Cryptocurrency - Terminology

Airdrops are marketing campaigns that distribute a specific cryptocurrency or token to investors or community members.

The ATH (All-Time High) refers to the highest price that an coin or token has reached since its listing or inception.

Alternative Coins are yny coin that’s not Bitcoin. They can be anything from the second-most popular coin, Ethereum, to any of the thousands of coins with very minimal market value. 

Bag is a Crypto slang for a large quantity of a specific cryptocurrency. Alternatively (but less frequently) used to refer to the contents of an individual’s crypto portfolio.

1A Bagholder is a investor who continues to hold large amounts of a specific coin or token, regardless of its performance.

BEP-20 is a Binance Smart Chain token standard created with the intention of extending ERC-20, which is one of the most common Ethereum token standards out there.

Bitcoin Pizza refers to the infamous transaction where a guy, named Laszlo Hanyecz, paid 10,000 Bitcoins for two pizzas making it the first business transaction of Bitcoin in the real world.

A Block is a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.

Blockchains are made up of a series of individual blocks. Each block contains information about transactions conducted within a given time period. They also contain a unique identifier to differentiate them from every other block in the chain.

A blockchain bridge allows the seamless transfer of data or tokens between two different blockchain projects.

Cryptocurrency tokens or coins are considered “burned” when they have been purposely and permanently removed from circulation.

The best approximation of the number of coins that are circulating in the market and in the general public’s hands.

A coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency.

In traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain.

Cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation.

A term used for when ICOs will put up their tokens for sale.

Decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal.

A type of application that runs on a decentralized network, avoiding a single point of failure.

A movement encouraging alternatives to traditional, centralized forms of financial services.

Diamond Hands is a popular term on social media platforms. It refers to people who hold their coins even if their portfolio drops in value by more than 20%.

A dip is when markets experience a short or protracted downturn.

Someone with a moderate holding of cryptocurrency.

A sudden sell-off of digital assets.

An attack that aims to uncover the identity of a wallet’s owner, information that can subsequently be used in phishing scams.

The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing.

Tokens designed and used solely on the Ethereum platform.

Fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physi

Someone who has a small crypto investment.

An acronym that stands for “Fear of Missing Out.”

An acronym that stands for “Fear, Uncertainty and Doubt.” It is a strategy to influence perception of certain cryptocurrencies or the cryptocurrency market in general by spreading negative, m

In cryptocurrency, fungibility is when a coin or token can be replaced by any other identical coin or token.

Gains refer to an increase in value or profit.

A term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is

A term used on the Ethereum platform that refers to the price you are willing to pay for a transaction.

GitHub is one of the most popular code hosting platforms, allowing developers to collaborate on various projects.

A hard cap is the absolute maximum supply of a digital asset.

A hardware wallet is a wallet for cryptocurrencies that usually resemble a USB stick.

A hash is the output result of a hashing algorithm, which creates a unique, fixed-length string to encrypt and secure a certain selection of arbitrary data.

A type of passive investment strategy where you hold an investment for a long period of time, regardless of any changes in the price or markets. The term first became famous due to a typo mad

Short for Initial Coin Offering, an ICO is a type of crowdfunding, or crowdsale, using cryptocurrencies as a means of raising capital for early-stage companies.

Investing is when you put money in a financial scheme with the intent of making a gain.

Short for Know Your Customer, these are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers.

A record of financial transactions that cannot be changed, only appended with new transactions.

How easily a cryptocurrency can be bought and sold without impacting the overall market price.

Liquidity pools are crypto assets that are kept to facilitate the trading of trading pairs on decentralized exchanges.

Total capitalization of a cryptocurrency’s price. It is one of the ways to rank the relative size of a cryptocurrency. *see Circulating Supply.

The best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency. *see Circulating Supply and Total Supply.

An online digital wallet that allows users to manage, transfer and receive Ethereum, operating as an extension to a regular browser.

A process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created.

An arrangement where a number of miners pool their resources to increase their chances of finding the next block.

A mobile wallet is a crypto wallet installed on a mobile device.

Non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility.

The sale of a cryptocurrency, ahead of it going public, to specific investors.

A piece of code generated in asymmetric-key encryption process, paired with a public key, to be used in decrypting information hashed with the public key.

A blockchain consensus mechanism aiming to bootstrap one blockchain to another with increased energy efficiency, by verifying that a cost was incurred in “burning” a coin by sending it to an

Proof-of-donation refers to the integration of charitable donations into the functionality of a blockchain.

A recovery seed is a cryptographically derived security code composed of a list of random words, typically ranging between 12 and 14.

A shorthand slang for “wrecked,” describing a bad loss in a trade.

A roadmap is a high-level visual summary that helps map out the vision as well as the direction of a specific product.

A rug pull is a type of scam where developers abandon a project and take their investors’ money.

The smallest unit of bitcoin with a value of 0.00000001 BTC.

The individual or group of individuals that created Bitcoin.

A single starting point when deriving keys for a deterministic wallet.

A cryptographic hash function that generates a 256-bit signature for a text, used in Bitcoin proof-of-work (PoW).

The act of enthusiastically promoting a cryptocurrency or ICO project.

Slippage happens when traders have to settle for a different price than what they initially requested due to a price movement.

A smart contract is a computer protocol intended to facilitate, verify or enforce a contract on the blockchain without third parties.

A cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency.

Participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards.

A form of identification for when a certain transaction occurred.

A digital unit designed with utility in mind, providing access and use of a larger crypto economic system.

A token sale refers to the initial offering of a cryptocurrency token to a private pool of investors before it officially goes on the market.

Token swaps can refer to one of two things: 1. Direct exchange of a certain amount of one cryptocurrency token for another between users facilitated by a special exchange service. 2. Migratio

Tokenomics is the science of token economy which consists of a set of rules that governs a cryptocurrency’s launch and supply.

A payment for using the blockchain to transact.

A statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index.

A place where cryptocurrency users can store, send and receive digital assets.

An investor prone to panic selling at the first sign of a price decline.

A term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market.

A document released by a crypto project that gives investors technical information about its concept, and a roadmap for how it plans to grow and succeed.

A list of interested participants in an initial coin offering, who registered their intent to take part or purchase in a sale.

Yield farming involves earning interest by investing crypto in decentralized finance markets.