Crypto Terms

All the vocabulary you need to know to understand crypto.

A

Altcoin

An altcoin is any cryptocurrency that is not Bitcoin (BTC).

Apeing

Apeing is a slang term in the crypto world that means buying a new cryptocurrency, token, or NFT without doing much research.

Atomic Swap

An atomic swap is a technology that allows two people to exchange different cryptocurrencies between them without needing an exchange.

Automated Market Maker (AMM)

An Automated Market Maker (AMM) is a type of decentralized exchange (DEX) that uses smart contracts to automatically set the price of cryptocurrencies and make trades happen.

B

Bear Market

A bear market is a period when the prices of cryptocurrencies are always falling.

Bitcoin Halving

Bitcoin halving is an event where the reward for mining new Bitcoin blocks is cut in half. This happens every 210,000 blocks, or approximately every 4 years.

Block

A block is a group of transactions recorded together on a blockchain.

Blockchain

A blockchain is like a digital record where every transaction is recorded in a block. These blocks are linked together to form a chain.

Bridge

A bridge in the crypto world is a tool that allows you to transfer assets (tokens, NFTs…) from one blockchain to another.

BUIDL

BUIDL is a fun twist on the word “build,” used in the crypto community. It’s used to motivate people to keep building projects, tools, and apps that make crypto better.

Bull Market

A bull market is a period when the prices of cryptocurrencies are always going up.

C

Cold Wallet

A cold wallet is a type of cryptocurrency wallet that is not connected to the internet. It is used to store digital assets securely, protecting them from online hacking and cyber threats.

Collateral

A collateral is something valuable, like money or property, that you promise to give someone if you can’t pay back a loan.

Consensus Mechanism

A consensus mechanism is a way for all the computers in a blockchain network to agree on which transactions are valid.

Cryptocurrency

Cryptocurrency is digital money that uses code to keep transactions secure.

Custody

Custody in crypto refers to who holds and controls your cryptocurrencies. It’s like deciding whether to keep your money in a bank or under your mattress.

D

DAO

A DAO, or Decentralized Autonomous Organization, is a group run by rules written in code on a blockchain.

DeFi

Decentralized Finance (DeFi) is like the financial services you know but without the banks.

DEX

A Decentralized Exchange (DEX) is a platform where you can trade cryptocurrencies directly with other users without a middleman.

Diamond Hands

“Diamond Hands” is a term in the crypto that means holding onto your cryptocurrency no matter what happens.

DYOR (Do Your Own Research)

DYOR stands for “Do Your Own Research.” It’s a reminder to carefully learn about a cryptocurrency or project before putting money into it.

dApp

A dApp, or decentralized application, is an apps that run on a blockchain.

E

Exchange

An exchange is like a big online shop where you can buy, sell, or trade different types of cryptocurrencies, like Bitcoin (BTC) or Ethereum (ETH).

F

FOMO (Fear Of Missing Out)

FOMO means “Fear of Missing Out.” It’s the feeling you have when others are having a good time and you’re not a part of it.

G

GameFi

GameFi is a mix of gaming with decentralized finance (DeFi).

H

Hardware Wallet

A hardware wallet is a physical device that keeps your cryptocurrency protected offline.

Hash

A hash is a special code created from data. It turns any kind of data (like text or files) into a fixed-length string of characters.

Hash Rate

The hash rate measures the power of computers working to mine cryptocurrency.

HODL

HODL is a slang term in the crypto community that means holding onto your cryptocurrencies instead of selling them, even when the prices go down.

Hot Wallet

A hot wallet is a type of cryptocurrency wallet that is connected to the internet.

K

KYC (Know Your Customers)

KYC stands for “Know Your Customer.” It’s a process where financial platforms (banks, online payment apps, crypto exchanges…) check who you are by asking for some ID and other documents.

L

Lending

Lending is letting someone borrow your crypto, in exchange for a fee.

M

Market Cap

Market cap, short for market capitalization, is a way to measure the total value of a cryptocurrency.

Meme Coins

Meme coins are fun types of digital money that come from internet jokes or trends.

Mining

Mining is like a competition where computers try to solve a tough math problem. The first one to solve it gets to add a new block to the blockchain and earn some cryptocurrency as a reward.

