Crypto Glossary
Here is a brief introduction to some of the key terminology used in the crypto-sphere. There are so many slang or jargon words, which easily throw new investors; so hopefully this glossary will help clarify the meaning of the new words, abbreviations and acronyms.
1. Altcoin: Any cryptocurrency other than Bitcoin. Example: Ethereum (ETH) is one of the most well-known altcoins.
2. ATH (All-Time High): The highest price ever reached by a cryptocurrency. Example: Bitcoin reached an ATH of over $60,000 in 2021.
3. Bear Market: A market characterized by declining prices, pessimism, and a lack of confidence in the economy. Example: The cryptocurrency market experienced a bear market in 2018.
4. Blockchain: A decentralized, distributed ledger that records all cryptocurrency transactions. Example: Bitcoin's blockchain is a public ledger of all Bitcoin transactions.
5. Bull Market: A market characterized by rising prices, optimism, and confidence in the economy. Example: The cryptocurrency market was in a bull market in 2017.
6. Cryptocurrency: A digital or virtual currency that uses cryptography for security. Example: Bitcoin (BTC) is the first and most well-known cryptocurrency.
7. Decentralized: Not controlled by a single entity or authority. Example: Bitcoin is a decentralized currency, meaning it's not governed by a central bank.
8. Exchange: A platform for buying, selling, and trading cryptocurrencies. Example: Coinbase is a popular cryptocurrency exchange.
9. FOMO (Fear of Missing Out): A feeling of anxiety that one might miss out on a profitable opportunity. Example: Many people bought Bitcoin during its rapid price increase due to FOMO.
10. FUD (Fear, Uncertainty, Doubt): Spreading negative or misleading information about a cryptocurrency. Example: False rumors about a cryptocurrency can create FUD.
11. Halving: A reduction in the reward miners receive for adding new blocks to the blockchain. Example: Bitcoin undergoes a halving approximately every four years.
12. HODL: A misspelling of "hold," meaning to keep and not sell your cryptocurrency. Example: "I'm going to hodl my Bitcoin."
13. ICO (Initial Coin Offering): A fundraising method where new cryptocurrencies are sold to investors. Example: Ethereum's ICO raised funds for the development of the platform.
14. KYC (Know Your Customer): The process of verifying the identity of cryptocurrency users. Example: Many exchanges require KYC before allowing trading.
15. Market Cap: The total value of a cryptocurrency, calculated by multiplying its price by the total supply. Example: Bitcoin's market cap is over $1 trillion.
16. Mining: The process of validating and recording transactions on a blockchain. Example: Bitcoin miners use powerful computers to mine new coins.
17. Node: A device connected to a blockchain network that helps maintain the network's operations. Example: Bitcoin nodes validate transactions and blocks.
18. OTC (Over-The-Counter): A method of trading cryptocurrencies directly between parties, often used for large transactions. Example: Institutional investors often trade cryptocurrencies OTC to avoid impacting market prices.
19. Pump and Dump: A scheme where the price of a cryptocurrency is artificially inflated (pumped) and then sold off (dumped) for a profit. Example: Be cautious of pump and dump schemes in the market.
20. Satoshi: The smallest unit of Bitcoin, equal to 0.00000001 BTC. Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.
21. Token: A digital asset issued on a blockchain that can represent various assets or have specific uses. Example: Chainlink (LINK) is a popular token used in decentralized oracle networks.
22. Wallet: Software or hardware used to store, send, and receive cryptocurrencies. Example: Coinbase and Trust Wallet are cryptocurrency wallets.
23. 51% Attack: A situation in which a single entity controls the majority of the mining power on a blockchain, potentially allowing them to manipulate transactions. Example: A 51% attack on a smaller cryptocurrency can lead to double-spending.
24. DeFi (Decentralized Finance): Financial services and applications built on blockchain technology that operate without traditional intermediaries. Example: Compound and Aave are popular DeFi platforms.
25. ATH (All-Time High): The highest price ever reached by a cryptocurrency. Example: Bitcoin's ATH was over $60,000 in 2021.
26. Bear Market: A market characterized by declining prices, pessimism, and a lack of confidence in the economy. Example: The cryptocurrency market experienced a bear market in 2018.
