Crypto Jargon Glossary
Take With You on Your Journey Down the Rabbit Hole
Alt (Alternative) coins: These are all other cryptocurrencies except Bitcoin. They have been created to improve Bitcoin’s technology or offer unique features. Altcoins range from relatively well-established and popular coins like Ether (ETH) to joke currencies (meme coins) like Dogecoin. Each altcoin has its distinct features. Investing in them can be risky due to their volatility and the potential for failure.
Address: This is a unique identifier used in cryptocurrency transactions. It is a string of letters and numbers that functions like a digital mailbox for sending and receiving cryptocurrency. It’s important to use the correct address to avoid losing funds.
All-Time High (ATH): This is a term used in finance and investing to refer to the highest price level that a particular asset, such as a stock or cryptocurrency, has ever reached throughout its entire history. It represents the peak value of an asset.
Audit (Smart Contract Audit): is a comprehensive security assessment of your smart contract and blockchain code to identify vulnerabilities and recommend ways to fix them. Crypto audit companies e.g. Certik
Bearish: Refers to a negative or pessimistic outlook on the price of a particular cryptocurrency or the market as a whole. A bearish sentiment suggests an expectation that prices will decrease or continue to decline, and investors may act accordingly by selling assets, shorting positions, or adopting a defensive stance. A bear market is characterized by falling prices and a general atmosphere of caution and pessimism among market participants.
Binance: One of the world’s largest cryptocurrency exchanges, allowing users to trade a wide variety of cryptocurrencies and offering various features such as margin trading and staking.
Bitcoin: The biggest and original cryptocurrency that launched an entire industry. It was envisaged by its pseudonymous creator (or creators) Satoshi Nakamoto as a “peer-to-peer electronic cash system”.
Bitcoin Ordinals (a.k.a Bitcoin NFTs): Are a way to inscribe digital content onthe Bitcoin blockchain. Each Bitcoin is comprised of 100,000,000 satoshis (sats). The Ordinals Protocol allows individual sats to be sent with data (text, images, video) inscribed on to them. It’s based on ‘ordinal theory’ which focuses on satoshis, giving them individual identities and allowing them to be tracked, transferred and ingrained with meaning.
Blockchain: Is a decentralized and distributed digital ledger technology that records time-stamped transactions across a network of computers. Each new transaction is verified by a network of computers and added as a “block” to the chain. This enables secure and transparent transactions without the need for a centralized authority making it useful for various applications, including cryptocurrency transactions, supply chain management and more.
Block rewards: Block rewards are incentives for validating a new block of transactions on a blockchain network, given to miners in the form of cryptocurrency or digital assets.
Bullish: Refers to a positive or optimistic outlook on the price of a particular cryptocurrency or the market as a whole. A bullish sentiment suggests an expectation that prices will rise or continue to increase and investors may act accordingly by buying assets, holding positions or adopting an optimistic stance. A bull market is characterized by rising prices and a general atmosphere of confidence and optimism among market participants.
Burning Coins: Intentionally and permanently destroying (burning) a certain amount of cryptocurrency to reduce its overall supply, which can increase the value of the remaining coins.
Candlestick: Are visual representations of price movements, depicting opening, closing, high, and low prices over a specific time period, crucial for technical analysis and assessing market trends.
Cardona: Is a blockchain platform and cryptocurrency that aims to provide a secure and transparent way to send and receive digital currency. It was created to address scalability and sustainability issues present in other blockchain networks
Central Bank Digital Currencies (CBDCs): Are a digital form of a country’s fiat currency that is issued and regulated by the country’s central bank. It operates on a blockchain or other distributed ledger technology and can be used for digital transactions. CBDCs are being explored by several central banks worldwide as a potential replacement for physical cash
Coinbase: The largest US-listed cryptocurrency exchange that allows users to buy, sell, and trade various cryptocurrencies. It offers a user-friendly platform for beginners and advanced traders as well as various features such as a mobile app, a debit card, and a digital wallet for storing cryptocurrency.
Cold Storage: Refers to storing cryptocurrency and other digital assets offline in a secure manner, disconnected from the internet. It’s considered to be a more secure way to store cryptocurrency compared to “hot” or online storage methods, which are more vulnerable to hacking attempts. However, it can be less convenient for frequent transactions because it requires additional steps to access and transfer assets.
