Baiscs of Crypto

101 Crypto Terms and Abbreviations that every beginner should learn

By Project Bee Bee | Project BB | 21 Dec 2022


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. 

  1. Bitcoin - The first and most well-known cryptocurrency, created in 2009 by an anonymous individual or group known as Satoshi Nakamoto.
  2. 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.
  3. Altcoin - Any cryptocurrency other than Bitcoin.
  4. Blockchain - A decentralized, digital ledger that records transactions on multiple computers, providing a secure and transparent record of all transactions.
  5. 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.
  6. Wallet - A digital wallet that stores and manages your cryptocurrency.
  7. ICO - Initial Coin Offering, a fundraising event in which a new cryptocurrency project sells a portion of its tokens to early adopters and investors.
  8. Cryptocurrency exchange - A platform that allows users to buy and sell different cryptocurrencies.
  9. Fiat currency - Government-issued currencies, such as the US dollar, that are not backed by a physical commodity.
  10. 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.
  11. Private key - A secret code used to access and manage a cryptocurrency wallet.
  12. Public key - A code that is publicly available and used to receive cryptocurrency payments.
  13. Cryptography - The science of using codes and ciphers to secure communications and protect data.
  14. 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.
  15. Satoshi - The smallest unit of Bitcoin, equal to 0.00000001 BTC.
  16. Smart contract - A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
  17. Decentralization - The process of distributing power and control away from a central authority, such as a government or corporation.
  18. Distributed ledger - A decentralized database that is shared and replicated across a network of computers.
  19. 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.
  20. 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.
  21. FOMO - Fear Of Missing Out, the feeling of urgency to get in on a potentially profitable opportunity.
  22. HODL - A term used by cryptocurrency investors to describe holding onto their investments for the long term, even during market downturns.
  23. 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.
  24. Whales - Large holders of a particular cryptocurrency, who have the ability to significantly influence the market through their trades.
  25. ATH - All-Time High, the highest price that a cryptocurrency has ever reached.
  26. Bear market - A market characterized by falling prices and negative sentiment.
  27. Bull market - A market characterized by rising prices and positive sentiment.
  28. Bull trap - A false signal that suggests a market is trending upwards, leading to investors buying in only to see prices fall.
  29. Stop loss - A predetermined
  30. REKT - Slang term used to describe a significant financial loss in the cryptocurrency market.
  31. DYOR - Do Your Own Research, a reminder to always thoroughly research a cryptocurrency before investing.
  32. 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.
  33. Airdrop - A marketing strategy in which a company gives away free tokens to its community to promote its cryptocurrency.
  34. FUD - Fear, Uncertainty, Doubt, negative news, or sentiment that can impact the price of a cryptocurrency.
  35. NFT - Non-Fungible Token, a unique digital asset that represents ownership of a specific item, such as art or collectibles.
  36. DeFi - Decentralized Finance, a financial system built on decentralized networks that allow users to access financial services without the need for intermediaries.
  37. Yield farming - The act of holding and staking a cryptocurrency in a decentralized finance platform to earn additional rewards.
  38. Liquidity - The ability of a market to easily buy and sell an asset without significantly affecting the price.
  39. Gas fee - The fee paid to miners for processing transactions on the Ethereum blockchain.
  40. 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.
  41. Scalability - The ability of a blockchain to handle a large number of transactions without experiencing delays or increased fees.
  42. 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.
  43. Lightning Network - A layer-two solution that allows users to make off-chain transactions, reducing the burden on the main blockchain and increasing scalability.
  44. Oracles - Third-party data sources that provide smart contracts with access to external data and events.
  45. Nonce - A random number that is used in the mining process to ensure that each block is unique.
  46. Merkle tree - A data structure used in blockchain technology to verify the integrity of data without the need to store the entire dataset.
  47. SegWit - A soft fork of the Bitcoin blockchain that increases transaction capacity by separating the signature data from the transaction data.
  48. Cold storage - The act of storing cryptocurrency offline in a secure location, such as a hardware wallet or paper wallet.
  49. Hardware wallet - A physical device that stores your cryptocurrency offline, providing an extra layer of security.
  50. Paper wallet - A physical document that stores your cryptocurrency private keys, allowing you to store your cryptocurrency offline.
  51. Elliptic curve cryptography - A type of cryptography used in the creation of digital signatures and the generation of public and private keys.
  52. Byzantine fault tolerance - A term used to describe a distributed system's ability to function correctly despite the presence of faulty nodes.
  53. Proof-of-work - A consensus algorithm used by many cryptocurrencies, in which miners compete to solve complex mathematical problems in order to validate transactions.
  54. 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.
  55. Masternode - A full node that performs additional tasks such as validating transactions and voting on governance decisions in some proof-of-stake cryptocurrencies.
  56. Staking - The act of holding and supporting a cryptocurrency in a proof-of-stake network in order to earn rewards.
  57. Delegated proof-of-stake - A variant of proof-of-stake in which users delegate their voting power to a chosen validator.
