Cryptocurrency Terms and Definitions

Hashrate is the speed at which equipment performs hashing operations during mining. The metric reflects the computing power of an individual device or of the entire network and directly affects its security.

A short, or short position, is a trade in which a trader earns on a decline in an asset's price. The strategy of betting on a fall is used by so-called bears, who wager on the market dropping.

Colored Coins are a technology that allows you to «mark» small amounts of bitcoin so that they represent other assets: shares, ownership rights, or digital tokens on top of the Bitcoin blockchain.

A shitcoin is a derogatory name for coins and tokens with no real value, technology, or prospects. Such projects are often backed by dubious teams or amount to outright deception of investors.

A payment gateway is a hardware and software system that automates the acceptance of payments online, including crypto payments, linking the buyer, the seller, and the payment system.

An escrow transaction is a way to protect funds in a deal between parties who do not trust each other: the money is temporarily held by an independent intermediary or a smart contract and released only when the conditions are met.

Escrow in the context of an ICO refers to intermediaries' accounts where the raised funds are kept. The project team receives funding in installments as the roadmap milestones are completed, which protects investors.

A token is a digital unit of account that exists in a distributed ledger on top of someone else's blockchain. Unlike a cryptocurrency, a token has no network of its own and can represent a wide variety of rights and assets.

A trade agreement is an agreement between a seller and a buyer that sets out the key terms of a deal: the subject, price, volume, and the order of payment and delivery. It defines the rights and obligations of the parties.

A trader is a market participant who carries out trading operations with assets to earn income on the difference in prices. In the crypto space, traders work with coins and tokens on exchanges and other platforms.