Crypto exchange (CEX): Is a digital platform for buying, selling, and trading cryptocurrencies with other digital assets or fiat currencies. These exchanges can be centralised or decentralised and vary in terms of features, security, and regulatory compliance. Examples include Binance, Coinbase and Kraken.
DApp: Or decentralised application, is a software application that runs on a decentralised blockchain network, rather than a centralised server. It uses smart contracts and a distributed network of nodes to enable secure and transparent data exchange and operation. Unlike traditional apps, dApps are open-source, meaning the code is publicly available and can be audited by anyone. They are also usually autonomous, meaning they are self-executing and do not require intermediaries to operate. Additionally, dApps typically have their own tokens or cryptocurrency, which are used to power and incentivize users to participate in the network.
DAO (decentralised autonomous organisation): This is a type of organisation that operates through smart contracts on a blockchain network, with decision-making power distributed among its members. The rules and operations of a DAO are transparent and determined by the code, rather than by a central authority. Members can vote on proposals and make decisions collectively, using cryptocurrency as the means of exchange. DAOs are designed to be autonomous and decentralized, allowing for greater transparency and accountability, as well as reduced costs and bureaucracy compared to traditional organizations.
Decentralized Finance (DiFi): Refers to a financial system built on blockchain technology that operates in a decentralized manner without intermediaries. It allows users to access financial services such as lending, borrowing, and trading without relying on traditional financial institutions. DeFi is permissionless, meaning anyone with an internet connection and compatible wallet software can participate. It is built on decentralized applications (dApps) and uses smart contracts to execute financial transactions automatically. DeFi aims to create a transparent, accessible, and permissionless financial system that can operate globally without the need for traditional financial institutions or centralized authorities.
Decentralized Exchange (DEX): Is a platform that facilitates the peer-to-peer trading of cryptocurrencies directly between users without the need for an intermediary, offering increased privacy and control over funds compared to traditional centralized exchanges.e.g. uniswap and pancakeswap
Diamond Hands: Refers to a slang phrase used to describe an investor who holds onto their cryptocurrencies through market fluctuations and price volatility, demonstrating a strong and unwavering commitment to their investment strategy without succumbing to panic-selling.
Distributed Ledger: A decentralised database that records and stores transactions across a network of computers or nodes, rather than a central authority. Each node in the network maintains a copy of the ledger and participates in the validation and verification of transactions. Distributed ledgers are designed to be transparent, tamper-proof, and resistant to single points of failure, making them a key component of many blockchain-based systems. Blockchain is an example of a distributed ledger.
Dogecoin: Is a cryptocurrency created in 2013 as a fun and lighthearted alternative to Bitcoin. It features the Shiba Inu dog from the “Doge” internet meme as its mascot. Dogecoin has gained a cult following due to its active community and support from high-profile figures such as Elon Musk. However, it is known for its high volatility and is not considered a serious investment by many in the cryptocurrency industry.
DYOR (Do your own research): Is a commonly used phrase in the cryptocurrency community and advises individuals to conduct their own thorough research before making any investment decisions. This will enable investors to make informed decisions and minimize their risk of falling victim to scams or investing in projects that may not meet their expectations.
Ether: Is the cryptocurrency used on the Ethereum blockchain, which is a decentralized platform for creating smart contracts and decentralized applications (dApps). It is the second largest cryptocurrency by market capitalization, after Bitcoin. Ether serves as the fuel for the Ethereum network, powering transactions and allowing developers to build and deploy their applications on the blockchain. It can also be used as a store of value and traded on cryptocurrency exchanges.
Ethereum: is a decentralized blockchain platform that allows developers to build decentralized applications (dApps) and smart contracts. It was created in 2015 by Vitalik Buterin and has become one of the largest and most well-known blockchain platforms. Ethereum operates using its own cryptocurrency called Ether, which is used to pay for transactions and computational services on the network.
Fiat: Fiat currency is a government-issued currency that is not backed by a physical commodity, such as gold or silver. Instead, its value is derived from the government’s authority and the trust of its citizens. Fiat currency is used as legal tender and can be exchanged for goods and services, as well as other currencies and assets. eg/ USD or GBP
Floor: In the context of cryptocurrency, a “floor” typically refers to the lowest price level that a particular asset or token is expected to reach in a given period of time.
