The world of cryptocurrency can be overwhelming for newcomers. There are so many terms, concepts, and pieces of jargon that it can be difficult to know where to start. 

 

But don’t worry — we’re here to help. This guide will provide a crash course on all things crypto, from the basics of how it works to common terms. By the end, you’ll be equipped with the knowledge you need to start your journey into the world of cryptocurrency. 

 

So, let’s get started!

 

Airdrop

Airdrop is a cryptocurrency token distribution method where tokens are distributed to wallet addresses free of charge.

 

All-Time-High (ATH)

The All-Time High (ATH) is the highest price that a stock, cryptocurrency, or other asset has ever reached.

 

All-Time-Low (ATL)

All-Time-Low (ATL) is the lowest price that a stock, cryptocurrency, or other asset has ever reached.

 

Allocation

For a business or project, an allocation is the specific number of shares or tokens that have been set aside for a particular team, group, investor, or institution. The allocation can be earned, purchased, or reserved.

 

Alpha Version

A software or game release that is still in development and not yet ready for production use.

 

Altcoin

An altcoin is a digital currency or cryptocurrency that is an alternative to the more well-known Bitcoin. Altcoins typically offer different or improved features compared to Bitcoin and are often smaller or less well-known than Bitcoin.

 

Annual Percentage Rate (APR)

Annual Percentage Rate (APR) is the cost of borrowing money, expressed as a percentage of the total loan amount.

 

Annual Percentage Yield (APY)

APY is the abbreviation for Annual Percentage Yield. It is a measure of the interest rate that is paid on an investment, such as a savings account, over the course of a year.

 

Arbitrage

Arbitrage is the practice of taking advantage of a price difference between two or more markets: buying a good in one market and simultaneously selling it in another market at a higher price, thus profiting from the temporary difference in prices.

 

Audit

Audit is an independent examination of the financial statements of an organization to ensure that they are free from material misstatements and correctly reflect the transactions that have taken place.

 

Authentication

Authentication is the act of proving that you are who you say you are. In the context of computing, it usually refers to proving your identity to a computer or server in order to gain access to certain resources.

 

Bear Market

A bear market is a market where prices are falling.

 

BEP-20

BEP-20 is a token standard that was proposed by the Binance Blockchain Exchange. It is based on the ERC-20 token standard and is designed to improve upon it in a number of ways. One notable difference is that BEP-20 tokens can be stored on Binance Chain, while ERC-20 tokens can only be stored on Ethereum.

 

Beta

Beta (Release) is a software development and release phase where new features or products are tested by a subset of users before being made generally available.

 

Bitcoin

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

 

Blockchain

Blockchain is a distributed digital ledger that allows for secure, transparent, and tamper-proof record-keeping of transactions. Each transaction is represented by a block, and each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. 

 

Blockchain Trilemma

Blockchain Trilemma is the idea that a blockchain cannot simultaneously be secure, decentralized, and scalable.

 

Bots

Crypto bots are computer programs that automatically trade cryptocurrencies on exchanges. They can be used to implement strategies that are difficult or impossible to execute manually, such as arbitrage or market making.

 

Bull Market

A bull market is a period of time during which prices in the market are rising.

 

Centralized

Centralization is the concentration of power or decision-making authority in a single person or group.

 

Centralized Exchange (CEX)

CEX is an online platform that allows users to buy and sell cryptocurrencies. The platform also provides a wallet for users to store their cryptocurrencies. Like Binance, Coinbase etc.

 

Circulating Supply

The circulating supply is the amount of a particular coin or token that is currently available for trading. 

 

Coin

Coins are digital tokens that exist and operate on their own independent blockchains.

 

Cold Wallet

A cold wallet refers to a cryptocurrency wallet that is not connected to the internet. 

 

Contract Adress

The contract address is the address where a particular contract is stored on the blockchain. Every contract has a unique address, which is generated when the contract is created. This address is used to identify the contract and to send transactions to it.

 

Collection Count

The total number of NFTs that exist for the collection.

 

Cross-Chain

Cross-Chain is a type of cryptocurrency transaction that occurs between at least two different blockchain networks.

