Crypto Key Terms


A

Airdrop: A way to promote cryptocurrencies by sending some free tokens to traders.
Algorithmic Stablecoin: Algorithmic stablecoins are tokens pegged to a fiat currency which is usually the US dollar, purely through software and specific conditions.
All-Time-High (ATH): The highest point (in price, in market capitalization) that a cryptocurrency has been in history.
All-Time-Low (ATL): The lowest point (in price, in market capitalization) that a cryptocurrency has been in history.
Altcoin: A term used to refer to any cryptocurrency other than Bitcoin, often used to describe newer or smaller cryptocurrencies that are not as widely recognized or adopted as Bitcoin.
Arbitrage: A strategy where investors buy a currency in a market and sell it at a higher price in another market to gain profit.
Asset: A resource or item of value that can be owned and traded, such as cryptocurrencies, stocks, bonds, commodities, and real estate.


B

Bagholder: A person who is holding a large quantity of cryptocurrency which is declining in value or becoming worthless.

Bear Market: Contrary to bull market, it indicates the direction of the market going for downward trend.

Bearish: A market outlook that predicts a decline in prices or a downward trend in a particular asset or market.
Bitcoin Evangelist: Individuals who are passionate about Bitcoin, and are dedicated in spreading knowledge about Bitcoin.
Block: In the context of blockchain, block refers to the collection of transactional data or information that are bundled together in a predetermined size.
Blockchain: A decentralized digital ledger that is used to record transactions and store data in a secure and transparent manner.
Block Confirmation: Refers to the number of confirmation a particular block has. Each block ahead of the referenced block adds one block confirmation to it.
Block Reward: One of the mechanisms built into a blockchain to incentivize validators.
Blue chips: A term used to refer to large, well-established companies with a long track record of stable performance and a strong reputation in their industry.
Breakeven: The point at which the sale price of an asset is equal to the cost of acquiring or producing it, resulting in neither a profit nor a loss.
Bullish: A market outlook that predicts an increase in prices or an upward trend in a particular asset or market.
Burned Tokens: Tokens which have been sent to addresses whose private key are not known, effectively becoming unusable.


C

Capitulation: A market condition where investors sell off their assets in large quantities due to panic or fear, often resulting in a steep drop in prices.
Central Bank Digital Currency (CBDC): It is a digital fiat currency issued by the central banks, contrary to cryptocurrency that issued by non-legislative party.
CEX: An acronym for Centralized Exchange, which is a platform that allows users to trade cryptocurrencies through an intermediary, such as a centralized exchange operator.
Circulation: The amount of a particular cryptocurrency that is actively being traded or used within a given period of time.
Cold Wallet: Wallets that are offline and require physical access to certain devices (eg. hardware wallet, paper wallets).
Consensus: Consensus is achieved in a blockchain system when all participants agree on the content of the next block that will be added onto the blockchain.
Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Crypto Mining: The process of verifying transactions and adding them to the blockchain through the use of computer power and specialized software.


D

DCA: An acronym for Dollar Cost Averaging, which is a strategy that involves investing a fixed amount of money at regular intervals, regardless of the current price of the asset, in order to reduce the impact of market volatility on the overall investment.
Decentralized: A system or network that operates without a central authority or intermediary, relying instead on a distributed network of users or nodes.
Decentralized Applications (dApps): Applications that run on decentralized peer-to-peer networks such as Ethereum.
Decentralized Autonomous Organization (DAO): An organization that operates through rules encoded as computer programs called smart contracts.
Decentralized Finance (DeFi): Decentralized Finance (DeFi) refers to the movement of building decentralized financial applications that have no central authority and is censorship free.
Deflation: A decrease in the general price level of goods and services, usually caused by a decrease in the supply of money or credit.
Degen: Cryptotrading without Due Diligence and research - basically gambling.
DEX: An acronym for Decentralized Exchange, which is a platform that allows users to trade cryptocurrencies directly with each other, without the need for an intermediary.
Diversification: The practice of investing in a variety of assets or securities in order to spread risk and reduce the impact of market volatility on an investment portfolio.