27. Blockchain: A decentralized, distributed ledger that records all cryptocurrency transactions. Example: Bitcoin's blockchain is a public ledger of all Bitcoin transactions.
28. Bull Market: A market characterized by rising prices, optimism, and confidence in the economy. Example: The cryptocurrency market was in a bull market in 2017.
29. Cryptocurrency: A digital or virtual currency that uses cryptography for security. Example: Bitcoin (BTC) is the first and most well-known cryptocurrency.
30. Decentralized: Not controlled by a single entity or authority. Example: Bitcoin is a decentralized currency, meaning it's not governed by a central bank.
31. Exchange: A platform for buying, selling, and trading cryptocurrencies. Example: Coinbase is a popular cryptocurrency exchange.
32. FOMO (Fear of Missing Out): A feeling of anxiety that one might miss out on a profitable opportunity. Example: Many people bought Bitcoin during its rapid price increase due to FOMO.
33. FUD (Fear, Uncertainty, Doubt): Spreading negative or misleading information about a cryptocurrency. Example: False rumors about a cryptocurrency can create FUD.
34. Halving: A reduction in the reward miners receive for adding new blocks to the blockchain. Example: Bitcoin undergoes a halving approximately every four years.
35. HODL: A misspelling of "hold," meaning to keep and not sell your cryptocurrency. Example: "I'm going to hodl my Bitcoin."
36. ICO (Initial Coin Offering): A fundraising method where new cryptocurrencies are sold to investors. Example: Ethereum's ICO raised funds for the development of the platform.
37. KYC (Know Your Customer): The process of verifying the identity of cryptocurrency users. Example: Many exchanges require KYC before allowing trading.
38. Market Cap: The total value of a cryptocurrency, calculated by multiplying its price by the total supply. Example: Bitcoin's market cap is over $1 trillion.
39. Mining: The process of validating and recording transactions on a blockchain. Example: Bitcoin miners use powerful computers to mine new coins.
40. Node: A device connected to a blockchain network that helps maintain the network's operations. Example: Bitcoin nodes validate transactions and blocks.
41. OTC (Over-The-Counter): A method of trading cryptocurrencies directly between parties, often used for large transactions. Example: Institutional investors often trade cryptocurrencies OTC to avoid impacting market prices.
42. Pump and Dump: A scheme where the price of a cryptocurrency is artificially inflated (pumped) and then sold off (dumped) for a profit. Example: Be cautious of pump and dump schemes in the market.
43. Satoshi: The smallest unit of Bitcoin, equal to 0.00000001 BTC. Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.
44. Token: A digital asset issued on a blockchain that can represent various assets or have specific uses. Example: Chainlink (LINK) is a popular token used in decentralized oracle networks.
45. Wallet: Software or hardware used to store, send, and receive cryptocurrencies. Example: Coinbase and Trust Wallet are cryptocurrency wallets.
46. 51% Attack: A situation in which a single entity controls the majority of the mining power on a blockchain, potentially allowing them to manipulate transactions. Example: A 51% attack on a smaller cryptocurrency can lead to double-spending.
47. DeFi (Decentralized Finance): Financial services and applications built on blockchain technology that operate without traditional intermediaries. Example: Compound and Aave are popular DeFi platforms.
48. Hash Rate: The computational power used in cryptocurrency mining. Example: Bitcoin's network has a high hash rate, making it secure.
49. Liquidity: The ease with which an asset can be bought or sold in the market. Example: High liquidity is essential for day traders.
50. Market Order: An order to buy or sell a cryptocurrency at the current market price. Example: John placed a market order to quickly sell his Bitcoin.
51. NFT (Non-Fungible Token): A unique digital asset that cannot be exchanged on a one-to-one basis. Example: CryptoKitties are NFTs representing unique digital cats.
52. Overbought: A condition in which the price of an asset has risen too quickly and may be due for a correction. Example: The RSI indicator shows that the cryptocurrency is overbought.
53. Pump and Dump: A scheme where the price of a cryptocurrency is artificially inflated (pumped) and then sold off (dumped) for a profit. Example: Be cautious of pump and dump schemes in the market.
54. Resistance: A price level at which an asset tends to encounter selling pressure and struggle to break through. Example: The cryptocurrency faces strong resistance at $50,000.
