Any digital currency similar to Bitcoin. The term is said to stand for “alternative to Bitcoin” and is used to describe any digital currency that is not a Bitcoin.

Bitcoin or BTC

Bitcoin (with a capital “B”), which was created in 2009, established the world’s first decentralised digital currency. Bitcoin uses Blockchain technology to create a digital currency that is entirely decentralised and managed across a wide network of computers rather than by a single entity.

Bitcoin Network

A peer-to-peer payment network that operates on a cryptographic protocol. Users send and receive Bitcoins, by broadcasting digitally signed messages to the network using wallets.


Blockchain is the underlying technology that Bitcoin and most other digital currencies use to record and validate transactions. It is a linked list of transaction updates to a virtual digital public ledger.

Cold storage

The holding of private keys (that allow access to Bitcoin or other cryptocurrencies) in an offline digital hardware storage device. The hardware is stored in physical vaults in geographically diverse locations. Each vault is secured by multiple levels of physical and biometric security.


Correlation is a statistical measure that determines how assets move in relation to each other.  It is measured on a scale of negative 1 to positive 1.  A positive correlation is a relationship between two variables in which both variables move in the same direction and vice versa.

Digital currencies

A business that allows customers to trade digital currencies for other assets such as fiat currency.

Digital Exchange

A business that allows customers to trade digital currencies for other assets such as fiat currency.

Fiat currencies

Those currencies issued by a government, typically used to refer to physical currencies such as Australian dollar, US dollar, Japanese yen, the euro and other currencies.


A function that converts an input of letters and numbers into an encrypted output of a fixed length. A hash is created using an algorithm, and is essential to the blockchain’s management of digital currencies.

Hash Rate

Hashrate is a measure of the computational power per second used when mining. It is measured in units of hash/second, meaning how many calculations per second can be performed. Machines with a high hash power are highly efficient and can process a lot of data in a single second.

Hot Storage

The holding of a private key on an online device or server (i.e., other than cold storage).


A specialised application-specific integrated circuit computer built for the sole purpose of mining Bitcoin.


Net Asset Value.

Private key

The secret piece of data that proves a person’s right to spend Bitcoins from a specific wallet through a cryptographic signature.

Sharpe ratio

Sharpe ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. It is defined as the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment. When comparing securities or portfolios the portfolio with a higher Sharpe ratio is considered superior relative to its peers.


Means a type of digital currency that is designed to maintain a stable market price. This type of digital currency is usually pegged to another asset such as the US dollar or commodities.


A fully paid ordinary unit in the capital of the retail fund or wholesale fund (as applicable).


A holder of units from time to time.


Volatility is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market prices. A high volatility means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security’s value does not fluctuate dramatically and tends to be steadier.


A piece of software that maintains digital keys and manages digital addresses of digital currencies.