I started my Crypto journey in the August of 2021. In the next few months, crypto went to all-time heights. I made most of my investments during that period, leading to a huge loss of around 85-90% of my capital. A costly lesson!
Now here I am publishing a list of 101 crypto terms and abbreviations that every beginner in the crypto space shall know about.
- Bitcoin - The first and most well-known cryptocurrency, created in 2009 by an anonymous individual or group known as Satoshi Nakamoto.
- Ethereum - A decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference.
- Altcoin - Any cryptocurrency other than Bitcoin.
- Blockchain - A decentralized, digital ledger that records transactions on multiple computers, providing a secure and transparent record of all transactions.
- Mining - The process of verifying and adding transactions to the blockchain, in which miners compete to solve complex mathematical problems and are rewarded with a small amount of cryptocurrency for their efforts.
- Wallet - A digital wallet that stores and manages your cryptocurrency.
- ICO - Initial Coin Offering, a fundraising event in which a new cryptocurrency project sells a portion of its tokens to early adopters and investors.
- Cryptocurrency exchange - A platform that allows users to buy and sell different cryptocurrencies.
- Fiat currency - Government-issued currencies, such as the US dollar, that are not backed by a physical commodity.
- Market cap - The total value of all the cryptocurrency in circulation, calculated by multiplying the price of a single coin by the total number of coins in circulation.
- Private key - A secret code used to access and manage a cryptocurrency wallet.
- Public key - A code that is publicly available and used to receive cryptocurrency payments.
- Cryptography - The science of using codes and ciphers to secure communications and protect data.
- Hash function - A mathematical function that takes an input and produces a fixed-size output (known as a hash), used to secure and verify the integrity of data.
- Satoshi - The smallest unit of Bitcoin, equal to 0.00000001 BTC.
- Smart contract - A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
- Decentralization - The process of distributing power and control away from a central authority, such as a government or corporation.
- Distributed ledger - A decentralized database that is shared and replicated across a network of computers.
- Hard fork - A change to the cryptocurrency's software that creates a permanent split in the blockchain, resulting in two separate versions of the cryptocurrency.
- Soft fork - A change to the cryptocurrency's software that is backward-compatible with the previous version, allowing both versions to coexist on the same blockchain.
- FOMO - Fear Of Missing Out, the feeling of urgency to get in on a potentially profitable opportunity.
- HODL - A term used by cryptocurrency investors to describe holding onto their investments for the long term, even during market downturns.
- Pump and dump - A fraudulent scheme in which a group of individuals artificially inflate the price of a cryptocurrency through false or misleading statements, and then sell off their holdings once the price has reached a peak.
- Whales - Large holders of a particular cryptocurrency, who have the ability to significantly influence the market through their trades.
- ATH - All-Time High, the highest price that a cryptocurrency has ever reached.
- Bear market - A market characterized by falling prices and negative sentiment.
- Bull market - A market characterized by rising prices and positive sentiment.
- Bull trap - A false signal that suggests a market is trending upwards, leading to investors buying in only to see prices fall.
- Stop loss - A predetermined
- REKT - Slang term used to describe a significant financial loss in the cryptocurrency market.
- DYOR - Do Your Own Research, a reminder to always thoroughly research a cryptocurrency before investing.
- STO - Security Token Offering, a fundraising event in which a company sells tokens that represent ownership in the company or a share of its profits.
- Airdrop - A marketing strategy in which a company gives away free tokens to its community to promote its cryptocurrency.
- FUD - Fear, Uncertainty, Doubt, negative news, or sentiment that can impact the price of a cryptocurrency.
- NFT - Non-Fungible Token, a unique digital asset that represents ownership of a specific item, such as art or collectibles.
- DeFi - Decentralized Finance, a financial system built on decentralized networks that allow users to access financial services without the need for intermediaries.
- Yield farming - The act of holding and staking a cryptocurrency in a decentralized finance platform to earn additional rewards.
- Liquidity - The ability of a market to easily buy and sell an asset without significantly affecting the price.
- Gas fee - The fee paid to miners for processing transactions on the Ethereum blockchain.
- Sharding - A technique used to increase the scalability of a blockchain by dividing it into smaller units (called shards) that can be processed in parallel.
- Scalability - The ability of a blockchain to handle a large number of transactions without experiencing delays or increased fees.
- 51% attack - A type of cyber attack in which a group of miners controls more than 50% of the mining power on a blockchain, allowing them to censor or reverse transactions.
- Lightning Network - A layer-two solution that allows users to make off-chain transactions, reducing the burden on the main blockchain and increasing scalability.
- Oracles - Third-party data sources that provide smart contracts with access to external data and events.
- Nonce - A random number that is used in the mining process to ensure that each block is unique.
- Merkle tree - A data structure used in blockchain technology to verify the integrity of data without the need to store the entire dataset.
- SegWit - A soft fork of the Bitcoin blockchain that increases transaction capacity by separating the signature data from the transaction data.
- Cold storage - The act of storing cryptocurrency offline in a secure location, such as a hardware wallet or paper wallet.
- Hardware wallet - A physical device that stores your cryptocurrency offline, providing an extra layer of security.
- Paper wallet - A physical document that stores your cryptocurrency private keys, allowing you to store your cryptocurrency offline.
- Elliptic curve cryptography - A type of cryptography used in the creation of digital signatures and the generation of public and private keys.
- Byzantine fault tolerance - A term used to describe a distributed system's ability to function correctly despite the presence of faulty nodes.
