Glossary

Crypto Glossary & Terms, A-Z

Explore a comprehensive list of terms and slang from the crypto space, explained for beginners.

51% Attack

A 51% Attack refers to a security risk in a decentralized blockchain network, where an individual miner or mining pool gains control of more than 50% of the network's hash rate, allowing them to unilaterally manipulate the blockchain.

Address

In cryptocurrency an address is a unique identifier that represents a destination (wallet address) for a cryptocurrency transfer.

Airdrop

An 'airdrop' refers to a method in which free tokens or coins are distributed to the holders of a particular cryptocurrency. This is typically done as a strategy to promote a new cryptocurrency or to reward loyal users of a blockchain network.

Altcoin

An 'altcoin' is a blanket term used to denote any digital cryptocurrency that is not Bitcoin, which was the first established cryptocurrency.

APY

APY, or Annual Percentage Yield, refers to the annual rate of return that an investor can expect to earn from staking, lending, or yield farming with their digital assets.

Arbitrage

Arbitrage refers to the practice of taking advantage of price discrepancies across different crypto exchanges. This occurs when a cryptocurrency is being sold for different prices on separate platforms.

ATH

In the realm of finance and particularly in cryptocurrency markets, 'ATH' is an acronym standing for 'All-Time High.' It refers to the highest value or price that a particular asset, such as a stock or a cryptocurrency, has ever reached in its entire trading history.

ATL

In financial and particularly cryptocurrency contexts, 'ATL' is an acronym for 'All-Time Low.' It refers to the lowest price point that a specific asset, such as a stock or a cryptocurrency, has ever achieved throughout its entire trading history.

Atomic Swaps

An Atomic Swap, also known as a cross-chain trade or atomic cross-chain trading, is a technology that allows for direct peer-to-peer trading across different blockchain networks.

Bag Holder

A bag holder refers to an investor or trader who is holding an asset that has decreased significantly in value, usually with little to no prospect of regaining its former price.

Bear Market

In financial markets, a 'bear market' refers to a period of time characterized by falling prices and a generally pessimistic sentiment among investors.

Bearish

In financial markets, the term 'bearish' is used to describe a negative or pessimistic sentiment about the price or future prospects of a particular asset, market, or economy.

Bearwhale

Bearwhale is a term used in cryptocurrency markets, combining the words 'bear' and 'whale.' Let's break down these two terms individually first.

BIP (Bitcoin Improvement Proposal)

A BIP, or Bitcoin Improvement Proposal, is a formal proposal that members of the Bitcoin community use to suggest various enhancements or improvements to the Bitcoin protocol.

Block

A block is a collection of data that contains a batch of verified and confirmed transactions. It serves as a building block of the blockchain, hence the name.

Block Explorer

A 'Block Explorer' is a tool or website that allows users to explore and navigate through the data stored on a blockchain.

Block Height

Block height refers to the sequential order or position of a block within a blockchain. It is a unique identification number assigned to each block.

Block Reward

The term 'block reward' refers to the incentive given to miners or validators who successfully mine or validate a new block in a blockchain network.

Block Size

Block size refers to the maximum amount of data that can be included in a single block of a blockchain. It represents the size limit imposed on the data contained within the block.

Blockchain

A blockchain is a decentralized and distributed digital ledger that records transactions across many computers so that any involved record cannot be altered retroactively, without the alteration of all subsequent blocks.

Bull Market

A bull market is a term used in financial markets to describe a period of time when prices are generally rising, and investor sentiment is positive.

Bullish

In financial markets, the term 'bullish' is used to describe a positive or optimistic sentiment about the price or future prospects of a particular asset, market, or economy.

Candlestick Chart

A candlestick chart is a visual representation used in finance to depict price movements over a specified time period for an asset such as a security, derivative, or currency.

Centralized

In the cryptocurrency world 'centralized' refers to a system or cryptocurrency that is controlled by a central authority or entity. This is in contrast to decentralized cryptocurrencies, such as Bitcoin, that operate on...

Chain Split

When we talk about a 'chain split' in the context of blockchain technology, it refers to a situation where a single blockchain network divides into two or more separate chains, each following its own set of rules and maintaining its independent transaction history.

Circulating Supply

Circulating supply refers to the total number of coins or tokens of a cryptocurrency that are currently in public circulation and available for trading or transactions.

