is a digital tool or hardware device used to store cryptocurrency. There are various types of wallets, each delivering different levels of security and functionality. Choose a reputable wallet that fits your security needs and risk tolerance.

Fiat

Fiat are government-issued currencies such as the Australian Dollar (AUD), Euro (EUR), or Japanese Yen (JPY). Crypto coins provide an alternative to fiat currencies, offering decentralized and faster transactions.

Mining

It is the process of validating and adding new transactions to the blockchain. Miners operate on powerful computers to solve complex mathematical issues, and thriving miners are rewarded with new cryptocurrency. Mining helps secure the blockchain and distribute new coins.

Block

A unit of data on the blockchain that contains information about a set of cryptocurrency transactions: blocks are linked chronologically, creating a permanent record of all network activities.

Satoshi (sat)

The smallest unit of Bitcoin similar to cents for USD. A single Bitcoin consists of 100 million satoshis, allowing for precise transactions with smaller amounts of Bitcoin.

Public Key

Part of a cryptographic key pair used to receive cryptocurrency, akin to a public mailbox address. Sharing your public key is safe and allows others to send you crypto.

Private Key

It is the secret part of a cryptographic key pair, like the key to a mailbox. It is needed to access and spend the cryptocurrency at your address. Keep it secure and never show it to anyone.

Seed Phrase

It is a series of random words to recover your cryptocurrency wallet if you lose your gadget or forget your password. Store your seed phrase securely as it acts like the master key to your crypto resources.

Decentralization

It is a crucial principle of cryptocurrencies where no central authority controls transactions or the network. This enhances security, transparency, and resistance to censorship.

HODL

A term that originated from a typo in a 2013 Bitcoin forum, meaning “hold.” It represents a strategy of holding onto cryptocurrency for the long term, regardless of market fluctuations.

FOMO (Fear Of Missing Out)

FOMO is a psychological phenomenon that can lead investors to make impulsive decisions due to the fear of missing potential gains. It can also cause people to buy at high prices without proper research on crypto.

ICO (Initial Coin Offering)

ICOs are fundraising methods in which a new cryptocurrency project sells digital tokens to investors in exchange for capital. While ICOs can fund innovative projects, be cautious of potential scams.

ICO Scam

These are fraudulent schemes designed to steal investor funds under the guise of an ICO. Research thoroughly before investing, looking for a credible team, clear goals, and a detailed roadmap.

Stablecoin

Stablecoin is a crypto coin created to preserve a stable value relative to a fiat currency or other asset. Stability is achieved through various methods, such as pegging to a basket of currencies or algorithmic adjustments.

DApps (Decentralized Applications)

These are applications built on blockchain platforms that offer functionalities similar to traditional apps but in a decentralized manner, which can provide greater security and transparency.

Smart Contracts

These are self-executing contracts with terms directly written into code and stored on the blockchain. They automatically execute agreements when predefined requirements are met, eliminating the need for intermediaries and potentially lowering costs.

Gas Fees

Gas fees are transaction expenses paid to miners or validators on a blockchain network. They compensate for the computational resources needed to verify and process transactions. Gas fees vary based on network demand and transaction complexity.

Bull Run

It is a period of sustained price increases in the crypto industry. Bull runs, characterized by investor optimism and buying pressure, can drive prices up significantly, though corrections may follow.

Bear Market

It is a period of sustained price drops in the crypto market. Marked by investor pessimism and selling pressure, bear markets can lower cryptocurrency prices, potentially offering buying opportunities.

ATH (All-Time High)

The highest price a crypto coin has ever reached. Tracking a coin’s ATH helps understand its price history and potential for future growth.

ATL (All-Time Low)

It is the lowest price a cryptocurrency has ever recorded. Knowing a coin’s ATL can provide insight into its risk and reward potential.

KYC (Know Your Customer)

These are regulations requiring crypto exchanges and financial institutions to verify user identities. KYC helps prevent money laundering and other financial crimes and typically involves submitting government-issued identification.

AML (Anti-Money Laundering)

These are laws designed to prevent criminals from disguising the origins of illegally obtained funds. Crypto exchanges and financial institutions must implement AML procedures to comply with these regulations.

Fork

It is a split in a blockchain that results in two separate chains and creates a new cryptocurrency. Forks can occur due to developer disagreements or changes to the blockchain protocol, leading to new features or functionalities.

Hash Rate

The total computational power used to secure a blockchain network. Miners compete to solve complex puzzles, and the hash rate measures the collective processing power dedicated to this task. A higher hash rate usually indicates a more secure network.

DeFi (Decentralized Finance)

DeFi is a blockchain-based financial system that offers a range of services without traditional intermediaries like banks. DeFi includes lending, borrowing, trading, and asset management conducted peer-to-peer on a blockchain.

This glossary is designed to provide 7BitCasino crypto players with the essential knowledge needed to navigate the dynamic world of cryptocurrency.