FOMO (Fear of Missing Out): Refers to the feeling of anxiety or unease that investors and traders may experience when they perceive that they may be missing out on an opportunity to make a profit. This feeling is often driven by hype, media attention, and price movements in the market.
Flippening: Is a term used to describe the hypothetical scenario in which the market capitalization of one cryptocurrency surpasses that of another, leading to a change in their rankings. The term is most commonly used to describe the potential for Ethereum (ETH) to surpass Bitcoin (BTC) in market capitalization.
Fork: In the context of blockchain and cryptocurrency, a fork occurs when a blockchain’s existing code is changed, resulting in a split into two different versions of the chain. A hard fork is a permanent divergence from the existing blockchain, while a soft fork is a backwards-compatible upgrade.
FUD: Is an acronym for “Fear, Uncertainty, and Doubt.” It refers to the spreading of negative or misleading information about a particular cryptocurrency or market in order to create panic and cause prices to drop. FUD can be spread intentionally or unintentionally and can cause volatility in the market.
Futures: Are financial contracts that obligate traders to buy or sell a specified amount of cryptocurrency at a predetermined price and date in the future, allowing for speculation on price movements.
Gas Fees: Are fees paid by users to miners for processing transactions on blockchain networks. These fees are calculated based on the amount of computational power required to process the transaction and can become expensive during periods of high network congestion, making it difficult for users to send transactions quickly or at a reasonable cost.
Gemini: A cryptocurrency exchange founded by the Winklevoss twins in 2014 that allows users to buy, sell and store cryptocurrencies such as Bitcoin and Ethereum.
GM (Good Morning): In the context of Cryptocurrency Twitter, “GM” refers to “Good Morning.” It is a common greeting used to start the day and engage with other users on the platform. Crypto Twitter is a popular space for traders, investors, and enthusiasts to share news, insights, and opinions about various cryptocurrencies and blockchain technologies.
Gwei: Is the smallest unit of Ether, the cryptocurrency used on the Ethereum blockchain. It is equal to 0.000000001 ETH, or one billionth of an ETH. Gwei is often used to measure the gas price, which is the fee paid by users to execute transactions on the Ethereum network.
HODL: Is a slang term that originated from a misspelling of “hold”. It refers to the act of holding onto one’s cryptocurrency assets instead of selling them, even during times of market volatility or downturns. The term has become a popular meme and rallying cry for cryptocurrency enthusiasts and traders, often used to encourage others to stay committed to their long-term investment strategies.
Hot Wallet: Hot wallets are online cryptocurrency wallets that are less secure than cold wallets but are more convenient for everyday use. It’s usually used for storing small amounts of cryptocurrency that may be needed for everyday transactions, such as buying goods and services online. Hot wallets are considered less secure than cold wallets because they are more vulnerable to hacking and cyber-attacks. However, they are more convenient and accessible than cold wallets, which are typically stored offline for added security. Examples of hot wallets include mobile wallets, desktop wallets, and online wallets provided by cryptocurrency exchanges.
ICO (Initial Coin Offering): Is a fundraising method where a company issues a new digital token or cryptocurrency in exchange for traditional cryptocurrencies like Bitcoin or Ethereum. It is similar to an initial public offering (IPO) but for the cryptocurrency world. Investors can buy the tokens during the ICO and hope their value increases in the future.
Laser Eyes: “Laser Eyes” is a term used on social media platforms to refer to the act of adding laser eyes to someone’s profile picture, indicating their support for Bitcoin and its future growth.
Layer 1&2: Layer 1 is the foundational layer of a blockchain, while Layer 2 is an additional layer built on top of Layer 1 that provides additional functionality and scalability.
- Layer 1 refers to the main blockchain layer, where the core protocol and consensus mechanism reside. This layer determines the fundamental rules of the blockchain, including its security, transaction processing, and issuance of new coins. Examples of layer 1 blockchains include Bitcoin and Ethereum.
- Layer 2 refers to a secondary layer built on top of a Layer 1 blockchain, typically used to enhance its performance and scalability. This layer can be used for various purposes, such as improving transaction speed, reducing costs and enabling new features. Examples of Layer 2 solutions include Lightning Network for Bitcoin and Plasma and Rollups for Ethereum.
