Glossary

Airdrop

A crypto airdrop is a marketing campaign where a project will deliver free crypto tokens or coins to participating users’ wallets.

Algorithm

An algorithm is a set of well-defined instructions used to perform calculations, accomplish a task, or solve a problem(s). The instructions must be executed in a specific order to produce the desired outcome.

All Time High

All-Time High (ATH) refers to the highest price that a financial asset has ever reached. The term is used to analyze traditional financial assets like stocks and bonds, as well as digital assets like Bitcoin.

All-Time Low

All-time low (ATL) refers to the lowest price a digital asset has ever reached in its entire trading history.

Altcoin

Altcoins refers to any other cryptocurrency apart from Bitcoin. They are called altcoins because they are considered alternative currencies to Bitcoin.

Ask Price

An ask price is the lowest amount at which a seller is willing to sell an asset such as a stock, bond, or cryptocurrency.

Automated Market Maker

An automated market maker defines the underlying protocol that provides liquidity to decentralized exchanges and determines asset prices.

Bear Market

A bear market is a lasting downward trend in the market when asset prices are declining and supply is greater than demand.

Bid Price

The bid price is the highest price that a buyer is willing to pay for a particular asset, such as a cryptocurrency or stock.

Bid-Ask Spread

Bid-ask spread in crypto is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept for a specific asset.

Bitcoin Core

Bitcoin Core is the software used to connect to and interact with the Bitcoin peer-to-peer network.

Block

A block in a blockchain is a container of data that records all transactions in a secure and transparent way

Block Reward

A block reward is the sum of crypto awarded to a miner or validator by a blockchain protocol for successfully mining and validating a block.

Blockchain

Blockchain is a digital ledger, capable of tracking the movement of value or information around its network. With control of this network distributed across many points, it cannot be censored.

Blockchain Bridge

A blockchain bridge connects two separate blockchain networks and enables the transfer of data and tokens between the different networks. Blockchain bridges facilitate interaction and the ability to operate between networks (commonly referred to as “interoperability”).

Blockchain Explorer

A blockchain explorer is a tool that enables users to navigate and review information about any public blockchain network.

BUIDL

The term “BUIDL” is a call for crypto users and enthusiasts to build and contribute to the progress of the blockchain and crypto space, as opposed to passively holding digital assets.

Buy The Dip (BTD)

Buying the dip refers to the practice of buying an asset when the price drops.

Buy Wall

A buy wall is the result of a large buy limit order(s) placed on a cryptocurrency when it hits a certain price. Automated trading algorithms are responsible for most buy walls.

Byzantine Generals’ Problem

The Byzantine Generals’ Problem is a game theory problem that illustrates how difficult it is for decentralized parties to arrive at a consensus or agree on a single truth without relying on a trusted third party.

Central Bank Digital Currency (CBDC)

A Central Bank Digital Currency (CBDC) is the electronic version of a country’s fiat currency, and is issued by the central government. CBDCs are like cryptocurrencies, but their value is tied to the country’s physical currency.

Circulating Supply

A crypto’s circulating supply is that specific cryptocurrency’s amount of tokens or coins that are in circulation at a particular time and are available to the public to buy or sell.

Coin

A coin is a digital asset that functions as a currency or store of value on its own blockchain network.

Cold Storage

Cold storage is a method of holding data or crypto assets in devices that are not connected to the internet, which provides added security for its users.

Cold Wallet

A cold wallet also referred to as “cold storage” is A device or system that secures crypto private keys offline.

Consensus Mechanism

The term “consensus mechanism” refers to a self-regulatory stack of protocols, algorithms, incentives, and concepts that help ensure a blockchain’s integrity. It is used in maintaining the underlying blockchain’s security and verifying transactions.

Cross-Chain

Cross-chain technology allows blockchains to share and access information and assets across different blockchains without intermediaries.