- Proof-of-work - A consensus algorithm used by many cryptocurrencies, in which miners compete to solve complex mathematical problems in order to validate transactions.
- Proof-of-stake - A consensus algorithm used by some cryptocurrencies, in which validators are chosen to validate transactions based on the amount of cryptocurrency they hold.
- Masternode - A full node that performs additional tasks such as validating transactions and voting on governance decisions in some proof-of-stake cryptocurrencies.
- Staking - The act of holding and supporting a cryptocurrency in a proof-of-stake network in order to earn rewards.
- Delegated proof-of-stake - A variant of proof-of-stake in which users delegate their voting power to a chosen validator.
- Tokenomics - The economic model behind a cryptocurrency, including its supply, demand, and distribution.
- Token burn - The process of destroying a fixed number of tokens, reducing the total supply and potentially increasing the value of the remaining tokens.
- Token swap - The process of exchanging one cryptocurrency for another, often used to upgrade to a new version of a cryptocurrency.
- Token vesting - The process of releasing tokens to their owners over a fixed period of time, rather than all at once, to encourage long-term holding and discourage dumping.
- Token lockup - The process of preventing tokens from being sold or transferred for a fixed period of time, often to prevent market manipulation or to ensure the token's value is not immediately diluted.
- Token blacklisting - The process of preventing specific addresses from participating in certain activities on a blockchain, such as voting or staking.
- Token whitelisting - The process of allowing only specific addresses to participate in certain activities on a blockchain, such as ICOs or airdrops.
- Dapp - Decentralized application, a software application that runs on a decentralized platform such as Ethereum.
- Solidity - A programming language used to build smart contracts on the Ethereum platform.
- Web3 - The decentralized web, which utilizes blockchain technology and decentralized protocols to allow users to interact with the internet without the need for intermediaries.
- Atomic swap - The process of exchanging one cryptocurrency for another directly, without the need for a third-party exchange.
- Governance - The process of making decisions and managing a decentralized network or organization.
- Treasury - A fund that is managed by a decentralized organization or project to fund development and other expenses.
- DAO - Decentralized Autonomous Organization, a decentralized organization that is governed by its members through smart contracts.
- Community governance - The process of making decisions and managing a decentralized network or organization through community participation and voting.
- On-chain governance - The process of making decisions and managing a decentralized network or organization through the use of smart contracts and blockchain technology.
- Off-chain governance - The process of making decisions and managing a decentralized network or organization through traditional means such as meetings and discussions.
- Layer-two solutions - Protocols that operate on top of a blockchain and provide additional functionality, such as increased scalability or privacy.
- Sidechain - A separate blockchain that is connected to the main blockchain, allowing for faster and cheaper transactions.
- Multisignature - A security feature that requires multiple parties to sign off on a transaction before it can be completed.
- Multisignature wallet - A digital wallet that requires multiple parties to sign off on a transaction before it can be completed.
- Metamask - A browser extension that allows users to interact with the Ethereum blockchain and use dApps.
- Ledger Nano - A hardware wallet that stores cryptocurrency offline and uses a secure element to protect against hacks.
- Trezor - A hardware wallet that stores cryptocurrency offline and uses a secure element to protect against hacks.
- KeepKey - A hardware wallet that stores cryptocurrency offline and uses a secure element to protect against hacks.
- MyEtherWallet - A free, open-source Ethereum wallet that allows users to interact with the Ethereum blockchain and use dApps.
- Crypto collectibles - Non-fungible tokens that represent unique digital assets, such as virtual art or in-game items.
- NFT marketplaces - Online platforms that allow users to buy and sell non-fungible tokens.
- NFT art - Digital artworks that are represented as non-fungible tokens, allowing for unique ownership and verification of authenticity.
- NFT gaming - Digital items and assets in video games that are represented as non-fungible tokens, allowing for unique ownership and transferability.
- Decentralized finance protocols - Open-source protocols that enable decentralized financial services, such as lending, borrowing, and trading.
- DeFi tokens - Cryptocurrencies that are used to power decentralized finance protocols.
- DeFi yield farming - The act of providing liquidity to decentralized finance protocols in order to earn rewards in the form of cryptocurrency.
- DeFi stablecoins - Cryptocurrencies that are pegged to the value of a real-world asset, such as the US dollar, in order to provide stability and reduce volatility.
- DeFi margin trading - The act of borrowing cryptocurrency in order to trade with leverage, allowing for the potential of greater profits but also increased risk.
- DeFi liquidity pools - Pools of cryptocurrency that are provided by users in exchange for a share of the trading fees and any price appreciation of the underlying asset.
- DeFi governance tokens - Cryptocurrencies that give holders the right to participate in the governance and decision-making process of a decentralized finance protocol.
- DeFi decentralized exchanges (DEXs) - Cryptocurrency exchanges that operate on a decentralized platform, allowing users to trade directly without the need for a centralized authority.
- DeFi lending protocols - Decentralized platforms that allow users to lend and borrow cryptocurrency, often with the use of smart contracts.
- DeFi prediction markets - Decentralized platforms that allow users to place bets on the outcome of future events, using cryptocurrency as collateral.
- DeFi asset-backed loans - Loans that are secured by cryptocurrency or other digital assets as collateral.
- DeFi liquidity mining - The act of providing liquidity to a decentralized exchange in order to earn rewards in the form of cryptocurrency.
- DeFi lending aggregators - Decentralized platforms that allow users to compare and choose the best lending rates from multiple decentralized finance protocols.
- DeFi derivatives - Cryptocurrency-based financial instruments that derive their value from the performance of an underlying asset, such as futures contracts or options.