An Intro to Crypto Glossary
We know many are new to crypto and we wanted to create an easily accessible glossary for new investors to peruse and expand their general knowledge. This article is part of the VaultDefi Academy initiative and will be updated with new terms!
Arbitrage- The process of simultaneously buying a token on one exchange and then selling in another location to take advantage of major price discrepancies.
ATH- All time high, used to reference the highest price point a token or coin has reached.
Blockchain- a digital ledger of transactions that is stored and distributed across the entire network of computer systems on the blockchain.
BNB- Binance Coin, the native token of the Binance Smart Chain and crypto exchange.
BSC- Binance Smart Chain, a blockchain network built for running smart contract-based applications.
BTC- Bitcoin, a decentralized digital currency without a central bank or single administrator, one of the first cryptocurrencies in existence.
Burn- burning in crypto refers to the act of sending tokens or coins to a wallet that no one can access, this essentially lowers the available total supply driving up price and demand.
Centralized- Centralized exchanges rely on a private infrastructure to match supply and demand, which is managed internally in their own servers
Dapp- a decentralized computer application that runs on a decentralized computing system. These are often used in crypto to facilitate buying and selling of tokens.
Decentralized- decentralized exchanges (DEXs) bring buyers and sellers together and create a match for transactions.
Dollar Cost Averaging- Refers to the practice of investing a total sum of money in small increments over a long period of time rather than all at once. This allows investors to potentially take advantage of downward price movement and buy more of an asset at a lesser cost.
Doxed Devs- Refers to project developers who have made their names and contact information known. Projects with doxed devs are typically considered safer as there is a public face that can be held accountable in the event of a scam.
ETH- Ethereum, one of the most popular crypto currencies and blockchains on the market.
FUD- FUD stands for Fear, uncertainty, and doubt. This refers to the act of repetitive questioning that has been addressed or downright lying about a project in the hopes of ruining its reputation.
Gas Fee- payments by users that help pay for the computing power used to facilitate transactions on a blockchain.
Liquidity Pool- are collections of crypto assets that are kept in storage to facilitate the trading of tokens on decentralized exchanges.
Locked Liquidity- Refers to the process of locking the liquidity pool so that developers can’t steal the large sum of money and abandon the project.
On/Off Ramp- On/Off ramps refer to a software or process by which a person is able to get fiat into crypto. This can be a Crypto ATM or a payment processing solution found on a website or app.
PCS- PancakeSwap, one of the first, most popular decentralized exchanges that allows for the purchase and sale of tokens.
Renounced Contract- A contract that is “ownerless” thus changes are not able to be made to the contract. This became popular during the alt coin explosion as a means to prove a contract safe against a “rug pull.” However, a renounced contract does not allow a team to make improvements to the token/coin as it grows.
Rug Pull- The act of scammy owners dumping either the liquidity or a large portion of their holdings and withdrawing huge sums of money leaving the investors with nothing.
Shill- Shilling refers to the act of spreading the word about a token, typically on many different social media platforms. Some of the largest projects grew on word of mouth.
Slippage- refers to the discrepancy between the expected price of a trade and the price at which the trade is executed.
Smart Contract- simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss.
Tokenomics- in Decentralized Finance tokenomics often refers to the buy/sell characteristics of a specific token as well as the general properties of the token. For example: buy/sell/transfer tax, total supply, total burned and whether or not any tokens are held for dev wallets.
Utility- Refers to the functionality of a token or coin and how it will be useful to investors or provide a solution to a broader problem.
Wallet- A program in which tokens or coins are stored. These are often protected by a seed phrase, a series of 12 random words that are the keys to your wallet.
Whale- Whale is a term generally used to describe a large investor in a project, usually in the top 50–100 by wallet size.