Cryptocurrency Glossary

Altcoins
Altcoins are cryptocurrencies other than Bitcoin. They each have their own rules, features, and purposes. Some are based on new technology, while others are modified versions (forks) of existing cryptocurrencies.

All-time high / All-time low
This refers to the highest or lowest price ever reached by an asset.

Bull market
A bull market is when prices are rising, and the mood among traders and investors is positive.

Bear market
The opposite of a bull market, where prices are falling, and traders feel pessimistic.

Blockchain
A blockchain is a way of storing data across many computers. It's decentralized, meaning no single person or organization controls it. It's managed by miners or validators who process and verify transactions.

Block
A block is a group of transactions stored on a blockchain. Each block links to the previous one, creating a secure and unchangeable history.

Block reward
Miners or validators earn a block reward, usually in cryptocurrency, as payment for adding a new block to the blockchain.

Consensus
This is how participants in a blockchain agree on what gets added to the blockchain. The two main methods are proof-of-work (PoW) and proof-of-stake (PoS).

Cryptography
Cryptography is the science of protecting information. In crypto, it's used to secure transactions and verify identities using encryption methods like hashing and key pairs.

dApp (Decentralized Application)
A dApp is an app that runs on a blockchain. It uses smart contracts to work without needing a middleman. Most dApps are built on Ethereum.

DAO (Decentralized Autonomous Organization)
A DAO is a group run by rules written in smart contracts. It allows members to vote on changes and operate without a central leader.

Decentralized
This means a system is spread across many points instead of being controlled by one person or organization.

DeFi (Decentralized Finance)
DeFi is a system of apps and services that use blockchain to provide financial tools like lending, borrowing, and earning interest without banks or other middlemen.

DYOR (Do Your Own Research)
A reminder to research investments yourself rather than relying on influencers or others who may have hidden motives.

ERC-20
A standard for creating tokens on Ethereum, used for many cryptocurrencies.

ERC-721
A standard for creating non-fungible tokens (NFTs) on Ethereum. Each token is unique, making it ideal for collectibles or digital items.

EVM (Ethereum Virtual Machine)
The EVM is a global computer on the Ethereum blockchain, where developers build dApps.

Fiat
Fiat is traditional government-issued money, like the US dollar or euro.

Fork
A fork happens when a blockchain splits into two. This can happen to fix issues, add features, or create a new currency.

FOMO (Fear of Missing Out)
Feeling anxious about missing out on a big opportunity, especially during sudden price spikes.

FUD (Fear, Uncertainty, Doubt)
Negative news or rumors that can make people feel uneasy about the market.

Fundamental Analysis
A way of evaluating an asset by looking at its value, team, technology, and use case.

Gas
A fee paid to process transactions or run smart contracts on Ethereum.

Gwei
A small unit of Ethereum, used to calculate gas fees. One Gwei is one-billionth of an Ether.

Halving
A Bitcoin event where mining rewards are cut in half, reducing the amount of new Bitcoin created. It happens every four years.

Hash Rate
A measure of how much computational power is being used to mine cryptocurrency.

HODL
A slang term for holding onto your cryptocurrency instead of selling, even during market dips.

KYC (Know Your Customer)
A process where businesses verify the identity of their customers, usually for regulatory purposes.

Ledger
A record of transactions. In crypto, this is the blockchain itself.

Liquidity
The ability to easily buy or sell an asset. In DeFi, it can also refer to funds available for trading in a liquidity pool.

Limit Order
An order to buy or sell an asset only at a specific price or better.

Margin Trading
Trading with borrowed funds to increase potential profit—but with higher risks.

Market Cap
The total value of a cryptocurrency, calculated by multiplying its price by the total circulating supply.

Mining
The process of using computer power to create new blocks and verify transactions. Miners earn rewards for their work.

Mining Pool
A group of miners who combine their resources to share rewards more evenly.

NFT (Non-Fungible Token)
A digital token that is unique and cannot be replaced. Commonly used for art, collectibles, and more.

Network Fees
A fee paid to miners or validators to process a transaction.

Node
A computer that stores blockchain data and helps validate transactions.

Nonce
A random number miners use to solve a blockchain puzzle and add new blocks.

Paper Wallet
A printed record of your private keys for offline storage. Not widely used today due to security risks.

Private Key
A secret code that lets you access and manage your cryptocurrency. Keep it secure.

Proof-of-Stake (PoS)
A system where participants lock up cryptocurrency to validate transactions and earn rewards.

Proof-of-Work (PoW)
A system where miners compete to solve puzzles and earn rewards by using computer power.

Public Key
A code generated with your private key that allows others to send cryptocurrency to your wallet.

Sats (Satoshis)
The smallest unit of Bitcoin, equal to 0.00000001 BTC.

SegWit (Segregated Witness)
A Bitcoin update that made transactions faster and more efficient by reducing data size.

SHA-256
A cryptographic algorithm used for securing transactions and mining on some blockchains.

Smart Contracts
Programs on blockchains that automatically execute actions when specific conditions are met.

Solidity
A programming language for writing smart contracts on Ethereum.

TA (Technical Analysis)
Studying price charts and patterns to predict market movements.

Testnet
A practice version of a blockchain for testing apps and smart contracts.

Token
A digital asset created on a blockchain, often used for specific purposes like accessing services.

UTXO (Unspent Transaction Output)
A system used to calculate wallet balances by tracking unspent amounts from previous transactions.

Validators
Participants in proof-of-stake networks who verify transactions and earn rewards.

Volatility
How much and how quickly an asset’s price changes.

Wallet
A tool for storing and managing cryptocurrency. Can be software-based or hardware-based.

Whale
A term for someone who holds a large amount of cryptocurrency.

White Paper
A detailed document that explains a project, its technology, and its purpose.