0x Protocol
A decentralized exchange infrastructure protocol (DEX) with a native ZRX token based on the Ethereum blockchain network.
51% Attack
A situation in which a single group controls 51% or more of the mining power on the blockchain network, creating fertile ground for potential manipulation.
Airdrop
The act of sending assets to users’ wallets for free, usually as part of a marketing campaign.
Altcoin
Any cryptocurrency that is not Bitcoin, i.e., alternatives to BTC, such as Ethereum, Solana, Monero, etc. However, Ethereum is often treated as a distinct category nowadays, given its scale and smart-contract functionality.
All-time high/all-time low
Two self-explanatory terms that refer to the historically highest and lowest prices of an asset on the market or exchange.
Anti-dumping rules
Policies designed to protect investors from the destabilizing effects of the sudden “dumping” of a lot of tokens, sometimes intentionally to manipulate prices.
Arbitrage
The act of exploiting token price differences in markets to earn money by buying assets in one market and selling them in another.
Asset-backed tokens
Tokens or cryptocurrencies backed by fiat currencies, precious metals, or commodities, such as fiat-backed stablecoins.
Bagholder
A person holding crypto assets, particularly underperforming ones. “Bags” is a colloquial term that refers to the portfolio of tokens and coins.
Baiting
The practice of promising individuals financial gain, while the goal is to lure them in and defraud them. In crypto, it refers to scam tactics such as fake airdrops or phishing links promising free tokens, used to steal wallet credentials or private keys.
Bear market
A type of market where asset prices drop significantly, often over a longer period. The opposite is a bull market.
Bear Trap
A situation where investors who are under the impression that an asset will continue to decrease in value decide to sell. However, as the market recovers, it becomes evident that they have made the wrong decision.
Binancian
A person who is active on the Binance cryptocurrency exchange and participates in the Binance community.
Bitcoin (BTC)
The original cryptocurrency. Created in January 2009, Bitcoin implemented Proof of Work (PoW) consensus technology in decentralized blockchain networks. It still is the dominant cryptocurrency when it comes to investor appeal.
Bitcoin ATM (BTM)
An ATM or a physical kiosk that allows users to buy and sell BTC. Any Bitcoin ATMs also support other cryptocurrencies, such as Ethereum and Litecoin.
Bitcoin Cash (BCH)
A hard fork of the Bitcoin network designed specifically to facilitate faster and more cost-effective digital currency payments in everyday transactions.
Bitcoin network
A decentralized peer-to-peer network where users can transfer BTC without intermediaries.
Block
A collection of data that is part of the blockchain, where transaction information is cryptographically linked.
Blockchain
A decentralized ledger where transactions are verified by a peer-to-peer computer network, and data is transparently recorded in cryptographically linked blocks.
Block confirmation
The number of blocks added to the blockchain after the block with the transaction.
Block reward
The reward given to crypto miners for successfully mining and validating transactions/blocks.
Blockchain bridge
A protocol that facilitates the transfer of assets and connects two separate blockchain networks.
Bull market
A market where asset prices are on an upward trajectory for an extended period.
Buy the dip
A phrase used to encourage investors to buy after a price drop and while asset prices are comparatively lower than before, anticipating that they would soon rise again.
Byzantine generals’ problem
An expression that denotes the difficulty of reaching a consensus in a distributed system where it is not clear whether all actors can be trusted or are reliable.
Candlestick
Charting elements used to indicate open, high, low, and close (OHLC) prices on a graph over a period of time.
Central bank digital currency (CBDC)
A digital currency issued by a central banking authority, as opposed to a decentralized cryptocurrency or blockchain-based asset.
Circulating supply
The total number of coins that are circulating in the market and are publicly available.
Cloud mining
The process of purchasing cloud computing resources and entering into contractual agreements with third-party mining providers to rent mining power without the buyer owning the mining equipment.
Chain migration
The process of blockchain projects moving all or parts of their services and products to a new chain.
Coin mixer
A privacy-enhancing service that enables the mixing of cryptocurrency funds of many users to make it difficult to track transactions. Also known as tumblers.
Coinbase
A US-based cryptocurrency exchange and one of the largest crypto exchange platforms globally. It was founded by Brian Armstrong and Fred Ehrsam in 2012.
Collateralization
The process of backing one asset with another one; it is often used in loans and stablecoins to ensure repayment.
