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Crypto Glossary of Terms

Crypto Glossary Know your ATH from your Yield (2)

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.