Cloud Mining

Cloud mining refers to the practice of leasing mining resources from a third-party provider to mine cryptocurrencies remotely. Instead of setting up and managing their own mining hardware, users can access mining capabilities through the internet.

Coin

A Coin refers to a digital asset that acts as a form of currency within a specific blockchain or cryptocurrency network. Unlike physical currencies, coins exist solely in digital form and are designed to enable secure and decentralized transactions.

Cold Storage

Cold storage is a method used to securely store cryptocurrencies offline, keeping them disconnected from the internet and inaccessible to online threats.

Cold Wallet

A 'cold wallet' refers to a type of cryptocurrency wallet that is designed for offline storage, keeping the private keys and digital assets secure and isolated from online threats.

Confirmation

In the context of cryptocurrencies, 'confirmation' refers to the process by which transactions are validated and added to the blockchain.

Consensus

Consensus, in the context of distributed systems like blockchain, refers to the collective agreement among participants on the validity and order of transactions or changes to the system's state.

Correction

In the context of financial markets, a 'correction' refers to a temporary reverse movement or adjustment in the price of an asset or market that brings it back in line with its fundamental value.

Crypto

Crypto is a term that is short for 'cryptocurrency' or 'cryptographic currency.' It refers to digital or virtual currencies that use cryptography for security and operate on decentralized networks called blockchains.

Cryptocurrency

Cryptocurrency refers to a digital or virtual form of currency that relies on cryptographic techniques for security and operates on decentralized networks called blockchains.

Cryptography

Cryptography is a fundamental branch of mathematics and computer science focused on securing communication and data.

DAO

DAO, or Decentralized Autonomous Organization, refers to a type of organization or entity that operates through smart contracts on a blockchain, with decisions made collectively by its participants rather than a central authority.

dApp

A DApp, short for Decentralized Application, refers to an application that operates on a decentralized network, typically a blockchain.

DeFI

DeFi, short for Decentralized Finance, refers to a rapidly growing movement and ecosystem that aims to recreate traditional financial systems and services using decentralized technologies, particularly blockchain and smart contracts.

DEX

A DEX, short for Decentralized Exchange, refers to a type of cryptocurrency exchange that operates on a decentralized network, typically utilizing blockchain technology.

Dividends

In the crypto space, dividends are a concept that is less commonly associated with cryptocurrencies compared to traditional stocks.

DYOR

DYOR is an acronym that stands for 'Do Your Own Research.' It is a commonly used phrase in the crypto community and serves as a reminder for individuals to conduct thorough research and due diligence before making any investment or financial decisions.

ERC-20

ERC-20 is a technical standard for implementing tokens on the Ethereum blockchain.

Escrow

Escrow refers to a contractual arrangement where a third party, called an escrow agent, holds and regulates payment of the funds required for two parties involved in a transaction.

ETF

ETF stands for 'Exchange-Traded Fund.' It is a type of investment fund that is traded on stock exchanges, similar to individual stocks.

Exchange

In the financial context, an exchange refers to a platform or marketplace where various assets, such as cryptocurrencies, stocks, commodities, or fiat currencies, can be bought, sold, or traded.

Faucet

A faucet is a website or application that dispenses small amounts of cryptocurrencies for free, typically as a means of introduction to the technology.

Fiat Currency

Fiat currency refers to a type of currency that is issued by a government and is considered legal tender for transactions within a specific country or region.

Flippening

Flippening is a term used in the cryptocurrency space to describe a hypothetical event where the market capitalization of one cryptocurrency surpasses that of another, resulting in a shift in their rankings or dominance.

FOMO

FOMO, an acronym for 'Fear of Missing Out,' is a common psychological phenomenon that describes the feeling of anxiety or unease that individuals experience when they believe others are participating in an exciting or rewarding opportunity, and they fear being left out.

Fork

A fork represents a significant change or divergence in a blockchain network where the chain splits into two separate paths, each governed by a different set of rules.

FUD

FUD, an acronym for 'Fear, Uncertainty, and Doubt,' is a term commonly used in the cryptocurrency and investment communities.

FUDster

A FUDster is a term used in the cryptocurrency and investment space to describe an individual or entity who actively spreads FUD (Fear, Uncertainty, and Doubt) within the community or market.

Gas

Gas in the context of the Ethereum network, refers to the unit that measures the amount of computational effort required to execute operations, such as making transactions, running dApps, or executing smart contracts.