Cold storage
Offline storage of crypto assets to reduce the risks of hacking. Opposite of hot storage, which refers to wallets connected to the internet.
Cold wallet
A wallet set up in an offline environment, e.g., a paper or hardware wallet.
Confirmation time
The time it takes for transactions to be included in blocks and confirmed.
Consensus mechanism
An algorithm, such as Proof of Work (PoW) or Proof of Stake (PoS), that helps network participants agree on which blocks are valid and should be included on the blockchain.
Cryptocurrency
A digital asset that serves as a medium of exchange, where transactions are recorded on a distributed ledger and secured by cryptography.
Cryptocurrency address
A sequence of alphanumeric characters that identifies a unique wallet or exchange and serves as a destination for crypto funds. It is often available as a scannable QR code.
Cryptocurrency exchange
A platform where users can buy, sell, and trade crypto assets. Crypto exchanges can be either centralized or decentralized.
Cryptography
The technology that is used to encrypt, hash, authenticate, verify, and decrypt information using mathematical calculations.
Crypto wallet
A wallet that stores the public and private keys and allows users to send and receive cryptocurrency. Wallets can be digital or physical. They can be connected to the internet (hot wallets) or offline (cold wallets). Lastly, non-custodial wallets are those in which private keys are managed by the user, whereas in custodial wallets, private keys are controlled by a third party.
Custody
Keeping assets on someone else’s behalf. In terms of crypto, it refers to who controls private keys, self-custody as opposed to third-party custody.
Daemon
A program that is typically automatically initiated on startup on Unix-based (Linux, macOS) systems and, equivalent to Windows Services, continuously runs in the background and performs certain tasks.
Dead cat bounce
A short-lived price recovery of an asset that has been declining for a long time, only to return to a downtrend.
Decentralized application (dApp)
An application that utilizes blockchain technology and smart contracts to enable users to freely connect to and transact on a peer-to-peer network, without requiring a centralized authority.
Decentralized autonomous organization (DAO)
A decentralized organization set up on the blockchain that uses open-source code and is smart-contract governed, where the decision-making process is community-driven.
Decentralized Finance (DeFi)
The financial sector on the blockchain. A set of financial services that facilitate anything from decentralized transactions and lending to insurance and staking without intermediaries.
Degen
An informal term referring to the mindset of a high-risk individual who invests in crypto without doing any research and due diligence, often compared to gambling.
Directed Acyclic Graph (DAG)
A distributed ledger network where transactions are connected in a directed acyclic graph rather than blocks, allowing for multiple transactions to be validated at the same time, often resulting in lower transaction fees.
Distributed Ledger Technology (DLT)
A shared-ledger system without a central authority that allows for the distribution of transactions and data records and their synchronized replication across multiple nodes in a decentralized network.
Double spending
Reusing the same token twice, often on crypto exchanges, by people with fraudulent intentions. Consensus mechanisms are designed to prevent double-spending.
Do Your Own Research (DYOR)
A piece of advice, given to investors and urging them to do their own research on coins before investing, instead of listening to what others say.
Ethereum Virtual Machine (EVM)
A virtual machine on which Ethereum blockchain nodes run and where smart contracts are executed.
Emission
The process of minting new coins and the issuance rate, determined by the underlying protocol.
Encryption
An algorithm-driven process of converting data into ciphertext to reduce the risk of unauthorized access.
ERC-20
A technical standard for fungible tokens on the Ethereum network.
Exchange Traded Fund (ETF)
A financial product that holds underlying assets, such as cryptocurrency, commodities, stocks, or bonds, and can be traded as a stock on an exchange.
Fear of Missing Out (FOMO)
The feeling that you might be letting a profitable investment opportunity slip away because of not participating.
Fiat-pegged cryptocurrency
A cryptocurrency that is backed by a fiat currency at a 1:1 ratio, also known as a stablecoin. Examples include USDT and USDC.
Frontrun
An unethical practice or market manipulation that involves exploiting pending transaction information before a swap, trade, or NFT launch to gain an edge and profit.
Gas fees
Transaction fees are required for the Ethereum ecosystem to function and are charged to users for processing transactions and executing smart contracts, serving as a reward for validators (or miners in Proof-of-Work networks).