 

Cryptocurrency

Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

 

DAO

DAO, or Decentralized Autonomous Organisation, is a type of organization that is run without any hierarchical control, and instead relies on consensus decisions made by its members.

 

Decentralized

Decentralized is a term used to describe a system or network where each individual entity has equal power or authority.

 

Decentralized Applications (DApps)

Decentralized Applications (DApps) are a new type of application that runs on a decentralized network, such as a blockchain. Unlike traditional apps, which run on a centralized server, DApps run on a distributed network of computers. 

 

Decentralized Exchange (DEX)

Decentralized Exchange (DEX) refers to a cryptocurrency exchange that operates without a central authority. Like Uniswap, Pancakeswap.

 

DeFi

DeFi is a term used to describe the shift from traditional centralized financial systems to decentralized finance protocols built on the blockchain. This new breed of financial applications is designed to work without the need for intermediaries, instead relying on code to automate financial transactions.

 

Diamond Hands

Diamond hand is a term used to describe someone who is extremely confident in their investment or trade, and is willing to hold on to their position for a long period of time, regardless of market conditions.

 

Dip

A “dip” in the cryptocurrency markets refers to a short-term decline in prices. This is often seen as a buying opportunity by investors, as prices are typically thought to rebound after a dip.

 

Dominance

Dominance is a technical indicator that measures the strength of a cryptocurrency compared to the rest of the market. It is calculated by taking the market capitalization of a currency and dividing it by the total market capitalization of all cryptocurrencies.

 

Dual-Token Economy/Model

A dual-token economy is an economic model where there are two types of tokens that are used to purchase goods and services. The first type of token is the native token of the platform, which is used to purchase goods and services. The second type of token is an external token that is used to purchase goods and services from the platform.

 

Dump

“Dump” in crypto refers to a sudden sell-off, typically in response to bad news or a market crash.

 

DYOR

DYOR stands for “Do Your Own Research”.

 

ERC-20

The ERC-20 standard defines a set of rules for Ethereum tokens to follow, allowing them to be easily interchanged with each other. 

 

Ether

Ether is a digital asset that works on the Ethereum network. It is used to pay for transaction fees and computational services on the network.

 

Ethereum

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third-party interference. Ethereum is also a decentralized public blockchain network. Ether (ETH) is the native cryptocurrency of the Ethereum platform. 

 

Fan Token

A fan token is a physical or digital token that represents a fan’s support for a particular team, player, or celebrity. These tokens can be used to vote in polls, access exclusive content, or redeem rewards.

 

Floor Price

The floor price in crypto is the lowest price that an NFT can be bought or sold for.

 

Fiat Currency

A fiat currency is a currency that is not backed by a physical commodity, such as gold or silver, but is instead backed by the government that issues it.

 

FOMO

FOMO is the Fear Of Missing Out.

 

FUD

FUD in crypto is fear, uncertainty and doubt.

 

Fully Diluted Market Cap

Fully diluted market cap refers to the total value of all cryptocurrency shares if all possible dilutive securities were exercised. 

 

GameFi

GameFi is a decentralized gaming platform that enables gamers to connect with each other and play games in a fair, secure, and fun environment. 

 

Gas Fee

Gas fee is the fee charged by a cryptocurrency network for the processing of transactions within that network. The gas fee is sometimes also referred to as a “tx fee” or “network fee”.

 

Governance Token

A Governance Token is a type of cryptocurrency token that is used to vote on or otherwise participate in the governance of a blockchain-based project or organization. 

 

Halving

Halving is a process that occurs every four years on the Bitcoin blockchain in which the block reward for miners is cut in half. This helps to keep a steady inflation rate for the cryptocurrency.

 

HODL

HODL is a crypto term that stands for “Hold On for Dear Life.” It’s used to describe the act of holding a cryptocurrency for long-term investment, rather than selling it as soon as the price goes up.

 

Holders

Holders are individuals or entities that own cryptocurrencies. 

 

ICO

ICO (Initial Coin Offering), initial coin offering, refers to the first issuance of tokens to the public by a blockchain project to raise mainstream cryptocurrencies such as Bitcoin and Ethereum to obtain funding for the operation of the project.

