📖Crypto Dictionary

Your one-stop to catch up on all beginner crypto terms!

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Recommended usage: we've added sections so you can explore and discover interesting terms you didn't know of! Or use the 'Search' option on the top right corner to navigate through terms you'd like to know about.

Note (!): we keep updating this dictionary with all the latest crypto buzzwords, so consider 'bookmarking' it on your browser, so you can revisit!

Community & Slang

• HODL: Holding crypto for the long term, despite market fluctuations. (Originated from a typo of "hold").

• FUD (Fear, Uncertainty, and Doubt): Negative information spread to manipulate markets.

• Shilling: Aggressive promotion of a crypto project, often biased.

• Whale: Individual with large crypto holdings that can impact markets.

• WAGMI (We're All Gonna Make It): Optimistic belief in the future success of crypto.

• Bullish: Positive outlook on the future price of a crypto.

• Bearish: Negative outlook on the future price of a crypto.

• REKT: Lost a lot of money on a crypto investment (slang term).

• Moon: Slang for a crypto price going up very quickly.

• Diamond Hands: Holding crypto even through price drops (opposite of paper hands).

• NGMI (Not Gonna Make It): Pessimistic belief about the future success of crypto (opposite of WAGMI).

• Flippening: Hypothetical scenario where Ethereum overtakes Bitcoin in market cap.

• DeFi Summer: Period of rapid growth in the DeFi market (e.g., 2020).

• GM (Good Morning): Informal greeting in the crypto community.

Basics

• Blockchain: A public record book for transactions, secure and decentralized (no single owner).

• Cryptocurrency (Crypto): Digital money like Bitcoin or Ethereum, used for payments or investment.

• Wallet: Stores your crypto securely, like a digital bank account.

• Exchange: Platform to buy, sell, and trade cryptocurrencies.

• NFT (Non-fungible token): Unique digital certificate of ownership for digital items (art, music, etc.).

• dApp (decentralized application): App built on a blockchain, not controlled by a single entity.

Transactions

• Mining: Adding transactions to the blockchain for rewards (crypto-specific).

• Staking: Locking up your crypto to earn interest or rewards.

• Gas Fee: Transaction fee on a blockchain network (varies based on traffic).

• Airdrop: Free tokens or coins distributed to crypto wallets for promotion.

Security & Scams

• Phishing Attack: Deceptive attempt to gain access to your crypto wallet.

• Rug Pull: When developers abandon a project after taking investors' money (common in DeFi scams).

• Ponzi Scheme: Investment scam that pays returns using new investors' money.

• Seed Phrase Recovery: Process of recovering your crypto wallet using your seed phrase.

• Multi-Signature Wallet: Requires multiple approvals for transactions (more secure).

• Cold Storage: Storing your seed phrase securely offline (e.g., metal wallet).

Ownership & Security

• Seed Phrase: Secret words to access your crypto wallet, keep it safe and private!

• Cold Wallet: Offline device for secure crypto storage (hardware wallet or paper wallet).

• Hot Wallet: Online wallet for easy access to your crypto (but less secure).

• Public Key: Address to receive crypto (like a bank account number).

• Private Key: Secret key to access and spend your crypto (like your ATM PIN).

Trading & Value

• Fiat: Traditional currencies like USD or EUR.

• Volatility: Price fluctuations of cryptocurrencies (can be high).

• ATH (All-Time High): Highest price a crypto has ever reached.

• ATL (All-Time Low): Lowest price a crypto has ever reached.

• FOMO (Fear Of Missing Out): Anxiety about missing out on a profitable opportunity.

• DYOR (Do Your Own Research): Never invest blindly, research projects before investing.

Web3 & Metaverse

• Web3: The next iteration of the internet, aiming for decentralization and user ownership.

• Metaverse: A network of interconnected virtual worlds where users can interact.

• DAO (Decentralized Autonomous Organization): Community-run organization on a blockchain.

• DeFi (Decentralized Finance): Financial services built on blockchain, without traditional intermediaries.

• Play-to-Earn: Games where players can earn crypto through gameplay.

• P2P (Peer-to-Peer): Direct transactions between users without a central authority.

Technical

• Smart Contract: Self-executing code on a blockchain, automatically triggers actions when conditions are met.

• dApp Protocol: Set of rules that govern how a dApp functions.

• Consensus Mechanism: Process for verifying transactions on a blockchain (e.g., Proof-of-Work, Proof-of-Stake).

• Scalability: Ability of a blockchain to handle a growing number of users and transactions.

• Interoperability: Ability of different blockchains to communicate with each other.

• Fork: A split in a blockchain creating two separate versions.

• ICO (Initial Coin Offering): Crypto fundraising event where new coins are sold to investors.

Trading & Analysis

• Order Book: List of buy and sell orders for a crypto on an exchange.

• Limit Order: Order to buy or sell at a specific price.

• Market Order: Order to buy or sell at the best available price.

• Stop-Loss: Order to automatically sell a crypto if the price falls below a certain point.

• Technical Analysis (TA): Using charts and historical data to predict price movements.

• Fundamental Analysis (FA): Evaluating the underlying value of a crypto project.

• ROI (Return on Investment): Profit or loss on a crypto investment.

Advanced Concepts

• DeFi Lending: Borrowing and lending crypto through DeFi platforms.

• Yield Farming: Earning rewards by staking or lending crypto in DeFi protocols (high risk).

• Liquidity Pool: Pool of crypto assets used to facilitate trading on decentralized exchanges (DEXs).

• NFT Utility: Additional features or benefits associated with owning an NFT (e.g., access to exclusive content).

• Play-to-Earn Mechanics: Ways players earn crypto in play-to-earn games (e.g., battling, breeding, quests).

• DAO Governance: Process by which DAO members vote on proposals to make decisions.

Emerging Trends

• Soulbound Tokens (SBTs): Non-transferable NFTs representing aspects of your digital identity.

• SocialFi: Integration of social media and DeFi, allowing users to earn rewards for social interactions.

• Regenerative Finance (ReFi): Using blockchain to support sustainable environmental practices.

• Web Monetization: Rewarding content creators directly through micropayments on websites.

• Zero-Knowledge Proofs (ZKPs): Cryptographic technique for proving information true without revealing the details.

• Layer 2 Scaling Solutions: Blockchain protocols built on top of existing blockchains to improve scalability.

Environmental Concerns

• Proof-of-Work (PoW): Consensus mechanism used by Bitcoin, criticized for high energy consumption.

• Proof-of-Stake (PoS): More energy-efficient consensus mechanism used by Ethereum 2.0.

• Carbon Footprint: Total amount of greenhouse gas emissions associated with an activity (e.g., crypto mining).

• Sustainable Blockchain Initiatives: Efforts to reduce the environmental impact of blockchain technology.

Regulation & Governance

• KYC (Know Your Customer): Regulations requiring verification of user identity for financial transactions.

• AML (Anti-Money Laundering): Regulations to prevent money laundering using cryptocurrencies.

• Decentralized Governance: Decision-making processes within DAOs and other blockchain projects.

• CBDCs (Central Bank Digital Currencies): Digital versions of fiat currencies issued by central banks.

Note (!): This is not an exhaustive list, but a great starting point for understanding common crypto and web3 terms. The space keeps evolving, so stay curious!