55. Support: A price level at which an asset tends to encounter buying interest and find a bottom. Example: The cryptocurrency found strong support at $30,000.
56. Tokenomics: The economic model and rules governing a cryptocurrency's supply and distribution. Example: Understanding tokenomics is crucial for evaluating a new coin.
57. Volatility: The degree of variation in the price of an asset over time. Example: Cryptocurrencies are known for their high volatility.
58. Whale: An individual or entity that holds a significant amount of a cryptocurrency. Example: A whale's large sell-off can impact the market.
59. Yield Farming: A DeFi strategy that involves providing liquidity to earn rewards or interest. Example: Yield farmers use platforms like Uniswap to earn yields.
60. Zero-Knowledge Proof: A cryptographic method that allows one party to prove knowledge of specific information without revealing that information. Example: Zero-knowledge proofs enhance privacy in blockchain transactions.
61. Airdrop: The distribution of free tokens or coins to holders of a specific cryptocurrency. Example: The project conducted an airdrop to reward its community.
62. Bagholder: An investor who is holding a cryptocurrency that has significantly lost value. Example: John became a bagholder when he didn't sell his tokens before the crash.
63. Bull Run: A period of sustained price increase in the cryptocurrency market. Example: The recent bull run pushed Bitcoin's price to new heights.
64. Consensus: The process by which participants in a blockchain network agree on the validity of transactions. Example: Proof of Work (PoW) and Proof of Stake (PoS) are consensus mechanisms.
65. Dapp (Decentralized Application): An application that runs on a blockchain, often with no central authority. Example: Uniswap is a popular decentralized exchange dapp.
66. Dump: A rapid and significant decline in the price of a cryptocurrency. Example: After the news broke, there was a massive dump of the token.
67. Fiat Currency: Traditional government-issued currencies, such as the US dollar or Euro. Example: You can convert your Bitcoin into fiat currency to spend.
68. Gas Fee: The cost of processing transactions on a blockchain network. Example: Ethereum users pay gas fees to execute smart contracts.
69. Hash Function: A mathematical function used in cryptography to convert data into a fixed-size string of characters. Example: SHA-256 is a commonly used hash function in blockchain.
70. ICO (Initial Coin Offering): A fundraising method where new cryptocurrencies are sold to investors. Example: Ethereum's ICO raised funds for the development of the platform.
71. Lambo: Short for Lamborghini, it's a term used humorously to describe the desire for quick, substantial gains in the cryptocurrency market. Example: "I'm hodling until I can buy a Lambo."
72. Moon: A term used to describe a significant price increase in a cryptocurrency. Example: "The price is going to the moon!"
73. Pump: A rapid and significant increase in the price of a cryptocurrency. Example: The token experienced a pump after the positive news.
74. Rug Pull: A fraudulent scheme where developers abandon a project and take the funds invested by users. Example: Investors fell victim to a rug pull when the project's team disappeared.
75. Smart Contract: Self-executing contracts with the terms of the agreement directly written into code. Example: Ethereum is known for its smart contract functionality.
76. Stablecoin: A cryptocurrency designed to maintain a stable value, often pegged to a traditional currency like the US dollar. Example: USDC and USDT are popular stablecoins.
77. Token Sale: A fundraising event where new tokens are sold to investors. Example: The token sale raised millions in funding for the project.
78. Whale: An individual or entity that holds a significant amount of a cryptocurrency. Example: A whale's large sell-off can impact the market.
79. Yield Farming: A DeFi strategy that involves providing liquidity to earn rewards or interest. Example: Yield farmers use platforms like Uniswap to earn yields.
80. Zero-Knowledge Proof: A cryptographic method that allows one party to prove knowledge of specific information without revealing that information. Example: Zero-knowledge proofs enhance privacy in blockchain transactions.
81. Fungibility: The property of a cryptocurrency to be interchangeable with other units of the same value. Example: Bitcoin is fungible because one Bitcoin is always equal in value to another.
82. ICO (Initial Coin Offering): A fundraising method where new cryptocurrencies are sold to investors. Example: Ethereum's ICO raised funds for the development of the platform.
83. Hard Fork: A significant and incompatible change in the protocol of a blockchain. Example: The Bitcoin Cash hard fork resulted in two separate cryptocurrencies.