 

IDO

Initial Dex Offering (IDO) is an event in which a cryptocurrency project raises funds by selling tokens to investors before listing them on a decentralized exchange (DEX).

 

IEO

IEO (Initial Exchange Offerings), the first transaction issuance, refers to the issuance of tokens with the exchange as the core; the tokens skip the ICO step and go directly to the exchange.

 

IGO

Initial game offering (IGO) is a type of crowdfunding where game developers raise funds to finance the development of their game by selling digital tokens or in-game items to investors.

 

INO

Initial NFT Offering (INO) is a new way to fundraise and launch digital products and services using non-fungible tokens (NFTs). 

 

KYC

KYC is the abbreviation of Know Your Customer, which means to know your customers. In the international “Anti-Money Laundering Law” regulations, organizations are required to have a comprehensive understanding of their customers to predict and discover unreasonable business practices. and potential violations. The KYC of the exchange generally refers to identity authentication.

 

Launchpad

Launchpad is a crypto-asset accelerator that helps projects raise capital and increase their visibility in the community.

 

Layer 1

Layer one in crypto refers to the protocol layer that defines how transactions are processed and verified on the blockchain. This layer consists of the rules that govern the operation of the blockchain, including the consensus algorithm and the transaction format.

 

Layer 2 

Layer two in crypto refers to solutions that offer improved scalability over the first-layer protocols. Some popular examples of layer two solutions include the Lightning Network and Polygon.

 

Litepaper

A litepaper is detailed, yet the jargon-free description of a cryptocurrency project. It is similar to a white paper but shorter and easier to understand. Latepapers are often used to introduce new projects to the crypto community and explain how they work.

 

Liquidity

Crypto liquidity refers to how quickly a cryptocurrency can be bought or sold without impacting the overall market price. A currency with high liquidity can be traded easily and quickly, without substantially affecting the price.

 

Mainnet

Mainnet is a public blockchain network that allows users to transact and interact with decentralized applications (dApps) and smart contracts. Unlike testnets, mainnets are intended for real-world usage and have a real value associated with them.

 

Max Supply

The maximum amount of cryptocurrency that will ever be produced.

 

MetaMask

MetaMask is a digital wallet that allows you to store, send, and receive cryptocurrency. It also allows you to access decentralized applications (dApps) on the blockchain.

 

Metaverse

Metaverse is a decentralized virtual world that runs on blockchain technology. It is a platform where users can create, buy, and sell virtual assets, and interact with each other in a virtual space.

 

Minting NFT

Minting NFT in crypto is the process of creating a digital asset on a blockchain that can be authenticated and verified as a unique item. This digital asset can be anything from a digital token to a piece of digital art or virtual property.

 

Multi-Chain

Multi-Chain is a technology that allows for the creation of multiple blockchains that are all interconnected. This allows for the transfer of data and value between the different chains.

 

Non-Fungible Token (NFT)

Non-Fungible Token (NFT) is a digital asset that is unique and not interchangeable with other assets of the same type. NFTs are often used to represent items such as digital art, collectibles, gaming items, and other digital assets that have value and are not interchangeable.

 

OpenSea

OpenSea is a popular online marketplace for buying, selling, and auctioning off NFTs.

 

Overbought

The currency price continues to rise to a certain height, the buyer power is basically exhausted, and the currency price is about to fall.

 

Oversold

The currency price continues to fall to a certain low point, the seller’s strength is basically exhausted, and the currency price is about to rise.

 

Peer-to-Peer (P2P)

Peer-to-Peer (P2P) is a decentralized network architecture in which each node in the network can act as both a client and a server. This type of network is often used for file sharing, as it allows users to directly connect to each other instead of going through a central server.

 

Play-to-Earn (P2E) Games

Play-to-Earn is a type of game in which players can earn rewards for playing the game. 

 

Ponzi Scheme

A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors by recruiting new investors, rather than from legitimate business activities or profit.

 

Pre-Sale

Pre-Sale is an event that takes place before a cryptocurrency Initial Coin Offering (ICO), where investors can purchase tokens at a discounted price.

 

Proof-of-Stake (PoS)

PoS is a type of consensus algorithm that is used to achieve distributed consensus. It is a system that allows network participants to reach an agreement on the state of the network. 

