The RT Crypto Glossary - The Realistic Trader

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Welcome to The Realistic Trader Crypto Glossary!

This resource is designed to provide definitions and explanations of common terms and acronyms used in the world of cryptocurrency. Whether you’re new to the industry or a seasoned trader, having a clear understanding of these terms will help you navigate the exciting and rapidly evolving world of crypto.

We would like to extend our gratitude to Harry Harrigan, our Head Avenger, for his hard work in compiling this comprehensive glossary. Harry’s expertise and passion for the crypto industry has made this resource possible, and we are grateful for his contribution.

Now, let’s dive into the world of crypto and start learning!

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51% Attack

If more than half the computer power on a network is run by a single person or a single group of people, then a 51% attack is in operation. This means this entity has full control of the network and can negatively affect a cryptocurrency by halting mining, stopping or changing transactions, and reusing coins.

80/20 Rule

The 80/20 rule, often known as Pareto Principle, is a concept that states that 20% of the input determines 80% of the outcome in a particular scenario or system.

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Addresses

Every cryptocurrency coin has a unique address that identifies where it sits on the blockchain. It’s this address, this location, at which the coin’s ownership data is stored, and where any changes are registered when it is traded. These addresses differ in appearance between cryptocurrencies but are usually a string of over 30 characters.

Airdrop

This is a marketing campaign that refers to the expedited distribution of a cryptocurrency through a population of people. It usually occurs when the creator of a cryptocurrency provides their coin to low-ranked traders or existing community members in order to build their use and popularity. They are usually given away for free, or in exchange for simple tasks like sharing news of the coin with friends.

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