Crypto Winter

A crypto winter is a long period of time when crypto prices dramatically drop below their previous all-time high values.

Cryptocurrency

A cryptocurrency is a virtual or digital currency that doesn’t depend on centralized authority, such as a government or central bank, to process transactions and issue new currency units.

Cryptography

Cryptography is the technique of securing information through using codes so that only the intended party can access it.

Custody

Crypto custody involves safeguarding, storage, and management of digital assets on the behalf of individuals or institutions.

Decentralized Application

A decentralized application is a software program operating on a peer-to-peer network. It runs independently on the internet using smart contracts, outside the control of a single entity or authority.

Decentralized Automous Organization (DAO)

A decentralized autonomous organization (DAO) is a community with no centralized authority, in which members collectively make decisions in a bottom-up manner regarding its governance and operation.

Decentralized Exchange (DEX)

A decentralized exchange (DEX) is a peer-to-peer marketplace that allows users to directly trade with each other. It doesn’t need a custodian or intermediary to hold the users’ funds or facilitate transactions.

Decentralized Finance

Decentralized Finance (DeFI) refers to financial applications and services that are built on a blockchain and operate without a central governing authority (hence, “decentralized”).

Degen

In the context of the crypto community, "degen" is short for "degenerate" and is often used to refer to a person who is involved in high-risk, speculative trading or investing in cryptocurrencies.

Delegated Proof-of-Stake (DPoS)

Delegated proof-of-stake is a consensus mechanism which allows users of a network to vote and elect delegates who will validate transactions on that network.

Derivatives

Derivatives are products or contracts that obtain their value from an underlying asset like stocks, bonds, commodities, or cryptocurrencies.

Digital Signature

A digital signature is an encrypted, electronic imprint that authenticates digital information, software or messages. Like a handwritten signature, it verifies the identity and origin of data.

Distributed Ledger

A distributed ledger is a record or database spread across a network that is accessible from several geographical locations.

Dollar Cost Averaging

Dollar Cost Averaging (DCA) is a strategy that involves investing a fixed amount in any asset like digital asset at regular intervals.

Double Spending

Double spending is a scenario where an individual manages or attempts to use the same units of a currency more than once for valid transactions.

DYOR

DYOR (Do Your Own Research) is a common crypto slang referring to the idea that investors should conduct extensive research before investing in a project.

ERC-1155

The ERC-1155 is a multi-token standard that allows for the creation of both fungible and non-fungible tokens within a single smart contract.

ERC-20 Tokens

ERC-20 tokens is the technical standard for fungible digital tokens that run only on the Ethereum blockchain network. They are built on smart contracts that keep track of the tokens created on the Ethereum network.

ERC-721

ERC-721 is the token standard used on Ethereum to create non-fungible tokens (NFTs). Each token created using the ERC-721 standard is unique and not interchangeable.

Ethereum 2.0

Ethereum 2.0 is an ongoing series of network upgrades aimed at addressing scalability, security, and accessibility

Ethereum Virtual Machine

The Ethereum Virtual Machine (EVM) is a software framework on the Ethereum network that allows developers to execute smart contracts and create decentralized applications.

Fear Of Missing Out (FOMO)

FOMO stands for the “fear of missing out,” which is the anxiety or fear traders experience when they think they are missing out on a profitable investment or trading opportunity.

Fiat

The term “fiat” or “fiat currency” refers to a type of currency that is declared by governments as a country’s legal tender. Fiat currencies include the USD, Euro, Sterling Pound, and Chinese Yuan amongst others.

Flash Loan

Flash loans allow you to borrow crypto assets without collateral or borrowing limits within the DeFi space. The lending condition is that you pay back the loan within the same blockchain transaction.

Fork

A fork refers to a change or update to a system’s underlying code or software. Forks in blockchain change the set of rules governing a cryptocurrency’s protocol.

FUD

FUD is an acronym for “Fear, uncertainty, and doubt” which refers to the spread of false or negative information about a cryptocurrency or the market to create fear and doubt among investors.