Minting

Minting is the process of creating new cryptocurrency coins or tokens.

Moon Bag

A “Moon Bag” is a fun way to talk about cryptocurrencies someone keeps, hoping their price will go “to the moon”.

Multi-Sig

Multi-Sig, short for Multi-Signature, is a security feature that requires many keys to allow a cryptocurrency transaction.

N

NFT (Non-Fungible Token)

A Non-Fungible Token (NFT) is like a digital certificate to prove that you own a unique item.

Nodes

Nodes are individual computers or devices that take part in a blockchain network.

O

On-Chain

On-chain means something happens directly on a blockchain.

Orange Pilled

“Orange Pilled” is a fun way to say someone really believes in Bitcoin (BTC).

Order Book

An Order Book is like a big list in a marketplace, showing all the people who want to buy and sell cryptocurrencies like Bitcoin.

Ordinals

Ordinals are like special tags for each tiny piece of Bitcoin (BTC), making every bit unique.

P

Pegged

“Pegged” means a cryptocurrency is set to match the value of another currency or asset, like the US dollar or gold, to keep its price (more) stable.

Play to Earn

Play to Earn (P2E) is a type of game where players earn cryptocurrency or NFTs by playing games.

Private Key

A private key is a secret code that gives you access to a crypto wallet.

Proof of Stake (PoS)

Proof of Stake (PoS) is a way to secure the blockchain and validate transactions without using a lot of energy.

Proof of Work (PoW) is like a competition where computers race to solve a tough puzzle. The first one to solve it gets to add a new block to the blockchain and earns some cryptocurrency as a reward for solving the puzzle.

Public Key

A public key is a code that allows you to receive cryptocurrency.

R

Rekt

“Rekt” is a slang term in crypto that means losing a lot of money.

Roadmap

A roadmap is a detailed plan that outlines the future goals and milestones of a cryptocurrency project.

S

Satoshi

A Satoshi is the smallest unit of Bitcoin. Think of it like the penny to Bitcoin’s dollar, but way smaller.

Seed Phrase

A seed phrase is a set of 12 to 24 simple words that act as a backup for your crypto wallet.

Self Custody

Self-custody means you hold and control your own cryptocurrency without depending on someone else.

Shilling

Shilling means hyping up a cryptocurrency, project, or token to get something out of it yourself. Often to make money.

Smart Contract

A smart contract is like a digital deal that automatically happens when certain conditions are met. It’s written in code and runs on a blockchain.

SocialFi

SocialFi mixes social media with decentralized finance (DeFi).

Stablecoin

A stablecoin is a type of cryptocurrency designed to have a steady value. It achieves this by being linked to a stable reserve asset, like the US dollar or gold.

Staking

Staking means you lock up some of your cryptocurrency to help run a blockchain, and you get more crypto as a reward.

Staking Pool

A staking pool is a group of cryptocurrency holders who combine their coins to increase their chances of earning rewards.

T

Ticker

A ticker is a short code or symbol that represents a cryptocurrency on exchanges.

To The Moon

“To the Moon” is a popular phrase in the crypto community that means you’re expecting the price of a cryptocurrency to go up a lot.

Token

Tokens are digital assets that exist on another blockchain. Unlike Bitcoin (BTC) or Ethereum (ETH), which have their own blockchains, tokens are built on top of existing ones, like Ethereum.

Tokenomics

Tokenomics is the set of rules governing a cryptocurrency token. It tells you how the token is used, how many there are, and the various ways you can earn or use them.

U

Use Case

A use case is how a cryptocurrency or blockchain technology can be used to solve problems in the real world.

W

WAGMI

WAGMI means “We’re All Gonna Make It.” It’s a positive phrase used in the crypto community to motivate everyone and say we support each other.

Wallet

A wallet is like a digital tool or software where you keep your cryptocurrency.

WhitePaper

A white paper is a detailed document created by the founders of a cryptocurrency or blockchain project. It explains the technology behind the project, its goals, and how it plans to solve specific problems.

Y

Yield

Yield is the profit you earn from putting your cryptocurrency to work, like by staking, lending, or yield farming.

Yield Farming

Yield farming is a way to earn rewards by lending or staking your cryptocurrency in decentralized finance (DeFi) platforms.