A
Airdrop – A distribution of free tokens or coins to wallet addresses, usually as a promotion or reward. “The new blockchain project did an airdrop to early users.”
Altcoin – Any cryptocurrency other than Bitcoin. Ethereum, Solana, Cardano, Dogecoin—they’re all altcoins.
ATH (All-Time High) – The highest price a cryptocurrency has ever reached. “Bitcoin hit its ATH in November 2021.”
AML (Anti-Money Laundering) – Regulations that prevent illicit funds from being disguised as legitimate earnings.
ASIC (Application-Specific Integrated Circuit) – A type of hardware specifically built to mine cryptocurrencies.
B
Bear Market – A market trend where prices are consistently falling. “Crypto entered a bear market after the 2021 crash.”
Bearish – Expecting prices to decline. “Traders are bearish on Dogecoin this month.”
Bitcoin – The first and most well-known cryptocurrency, launched in 2009 by Satoshi Nakamoto.
Blockchain – A digital ledger that records all cryptocurrency transactions in a secure, decentralized manner.
Bull Market – A market trend where prices are consistently rising.
Bullish – Expecting prices to rise. “I’m bullish on Ethereum after the upgrade.”
C
Cold Wallet – A cryptocurrency wallet not connected to the internet, often used for long-term storage.
Coinbase – A popular centralized cryptocurrency exchange based in the U.S.
Consensus Mechanism – A method used by blockchain networks to agree on data validity (e.g., Proof of Work, Proof of Stake).
Cryptography – The practice of secure communication, which underpins blockchain technology.
D
DAO (Decentralized Autonomous Organization) – An organization governed by smart contracts and blockchain rules instead of traditional leadership.
DeFi (Decentralized Finance) – Financial services built on blockchain without intermediaries like banks.
Degen (Degenerate) – A slang term for someone who makes risky crypto trades.
DEX (Decentralized Exchange) – A crypto trading platform with no central authority (e.g., Uniswap).
DYOR (Do Your Own Research) – A reminder to independently research before investing.
E
ERC-20 – A standard for creating tokens on the Ethereum blockchain.
Ethereum – A decentralized platform that enables smart contracts and decentralized applications (dApps).
Exchange – A platform where users buy, sell, or trade cryptocurrencies. Good examples include Binance, Coinbase, Bybit, and OKX.
F
FOMO (Fear of Missing Out) – The anxiety that others are making profits while you’re not invested.
Fork – A change to a blockchain protocol that results in a split into two separate chains.
FUD (Fear, Uncertainty, Doubt) – Negative news or emotions that may cause panic selling.
Futures Trading – A type of financial contract where two parties agree to buy or sell an asset—such as Bitcoin or Ethereum—at a predetermined price on a specific future date, regardless of the market price at that time. Unlike spot trading, where assets are exchanged immediately, futures trading is purely speculative and often used to hedge risks or bet on price movements. Traders can profit whether prices go up or down, but it involves higher risk, often uses leverage, and may result in significant losses if the market moves against the position.
G
Gas Fees – Fees paid to conduct transactions on Ethereum or similar networks.
Genesis Block – The first block of a blockchain.
Gwei – A denomination of Ether (ETH) used to calculate gas fees.
H
Halving – An event where mining rewards are cut in half, reducing coin supply (e.g., Bitcoin halving).
Hashrate – The computational power of a cryptocurrency network.
HODL – Originally a typo of “hold,” now means “Hold On for Dear Life.” A long-term holding strategy.
HODLer – Someone who buys digital assets and holds onto them long-term, staying committed through market ups and downs without giving in to short-term price swings.
Hot Wallet – A crypto wallet connected to the internet, convenient but less secure than cold wallets.
I
ICO (Initial Coin Offering) – A fundraising method where a new cryptocurrency is sold to early investors.
Immutable – Data that cannot be changed once recorded on the blockchain.
Interoperability – The ability of different blockchain networks to work together.
J
JavaScript Smart Contracts – Some blockchains like Agoric allow smart contracts to be written in JavaScript.