Full Node

A full node is a component of a blockchain that stores and validates transactions. It is a computer program that ensures the security of a blockchain by enforcing consensus rules and transmitting data to other full nodes.

Fundamental Analysis

Fundamental analysis is a technique traders use to establish the underlying fundamental factors that affect an asset’s intrinsic value.

Futures

Crypto futures contracts are a derivative in which traders agree to either buy or sell an asset on a specific date at a predetermined price.

GameFi

GameFi is a new gaming concept that blends blockchain technology, non-fungible tokens, and game mechanics to create a virtual environment where players can participate and earn rewards.

Gas

Gas is the measurement unit for the amount of computational power required to complete a transaction on the Ethereum network.

Gas Fee

A gas fee is the amount you pay to complete a transaction on a blockchain.

Genesis Block

A genesis block is the first ever block recorded on a blockchain. The block is also known as Block 0 or Block 1.

Graphical Processing Unit

A graphical processing unit (GPU) is a hardware component designed to accelerate graphics rendering and increasingly perform parallel computing tasks across various applications.

Gwei

In Ethereum, Gwei serves as a standardized unit that quantifies transaction costs, gas fees, and computational resources for executing transactions.

Halving

Halving in crypto is an event that occurs in certain cryptocurrencies, such as Bitcoin, to reduce the rate of issuance of new coins and limit the total supply.

Hard Cap

A hard cap is the maximum number of tokens that a cryptocurrency project can ever produce.

Hard Fork

A hard fork is a significant change that permanently splits a blockchain into two different networks when the nodes fail to reach a consensus.

Hardware Wallet

A hardware wallet is an external, physical device designed to securely store a user’s private keys offline.

Hash

A hash is a unique string of text created by mapping a piece of data through a mathematical function to encrypt and secure the data against alteration or unauthorized access. Hash can also be referred to as the digest, hash value, or hash code.

Hash Rate

A hash rate is a measure of the computational and processing power of a cryptocurrency network.

HODL

"HODL" refers to the strategy of holding onto one's digital assets with a long-term perspective despite market fluctuations.

Hot Storage

Hot storage, also known as a “hot wallet” is a crypto wallet that is connected to the internet, allowing users to manage their crypto assets online.

Hot Wallet

A hot wallet is a crypto wallet that secures crypto private keys within an interface that is connected to the internet.

Immutable

The term “immutable” in the context of a blockchain implies that the data or ledger is permanent and tamper-proof, and its history cannot be modified or changed after its creation.

Impermanent Loss

Impermanent loss is a risk that occurs when participating in DeFi liquidity pools. It happens when the price of your deposited assets change from the time you deposited them.

Initial DEX Offering (IDO)

An Initial DEX Offering (IDO) is a crowdfunding method that enables blockchain projects to release their native coins or tokens through a decentralized exchange (DEX).

Interoperability

Blockchain interoperability refers to the ability to share or see information across different blockchains. It allows blockchains to communicate, share data, and build on each other’s features and use cases.

InterPlanetary File System (IPFS)

An InterPlanetary File System (IPFS) is a distributed, peer-to-peer system for sharing, storing and accessing files, digital data, applications, and websites.

Jager

Jager is a unit of measurement which represents a fraction of the cryptocurrency BNB (Binance Coin).

Joy Of Missing Out (JOMO)

Joy of missing out (JOMO) is a term that describes crypto enthusiasts who are happy they missed out on a plummeting coin or trade.

Keylogger

A keylogger is a tool deployed by hackers to record keystrokes and access sensitive data from a victim’s computer. In the crypto industry, cybercriminals often use it as an instrument to steal important information.

Know Your Customer (KYC)

KYC or “Know Your Customer” is a procedure used within financial institutions to confirm their customers’ identities and prevent fraudulent activity.