Genesis block
The genesis block (Block 0) is the first block hardcoded into a blockchain. Unlike subsequent blocks, it is not created through standard mining validation, and its coinbase output is unspendable.
Governance
The decentralized and distributed system that manages blockchain network rules, integrity, and decision-making.
Graphical Processing Unit (GPU)
A specialized hardware component that enables the processing of simultaneous and intensive computations.
Gwei
A denomination of ether (ETH). One Gwei is one billionth of an ETH (0.000000001 ETH). Gas fees are often expressed in gwei.
Halving
The reduction in mining reward of PoW cryptocurrencies, such as Bitcoin, to half the previous amount. Bitcoin halving occurs in nearly four-year intervals.
Hash
The product of hashing. A hash is a fixed-length sequence used to verify the integrity of data.
Impermanent loss
A volatility-caused loss of value between token pairs in liquidity pools governed by automated market makers (AMMs) and open market assets, i.e., the difference in value between assets in an AMM pool and a wallet.
Initial Coin Offering (ICO)
Similar to an Initial Public Offering (IPO), an Initial Coin Offering (ICO) is the process of a cryptocurrency company or a blockchain project selling tokens to investors to raise funds. Though unlike IPOs, ICOs are largely unregulated, and tokens do not typically represent equity.
IYKYK
An abbreviation for the phrase “if you know, you know” to imply cultural knowledge or inside jokes as references to people who are “in the know” and will recognize what the speaker is referring to.
JOMO
An abbreviation that stands for the phrase “joy of missing out,” with the crypto slang term often used to refer to feeling content not to have participated in a crypto-related activity or be affected by its outcome.
Know Your Customer (KYC)
A verification procedure performed by companies and exchanges to confirm the identity and residence of a customer and ensure the data they provide matches official, government-issued documentation, such as passports and driver’s licenses.
Layer-0 blockchain
The foundation layer that supports blockchains, Layer 0, is the base that enables the interoperability between Layer-1 networks.
Layer-1 blockchain
The main blockchain network that independently processes transactions using consensus mechanisms.
Layer-2 scaling solution
A protocol built on the Layer-1 blockchain designed as a scaling solution for off-chain processing, making crypto transactions faster and more cost-effective.
Lightning Network
A Layer-2 scaling solution designed for Bitcoin that facilitates a higher number of transactions off the main blockchain, recording only the opening and closing ones on-chain, thus reducing congestion and network fees.
Limit order
An order placed on an exchange where investors put a maximum buy and a minimum sell limit on an asset. The order remains unfulfilled until the conditions are right; the market price reaches the limit price or is more favorable to the investor.
Mainnet
A fully developed blockchain protocol that runs on its own network, where transactions are processed and recorded.
Margin trading
The act of trading with borrowed funds from a broker or an exchange that allows traders to use leverage by posting collateral.
Market cap
Short for market capitalization, market cap refers to the total value of a cryptocurrency. It is calculated by multiplying the value of one coin by the total number of tokens in circulation.
Memecoin
Digital coins that originated as a joke or are inspired by internet memes, such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE).
Miners
Vital contributors in the process of transaction validation and recording, miners are a key component in the Proof-of-Work consensus mechanism.
Mining
The process of recording transactions and validating them by using computing power, during which miners are rewarded with newly minted coins.
Network congestion
A period of slower transaction processing due to a high volume of traffic or malicious attacks.
Node
A blockchain network participant, i.e., a computer running blockchain software, which is a key component of the distributed ledger system, as it either verifies or observes transactions.
Non-custodial wallet
A crypto wallet, where private keys are controlled by the wallet owner, i.e., the user.
Non-Fungible Token (NFT)
A unique cryptographic token associated with digital ownership that is not interchangeable on a 1:1 basis, as opposed to fungible cryptocurrencies, where 1 BTC owned by one person has the same value as 1 BTC owned by someone else.
Nonce
Short for “number only used once,” a nonce is an integer added to the block data and varied until a valid hash is produced.
Off-chain transactions
Transactions that take place outside the mainnet, typically on Layer-2 solutions, for scalability purposes.
On-chain transactions
Transactions that are recorded on the primary blockchain network, the mainnet.
Oracle
A centralized or decentralized supplier of real-world data to smart contracts, allowing for the execution of predetermined logic to produce outcomes.