JOMO (Joy of Missing Out) – Satisfaction in avoiding risky crypto investments.
K
KYC (Know Your Customer) – A verification process required by exchanges to identify users and comply with AML laws.
Key Pair – A set of cryptographic keys: one public (for receiving funds), one private (for spending).
L
Layer 1 – The base blockchain (e.g., Ethereum, Bitcoin).
Layer 2 – A secondary framework built on top of Layer 1 to improve scalability (e.g., Polygon on Ethereum).
Liquidity – How easily an asset can be bought or sold in the market.
M
Market Cap (Market Capitalization) – The total value of a cryptocurrency: current price × circulating supply.
Metaverse – A virtual world with its own digital economy, often powered by blockchain and NFTs.
Mining – The process of validating transactions and securing a blockchain in exchange for rewards.
N
NFT (Non-Fungible Token) – A unique digital asset representing ownership of art, music, or collectibles.
Node – A computer that participates in a blockchain network by validating transactions and blocks.
Nonce – A variable used in mining to find a valid block hash.
O
On-Chain – Transactions or data that are recorded directly on the blockchain.
Off-Chain – Transactions or data that occur outside the blockchain but may later be reconciled.
Oracle – A service that feeds external data to a blockchain for smart contract use (e.g., Chainlink).
P
Private Key – A secret code that allows access to your crypto funds. Never share it.
Public Key – A wallet address where others can send you crypto.
Pump and Dump – A scheme where prices are artificially inflated, then sold off for profit.
Q
QR Code – A scannable image that represents a crypto address or payment link.
Quantum Computing – A future tech that could potentially break current cryptographic systems.
R
Rug Pull – A scam where developers suddenly withdraw all funds from a project and disappear.
ROI (Return on Investment) – A measure of profitability.
RPC (Remote Procedure Call) – Allows applications to interact with blockchain nodes.
S
Satoshi – The smallest unit of Bitcoin (0.00000001 BTC).
Scalability – A blockchain’s ability to handle increased transactions.
Scalping – High-frequency trading strategy that involves making numerous trades within a short timeframe (minutes or even seconds) to capitalize on small price fluctuations.
Smart Contract – Self-executing code on the blockchain that performs tasks when conditions are met.
Spot Trading – The process of buying or selling a financial asset—such as cryptocurrency, stocks, or commodities—for immediate delivery at the current market price, also known as the “spot price.” In crypto, this means you purchase actual digital coins like Bitcoin or Ethereum, and they are transferred to your wallet right away. Unlike futures or margin trading, spot trading involves no contracts, leverage, or delayed settlement—just direct ownership of the asset, making it a straightforward and lower-risk option for most traders and investors.
Stablecoin – A cryptocurrency pegged to a stable asset like the U.S. dollar (e.g., USDT, USDC).
T
Token – A digital asset built on an existing blockchain, often representing utility or value.
Tokenomics – Short for token economics; how tokens are structured, distributed, and used.
TPS (Transactions Per Second) – How many transactions a network can process per second.
U
Utility Token – A token that gives users access to a product or service within a blockchain ecosystem.
Uniswap – A leading decentralized exchange on Ethereum.
UX (User Experience) – How intuitive and efficient a crypto platform feels to users.
V
Validator – A participant in Proof of Stake systems who validates transactions and earns rewards.
Volatility – How much a cryptocurrency’s price fluctuates.
W
Wallet – A tool for storing and managing cryptocurrencies.
Web3 – The next generation of the internet based on decentralization and blockchain.
Whale – An individual or entity that holds a large amount of crypto.
Whitepaper – A detailed document explaining a crypto project’s goals, mechanics, and technology.
X
XRP – The token used by Ripple to facilitate cross-border payments.
Y
Yield Farming – Earning rewards by staking or lending crypto in DeFi protocols.
Z
Zero-Knowledge Proof (ZKP) – A cryptographic method that allows one party to prove something is true without revealing the actual data.
Zk-Rollups – A Layer 2 scaling solution using zero-knowledge proofs to bundle transactions efficiently.