Genesis Block

The Genesis Block is the very first block of a blockchain network.

Halving

Halving is a predefined event in the protocol of certain cryptocurrencies, notably Bitcoin, where the reward for mining new blocks is halved, effectively reducing the rate at which new coins are generated by 50%.

Hard Fork

In the world of blockchain technology, a hard fork refers to a significant and permanent divergence in the protocol of a blockchain network, resulting in the creation of two separate and distinct chains.

Hash Rate

Hash Rate is a critical parameter in the world of cryptocurrencies, representing the number of hash operations a miner or the entire network can perform per second.

HODL

HODL is a term commonly used in the cryptocurrency community that originated from a misspelling of the word 'hold.'

ICO

ICO stands for Initial Coin Offering, and it refers to a fundraising method used by cryptocurrency projects or startups to raise capital.

Interoperability

Interoperability refers to the ability of different systems, technologies, or networks to seamlessly communicate, exchange data, and operate together effectively.

KYC

KYC stands for 'Know Your Customer,' and it is a process that financial institutions, businesses, and organizations follow to verify the identity of their customers or clients.

Lambo

Lambo is a term commonly used in the cryptocurrency community that is derived from the luxury car brand Lamborghini.

Lightning Network

The Lightning Network is a second-layer scaling solution designed to enable fast, low-cost transactions on blockchain networks like Bitcoin.

Liquidity

In financial and crypto markets, liquidity refers to the degree to which an asset or security can be quickly bought or sold in the market without affecting its price.

Liquidity Pool

A Liquidity Pool is a smart contract-based solution primarily used in decentralized exchanges (DEXs) that holds funds to facilitate trading by providing liquidity.

Marketcap

Market capitalization, often referred to as 'market cap,' is a financial metric used to measure the total value or size of a publicly traded company or a cryptocurrency.

Masternode

A masternode is a type of node in a blockchain network that performs specialized functions beyond regular transaction verification and block validation.

Maximum Supply

Maximum supply refers to the total number or maximum amount of a specific cryptocurrency or token that will ever be created or made available in the market.

Miner

In the context of cryptocurrency mining, a miner refers to the specialized hardware device used to perform the computational tasks necessary for validating and adding new blocks to a blockchain network.

Mining

Mining in the context of blockchain technology refers to the process of validating and adding new transactions to a blockchain network.

Mnemonic Phrase

A Mnemonic Phrase, also known as a seed phrase or recovery phrase, is a list of words which store all the information needed to recover a cryptocurrency wallet.

Multisignature Wallet

A Multisignature Wallet, or multisig wallet for short, is a digital wallet designed to enhance security through the requirement of multiple signatures to authorize a transaction.

NFT

NFT stands for Non-Fungible Token, and it represents a unique digital asset or item that exists on a blockchain network.

Nocoiner

The term 'nocoiner' is a slang term used in the cryptocurrency community to describe someone who does not own or possess any cryptocurrencies.

Oracles

In the context of blockchain and smart contracts, Oracles are third-party services or middleware that feed smart contracts with external information.

Paper Wallet

A paper wallet is a form of offline storage for cryptocurrencies. It involves generating and printing out the public and private keys associated with a cryptocurrency wallet onto a physical piece of paper or other durable material.

Peer-to-Peer

Peer-to-Peer (P2P) refers to a decentralized form of interaction that occurs directly between parties without the need for an intermediary or central authority.

Portfolio

In the context of finance and investments, a portfolio refers to a collection or combination of various assets held by an individual or an entity.

Portfolio Tracker

A Portfolio Tracker is a tool or software application that helps individuals or investors monitor and manage their investment portfolios in a centralized and organized manner.

PoS

PoS, which stands for Proof of Stake, is a consensus mechanism used in blockchain networks to validate and confirm transactions and achieve consensus among participants.

PoW

PoW, which stands for Proof of Work, is a consensus mechanism used in blockchain networks to validate and confirm transactions, maintain the security of the network, and achieve consensus among participants.

Private Key

In the context of blockchain technology and cryptocurrency, a private key is a cryptographic code or a randomly generated string of characters that serves as the main component of a digital wallet.

Public Key

In the context of blockchain technology and cryptography, a public key is a cryptographic code or a string of characters derived from a private key.