Layer 1 Blockchain

Layer 1 is the foundational layer of a blockchain network that provides the underlying infrastructure to securely process and validate transactions.

Ledger

A ledger is a digital or physical log that records transactions associated with a financial system. Blockchain networks are a type of decentralized ledger system designed to store data securely.

Leverage

Leverage refers to when individuals use borrowed money or capital to amplify their buying or selling power in a market.

Lightning Network

The Lightning Network is a second layer built on the Bitcoin blockchain designed to scale the blockchain’s capability and conduct transactions more efficiently.

Limit Order

A limit order is an instruction to buy or sell an asset or security at a specific price level.

Liquidation

Liquidation in crypto refers to the process of converting assets, typically leveraged positions or collateral, into cash to cover losses or repay borrowed funds when the market moves unfavorably.

Liquidity Pool

A liquidity pool is a collection of digital assets or tokens supplied by platform users and locked in a smart contract to facilitate faster transactions.

Mainnet

A Mainnet is a blockchain that is independent, complete, and runs by itself, where all crypto transactions are broadcasted, verified, processed, and recorded on its distributed ledger.

Margin Trading

Margin trading is the practice of trading with borrowed money to improve one’s trading position.

Market Capitalization

Market capitalization is a measure of the total value of a cryptocurrency. It is calculated by multiplying the current market price of a coin by its available supply.

Mempool

A mempool is a node’s mechanism for tracking all the unconfirmed transactions.

Metadata

Metadata is a basic summary about a larger set of data. Metadata helps users understand the nature and context of a larger set of data.

Miner

A miner is a participant in a cryptocurrency network responsible for generating new coins and verifying transactions.

Mining

Mining is the process of confirming and validating transactions and adding them to a proof-of-work blockchain.

Minting

Minting in the context of blockchain refers to the mechanism through which new coins or tokens are produced and introduced into circulation.

Multisignature

Multisignature or “multisig” transactions are a type of transaction that requires multiple signatures for a single transaction to be executed.

Node

A node refers to a computer that participates in a blockchain network and is responsible for creating, receiving, and transmitting a message.

Non-Custodial Wallet

Non-Custodial wallets, also known as self-custodial wallets, are crypto wallets that give you complete control over your public and private keys, and subsequently full control over your crypto wallet and assets.

Non-Fungible Token (NFT)

An NFT, or non-fungible token, is a digital asset that represents ownership of a unique item or asset including art, music, in-game items, and other forms of media.

Nonce

A nonce is a variable input used by miners to find a valid hash for a block. It is an authentication model used to verify the validity of data in the blocks.

Off-Chain Transaction

Off-chain transactions is a transfer of value or data, including transactions, that occurs outside a given blockchain network.

On-Chain

On-chain transactions are transactions that are recorded on the blockchain’s distributed ledger and are publicly accessible to anyone who has a copy of the blockchain’s ledger.

Open Source

Open source is a principle between developers who believe in creating, sharing, and modifying data freely for public use. Transparency and free participation are often the goal.

Options

Options are a type of contract that grants a trader the right, rather than the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe.

Oracle

Oracles are bridges that connect blockchains and smart contracts with external systems and off-chain data. They are third-party services that transmit information from external sources into smart contracts to help them execute based on predefined conditions.

Order Book

An order book is an electronic list of all open buy and sell orders available for a specific trading pair on an exchange or marketplace. The buy and sell orders are organized by price levels.

Over-the-Counter

Over-the-counter (OTC) trading refers to trading that is carried out through dealer networks rather than formal exchanges.

Paper Trading

Paper trading is the practice of simulating trades in cryptocurrencies or other financial instruments, like stocks, without investing real money. Paper trading helps users practice trading strategies before investing with actual funds.

Peer-to-Peer

Peer-to-peer, also known as P2P, is a network of distributed computers that are linked and share data, assets, or tasks.

