Cryptocurrency Terms to Know Before You Invest

Here is a quick guide to cryptocurrency terms. We define technical terms, slang, acronyms, and other jargon related to cryptocurrency.



  • SATOSHI

    The pseudonym of the original creator(s) of Bitcoin. Also the smallest sub-unit Bitcoin can be divided into: 1 Satoshi = 1/100,000,000 of a Bitcoin.

  • SCALABILITY

    A measure of how easily a cryptocurrency will be able to handle more users and increased transactions.

  • SCAM COIN

    An alt coin that is marketed as technology with potential, but is really just sold to make money with no promise of a future use case.

  • SEGWIT

    Segregated Witnesses. A protocol implemented by Bitcoin to increase transaction speed. SegWit allows more transactions to be written into a single block on a block chain.

  • SHARDING

    The process by which a full database is split into smaller databases called shards. Sharding helps with the scalability of cryptocurrencies.

  • SHILL

    Typically a person posing as a legitimate user of a product but who is, in fact, being paid or otherwise compensated to promote said product.

  • SHIT COIN

    A derogatory term used to describe altcoins that are based on faulty technology or have little promise for the future.

  • SIGNATURE

    A mathematical mechanism for combining a public address with a private address to ensure authenticity and prevent forging.

  • SMART BRIDGE

    A feature of the ARK cryptocurrency which allows separate block chains to connect with each other and communicate.

  • SMART COIN

    Price-stable cryptocurrencies that achieve stability through pegging their value to another asset, like the US dollar.

  • SMART MEDIA TOKEN

    A digital asset on the Steem block chain that can be launched by any user for the purpose of monetizing online content and encouraging positive user participation.

  • STABLE COIN

    Any cryptocurrency pegged to a stable asset for the purpose of reducing price volatility.

  • STAKER

    An individual that volunteers to lock some of their coins or tokens up to verify transactions on a block chain in exchange for staking rewards.

  • STAKING

    The act of locking up one's coins or tokens to help verify transactions for cryptocurrencies with Proof of Stake consensus mechanisms. Stakers earn staking rewards for providing this service.

  • STAKING REWARD

    An alternative to mining rewards. Staking rewards are earned by putting a certain amount of your cryptocurrency up as a 'stake' to confirm transactions. Rewards are given for doing this.