guide
Crypto Glossary of Terms

A
- Airdrop: Distribution of free tokens to holders of a particular cryptocurrency.
- Altcoin: Any cryptocurrency other than Bitcoin.
- ATH (All-Time High): The highest price ever reached by a cryptocurrency.
- Ape: To impulsively buy a cryptocurrency, often without thorough research.
- Atomic Swap: A technology that allows for the direct exchange of one cryptocurrency for another without the need for a centralized exchange.
B
- Bag Holder: An investor who holds onto a cryptocurrency that has lost value.
- Bear Market: A market condition characterized by declining prices.
- BTFD (Buy The F*ing Dip)**: An aggressive version of "buy the dip," encouraging investors to purchase during market downturns.
- Bull Market: A market condition characterized by rising prices.
- Blockchain Explorer: A tool that allows users to view all transactions on a blockchain.
C
- Cold Wallet: Offline storage for cryptocurrencies, enhancing security.
- Coin: A term for a cryptocurrency that operates independently on its own blockchain.
- Consensus Mechanism: Protocols used to achieve agreement on the state of the blockchain (e.g., Proof of Work, Proof of Stake).
- Cryptocurrency Exchange: A platform where users can buy, sell, or trade cryptocurrencies.
- Custody: The holding of assets, either by an exchange (centralized) or by the user (self-custodial).
D
- DAO (Decentralized Autonomous Organization): An organization represented by rules encoded as a computer program that is transparent and controlled by organization members.
- DeFi (Decentralized Finance): Financial services using smart contracts on blockchains without intermediaries.
- DApp (Decentralized Application): Applications that run on a decentralized network rather than being hosted on centralized servers.
E
- ERC-20: A standard for creating tokens on the Ethereum blockchain.
- ERC-721: A standard for non-fungible tokens (NFTs) on the Ethereum blockchain.
- Escrow: A financial arrangement where a third party temporarily holds funds until certain conditions are met.
F
- FOMO (Fear of Missing Out): Anxiety that one might miss out on potential profits.
- FUD (Fear, Uncertainty, Doubt): Negative information spread to influence perceptions about a cryptocurrency.
- Fork: A change in the protocol of a blockchain that can result in two separate chains.
- Gas: A fee required to conduct transactions or execute contracts on the Ethereum network.
G
- GameFi: The integration of gaming and finance through blockchain technology, enabling players to earn cryptocurrency through gameplay.
H
- Halving: An event in which the reward for mining new blocks is halved, reducing the rate at which new coins are generated.
- HODL: "Hold On for Dear Life," meaning to hold onto a cryptocurrency despite market volatility.
- HDOL: A typo or alternative spelling of HODL, often used in discussions about holding assets long-term.
I
- ICO (Initial Coin Offering): A fundraising mechanism where new cryptocurrencies are sold to investors.
- IDO (Initial DEX Offering): A fundraising method where tokens are sold directly on a decentralized exchange.
- IEO (Initial Exchange Offering): A fundraising method where an exchange acts as an intermediary for token sales.
J
(No specific terms commonly recognized starting with "J".)
K
- KYC (Know Your Customer): A process used by exchanges to verify the identity of their users.
L
- Lambo/When Lambo: A phrase used to express the hope of becoming wealthy enough to buy a Lamborghini.
- Liquidity Mining: The process of providing liquidity to a decentralized exchange and earning rewards in return.
M
- Market Capitalization: The total value of a cryptocurrency, calculated by multiplying its price by its circulating supply.
- Market Order: An order to buy or sell a cryptocurrency at the current market price.
- Meme Coin: Cryptocurrencies that are often created as jokes or memes but can gain popularity and value.
- Moon/Mooning: When the price of a cryptocurrency is rapidly increasing; "to moon" means to rise significantly in value.
N
- NFT (Non-Fungible Token): Unique digital assets representing ownership of specific items or content.
- Node: Any computer that participates in the blockchain network by validating transactions.
O
- On-chain Governance: Governance conducted directly on the blockchain through voting mechanisms involving token holders.
P
- Phishing: Fraudulent attempts to obtain sensitive information by pretending to be a trustworthy entity.
- Pump and Dump: A scheme where the price of a cryptocurrency is artificially inflated before being sold off at a profit.
- Proof of Stake (PoS): A consensus mechanism where validators are chosen based on the number of coins they hold and are willing to "stake."
R
- REKT: Slang for "wrecked," referring to significant financial loss in trading.
- Rug Pull: A type of scam where developers abandon a project and take investors' funds with them.
S
- Sats: Short for Satoshis, the smallest unit of Bitcoin (0.00000001 BTC).
- Seed Phrase: A series of words generated by a crypto wallet that allows access to it.
- Shitcoin: A derogatory term for cryptocurrencies that have little to no value or utility.
T
- TA (Technical Analysis): An analysis method used to evaluate cryptocurrencies based on historical price data and trading volume.
- Token: A digital asset created on an existing blockchain; it can represent various assets or utilities.
U
- Utility Token: A type of token designed to provide access to a product or service within a blockchain ecosystem.
V
- Validator: Someone who validates transactions in proof-of-stake blockchains and earns rewards.
- Volatility Index (VIX): A measure of market expectations of near-term volatility conveyed by stock index option prices.
W
- Wallet: A digital tool used to store cryptocurrencies, which can be hot (online) or cold (offline).
- Whale: An individual or entity that holds a large amount of cryptocurrency and can influence market prices.
Z
- Zero Confirmation Transaction: A transaction that has not yet been confirmed on the blockchain.