Permissioned Blockchain

A permissioned blockchain is a distributed ledger with limited accessibility. Only certain authorized individuals can access it.

Play To Earn

A Play to Earn (P2E) game is an online game that rewards the players for their active participation or in-game achievements such as completing tasks, clearing game levels, or winning player-versus-player (PvP) battles.

Ponzi Scheme

A Ponzi Scheme is a fraudulent investment strategy where investors are promised high returns with minimal to no risk.

Privacy Coin

“Privacy coin” is a type of cryptocurrencies built on the principles of preserving privacy and enhancing data security. They are designed to conceal transactions and trader identities.

Private Key

A private key is a string of characters that allows you to access and manage your digital assets. It is used to sign transactions and provide proof of ownership for the corresponding cryptocurrencies.

Proof of Reserves (PoR)

Proof of Reserves (PoR) is a verification method to demonstrate that an exchange is maintaining its users’ digital assets. It shows that the exchange has enough liquidity in proportion to its users’ stored assets on the platform.

Public Address

A public address is what allows individuals to request or receive cryptocurrency payments into their digital wallets.

Public Blockchain

A public blockchain is a decentralized network that is not controlled by a single entity. It is accessible to anyone, anywhere in the world.

Public Key

A public key is a code of alphanumeric characters that users use to receive cryptocurrency in their wallets.

QR Code

A quick response (QR) code is a type of barcode with encoded information that can easily be read by a mobile or device. In crypto, a QR code can be used to share wallet addresses and make payment.

Quantum Computing

Rekt

Rekt is crypto slang that means “to lose most or all of your funds due to a bad investment or trade.”

Relay Chain

The relay chain acts as the central chain of data in the Polkadot network, a protocol that allows interoperability between different blockchain networks.

Return On Investment (ROI)

ROI, or Return on Investment, is a financial metric used by investors to assess the profitability and performance of an investment by measuring the profit relative to its initial cost,

Rug Pull

A rug pull is a type of crypto scam when founders of a project bring in investors to inflate the value of a project, but later pull their inflated funds and abandon the project, leaving victims with a worthless investment.

Seed Phrase

A seed phrase is a collection of randomly generated words that represent all private keys associated with a given crypto wallet; the phrase enables the contents of a crypto wallet to be restored, even if access to the wallet itself is lost.

Segregated Witness (Segwit)

Segregated Witness, or “SegWit” is an upgrade for the Bitcoin network designed to allow more transactions to fit within each block on the blockchain.

Self Custody

Self custody is when a user takes full control and responsibility of holding and managing their digital assets without relying on third-party intermediaries.

SHA-256

SHA 256 is an algorithm used in Proof-of-Work blockchains like Bitcoin to verify transactions.

Sidechain

A sidechain is a discrete blockchain that is connected to the main blockchain or mainnet through a 2-way bridge. Sidechains were created to solve transaction speed issues in blockchains by decongesting the mainnet.

Smart Contract

A smart contract is an agreement in the form of a computer program that automatically executes when predefined conditions are met.

Soft Fork

A soft fork refers to a protocol change or modification on a blockchain’s software that invalidates transactions that were previously accepted, which requires miners to update their mining software for older nodes.

Solidity

Solidity is a high-level, object-oriented programming language created for designing and implementing smart contracts.

Source Code

A source code is a computer code or programming statements that define how a software functions based on specific instructions.

Stablecoin

Stablecoins are a type of cryptocurrency that is pegged or tied to another asset, such as fiat currencies or gold.

Staking

Staking refers to when a blockchain user locks up their cryptocurrency to secure the network and earn rewards.

Sybil Attack

A Sybil attack is a security threat on a peer-to-peer network where a malicious actor attempts to sabotage the network’s reputation by creating multiple fake identities.

Technical Analysis

Technical analysis is the study of past market activities, such as price movement and volume data, to estimate an asset’s price direction.

