Crypto Terminology

• Address: A unique string of letters and numbers used to send or receive cryptocurrency on a blockchain. Think of it as a bank account number for crypto.

• Airdrop: Free distribution of cryptocurrency tokens to wallet addresses, often used to promote a project or increase token holder diversity.

• Algorithm: A set of rules or instructions used in blockchain protocols, such as those governing mining or consensus mechanisms.

• All-Time High (ATH): The highest price a cryptocurrency has ever reached.

• All-Time Low (ATL): The lowest price a cryptocurrency has ever reached.

• Altcoin: Any cryptocurrency other than Bitcoin, such as Ethereum, Litecoin, or Dogecoin.

• Altseason: A market phase where altcoins outperform Bitcoin in price growth.

• AML (Anti-Money Laundering): Laws and regulations to prevent financial crimes like money laundering on crypto platforms.

• Ape: Slang for someone who buys a cryptocurrency impulsively, often without research, driven by FOMO (fear of missing out).

• API (Application Programming Interface): Software that enables communication between different applications, often used in crypto exchanges.

• Arbitrage: Buying a cryptocurrency in one market and selling it at a higher price in another to profit from price differences.

• ASIC (Application-Specific Integrated Circuit): Specialized hardware designed for cryptocurrency mining, optimized for specific algorithms.

• Atomic Swap: A trustless exchange of cryptocurrencies across different blockchains without intermediaries.

• Audit: A review of a blockchain project’s code or smart contracts 

• to ensure security and functionality.

B

• Bear Market: A market trend characterized by declining prices and negative investor sentiment.

• Bitcoin (BTC): The first and most well-known decentralized cryptocurrency, created in 2009 by Satoshi Nakamoto.

• Bitcoin Maximalist: Someone who believes Bitcoin is superior to all other cryptocurrencies.

• Block: A batch of transactions recorded on a blockchain, linked to previous blocks.

• Block Explorer: A tool or website that displays blockchain data, such as transaction details or block information.

• Block Height: The number of blocks in a blockchain, starting from the genesis block (block #0).

• Block Reward: The cryptocurrency awarded to miners for successfully adding a block to the blockchain.

• Blockchain: A decentralized, public ledger that records transactions across a network of computers using cryptography.

• Bull Market: A market trend characterized by rising prices and positive investor sentiment.

• Burn (Token): Sending tokens to an unusable address to reduce supply, often to increase value.

• Buy the Dip (BTD): An investment strategy of buying a cryptocurrency when its price drops, expecting future gains.

• Byzantine Fault Tolerance: A blockchain’s ability to function correctly despite some nodes failing or acting maliciously

C

• Candlestick: A chart type showing price movements (open, close, high, low) over a specific period.

• CBDC (Central Bank Digital Currency): A digital currency issued and backed by a central bank, unlike decentralized cryptocurrencies.

• Centralized Exchange (CEX): A platform managed by a central entity where users can trade cryptocurrencies.

• Cold Wallet: A cryptocurrency wallet stored offline, such as a hardware device or paper wallet, for enhanced security.

• Consensus: The agreement among blockchain nodes on the validity of transactions or blocks.

• Consensus Algorithm: A protocol used to achieve consensus in a blockchain, such as Proof of Work or Proof of Stake.

• Cryptocurrency: A digital asset using cryptography for security, enabling peer-to-peer transactions without intermediaries.

• Cryptography: The practice of securing information through encryption and decryption, foundational to blockchain security.

• Cryptojacking: Unauthorized use of someone’s computing power to mine cryptocurrency.

• Custody: The holding and management of crypto assets, often by a third party like an exchange.

D

• DAO (Decentralized Autonomous Organization): An organization governed by smart contracts and token holders, without central authority.

• DApp (Decentralized Application): An application running on a blockchain, independent of centralized control.

• Dead Cat Bounce: A temporary price recovery after a significant decline, often followed by further drops.

• Decentralization: The distribution of control across a network, eliminating the need for a central authority.

