Term Definition
Airdrop A marketing strategy that involves giving away free crypto tokens in a bid to encourage adoption.
Altcoin Any cryptocurrency other than Bitcoin is an altcoin.
Apeing This usually refers to buying a crypto token immediately after launch without thorough research.
Bag Holder A phrase to describe investors who continue to hold on to poorly-performing cryptocurrencies.
Bear Bear is the opposite of bull. A bear market happens when the cryptocurrency price decreases as the demand of an asset declines.
Bitcoin Bitcoin is the first cryptocurrency created using blockchain technology.
Block Block is a data structure in which cryptocurrency transactions and their details are stored.
Blockchain A distributed public ledger that records digital activities across a peer-to-peer network of computer systems (i.e., cryptocurrency transactions).
BTD/Buy The Dip This simply suggests that a cryptocurrency should be bought during its price dip or when its price is decreasing.
Bull A bull market happens when the cryptocurrency price is increasing as demand for an asset goes up.
Burning Burning means removing tokens from circulation permanently.
Coin The digital currency of a specific blockchain.
Cross-chain A cross-chain usually refers to a platform that allows multiple independent blockchain networks to communicate and operate with each other.
Crypto Mining A process where miners compete to validate transactions on a proof-of-work blockchain to create new coins and earn rewards.
Crypto wallet A platform for users to manage their crypto funds. Hot wallets provide online storage of private keys to crypto assets while cold wallets provide offline storage, typically on a hardware device.
Cryptocurrency A digital asset or medium of exchange secured using cryptography.
Cryptography The practice and study of secure communication techniques derived from mathematical concepts.
DAO The acronym stands for Decentralised Autonomous Organisation, which operates without a leader. Members perform roles based on rules defined in the smart contract.
Dapp A decentralised application that operates on a blockchain, typically based on smart contracts.
Dead Coin A cryptocurrency that no longer has value.
Decentralisation Transferring control from a centralised entity to a distributed network.
Decentralised Exchange This is a marketplace where cryptocurrency exchanges occur directly between two traders without an intermediary.
Decentralised Identifiers A type of digital identifier that can verify ownership using cryptography and not depend on a centralised registration authority.
DeFi The acronym refers to Decentralised Finance, an emerging digital finance infrastructure that relies on smart contracts on a blockchain instead of intermediaries like central banks.
Degen A term that usually refers to people who make risky decisions when investing or trading in cryptocurrency or blockchain.
Diamond Hands A phrase used to describe someone who refused to sell a stock or cryptocurrency despite its high risk.
Digital asset Owned assets and resources that are stored digitally.
Digital Gold Bitcoin is referred to as digital gold because of how its price value has appreciated over time.
Double Spending Double spending is the process of spending the same cryptocurrency token twice. This is usually a method of hacking, where the hacker modifies the transaction details such that they reacquire the cryptocurrency that has already been spent.
DYOR The acronym stands for “Do Your Own Research.” It is commonly used to signal potential crypto investors to exercise due diligence before jumping on a project or investing in a cryptocurrency.
Ecosystem A blockchain ecosystem comprises a network of participants that share common goals and procedures.
Encryption Encryption transforms information from its original representation (plaintext) to an unreadable version (ciphertext) or secret code.
ERC-20 ERC-20 is a cryptocurrency standard or token standard that dictates the various rules to be followed to create a token of this coin. Ethereum uses the ERC-20 token standard among others.
Ethereum Virtual Machine Ethereum Virtual Machine is a platform that people can leverage to create decentralised apps (dApps).
Etherscan Etherscan is a blockchain explorer that lets you see public transaction details, smart contracts, addresses, and more at any time.
Fear and Greed Index A tool used to assess the crypto market sentiment. The index usually ranges from 0 to 100, with 0 referring to extreme fear and may lead to panic selling, and 100 referring to extreme greed and may lead to FOMO-induced buying.
Fiat Fiat refers to our conventional currencies, such as USD, GBP, Euro, Yen, and others.
Flash Loan This refers to loans that do not require collateral.
Flippening Flippening refers to the prospect of Ethereum overtaking the value of Bitcoin.
FOMO The acronym stands for “Fear of Missing Out.” In crypto, the phrase is used to describe anxious investors who buy cryptocurrency in a panic, worrying that they might lose out on a sharp bullish breakout.
Fork/Forking Whenever a blockchain protocol is modified, it forks/splits into a new direction. The previous transaction records and other details will be retained, but how the protocol functions will change.
FUD FUD stands for Fear, Uncertainty, and Doubt. This means that a person is sceptical about a particular project or asset and its negative effects.
Gas fee A fee that everyone pays to perform a function on a blockchain and compensate miners for their computational service.
Governance token A digital token with voting rights. Users may utilise governance tokens to decide on future rules and objectives of a DAO.
Gwei Gwei is one-billionth of an ether. This means 0.000000001 ETH is equal to 1 Gwei.
Halving This means the mining or staking rewards will be cut in half periodically, and this period varies between cryptocurrencies.
Hardware wallet A cryptocurrency wallet stores private keys in a hardware device. Private keys are crucial for accessing cryptocurrency funds and authorising transactions; keeping them offline will protect assets from cyber thefts.
Hash Rate This is the amount of computational power required by your system to mine a particular block. The difficulty of mining a block is directly proportional to the hash rate.
HODL The acronym refers to “Hold On for Dear Life,” and is normally used to describe the act of refusing to sell cryptocurrencies regardless of their value.
ICO/Initial Coin Offering ICO is a process by which a project raises capital through crowdfunding. It sells some of its cryptocurrency to people in exchange for equivalent money.
IEO/Initial Exchange Offering An alternative to ICO, IEO, is where people can buy the cryptocurrency through exchanges and not directly from the issuer.