Leverage: In the realm of cryptocurrency trading refers to the practice of borrowing funds to amplify the size of your trades, with the added condition that if the trade results in a loss you may be required to surrender some or all of your cryptocurrency holdings as collateral. This means that if the value of your leveraged position declines below a certain threshold, typically determined by the terms of the loan or margin agreement, you may be forced to sell some of your crypto assets to cover the losses. While leverage can potentially magnify gains, it also exposes traders to the risk of losing their own cryptocurrency in addition to the borrowed funds.
Maximalist: Someone who strongly believes in the superiority of one particular cryptocurrency or blockchain technology over others and advocates for the exclusive use and adoption of that technology, often rejecting or dismissing other alternatives. They argue that their preferred cryptocurrency or technology is the most secure, efficient, and valuable and that it will ultimately dominate the market.
Meme coin: Is a type of cryptocurrency that gains popularity and value primarily through social media and online communities, rather than through traditional use cases or fundamental value. It’s created for entertainment or humour rather than a specific use case or technological innovation and is highly volatile, with significant risks for investors. Examples include Dodge coin and Pepe.
Metaverse: This is a term used to describe a virtual world where people can interact with each other and digital objects in real time. It’s like a fully immersive and interactive online universe, where users can experience and create content, play games, buy and sell goods, and even participate in social and economic activities. It’s essentially a digital extension of the real world, where users can experience and explore different realities and environments.
Mining: This is the process of verifying transactions and adding them to a blockchain through the use of powerful computers solving complex mathematical equations. In return for their work, miners are rewarded with newly minted cryptocurrency and transaction fees. Mining is a critical aspect of many decentralized cryptocurrencies, as it helps to secure and validate the network.
Mint: Refers to the creation of new tokens or coins on a blockchain. This is done through a process called mining, which involves solving complex mathematical problems to validate transactions and generate new tokens. Minting can also refer to the creation of new tokens through other methods such as staking, where users can lock up their existing tokens as collateral to receive newly minted tokens as rewards.
Mooning aka ‘going to the moon’: Refers to a sharp and sudden increase in the value or price of a particular cryptocurrency, often resulting in a significant return on investment for those who own it. The term is derived from the idea of the price “going to the moon.”
Nakamoto, Satoshi: Satoshi Nakamoto is the pseudonym used by the unknown person or people who created Bitcoin and authored its original white paper in 2008.
NFT (Non-fungible token): Is a unique digital asset that uses blockchain technology to prove ownership and authenticity. They can represent anything from art, music, and videos to virtual real estate and collectibles, and are bought and sold on various online marketplaces.
NGMI (Not Going to Make It): A phrase used in the cryptocurrency community to describe a situation where an investment is unlikely to generate profits. It is often used to refer to investors who have lost a significant amount of money on a particular cryptocurrency or investment.
Nocoiner: Refers to someone who does not own or believe in cryptocurrency. It is often used in a derogatory way to describe people who are sceptical or dismissive of the value and potential of cryptocurrencies.
Node: In a blockchain network, a node is a computer or device connected to the network that stores and maintains a copy of the blockchain ledger. It helps validate transactions and communicate with other nodes to ensure the accuracy and security of the network.
Nodes can be full nodes, which store a complete copy of the blockchain, or light nodes, which only store a portion of the blockchain and rely on full nodes to verify transactions. Running a node is often seen as a way to contribute to the decentralization and resilience of a blockchain network, as well as to gain a deeper understanding of how it works.
Opensea: Is a decentralized marketplace for buying, selling, and discovering NFTs, where users can trade digital assets on the Ethereum blockchain.
Orange pilled: Is a term used to describe someone who has been exposed to and fully embraces the idea of Bitcoin and its potential to disrupt traditional financial systems. It is based on the scene in the movie “The Matrix” where the main character is offered the choice between a blue pill, which represents the status quo and a red pill, which represents a new, alternative reality. The orange pill is seen as a further step beyond the red pill, representing a deeper understanding and commitment to the Bitcoin movement.
Private Key: Is a secret code that provides access to a cryptocurrency wallet and the ability to spend funds. It is essential to keep private keys secure and backed up to avoid losing access to the wallet.
