Crypto Dictionary

Learn crypto terminology with beginner-friendly definitions. 87 terms and growing!

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Found 87 terms

A

Address

Basics

A unique string of letters and numbers used to send and receive cryptocurrency. Think of it like your email address, but for crypto.

Airdrop

DeFi

Free distribution of cryptocurrency tokens to multiple wallet addresses, often used as a marketing strategy or reward for early supporters.

Altcoin

Basics

Any cryptocurrency other than Bitcoin. The term comes from 'alternative coin'.

APY (Annual Percentage Yield)

DeFi

The rate of return on an investment over one year, including compound interest. Common in DeFi lending and staking.

Arbitrage

Trading

Buying cryptocurrency on one exchange where it's cheaper and selling it on another where it's more expensive to profit from the price difference.

ATH (All-Time High)

Trading

The highest price a cryptocurrency has ever reached in its history.

B

Bear Market

Trading

A period when cryptocurrency prices are falling or expected to fall. The opposite of a bull market.

Blockchain

Basics

A digital ledger that records all transactions across a network of computers. Like a chain of blocks, each containing transaction data.

Bridge

DeFi

A connection that allows tokens to move between different blockchains.

Bull Market

Trading

A period when cryptocurrency prices are rising or expected to rise. The opposite of a bear market.

Burning

Basics

Permanently removing tokens from circulation by sending them to an unusable address, reducing the total supply.

C

CEX (Centralized Exchange)

Trading

A cryptocurrency exchange operated by a company that acts as a middleman. Users don't control their private keys.

Cold Wallet

Security

A cryptocurrency wallet that is not connected to the internet, providing maximum security for storing crypto.

Consensus Mechanism

Technical

The method by which a blockchain network agrees on the current state of the ledger. Common types include Proof of Work and Proof of Stake.

Cross-chain

Technical

The ability to exchange information and value across different blockchain networks.

Cryptocurrency

Basics

Digital or virtual currency secured by cryptography, operating independently of central banks.

D

DAO (Decentralized Autonomous Organization)

DeFi

An organization governed by smart contracts and token holders rather than traditional management.

DApp (Decentralized Application)

Technical

An application that runs on a blockchain network rather than a single computer or server.

DeFi (Decentralized Finance)

DeFi

Financial services using smart contracts on blockchains, eliminating the need for traditional financial intermediaries.

DEX (Decentralized Exchange)

DeFi

A cryptocurrency exchange that operates without a central authority, allowing peer-to-peer trading.

Diamond Hands

Slang

Slang for someone who holds their cryptocurrency despite price volatility and doesn't sell during dips.

DYOR (Do Your Own Research)

Slang

A reminder to research projects yourself rather than blindly following others' advice.

E

ERC-20

Technical

A technical standard for tokens on the Ethereum blockchain. Most tokens on Ethereum follow this standard.

Ethereum

Basics

A blockchain platform that enables smart contracts and decentralized applications. The second-largest cryptocurrency by market cap.

F

Fiat

Basics

Traditional government-issued currency like dollars, euros, or yen. Not backed by physical commodities.

FOMO (Fear Of Missing Out)

Slang

The anxiety that an exciting opportunity may be missed, often causing impulsive buying decisions.

Fork

Technical

A change to a blockchain's protocol. Can be 'soft' (backward compatible) or 'hard' (not compatible).

FUD (Fear, Uncertainty, Doubt)

Slang

Negative information spread to influence perception of cryptocurrencies, whether true or false.

G

Gas

Basics

The fee required to execute transactions or smart contracts on Ethereum and similar blockchains.

Gas Limit

Technical

The maximum amount of gas you're willing to spend on a transaction.

Genesis Block

Technical

The first block in a blockchain, marking the beginning of the network.

Gwei

Technical

A unit of Ethereum. 1 Gwei = 0.000000001 ETH. Used to measure gas prices.

H

Halving

Basics

An event where the reward for mining new blocks is cut in half. Bitcoin halving occurs approximately every 4 years.

Hash

Technical

A fixed-length string of characters generated from input data. Used to secure blockchain transactions.

Hash Rate

Technical

The computational power used to mine and process transactions on a proof-of-work blockchain.

HODL

Slang

Slang for holding cryptocurrency long-term despite volatility. Originally a misspelling of 'hold'.

Hot Wallet

Security

A cryptocurrency wallet connected to the internet, convenient but less secure than cold storage.

I

ICO (Initial Coin Offering)

Basics

A fundraising method where new projects sell their tokens to early investors. Similar to an IPO in stocks.

Impermanent Loss

DeFi

Temporary loss experienced by liquidity providers due to price divergence of paired assets.

K

KYC (Know Your Customer)

Basics

Identity verification process required by many exchanges to comply with regulations.