E

Emission: The speed/rate at which new coins are minted and released as dictated by the protocols written. Encryption: In cryptography, encryption is a process of encoding information the original form of information called plaintext via an algorithm called cipher. The encrypted message is now called ciphertext. Only authorized parties can decipher the ciphertext and convert back it to the original plaintext.
ERC-20: ERC-20 is one of the most widely used token standards in Ethereum to create fungible, exchangeable tokens.
ETF: An acronym for Exchange-Traded Fund, which is a type of investment fund that tracks the performance of a particular market index or asset class and can be traded on an exchange like a stock.
Exchange: A platform or marketplace where buyers and sellers can trade assets, such as stocks, bonds, currencies, and cryptocurrencies.


F

Fiat: Currency that is issued by a government and is not backed by a physical commodity, such as gold or silver. Futures: An agreement between two counterparties that obligates them to transact in the future based on the contract terms set.
FOMO: An acronym for Fear Of Missing Out, referring to the feeling of anxiety or urgency that can arise when someone believes they are missing out on a potential opportunity or investment.
Fork: A change in the underlying rules of a blockchain that creates a new version of the network.
FUD: An acronym for Fear, Uncertainty, and Doubt, used to describe negative or misleading information that is spread to create fear and uncertainty in the market.


G

Gas: A unit of measurement of the computational effort in conducting transactions or smart contracts on Ethereum blockchain.
Gas Price: A term refers to the amount of price user is willing to pay for a transaction on Ethereum blockchain. Golden Cross: It is a bullish signal in technical candlestick pattern by comparing two lines of short-term moving average and long-term average. It is a golden cross when the short term moving average broke its long-term moving average.
Gwei: The monetary domination of gas, involving Ether.


H

Halving: Event that serves to reduce in half the reward of the Proof-of-Work miners that operate in the blockchain network.
Hashrate: Total processing power of a blockchain or what is the same, are the amount of hash values that can be made in a period of time.
Hard Fork: A permanent split in the blockchain network that results in two separate blockchains.
Hard Wallet (Cold Storage Wallet): A physical storage device used to store cryptocurrency.
HODL: An acronym for “hold on for dear life”. If you’re deciding not to trade a currency, you’re hodling.


I

ICO: An acronym for Initial Coin Offering, which is a type of crowdfunding campaign used by blockchain-based startups to raise funds in exchange for tokens or coins.
IEO: Initial Exchange Offering (IEO) is a spin-off of Initial Coin Offering (ICO), where the sale of tokens are conducted on an exchange rather than by the coin team themselves.
Impermanent Loss: Temporary loss of funds due to volatility leading to divergence in price between token pairs provided by liquidity providers.
Index: A benchmark or reference point used to measure the performance of a particular market or asset class, often based on a weighted average of the prices of a group of underlying securities.
Inflation: An increase in the general price level of goods and services, usually caused by an increase in the supply of money or credit.
Interoperability: Interoperability refers to the property of product/systems that are able to work with products/systems that are different without any restrictions.


K

KYC (Know Your Customer): KYC stands for "Know Your Customer", a process for business entities are required to verify its clients and assessing them.


L

Launchpad: A platform that allows blockchain-based startups to raise funds and launch new projects by selling tokens or coins to investors.
Ledger: A record of financial transactions that cannot be changed, only appended with new transactions. Leverage: A tool that allows traders to borrow funds in order to increase their buying power and potentially amplify their profits (or losses) on a trade.
Lightning Network: It is the "second layer" or an off-chain of payment protocol that operates on top of a blockchain. Payments on this network do not need block confirmation and it will be instant.
Limit Order / Limit Buy / Limit Sell: Orders placed by traders to buy or sell a cryptocurrency when a certain price is reached.
Liquidity: How easily a cryptocurrency can be bought and sold without impacting the overall market price.