  58. Tokenomics - The economic model behind a cryptocurrency, including its supply, demand, and distribution.
  59. Token burn - The process of destroying a fixed number of tokens, reducing the total supply and potentially increasing the value of the remaining tokens.
  60. Token swap - The process of exchanging one cryptocurrency for another, often used to upgrade to a new version of a cryptocurrency.
  61. 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.
  62. 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.
  63. Token blacklisting - The process of preventing specific addresses from participating in certain activities on a blockchain, such as voting or staking.
  64. Token whitelisting - The process of allowing only specific addresses to participate in certain activities on a blockchain, such as ICOs or airdrops.
  65. Dapp - Decentralized application, a software application that runs on a decentralized platform such as Ethereum.
  66. Solidity - A programming language used to build smart contracts on the Ethereum platform.
  67. Web3 - The decentralized web, which utilizes blockchain technology and decentralized protocols to allow users to interact with the internet without the need for intermediaries.
  68. Atomic swap - The process of exchanging one cryptocurrency for another directly, without the need for a third-party exchange.
  69. Governance - The process of making decisions and managing a decentralized network or organization.
  70. Treasury - A fund that is managed by a decentralized organization or project to fund development and other expenses.
  71. DAO - Decentralized Autonomous Organization, a decentralized organization that is governed by its members through smart contracts.
  72. Community governance - The process of making decisions and managing a decentralized network or organization through community participation and voting.
  73. On-chain governance - The process of making decisions and managing a decentralized network or organization through the use of smart contracts and blockchain technology.
  74. Off-chain governance - The process of making decisions and managing a decentralized network or organization through traditional means such as meetings and discussions.
  75. Layer-two solutions - Protocols that operate on top of a blockchain and provide additional functionality, such as increased scalability or privacy.
  76. Sidechain - A separate blockchain that is connected to the main blockchain, allowing for faster and cheaper transactions.
  77. Multisignature - A security feature that requires multiple parties to sign off on a transaction before it can be completed.
  78. Multisignature wallet - A digital wallet that requires multiple parties to sign off on a transaction before it can be completed.
  79. Metamask - A browser extension that allows users to interact with the Ethereum blockchain and use dApps.
  80. Ledger Nano - A hardware wallet that stores cryptocurrency offline and uses a secure element to protect against hacks.
  81. Trezor - A hardware wallet that stores cryptocurrency offline and uses a secure element to protect against hacks.
  82. KeepKey - A hardware wallet that stores cryptocurrency offline and uses a secure element to protect against hacks.
  83. MyEtherWallet - A free, open-source Ethereum wallet that allows users to interact with the Ethereum blockchain and use dApps.
  84. Crypto collectibles - Non-fungible tokens that represent unique digital assets, such as virtual art or in-game items.
  85. NFT marketplaces - Online platforms that allow users to buy and sell non-fungible tokens.
  86. NFT art - Digital artworks that are represented as non-fungible tokens, allowing for unique ownership and verification of authenticity.
  87. NFT gaming - Digital items and assets in video games that are represented as non-fungible tokens, allowing for unique ownership and transferability.
  88. Decentralized finance protocols - Open-source protocols that enable decentralized financial services, such as lending, borrowing, and trading.
  89. DeFi tokens - Cryptocurrencies that are used to power decentralized finance protocols.
  90. DeFi yield farming - The act of providing liquidity to decentralized finance protocols in order to earn rewards in the form of cryptocurrency.
  91. 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.
  92. 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.
  93. 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.
  94. DeFi governance tokens - Cryptocurrencies that give holders the right to participate in the governance and decision-making process of a decentralized finance protocol.
  95. DeFi decentralized exchanges (DEXs) - Cryptocurrency exchanges that operate on a decentralized platform, allowing users to trade directly without the need for a centralized authority.
  96. DeFi lending protocols - Decentralized platforms that allow users to lend and borrow cryptocurrency, often with the use of smart contracts.
  97. DeFi prediction markets - Decentralized platforms that allow users to place bets on the outcome of future events, using cryptocurrency as collateral.
  98. DeFi asset-backed loans - Loans that are secured by cryptocurrency or other digital assets as collateral.
  99. DeFi liquidity mining - The act of providing liquidity to a decentralized exchange in order to earn rewards in the form of cryptocurrency.
  100. DeFi lending aggregators - Decentralized platforms that allow users to compare and choose the best lending rates from multiple decentralized finance protocols.
  101. DeFi derivatives - Cryptocurrency-based financial instruments that derive their value from the performance of an underlying asset, such as futures contracts or options.

 

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Project BB
Project BB

Project BB is my personal mission to believe in and become the best version of myself. In this blog, I will be sharing my journey to learn and master the world of crypto, and my financial freedom journey. Subscribe to the blog if you are interested to learn about the crypto mistakes of a degen investor, the journey from debt to financial freedom, the projects I am studying, and more.

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