 

Proof-of-Work (PoW)

Proof-of-Work (PoW) is a system that requires a certain amount of work to be done in order to confirm a transaction. This work is usually done by miners, who use their computing power to solve complex mathematical problems. The first miner to solve the problem gets to add the next block to the blockchain, and is rewarded with a certain amount of cryptocurrency.

 

Public Sale

Public Sale is the sale of a cryptocurrency or token to the general public, typically in exchange for fiat currency or other cryptocurrencies.

 

Rank

Rank in crypto refers to a crypto asset’s standing in relation to other assets in the market. It is usually represented by a number, and the higher the number, the higher the asset’s rank.

 

Roadmap

A roadmap is a plan or a set of goals for a project or a business. In the world of cryptocurrency, a roadmap is a plan that outlines the development goals for a coin or token. Roadmaps typically include specific deadlines and milestones that need to be met in order for the project to be considered successful.

 

ROI

ROI stands for “return on investment.” In crypto, ROI is a measure of how much money you can make from investing in a particular coin or token. For example, if you invest $100 in a coin with an ROI of 10%, you will get $110 back after one year.

 

Slippage

Slippage is the amount an order trades relative to the current market price. Slippage can occur when an order is placed at a certain price but is then filled at a different price due to market conditions. 

 

Smart Contract

A smart contract is a digital contract that self-executes and self-enforces the terms of the agreement between two parties. Smart contracts are stored on a blockchain and can be used to facilitate, verify, or enforce the negotiation or performance of a contract.

 

Staking

In the cryptocurrency world, staking is the process of holding funds in a wallet to support the operations of a blockchain network. When users stake their coins, they are essentially locking up their funds to help maintain the network and in return, they are rewarded with new units of the currency.

 

Token

A token is a digital asset that is used to represent something else of value. In the cryptocurrency world, tokens are often used to represent a digital asset, such as a currency, or a utility.

 

Token Generation Event (TGE)

The issuance time of a token.

 

Tokenomics

Tokenomics is the study of the economic aspects of digital tokens and their impact on the larger economy. It is a combination of the words “token” and “economics” and is used to analyze the financial incentives and rewards associated with digital tokens.

 

Total Supply

Total supply in crypto refers to the total number of units of a particular cryptocurrency that exist. This number can fluctuate depending on factors such as mining and trading activity.

 

Total Value Locked (TVL)

Total Value Locked (TVL) is a metric used to assess the value of crypto assets locked into decentralized applications (dapps), protocols, and platforms. 

 

Trade Volume

Trade Volume is the amount of a particular cryptocurrency that changes hands over a given period of time.

 

Utility Token

A utility token is a type of cryptocurrency that can be used to provide access to a product or service. Utility tokens are not meant to be investments, but rather used for their intended purpose.

 

Volume

Volume in crypto is the amount of a cryptocurrency that is traded in a given period of time. It is used to measure the liquidity of a cryptocurrency and is a good indicator of the level of activity in the market.

 

Web 1.0

Web 1.0 is often described as the static web, meaning that web pages were essentially static documents that did not change.

 

Web 2.0

Web 2.0 is the second generation of the World Wide Web, which is characterized by increased user interactivity and collaboration, and by more sophisticated and integrated applications.

 

Web 3.0

Web 3.0 is the third generation of the World Wide Web, characterized by decentralization, increased user privacy, and the use of blockchain technology. In the realm of cryptocurrency, Web 3.0 refers to the development of decentralized applications (dApps) that run on a blockchain or peer-to-peer network.

 

Whale

A Whale is a large holder of cryptocurrency who can potentially move the markets with their large trades.

 

Whitelist

In the crypto world, a whitelist is a list of approved investors that are allowed to participate in a token sale or initial dex offering (IDO).

 

Whitepaper

Whitepaper is a document that outlines the goals and technical details of a project or proposed plan.

 

Yield Farming

Yield farming, or “liquidity mining”, is a type of earning cryptocurrency rewards for providing liquidity to a protocol or participating in a lending pool. Yield farmers earn rewards for their contributions and can also benefit from the appreciation of the underlying assets.

 

YTD

Stands for Year to Date.