• Decentralized Exchange (DEX): A peer-to-peer cryptocurrency trading platform without a central intermediary.

• DeFi (Decentralized Finance): Financial applications built on blockchain, enabling trustless transactions without intermediaries.

• Double Spend: An attempt to spend the same cryptocurrency twice, prevented by blockchain consensus mechanisms.

• Dust Transaction: A transaction involving a tiny amount of cryptocurrency, often used in dusting attacks to de-anonymize users.

E

• Encryption: The process of securing data by converting it into an unreadable format, accessible only with a key.

• ERC-20: A standard for fungible tokens on the Ethereum blockchain, used by many altcoins.

• ERC-721: A standard for non-fungible tokens (NFTs) on Ethereum, representing unique assets.

• Ethereum (ETH): The second-largest cryptocurrency by market cap, a platform for smart contracts and DApps.

• Exchange: A platform where users can buy, sell, or trade cryptocurrencies.

F

• Faucet: A service that gives out small amounts of cryptocurrency for free, often for educational or promotional purposes.

• Fiat Currency: Government-issued currency, like the US dollar or euro, not backed by a physical commodity.

• Flash Loan: An uncollateralized loan on DeFi platforms that must be repaid within the same transaction.

• Fork: A change in a blockchain’s protocol, either soft (backward-compatible) or hard (non-backward-compatible).

• FOMO (Fear of Missing Out): The anxiety of missing a profitable crypto investment opportunity, often driving impulsive buys

• FUD (Fear, Uncertainty, Doubt): Negative information, often speculative, spread to cause panic or price drops.

G

• Gas: A fee paid for transactions on the Ethereum network, measured in ETH, to compensate validators.

• Genesis Block: The first block in a blockchain, marking its creation.

• Governance Token: A token granting holders voting rights in a blockchain project’s decision-making process

H

• Halving: A programmed reduction in block rewards for miners, occurring at set intervals (e.g., Bitcoin halves every 210,000 blocks).

• Hard Fork: A non-backward-compatible blockchain protocol update, creating a new chain.

• Hardware Wallet: A physical device storing private keys offline for secure crypto storage.

• Hash: A fixed-length string generated by a hashing algorithm, used to secure and verify blockchain data.

• Hashrate: The computational power used by a network to process transactions and mine blocks.

• HODL: A slang term meaning to hold onto cryptocurrency despite market volatility, derived from “Hold On for Dear Life.”

I

• ICO (Initial Coin Offering): A fundraising method where new cryptocurrencies are sold to investors before launch.

• Immutability: The property of a blockchain where recorded data cannot be altered or deleted.

• Impermanent Loss: A loss incurred by liquidity providers in DeFi due to price divergence in liquidity pools.

• Interoperability: The ability of different blockchains to communicate and share data or assets.

K

• KYC (Know Your Customer): Identity verification processes used by exchanges to comply with regulations.

• Key: A cryptographic string used to access or manage crypto assets (see Private Key, Public Key).

L

• Layer 1: The base blockchain protocol, like Bitcoin or Ethereum.

• Layer 2: A secondary framework built on a blockchain to improve scalability, like the Lightning Network.

• Ledger: A record of all transactions on a blockchain, maintained by nodes.

• Liquidity: The ease with which a cryptocurrency can be bought or sold without affecting its price.

• Liquidity Pool: A pool of funds locked in a smart contract to facilitate trading on a DEX.

M

• Mainnet: The primary network where a cryptocurrency’s transactions are recorded.

• Market Cap: The total value of a cryptocurrency, calculated as price per coin/token multiplied by circulating supply.

• Masternode: A node with extra responsibilities, often requiring a stake, in certain blockchain networks.

• Mining: The process of validating transactions and adding blocks to a blockchain using computational power.

• Minting: Creating new coins or tokens, often through staking or other mechanisms.

• Mnemonic Phrase: A set of words used to recover or back up a crypto wallet’s private keys.

N

• NFT (Non-Fungible Token): A unique digital asset on a blockchain, often representing art, collectibles, or virtual items.