Paper wallet
A piece of paper on which private and public keys, as well as wallet addresses, are written down as a method of offline storage.
Parent chain
A main blockchain network, typically a Layer-1 mainnet, on which subchains are built and operate.
Passphrase
A random sequence of words that allows users to enter an account and reduces the risk of unauthorized access.
Payment rail
A transaction channel or payment infrastructure that allows users to transfer money between bank accounts, cards, e-wallets, blockchain addresses, merchants, or exchanges.
Peer to peer
A decentralized network architecture where nodes interact with each other on an equal footing, sharing network functionalities and resources without intermediaries.
Private keys
Alphanumeric strings that are only known by the owner of the cryptocurrency wallet, allowing them to access and control their crypto funds.
Proof of Stake (PoS)
A widely used blockchain consensus mechanism that assigns block validation to participants based on the amount of tokens they have staked.
Proof of Work (PoW)
A blockchain consensus mechanism used in the Bitcoin network, where block validation is performed through mining. Miners use electricity and computing resources to solve complex mathematical puzzles, validate data, and create new blocks.
Public blockchain network
The term public blockchain refers to a decentralized and permissionless system that can be used by anyone, as opposed to private and centralized networks, where special permissions or access are required.
Public keys
Alphanumeric sequences are shared with others so that funds can be sent to a user’s wallet. Wallet addresses are derived from public keys. To access funds, though, wallet owners need their private keys.
Pump and dump
An unethical and often coordinated practice by investors, where prices of assets are artificially made higher by buying large amounts of coins (pumping the price) and hyping up the asset, before selling large quantities (dumping it) at a profit, causing the token value to crash.
QR code
A scannable black and white pattern that can be read by machines, which is often used in crypto transactions as an additional method of sending money to a crypto wallet, where users have the option to scan the QR code or copy and paste the wallet address.
Quantum bit (Qubit)
The basic unit of quantum information, similar to a binary bit, but can exist in a superposition, i.e., both 0 and 1, used in quantum computing to represent quantum states.
Quantum computing
A computation model that uses Qubits, which can exist in superposition of 0 and 1 and entangled states, enabling more efficient problem solving than traditional computer systems for specific types of problems.
Race attack
An unethical attempt to make what would otherwise be considered conflicting payments by using the same funds and sending in multiple transactions in quick succession, with only one being confirmed on the blockchain. In doing so, individuals aim to get a product, service, or make a financial gain by tricking the merchant into accepting a transaction that is not blockchain-confirmed.
Ransomware
A malicious attack performed by a malevolent actor on a computer system, where the user’s personal information is stolen, or data is locked/encrypted, preventing access until money or information is extorted.
REKT
A crypto jargon term used to indicate that someone is “wrecked” and has suffered a significant financial loss after making a bad trade.
Replay attack
The act of intercepting the transmission of data to be reused by a fraudulent party or to mislead the sender.
Ring signature
A mechanism used to hide the details and identities of the participants in a transaction using a signature algorithm that mixes the signer with a group of possible signers.
ROI
An abbreviation for “Return on Investment,” ROI represents the profitability of an investment by comparing the net profit to the cost of investing.
Rug Pull
A scam where a crypto project goes live and is hyped up by the founders or people around them, only for them to suddenly abandon the project and disappear with investors’ funds.
Sandwich trading
A 3-step manipulation strategy that involves frontrunning and trading. In step one, the malevolent actor places a buy order. In step 2, the victim makes the trade, and immediately after, in step 3, the fraudster places a sell order, profiting from the change in price.
Satoshi Nakamoto
The pseudonym used by the anonymous creator(s) of Bitcoin, who published the Bitcoin whitepaper in October 2008 and launched the network in January 2009.
Satoshis
The smallest divisible unit of BTC. There are 100 million satoshis in 1 BTC.
Scalp trader
A person who rapidly enters and leaves trading positions to benefit from small price variations.
Seed Phrase
A sequence of 12 to 24 words used to create or restore a crypto wallet and functions as the backup solution for private keys if lost.
Sell wall
The limiting of upward price movement caused by a substantial sell order being placed at a particular price so that further price growth is effectively stalled.
SHA-256
A cryptographic hash function that is short for “Secure Hash Algorithm – 256,” enabling a one-directional hashing of information. It is used in the Proof-of-Work consensus mechanism to generate data hash and compute block hashes.
