Crypto Accounting Glossary

A public key is a cryptographic code that allows a user to receive cryptocurrencies into his or her account. The public key and its related private key are connected through a cryptographic algorithm. In the context of crypto accounting, public keys are part of the data that needs to be securely managed as they are directly related to ownership of digital assets.

A pump and dump scheme refers to a fraudulent practice where the price of a cryptocurrency is artificially inflated, or pumped up, before the fraudsters sell off their holdings, causing the price to plummet and leading to losses for those who bought in during the pump. These schemes can cause significant financial loss and distort the true value of the assets.

A type of matrix barcode that can be scanned to quickly share information, such as a cryptocurrency address.

Quantitative trading is a trading strategy that uses mathematical models and algorithms to identify and execute trades.

REKT is slang for "wrecked". In crypto trading, it refers to a trader who has suffered significant losses. For crypto accounting purposes, such losses may be relevant for calculating net asset values and any potential tax implications.

Ransomware is a type of malicious software that encrypts a user's data and then demands payment, usually in cryptocurrency, to decrypt it. If a business's assets are affected by ransomware, this may have implications for its financial and asset records.

Regulatory Compliance refers the adherence of cryptocurrency organizations to laws and regulations.

Revenue is the total amount of money a company earns from selling its products or services.

In accounting, revenue recognition determines the conditions under which revenue is recognized. In the context of crypto, revenue could be recognized when a transaction is confirmed on the blockchain.

Ripple (XRP) is a digital cryptocurrency that operates on the Ripple network, designed to facilitate fast and low-cost cross-border transactions.

RippleNet is Ripple’s global payment system for financial transfers.

A Satoshi is the smallest unit of Bitcoin, representing 0.00000001 BTC. It is named after Bitcoin's anonymous creator, Satoshi Nakamoto.

The name used by the pseudonymous person or people who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin's original reference implementation. In the process, they also devised the first blockchain database.

The capability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged to accommodate that growth. In the context of blockchain, it refers to the ability to handle a large number of transactions. Scalability can affect transaction fees and times.

Scaling in crypto refers to Increasing the capacity of a blockchain to handle more transactions.

Security is measures taken to protect against malicious activity.

An instruction to sell a specified amount of a cryptocurrency at a specific price or at the best available price.

A "Sell Wall" is a situation where a large limit order has been placed to sell when a cryptocurrency reaches a certain value.

Sharding is a scalability solution dividing blockchain data into partitions.

Short Position is a bet that an asset's price will decrease, by selling a borrowed asset or cryptocurrency that must be returned by closing the position.

A smart contract is a self-executing contract with the terms of agreement directly written into code, and deployed in a Blockchain.

Solana is a high-performance cryptocurrency blockchain supporting builders around the world creating crypto apps that scale. It's designed to facilitate decentralized app creation. It aims to improve blockchain scalability by using a combination of proof of stake consensus and so-called proof of history. As with other cryptocurrencies, transactions involving Solana must be accurately tracked and recorded.

Spread in the context of crypto trading is the difference between the buying (ask) price and the selling (bid) price of a cryptocurrency.

Stablecoins represent a type of cryptocurrency, designed to minimize price volatility and maintain a consistent value pegged to a reserve of assets.

Tax-loss harvesting involves selling off investments that have declined in value, which can help offset the taxes on capital gains from profitable investments. In crypto, this could involve selling off certain cryptocurrencies that have declined in value.

Technical analysis is a method used to evaluate cryptocurrency or other assets price movements and predict future trends by analyzing historical market data and chart patterns.

In the context of cryptocurrencies, a token represents a particular fungible and tradable asset or a utility that is often found on a blockchain. In crypto accounting, tokens are treated as digital assets and all transactions involving them need to be tracked.

Tokenomics refers to the study of the economic factors and principles that govern the behavior and value of cryptocurrency tokens.

The act of buying, selling, or exchanging assets or cryptocurrencies on a market or exchange.

A transaction in cryptocurrency is the transfer of crypto from one wallet to another.