KYC/Know Your Customer This is a verification process where a platform verifies your information such as name, address, social security number, and other details.
Layer 1 Blockchain Layer 1 blockchain is the base blockchain that can be considered the main blockchain that doesn't require any other network to validate transactions.
Layer 2 Blockchain Layer 2 blockchain is built on the layer 1 blockchain to solve transaction speed, scalability, and other issues.
Mainnet Mainnet is the main blockchain network that is open to the public and can be accessed by anyone.
Memecoin A digital coin derived from a meme or internet joke.
Metaverse A 3D virtual reality world where people connect as digital avatars.
Miner A miner competes to validate transactions on a proof-of-work blockchain and subsequently earn cryptocurrency as a reward.
Minting Crypto minting happens when new coins come into existence whether through the proof-of-work or proof-of-stake mechanisms.
Multichain Multichain is a platform that allows anyone to create a new blockchain with a few predefined functionalities and features that can be customised.
NFT marketplace An NFT marketplace is an online platform where users buy or sell non-fungible tokens.
Non-fungible tokens Non-fungible tokens, or NFTs, is a type of token that represents a commodity like art and music. It can also act as proof of ownership for the buyer.
Oracle A third party platform that bridges smart contracts on a blockchain network and the outside world.
Paper Hands This refers to an investor who sells off assets at the first sign of a dip or trouble and doesn't think in a level-headed way.
Parachain Project-specific blockchains built on the Polkadot (DOT) and Kusama (KSM) platforms.
Permissioned Blockchain Users can access these blockchain networks only after they have obtained permission from the administrators of the blockchain.
Permissionless Blockchain These are publicly accessible blockchains that allow anyone to participate in the validation and consensus process.
Phishing A type of cybersecurity attack in which a hostile actor masquerades as a legitimate person or organisation to lure individuals into disclosing sensitive information.
Play-to-Earn Play-to-Earn (P2E) is a business model used in blockchain gaming where people can earn money by playing games.
Private key Like a password, a private key is a secret number - usually a string of letters and numbers - that can decrypt information depending on the cryptographic algorithm. In cryptocurrency, it is used to provide access to crypto funds.
Public key Public-key cryptography is an encryption method that involves using a public key to encrypt data and a private key to decrypt data.
Pump and Dump The buying and selling of coins in a bid to manipulate the market or artificially inflate their value and make a profit.
Ransomware A malicious software that encrypts files in an attempt to extort money.
Recovery phrases A security feature used in some hardware wallets that allow users to recover access to crypto assets in the case of loss or theft.
Rekt Rekt is “wrecked” that is intentionally spelled wrongly. The term is used to refer to a person losing funds and investments in a price crash.
Rug pull A malicious tactic that happens when a crypto developer shuts down a project and runs away with investors’ funds.
Sats/Satoshi Sats/Satoshi refers to smaller parts of a Bitcoin. Just as there are cents and dollars, there are Sats and Bitcoin.
Scalping Trading a coin or token multiple times in a day to profit from slight price swings.
Self-Sovereign Identity An approach to digital identity that involves giving the user complete control of their data and assets without relying on a centralised entity.
Sharding Sharding is the splitting of the blockchain network into many divisions. Each division has a unique set of transaction records and account states.
Shill Shilling is the process of constantly promoting a cryptocurrency to inflate or increase its price while disguising as someone unbiased.
Sidechain Blockchain networks sometimes have two chains - mainchain and the sidechain. The main chain is your parent chain, which is connected to the sidechain.
Smart Contracts Smart Contracts establish the terms of an agreement between two parties on a blockchain. Unlike a traditional contract, a smart contract is a computer program or transaction protocol designed to automate the execution, control, and documentation of legally significant events and activities after parties meet the conditions of the contract.
Stablecoin Stablecoins are cryptocurrencies that attach their value to fiat currency. For instance, 1 Tether = 1 USD at any point. It is called a stablecoin because the volatility is reduced, and coin prices are more stable.
Staking Staking refers to committing your assets to a blockchain to earn rewards.
Swapping Swapping is the process of directly trading one cryptocurrency for another without converting to fiat money.
Testnet Testnet is the network where the blockchain project is tested in a simulated environment to see how it would perform when it goes live.
To-the-moon/Mooning: Going to the moon or mooning refers to an astronomical upsurge/spike in a cryptocurrency's prices.
Token A cryptographic token represents a single unit of digital value on blockchain.
Tokenomics The study of factors influencing the demand and supply of a token. Tokens are used for payment, services (utility), represent something unique (non-fungible token), or represent a stake in a business (security).
Two-factor authentication Two-factor authentication, or 2FA, is a security solution involving two separate means of proving that a user is genuine.
Validator A validator verifies and records transactions on a blockchain.
Vanity Address A vanity address is essentially an address that can contain the letters you want in the first few spaces instead of having random numbers and letters. It represents a brand and increases the identification and recall value.
Verifiable Credentials Tamper-proof credentials that can be verified cryptographically.
WAGMI We Are All Gonna Make It (WAGMI) is a phrase often used in crypto communities to uplift the members who have invested in the project constantly.
Whale These individuals or organisations hold a large volume of a particular cryptocurrency. For example, in the case of Bitcoin, a whale is someone who holds 1,000 or more Bitcoins.
When Lambo? A cheeky way of asking when a cryptocurrency will increase in value. The question is literally asking when the cryptocurrency will be valuable enough for investors to afford a Lamborghini.
Whitelist Whitelisting is the process of registering for an ICO, IEO, or IDO. If a person/address is whitelisted, it means that they have been vetted before the token sale.
Zero-Knowledge Proof This refers to the ability of two parties to verify that both of them have a set of information without revealing what the information is.