Sharding
The act of partitioning networks and splitting data and processing loads so that computational storage is redistributed across shards. This is often done with the goal of boosting throughput, increasing scalability, and resulting in faster transaction speeds across the network.
Shilling
An unethical form of advertising by creating artificial hype through aggressive promotion by paid actors, influencers, or crypto community members, with the ultimate goal of inflating price or demand.
Sidechains
Secondary blockchain protocol offshoots that are connected to the mainnet, facilitating the transfer of data between the main chain and themselves. Sidechains are typically designed to enable faster confirmation times and lower fees, or used to test features.
Smart contracts
Self-executing and autonomous code executed by a blockchain and governed by predetermined conditions. Smart contracts reinforce the decentralization and transparency aspects of the blockchain system by enabling the reliable execution of agreements and procedures.
Stablecoin
A cryptocurrency that is pegged to a fiat currency or equivalent fiat-based assets on a 1:1 ratio. Stablecoins reduce the risk of volatility and market fluctuations.
Stagflation
A period of economic downturn during which prices of goods and services are on an upward trajectory, with the effects of inflation compounded by people’s spending power being in decline, the high levels of unemployment, and a lack of economic growth. Stagflation often drives investors toward or away from risk assets like cryptocurrency.
Staking
The act of committing a certain amount of tokens to support network operations or become a Proof-of-Stake network validator and earn rewards as a result.
Symmetric key cryptography
A type of cryptographic mechanism that encrypts and decrypts information through a single key.
Taker
A person who submits an order that is matched to an existing order instantly.
Tamper-proof
A blockchain characteristic that ensures the data stored on the blockchain is immutable and cannot be censored or manipulated.
Testnet
Mainnet test networks that replicate the conditions of the main chain, where features and functionalities can be simulated without affecting the mainnet.
Token
A blockchain unit created via smart contracts, through predefined mechanisms, or issued by an organization as a digital asset that network participants can hold, buy, sell, or trade.
Total supply
The total number of coins or tokens that exist, as opposed to only those in circulation on the market. The total supply includes the coins/tokens already issued, in circulation, and reserved. It does not include coins that have yet to be mined or issued in the future.
Trustless
The characteristic of a system or network where participants don’t need oversight from a central authority or a third party, as transactions are executed and verified through cryptographic and consensus mechanisms on a decentralized network.
Unbanked
Used to refer to people who don’t have bank accounts and use cryptocurrencies or other payment methods outside traditional banking systems to make transactions in the absence of bank cards and bank transfers.
Unspent Transaction Output (UTXO)
The transaction output that remains unspent after a transaction has been made until it is used at a later point for future transactions.
Utility token
A token that provides those who hold it access to blockchain-based products and services and is spent within the network it originated from.
Validator
A Proof-of-Stake blockchain network participant that validates transactions and secures the network by staking a sufficient amount of tokens.
Venture capital
The pooled funds are invested in a company through private equity financing in the early and growth stages.
Volatility
A measure that denotes the speed and the degree to which the price of assets changes, calculated using asset return formulas over a period of time.
Volume
The amount that was traded of a particular cryptocurrency or token in a market for a set period of time.
Wallet
The cryptocurrency wallet is a tool where users’ private and public keys are stored. It is used to send and receive transactions and can be physical or digital. Wallets connected to the internet are referred to as “hot,” while those held offline are “cold.” Custodial wallets are those where a third party controls private keys, while the user possesses private keys in non-custodial ones.
Weak hands
A term that describes traders lacking the confidence to persevere with their investment strategy and who don’t follow through on their initial plans to hold on to their assets.
Wei
The smallest fraction of Ether (ETH). 1 ETH is equivalent to 1,000,000,000,000,000,000 wei.
Whale
A high-volume trader that holds a large amount of crypto assets and has the power to influence market movements with high-value blockchain transactions.
Whitepaper
A paper that elaborates on a proposal or product in a particular industry, or, as in the case with blockchains, outlines the protocol structure, economics, and funding process of a digital assets project.
Yield Farming
In the context of DeFi, yield farming is the practice of depositing or locking crypto assets in DeFi protocols to earn rewards by lending interest, liquidity mining, or collecting trading fees.
Zero-knowledge proofs (ZKPs)
Cryptographic assurances that verify statements or computations without disclosing specific details about them.