M

Mainnet: It is the main network of Bitcoin, where the transactions of this cryptocurrency are registered and take place.
Margin Call: Margin call takes place when investor's margin account falls below the required amount to stay afloat.
Margin Trading: It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade
Market Cap: Short for market capitalization, it is the total value of all the outstanding shares of a publicly traded company or the total value of all the units of a cryptocurrency in circulation.
Market Order / Market Buy / Market Sell: A market order is a buy or sell order of stocks or cryptocurrency at the best price available in the current market as soon as possible.
Metaverse: The Metaverse is a virtual space where users are able to interact with each other in a computer generated environment.
Micro Caps: A term used to refer to companies with a small market capitalization, often defined as less than $300 million.
Miners: Contributors to a blockchain taking part in the process of mining.
Mining: It is the process of the miners verify and adding transaction recors into a block.


N

Node: Within the blockchain network, the nodes are computers that connect to the network and have an updated copy of the blockchain.
NFT: An acronym for Non-Fungible Token, which is a type of digital asset that is unique and cannot be replicated, often used for digital art, collectibles, and other unique items.
Non-custodial: It is a decentralized type-of-wallet, where the users owns its private keys.


O

Off-chain: Transactions that occur outside of the blockchain network, often used to reduce transaction fees and improve scalability.
Open/Close: The price at which a cryptocurrency opens at a time period, for example at the start of the day; the price at which a cryptocurrency closes at a time period, for example at the end of the day.
Oracles: Third-party services that provide data to smart contracts on a blockchain network, often used to enable decentralized applications and automation.


P

Portfolio: A collection of assets held by an individual or entity, often used to track and manage investments.
PoS: An acronym for Proof of Stake, which is a consensus mechanism used in blockchain networks to validate transactions and create new blocks. It involves staking or locking up a certain amount of cryptocurrency as collateral in order to participate in the consensus process.
PoW: An acronym for Proof of Work, which is a consensus mechanism used in blockchain networks to validate transactions and create new blocks. It involves solving complex mathematical problems that require significant computational power.
Pre-Sale: A sale of tokens or cryptocurrency that occurs before the official launch of a project or token, often used to raise funds and attract early adopters.
Price action: The movement of an asset's price over time, often analyzed by technical analysts in order to identify trends, patterns, and potential trading opportunities.
Privacy Coins: Cryptocurrencies that prioritize privacy and anonymity, often used for transactions that require additional security and confidentiality.
Private Keys: Secret codes used to access and manage cryptocurrency wallets and assets.
Protocol: A set of rules and guidelines used to govern the behavior and interactions of nodes on a blockchain network.
Public Keys: A publicly available code used to receive cryptocurrency and identify wallet addresses.


R

Relative Strength Index (RSI): A popular technical indicator used to analyse financial markets. By charting the current and historical closing prices to evaluate overbought/oversold conditions, RSI oscillates between 0 - 100, with <30 indicating oversold and >70 indicating overbought.
ROI: An acronym for Return on Investment, a measure of the profitability of an investment relative to its cost.

Rug Pull: A scam in which developers abandon a project and run off with the invested funds, often leaving investors with worthless tokens.