Testnet

A testnet is like a practice version of the main blockchain network. It lets developers test new ideas and features without affecting the main network.

Ticker

A ticker in crypto is a symbol with a unique combination of letters to help identify a particular cryptocurrency.

Timestamp

A timestamp is a digital record used in blockchain networks to track when information and data was exchanged, created, or removed.

Token

Tokens are a type of digital asset that refers to a programmable unit of value or utility and can be used to represent ownership, access rights, or participate in decentralized applications.

Tokenomics

Tokenomics refers to the analysis of factors that may influence the value of a digital asset, such as supply and demand.

Total Value Locked (TVL)

Total value locked (TVL) is a metric that refers to the sum of assets that are staked or locked in a protocol.

Trading Volume

Trading volume in crypto refers to the total amount of funds flowing in and out of a specific cryptocurrency or the crypto market over a given period.

Transaction ID (TXID)

A transaction ID (TXID) or transaction hash is a unique set of numbers given to every verified transaction on the blockchain.

Transactions Per Second (TPS)

Transactions Per Second (TPS) is the number of transactions that a network can process in a second. It is a measurement used to evaluate the transaction speed of a network.

Unspent Transaction Output (UTXO)

Unspent Transaction Output (UTXO) refers to the amount of a cryptocurrency that is leftover following a specific transaction.

Utility Token

A utility token, also known as a ‘user token’, serves a specific function that gives holders access to features of a decentralized application or ecosystem and forms the economy of that system. This could include a DEX, metaverse platform or blockchain based Web3 platform.

Validator

A blockchain validator is a computer or node that verifies transactions in the blockchain network.

Vesting

Vesting is a process where a certain amount of a project’s overall token supply is set aside for a period of time and released after certain conditions are met.

Vesting Period

A vesting period in crypto refers to a predetermined time frame during which certain tokens or assets are restricted and become accessible or transferable over time.

Volatility

Volatility is a measure of how much an asset’s price fluctuates over time. It describes how much and how quickly a particular asset’s value can shift.

WAGMI

WAGMI, an acronym for “We’re All Gonna Make It”, is a term used to combat uncertainty and build confidence in the crypto market. It is a rallying cry meant to restore hope in the crypto market, though it can also be used sarcastically.

Wallet

A wallet is a tool that allows users to store, send, and receive digital assets, such as Bitcoin, Ether, and other altcoins.

Wash Trading

A wash trade is a kind of market manipulation where an individual simultaneously sells and repurchases the same assets, such as NFTs, cryptocurrencies or stocks. This deceptive practice is an attempt to influence the asset’s value or trading volume.

Weak Hands

“Weak hands” is a negative term used to describe a trader with a low-risk tolerance or low confidence in a volatile asset that they’ve invested in.

Whale

A crypto whale is an individual or entity that holds a large proportion of a specific cryptocurrency's token supply.

Wrapped Ether

Wrapped Ether (WETH) is an ERC-20 compatible token that is pegged to Ether at a 1:1 ratio.

Yield Farming

Yield farming is the practice of lending or locking up assets in a DeFi protocol to earn rewards.

Zero Confirmation Transaction

A zero confirmation transaction is any transaction that has not been recorded or validated on a blockchain.

Zero-Knowledge Proof

A Zero-knowledge proof (ZKP) is a type of secure verification that allows one party to prove the validity of something, without having to reveal any personal details, passwords, or statements. In the context of blockchain it is a cryptographic method that allows for the verification of a data without the need to reveal any of the underlying data.

Zk-SNARKs

A Zk-SNARK is a special mathematical technique that allows individuals to prove that something is true without revealing specific details about it.

Sharding

In the context of blockchain, sharding refers to dividing the network into smaller partitions to improve accessibility, scalability, and process more transactions per second.

51% Attack

A 51% attack is a type of attack on a blockchain network, wherein a single person or a group of people try to gain control of a network, generally in order to commit malicious acts, such as double-spending.