• Node: A computer connected to a blockchain network, helping to validate and relay transactions.

• Non-Fungible: A property of an asset that makes it unique and not interchangeable, like an NFT.

O

• Off-Chain: Transactions or processes occurring outside the blockchain, often for speed or cost efficiency.

• On-Chain: Transactions recorded directly on the blockchain, visible on the public ledger.

• Oracle: A service providing real-world data to blockchains for use in smart contracts.

• Order Book: A list of buy and sell orders for a cryptocurrency on an exchange.

P

• P2P (Peer-to-Peer): Direct transactions between users without intermediaries, a core feature of blockchain.

• Paper Wallet: A physical document storing a cryptocurrency’s public and private keys, used for offline storage.

• Private Key: A secret cryptographic key allowing users to access and manage their crypto assets.

• Proof of Stake (PoS): A consensus mechanism where validators are chosen based on the amount of cryptocurrency they stake.

• Proof of Work (PoW): A consensus mechanism requiring computational work to validate transactions and mine blocks.

• Public Key: A cryptographic address used to receive cryptocurrency, paired with a private key.

• Pump and Dump: A scheme where a cryptocurrency’s price is artificially inflated (pumped) and then sold off (dumped) for profit.

Q

• Quantum Computing: A computing paradigm that could potentially threaten blockchain security by breaking cryptographic algorithms.

• Quantum-Resistant Tokens: Cryptocurrencies designed to resist attacks from quantum computers.

R

• Recovery Seed: A mnemonic phrase used to restore access to a crypto wallet if keys are lost.

• REKT: Slang for suffering significant financial losses in crypto trading or investing.

• Rug Pull: A scam where developers abandon a project and disappear with investors’ funds.

S

• Satoshi: The smallest unit of Bitcoin, named after its creator, Satoshi Nakamoto (1 BTC = 100,000,000 Satoshis).

• Seed Phrase: See Mnemonic Phrase.
• Sharding: A scaling technique dividing a blockchain into smaller pieces (shards) to process transactions faster.

• Smart Contract: Self-executing contracts with terms coded on a blockchain, automating processes without intermediaries.

• Stablecoin: A cryptocurrency pegged to a stable asset (e.g., USD) to minimize price volatility.

• Staking: Locking up cryptocurrency to support a blockchain’s operations and earn rewards.

T

• Token: A digital asset issued on a blockchain, often representing utility or ownership, distinct from a coin.

• Tokenomics: The economic system governing a token’s supply, distribution, and incentives.

• Total Value Locked (TVL): The total value of assets locked in a DeFi protocol or blockchain.

• Transaction Fee: A fee paid to miners or validators for processing a blockchain transaction.

• To the Moon: Slang for a cryptocurrency’s price rising dramatically.

U

• Unbanked: Individuals without access to traditional banking services, often targeted by crypto for financial inclusion.

• Utility Token: A token providing access to a specific service or function within a blockchain ecosystem.

V

• Validator: A node in a Proof of Stake blockchain responsible for 

• verifying transactions and adding blocks.

• Volatility: The degree of price fluctuation in a cryptocurrency, often high in the crypto market.

W

• Wallet: A software or physical device storing public and private keys for managing cryptocurrency.

• Whale: An entity or individual holding a large amount of cryptocurrency, capable of influencing market prices.

• Whitepaper: A document outlining a blockchain project’s purpose, technology, and goals.

X

• XBT/BTC: Common abbreviations for Bitcoin; no functional difference between the two.

Y

• Yield Farming: Earning rewards by providing liquidity or staking in DeFi protocols.

• Yield Guild Games: A play-to-earn gaming guild that invests in NFTs and supports players in blockchain games.

Z

• Zero-Knowledge Proof (zkP): A cryptographic method allowing one party to prove something to another without revealing details.

• zk-Rollup: A Layer 2 scaling solution using zero-knowledge proofs to process transactions off-chain while maintaining security.

• zk-SNARK: A type of zero-knowledge proof used in privacy-focused blockchains like Zcash.