Proof of Authority (PoA): Is a consensus algorithm that relies on the identity of validators instead of their computational power. Validators are selected by the network and are known entities such as reputable institutions. Validators are responsible for validating transactions and creating new blocks. PoA is faster and more energy-efficient than Proof of Work (PoW) but it’s also more centralized as the validators have significant control over the network.
Proof of History (PoH): Is a consensus mechanism used in the Solana blockchain that orders transactions chronologically. It uses a verifiable delay function to generate proofs that confirm how much time has passed since a specific point in time, making it difficult for attackers to manipulate the order of transactions. This allows Solana to achieve fast transaction speeds and high scalability.
Proof-of-stake (PoS): Is a consensus algorithm used in blockchain networks where the validator nodes (similar to miners in Proof of Work) are chosen based on the amount of cryptocurrency they hold and “stake” in the network. This incentivizes validators to act honestly because if they misbehave, they risk losing their staked coins. Validators then earn transaction fees as a reward for validating transactions and adding new blocks to the blockchain.
Proof-of-Work (PoW): Is a consensus mechanism used in many blockchain networks to confirm transactions and add new blocks to the chain. In PoW, miners compete to solve complex mathematical puzzles, with the first one to solve it receiving the right to add the next block. Solving these puzzles requires significant computational power and energy, making it difficult for any single entity to monopolize the network. Once a block is added, it is considered confirmed, and the miner receives a reward in the form of a newly minted cryptocurrency.
Protocol: Is a set of rules and guidelines that determine how different components of a system should communicate and interact with each other. In the context of blockchain technology, protocols dictate how transactions are validated, how new blocks are added to the chain and how different nodes on the network communicate with each other. Protocols can be either open or closed, and they can be modified over time to accommodate new features or optimize performance. The most common blockchain protocols include Bitcoin, Ethereum, and Litecoin.
Peer-to-peer network: Is a decentralised network in which every participant or node is connected to other nodes to share information, resources and services without the need for a central server. In P2P networks, each node is both a client and a server, allowing for more efficient and direct communication.
Play to Earn (P2E): Is a new gaming model that enables players to earn real-world value or cryptocurrency by playing video games. Players can earn rewards for their in-game achievements, such as completing quests, winning battles, and levelling up. This model enables players to monetize their gaming skills and provides a new revenue stream for game developers.
Rugpull: Is a scam tactic that involves developers or other individuals abruptly abandoning a project or cryptocurrency, taking investors’ funds with them. The name “rugpull” comes from the idea of pulling the rug out from under someone, causing them to fall.
Rekt: Is a slang term used in the crypto community to describe a situation where someone has suffered a significant financial loss due to poor investment decisions or market volatility.
Satoshi (or SATS): A satoshi is the smallest unit of bitcoin, representing 0.00000001 BTC. It is named after Bitcoin’s creator, Satoshi Nakamoto.
Security Token: Is a type of digital asset that represents ownership in a real-world asset, such as stocks, bonds, or real estate. These tokens are subject to securities laws and regulations and are designed to offer investors more transparency and regulatory compliance than traditional securities. Security tokens are often built on blockchain technology, allowing for easier and more secure transactions.
Sharding: Is a scaling technique used in blockchain technology that allows splitting a database into smaller parts to improve its performance. In sharding, each node in a network stores a portion of the entire blockchain, which makes it possible to process transactions in parallel, increasing transaction speeds and reducing the workload on individual nodes.
Saylor, Michael: Michael Saylor is the CEO of MicroStrategy, a software company that has invested billions of dollars in Bitcoin as a treasury reserve asset.
Smart Contract: Is like a computer program that can automatically execute agreements between people without the need for intermediaries like lawyers or banks. It runs on a blockchain network and contains code that defines the terms and conditions of the agreement. Once the conditions are met, the contract is automatically executed and the agreed-upon outcome is enforced by the blockchain network. Smart contracts are transparent, secure and immutable which makes them ideal for a wide range of use cases such as financial transactions, supply chain management and real estate.
Stablecoins: A type of cryptocurrency that is designed to maintain a stable value, usually pegged to a stable asset like the US dollar or gold. This is achieved by either backing the stablecoin with reserves of the asset it is pegged to or through algorithmic mechanisms that adjust the supply of the stablecoin based on market demand. The goal of a stablecoin is to provide the benefits of cryptocurrencies like fast and borderless transactions, while reducing the volatility and price fluctuations that are common with other cryptocurrencies. Examples include Tether (USDT), USD Coin (USDC) and Dai (DAI).