L

Layer 1

Technical

The base blockchain network like Bitcoin or Ethereum. The foundation layer of the blockchain.

Layer 2

Technical

A secondary framework built on top of Layer 1 to improve scalability and speed.

Ledger

Basics

A record-keeping system for tracking transactions. Blockchain is a type of distributed ledger.

Liquidity

Trading

How easily an asset can be bought or sold without affecting its price. High liquidity means easier trading.

Liquidity Pool

DeFi

Funds locked in a smart contract to facilitate trading on decentralized exchanges.

M

Market Cap

Trading

Total value of a cryptocurrency, calculated by multiplying price by circulating supply.

MetaMask

Basics

A popular browser extension wallet for interacting with Ethereum and other EVM blockchains.

Mining

Basics

The process of validating transactions and adding them to the blockchain in exchange for rewards.

Minting

Basics

Creating new tokens or NFTs on a blockchain.

Moon/Mooning

Slang

Slang for a cryptocurrency's price rising dramatically.

N

NFT (Non-Fungible Token)

Basics

A unique digital asset that represents ownership of a specific item or piece of content.

Node

Technical

A computer that maintains a copy of the blockchain and validates transactions.

Nonce

Technical

A number used once in cryptographic communication. In mining, it's the number miners change to find valid blocks.

O

Oracle

Technical

A service that provides real-world data to smart contracts on the blockchain.

Order Book

Trading

A list of buy and sell orders for a specific cryptocurrency organized by price level.

P

Paper Hands

Slang

Slang for someone who sells their cryptocurrency quickly, especially during price dips.

Peer-to-Peer (P2P)

Basics

Direct interaction between two parties without intermediaries.

Private Key

Security

A secret code that allows you to access and control your cryptocurrency. Never share this with anyone.

Proof of Stake (PoS)

Technical

A consensus mechanism where validators are chosen based on the amount of cryptocurrency they stake.

Proof of Work (PoW)

Technical

A consensus mechanism where miners compete to solve complex puzzles to validate transactions.

Public Key

Security

A cryptographic code that allows others to send cryptocurrency to your wallet. Derived from your private key.

Pump and Dump

Security

A scheme where a cryptocurrency's price is artificially inflated before being sold off for profit.

R

Rekt

Slang

Slang for 'wrecked', meaning suffering severe financial loss in crypto trading.

Rug Pull

Security

A scam where developers abandon a project and run away with investors' funds.

S

Satoshi

Basics

The smallest unit of Bitcoin. 1 Bitcoin = 100 million Satoshis. Named after Bitcoin's creator.

Seed Phrase

Security

A series of words (usually 12 or 24) that can restore access to a cryptocurrency wallet. Keep this extremely secure.

Sharding

Technical

A scaling solution that splits a blockchain into smaller pieces (shards) to process transactions in parallel.

Shitcoin

Slang

Slang for a cryptocurrency with no real value or use case, often created as a joke or scam.

Slippage

Trading

The difference between expected and actual trade price due to market movement.

Smart Contract

Technical

Self-executing code on a blockchain that automatically enforces agreement terms without intermediaries.

Stablecoin

Basics

A cryptocurrency designed to maintain a stable value, usually pegged to a fiat currency like USD.

Staking

DeFi

Locking up cryptocurrency to support network operations and earn rewards.

Swap

Trading

Exchanging one cryptocurrency for another.

T

Token

Basics

A digital asset created on an existing blockchain. Different from coins which have their own blockchain.

Total Value Locked (TVL)

DeFi

The total amount of assets deposited in a DeFi protocol.

TPS (Transactions Per Second)

Technical

A measure of a blockchain's processing capacity.

Transaction Fee

Basics

The cost to send cryptocurrency or interact with a blockchain.

V

Validator

Technical

A participant who verifies transactions on a Proof of Stake blockchain.

Volatility

Trading

How much a cryptocurrency's price fluctuates over time.

Volume

Trading

The total amount of cryptocurrency traded in a given period.

W

Wallet

Basics

Software or hardware that stores cryptocurrency private keys and enables sending/receiving crypto.

Wei

Technical

The smallest unit of Ethereum. 1 ETH = 1,000,000,000,000,000,000 Wei.

Whale

Slang

Someone who holds a large amount of cryptocurrency, capable of influencing market prices.

Whitepaper

Basics

A document that explains a cryptocurrency project's technology, purpose, and implementation.

Wrapped Token

Technical

A token pegged to another cryptocurrency's value, allowing it to be used on different blockchains.

Y

Yield Farming

DeFi

Earning rewards by providing liquidity or lending cryptocurrency in DeFi protocols.

Z

Zero Knowledge Proof

Technical

A cryptographic method to prove something is true without revealing the actual information.

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