Replay Attack

A Replay Attack is a malicious network attack where a valid data transmission is fraudulently repeated or delayed.

Rug Pull

A Rug Pull is a type of scam in the cryptocurrency and decentralized finance (DeFi) sector where developers abandon a project and run away with investors’ funds.

Sat

Sat is a term commonly used in the cryptocurrency world to refer to the smallest unit of Bitcoin, the leading decentralized digital currency.

Satoshi

Satoshi is a term commonly used in the cryptocurrency community to refer to the smallest unit of Bitcoin, the pioneering decentralized digital currency.

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonymous person or group of individuals responsible for the creation and development of Bitcoin, the pioneering decentralized cryptocurrency.

Satoshin

Within the realm of the fascinating world of cryptocurrencies, there exists an enigmatic figure known by the email address [email protected].

SegWit (Segregated Witness)

SegWit, or Segregated Witness, is an upgrade to the Bitcoin protocol that was activated in August 2017.

Shilling

In the context of the cryptocurrency market, 'shilling' refers to the practice of promoting or endorsing a particular cryptocurrency or token with the intention of influencing others to invest or buy it.

Shitcoin

In the world of cryptocurrencies, 'shitcoin' is a term used to describe a cryptocurrency that is considered to have little to no value or potential for long-term success.

Side Chain

A Side Chain is a separate blockchain that operates alongside a parent blockchain, enabling enhanced functionality or value.

Smart Contract

A smart contract is a self-executing contract with the terms of the agreement directly written into lines of code.

Soft Fork

A Soft Fork is a backward-compatible upgrade or update to a blockchain network.

Stablecoin

A stablecoin is a type of cryptocurrency that is designed to minimize price volatility by pegging its value to a stable asset or a basket of assets.

Staking

Staking is a process used in blockchain networks to validate and secure transactions while earning rewards.

2FA (Two-Factor Authentication)

Two-Factor Authentication (2FA) is a security mechanism that requires a user to provide two types of identification to access an online account or service.

Time Lock

Time Lock is a cryptographic feature that restricts the spending or use of certain bitcoins or other cryptocurrency assets until a specified future date or until certain conditions are met.

To The Moon

To the moon is a popular phrase often used in the cryptocurrency community to express a positive sentiment or excitement about the price of a particular cryptocurrency skyrocketing or experiencing significant upward movement.

Tokenomics

Tokenomics is a term that combines 'token' and 'economics' and refers to the study of the economic models surrounding blockchain-based tokens.

Total Supply

The 'total supply' of a cryptocurrency refers to the maximum number or quantity of coins or tokens that will ever exist within its ecosystem.

TPS

TPS, or 'Transactions Per Second,' is a common metric used to measure the processing speed and scalability of a system, particularly in the context of blockchain and cryptocurrency technology.

Transaction Fee

A transaction fee is a fee incurred when making a cryptocurrency transaction on a blockchain network.

Wallet

In the context of cryptocurrency, a wallet is a digital tool that allows users to store, receive, and send cryptocurrencies.

Weak Hands

In the cryptocurrency world, the term 'weak hands' is used to describe individuals or investors who are considered to have a low tolerance for market volatility or a lack of conviction in their investment decisions.

Whale

In the context of cryptocurrency, the term 'whale' refers to an individual or entity that holds a significant amount of cryptocurrency.

Whitelist

In the context of cryptocurrencies and blockchain projects, a whitelist refers to a list of addresses or individuals who are granted specific privileges or access to participate in certain activities within the project's ecosystem.

Whitepaper

In the world of cryptocurrencies and blockchain technology, a whitepaper is a comprehensive document that outlines the details, vision, technology, and potential implementation of a specific project or cryptocurrency.

Wrapped Tokens

Wrapped Tokens are a type of cryptocurrency token that are issued on a blockchain different from the native blockchain of the asset it represents, and are pegged to the value of that asset.

Yield Farming

Yield farming, also known as liquidity mining, is a practice in decentralized finance (DeFi) where users can earn rewards or additional cryptocurrency tokens by providing liquidity to decentralized platforms or protocols.

Zero-Knowledge Proof

Zero-Knowledge Proof (ZKP) is a cryptographic method allowing one party (the prover) to prove to another party (the verifier) that they know a specific value or possess certain information.

Zerocoin

Zerocoin is a privacy-focused protocol designed to enhance the anonymity of transactions conducted on blockchain networks.