The most comprehensive crypto glossary for Beginner level

The most comprehensive crypto glossary out there.

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E

Escrow

A financial instrument that entails the holding of assets or funds by a third party while a sale is finalized.

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Level: Beginner

P

P&L (profit and loss)

A P&L statement or report is a business’ ability to generate sales, manage expenses, and create profits. P&L can also reflect the amount of capital gained or lost through trading for an individual or institution.

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Level: Beginner

Private sale

An initial round of fund raising by a cryptocurrency startup, which is before the pre-sale and Initial Coin Offering (ICO) rounds. The goal of a private sale is to allow institutional investors to invest large amounts of capital in order to headstart the early development of projects.

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Level: Beginner

Private key

A variable in cryptography that is used with an asymmetric algorithm to encrypt and decrypt data. Private keys are numbers that allow users to sign transactions and generate receiving addresses. In that sense, they secure a user’s funds stored in a wallet.

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Level: Beginner

Principal

The original amount of funds borrowed in a loan agreement, without any interests incurred.

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Level: Beginner

Pre-sale

The instance in which all or a portion of a network's coins are sold to a specified group of investors before they are made publicly available.

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Level: Beginner

Portfolio

A collection of diverse financial investments like cryptocurrencies, stocks, bonds, exchange traded funds (ETFs) etc. The risk appetite of an investor determines the level of diversification in an investment portfolio. A portfolio is either managed by its owner or by a financial advisor or an institution.

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Level: Beginner

Platform

Any type of distributed blockchain network that developers can create and run applications on top of it.

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Level: Beginner

Peg (Stablecoin)

A fixed exchange rate for a stablecoin. Prices of most assets fluctuate with market forces, but stablecoins are pegged to fiat currencies like the US Dollar to maintain price stability and protect investors against market volatility.

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Level: Beginner

Peg

A fixed exchange rate between two assets. Pegs are most commonly used in currencies.

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Level: Beginner

P2P lending

A process of lending cryptocurrency to an individual or an enterprise using a decentralized service platform, which matches lenders with borrowers without using any centralized intermediary. The objective of peer-to-peer lending services is to lower any operational overheads and provide better transparency.

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Level: Beginner

E

Equity

Refers to the value of an asset after subtracting the value of liabilities attached to the asset.

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Level: Beginner

P

PAX Gold (PAXG)

An ERC-20 stablecoin that is the virtual representation of gold. Purchasing PAXG allows investors to make profit from gold’s price movements without having to buy physical gold. Each PAX Gold coin is pegged at 1:1 ratio with one ounce of gold.

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Level: Beginner

Pax Dollar (USDP)

An ERC-20 stablecoin that is pegged to the US Dollar at 1:1 ratio. Every single USDP coin in existence is backed by US Dollar reserves, which are regularly audited by the authorities.

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Level: Beginner

Pattern

Movements of a financial asset’s price on a price chart, which resembles certain shapes such as channels, triangles, flags, wedges, and etc. Patterns are useful in identifying potential trends with assets.

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Level: Beginner

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