A
Absolute Advantage
An economic concept in which one party has a direct advantage in efficiency in producing or providing a specific good or service over another party.
Address
An alphanumeric code where cryptocurrency can be sent or received. Represents a user’s wallet.
Airdrop
The distribution of a cryptocurrency for free, often to promote a project or reward existing token holders.
Altcoin
All cryptocurrencies other than Bitcoin. For example, Ethereum, Ripple, Litecoin.
AMM (Automated Market Maker)
Algorithms that automatically determine trading pairs and provide liquidity on decentralized exchanges (DEXs).
ASIC (Application-Specific Integrated Circuit)
A hardware device specifically designed for cryptocurrency mining, more efficient than general-purpose computers.
B
Bear Market
A market condition characterized by a general decline in prices and pessimistic investor sentiment.
Blockchain
A distributed digital ledger where data is stored in blocks that are linked together. The foundational technology behind cryptocurrencies.
Bull Market
A market condition characterized by rising prices and optimistic investor sentiment.
Burning (Token Burn)
The process of permanently removing some tokens from circulation to reduce the total supply.
BTC (Bitcoin)
The first and most widely known cryptocurrency, created by Satoshi Nakamoto.
C
Cryptocurrency
A digital or virtual currency that uses cryptography for security
CeFi (Centralized Finance)
Traditional financial services and systems that are centralized, in contrast to decentralized finance.
Cross-Chain
Technologies that enable data and asset transfers between different blockchain networks.
Cold Wallet
A cryptocurrency wallet that is offline and more secure, used for long-term storage.
D
Decentralized Finance (DeFi)
A financial system built on blockchain technology that operates without a central authority.
DAO (Decentralized Autonomous Organization)
An organization governed by smart contracts and managed by the community, without centralized control.
DeFi (Decentralized Finance)
Financial services and products that operate without a central authority, replacing traditional financial systems.
DApp (Decentralized Application)
Applications that run on a decentralized blockchain network.
E
ETH (Ethereum)
A blockchain platform that supports smart contracts and decentralized applications (DApps), created by Vitalik Buterin
ERC-20
A token standard on the Ethereum blockchain that defines a common interface for tokens.
F
FOMO (Fear of Missing Out)
The fear of missing out on a potential opportunity, leading to impulsive buying or selling decisions.
FUD (Fear, Uncertainty, Doubt)
A strategy to spread negative information to create panic among investors.
G
Gas
The fee required to execute transactions on the Ethereum network, varying with processing power and network congestion.
Genesis Block
The first block in a blockchain, marking the beginning of the blockchain’s history.
H
HODL
A misspelling of “hold,” referring to the strategy of holding onto cryptocurrency for the long term.
Halving
The process of reducing mining rewards by half at regular intervals. Commonly occurs in Bitcoin.
Hash
A mathematical function that converts data into a fixed-size string of characters. Ensures transaction integrity in blockchains.
Hash Rate
The number of hash calculations performed by a miner or mining pool within a given period.
Hot Wallet
A cryptocurrency wallet that is connected to the internet, used for frequent transactions.
I
ICO (Initial Coin Offering)
The first public sale of a new cryptocurrency or token, offering early investment opportunities.
IPFS (InterPlanetary File System)
A decentralized file system for storing and accessing files across a distributed network.
K
KYC (Know Your Customer)
Processes used by cryptocurrency exchanges and service providers to verify the identity of their users.
L
Layer 1
The base protocol of a blockchain network. Examples include Bitcoin and Ethereum.
Layer 2
Protocols or solutions built on top of Layer 1 blockchains to enhance performance. Examples include Lightning Network and Optimistic Rollups.
Liquidity
The ease with which an asset can be converted into cash. High liquidity allows for easier trading.
Liquidity Pool
A pool of funds used to facilitate trading on decentralized exchanges.
Limit Order
An order to buy or sell a cryptocurrency at a specific price or better.
LTC (Litecoin)
A cryptocurrency created as an alternative to Bitcoin, featuring faster transaction confirmation times and a different hashing algorithm.
M
Mainnet
The live, operational blockchain network where real transactions occur, as opposed to a testnet.
Market Cap
A metric that measures the total value of a cryptocurrency, calculated by multiplying the total supply by the price.
Market Order
An order to buy or sell immediately at the current market price.
Masternode
Nodes in a blockchain network that perform specialized functions and contribute to the network’s management.
Multi-Signature (Multi-Sig)
A security feature requiring multiple signatures to authorize a transaction.
N
NFT (Non-Fungible Token)
Unique and indivisible digital assets representing ownership of items like art, in-game items, or collectibles.
Node
A computer or device in a blockchain network that contributes to the network’s operations by storing data and validating transactions.
Node Operator
An individual or organization that manages nodes in a blockchain network and validates transactions.
O
Oracle
A service that provides external data to a blockchain network, enabling smart contracts to access off-chain information.
P
Private Key
A secret key used to access a cryptocurrency wallet and sign transactions. Must be kept secure.
Public Key
A key used to create wallet addresses and receive cryptocurrency. It is shared openly and pairs with the private key.
Private Sale
The sale of tokens or cryptocurrencies to select investors before a public offering.
Public Sale
The sale of tokens or cryptocurrencies to the general public.
Price Action
The study of price movements and patterns to forecast future market behavior.
Proof of Stake (PoS)
A consensus mechanism in blockchain networks where validators are chosen based on their stake in the network.
Proof of Work (PoW)
A consensus mechanism where blockchain transactions are verified through computational power and mining.
Public Ledger
A transparent and publicly accessible record of all transactions on a blockchain.
R
Replay Attack
A type of attack where a transaction is repeated on the blockchain network.
ROI (Return on Investment)
A metric that measures the profitability or success of an investment.
S
Scalability
The ability of a blockchain network to handle increased transaction volume and performance.
Sidechain
A secondary blockchain connected to the main blockchain, operating independently.
Staking
Holding cryptocurrency in a wallet to support network operations and earn rewards, commonly used in PoS systems.
Stablecoin
A cryptocurrency designed to maintain a stable value by pegging to a fiat currency or other assets.
Sidechain
A secondary blockchain that operates independently but is connected to the main blockchain.
Smart Contract
Self-executing contracts with terms directly written into code and automatically executed when conditions are met.
Stablecoin
A cryptocurrency designed to maintain a stable value by being pegged to a fiat currency or other assets.
Staking
The process of holding a cryptocurrency in a wallet to support network operations and earn rewards, often used in oS systems.
T
Token
A digital asset that operates on a blockchain and can represent various assets or utilities. Often used in ICOs or DeFi projects.
Tokenomics
The study of the economic model and mechanics of a cryptocurrency, including its supply, distribution, and use.
Token Swap
The process of exchanging one token for another, often seen in protocol upgrades or migrations.
Transaction Fee
The fee paid to process a transaction on a blockchain network, typically influenced by network congestion.
U
Utility Token
A cryptocurrency designed to be used within a specific platform or service.
V
Vesting
The process of distributing tokens or shares to investors over a period of time.
Volatility
The degree of variation in the price of an asset. High volatility indicates large and rapid price changes.
W
Wallet
A software or hardware tool used to store, send, and receive cryptocurrencies. Typically secures private keys.
Whitepaper
A detailed document explaining the technical aspects and goals of a cryptocurrency project.
Whitelist
A list of approved addresses or users allowed access to certain services.
Y
Yield
The return earned on cryptocurrency investments.
Yield Farming
A strategy for earning returns by providing liquidity to protocols or liquidity pools.
Z
Zero-Knowledge Proof (ZKP)
A method for proving the validity of information without revealing the information itself.