Solana: Is a high-performance blockchain network that uses both proof of stake (PoS) and proof of history (PoH) consensus mechanisms to achieve fast transaction processing speeds and low fees. The native token of Solana, SOL, is used for staking to help secure the network and pay for transaction fees, as well as for participating in governance decisions and receiving rewards for validating transactions.
Staking: Is a process in which you hold and lock up cryptocurrency in a wallet for a certain period of time, as a way to support and secure the network. By doing this, you can earn rewards in the form of more cryptocurrency. Staking encourages network participation and makes the system more secure, while also giving incentives for people to hold onto their cryptocurrency rather than selling it.
Sidechain: Is a separate blockchain that is connected to and operates in conjunction with a main blockchain. It allows for the creation of new features and functions that can operate more efficiently and with lower fees than on the main blockchain. Transactions are moved back and forth between the main and sidechain as needed, providing greater flexibility and scalability for the overall blockchain ecosystem.
Tether (USDT): Is a stablecoin that aims to maintain a 1-to-1 ratio with the US dollar. It is used as a digital representation of fiat currency to facilitate transactions on cryptocurrency exchanges. Tether claims to be backed by reserves of fiat currency held in a bank account but this has been subject to controversy and criticism. Tether has become one of the most widely used cryptocurrencies due to its stability and utility in the crypto market.
Token: A cryptocurrency token is a digital asset that operates on an existing blockchain platform, such as Ethereum, Binance Smart Chain or Tron. Tokens are created through smart contracts and can represent various assets, utilities or rights within the ecosystem of the platform they are built on, including but not limited to digital collectibles, governance rights, access to services or even physical assets like real estate.
In contrast, a cryptocurrency coin typically operates on its own independent blockchain network, serving as a native currency within that network. Coins like Bitcoin (BTC) and Litecoin (LTC) are designed primarily for use as a medium of exchange, facilitating transactions, and storing value on their respective networks. Coins are not dependent on other platforms for their existence or functionality and have their own mining or validation mechanisms.
Uniswap: Is a decentralised cryptocurrency exchange that allows users to buy, sell and trade various digital assets without relying on a central authority. It uses an automated system called a “liquidity pool” that connects buyers and sellers, allowing users to trade with each other directly. Uniswap is based on a smart contract system that runs on the Ethereum blockchain and uses a unique pricing mechanism that eliminates the need for traditional market makers.
Vitalic Buterin: Is a Russian-Canadian computer scientist and co-founder of Ethereum.
Web 3.0: Is the next evolution of the internet, where data and information are decentralized and owned by users, rather than big companies like Google or Facebook. This means that users have more control over their data and privacy, and can interact with each other directly, without the need for intermediaries. Web 3.0 is built on top of blockchain technology, which allows for secure and transparent transactions and interactions.
WAGMI (We’re all gonna make it): Is often used as a rallying cry or slogan by members of the cryptocurrency community to express optimism about the potential growth and success of the market.
Weak hands: In the context of cryptocurrency, the term “weak hands” refers to investors who are perceived to have a low tolerance for market volatility and are more likely to sell their holdings, especially during price downturns, due to fear or lack of conviction in their investment strategy.
Whale: Refers to an individual or entity that holds a large amount of a particular cryptocurrency, often capable of significantly influencing its price movements or market trends. While there is no set amount that defines a whale, the exact threshold for being considered a whale can vary depending on the specific cryptocurrency and its market capitalization.
Whitepaper: Is a detailed document that presents a new project, technology, or concept, providing information, analysis, and technical specifications. It is commonly used in the cryptocurrency and blockchain industry to outline new ideas or protocols.
Winklevoss Twins (Cameron & Tyler): Are American entrepreneurs and Bitcoin billionaires. They co-founded the cryptocurrency exchange Gemini and were early investors in Bitcoin, amassing a fortune through their early investments.
Yield Farming: Is a practice in decentralized finance (DeFi) where individuals can earn rewards or interest by lending or staking their cryptocurrencies. It involves providing liquidity to DeFi protocols and earning tokens in return. Think of it as putting your crypto to work and earning additional tokens as a reward for participating in the ecosystem.