S

Satoshi Nakamoto: The pseudonym used by the unknown creator(s) of Bitcoin, the first decentralized cryptocurrency.
Scaling: The process of increasing the capacity of a blockchain network to handle a larger volume of transactions.
Scalping: A trading strategy which aims to make small and frequent profit, with the goal being to generate a substantial return by the end of the day or week.
Second Layer Solutions: Additional layers built on top of a blockchain network to improve scalability, speed, and functionality.
Securities and Exchange Commission (SEC): An independant agency of the US Federal government that oversees federal securities laws, proposing securities rules, and regulating the securities industry.
Seed: A value used to initiate generation of pseudorandom number, ususally a string of 12 commen English words.
Sharding: A technique used to improve scalability on a blockchain network by dividing the network into smaller, more manageable parts.
Shilling: The act of promoting a cryptocurrency or project in a deceptive or exaggerated manner, often for personal gain.
Shitcoin: A coin with no obvious potential value or usage.
Side Chain: A separate blockchain network that is connected to the main blockchain network, often used to enable additional functionality and scalability.
Smart Contract: Self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
Soft Fork: A temporary split in the blockchain network that results in one blockchain.
Stablecoin: A type of cryptocurrency that is designed to maintain a stable value relative to a particular asset or currency, often used to facilitate transactions and store value without the volatility associated with other cryptocurrencies.
Staking: The process of holding and locking up a certain amount of cryptocurrency as collateral in order to participate in the consensus process of a blockchain network and receive rewards in return.
Stop Limit Order: An order to automatically sell an asset if its price falls below a certain level, but only if a certain price is met or exceeded, in order to limit potential losses.
Stop Loss Order: An order to automatically sell an asset if its price falls below a certain level, to limit potential losses.
Swing trade: A trading strategy that involves buying and holding an asset for a short-tomedium-term period of time in order to profit from price swings or trends.


T

Take Profit: This is where you want to sell part of your position at. There are usually 1 - 3 or more TP's but you can also take your profit if you are happy with the number.
Technical Analysis: A method of evaluating assets or markets by analyzing statistical trends, charts, and other quantitative data. Technical analysts use this data to predict future price movements and make trading decisions. Ticker: A symbol or abbreviation used to identify a particular cryptocurrency on an exchange.
Token: A digital asset that represents a unit of value on a blockchain network, often used to represent ownership, access, or rights to use a particular product or service.
Tokenomics: The study of the economics of a particular cryptocurrency or token, including its supply, distribution, demand, and utility. It examines the incentives and mechanisms that drive the value of a token within a blockchain network, and is a key factor in the success and sustainability of a cryptocurrency project.
Token Burn: The process of permanently removing tokens from circulation, often used to reduce inflation and increase the value of remaining tokens.
Token Supply: The total number of tokens that exist for a particular cryptocurrency.
Total Value Locked: Total Value Locked (TVL) represents the number of assets that are currently staked in a protocol or the total quantity of underlying amount of funds that a DeFi protocol has secured.
Trading Volume: The amount of the cryptocurrency that has been traded in the last 24 hours.
Transaction Fee: A small amount of cryptocurrency paid to miners for processing and validating a transaction on a blockchain network.


U

Utility Token: A type of token that is designed to represent a particular utility or function within a blockchain network.


V

Validator: A block-signing participant of a Proof of Stake blockchain network, whom have significant tokens staked on the network.
VC: An acronym for Venture Capital, which refers to a type of private equity investment that is made in early-stage startups with high growth potential. Venture capitalists target projects that are at looking to commercialize their idea. When a project is backed by very reputable VCs, it means that the project has a good possibility of being a great investment opportunity.
Volume: The amount of cryptocurrency traded on an exchange within a specific time period.


W

Wallet: A digital tool or program used to store and manage cryptocurrencies, often including features such as transaction history, balance tracking, and security measures.
Wallet Address: A unique identifier used to send and receive cryptocurrency.
Wash Trade: The act of buying and selling the same asset at the same price in order to create the illusion of trading activity and increase volume.
Watchlist: A list of assets or investments that an individual or entity is monitoring, often used to track potential opportunities and risks.
Whitepaper: A document outlining the concept and technical details of a cryptocurrency or blockchain project.


Y

Yield Farming: A process in which investors provide liquidity to a decentralized finance (DeFi) platform in exchange for rewards and fees.
YTD: An acronym for Year-to-Date, a measure of an asset's performance since the beginning of the current calendar year.