Crypto Glossary
Learn all of the most important blockchain and cryptocurrency terms and jargon here.
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Glossary A to Z
24H Change
24H Change, which is short for ‘24-Hour Change’, shows the percentage price difference of a cryptocurrency or non-fungible token (NFT) in the market over a 24-hour time frame.
24H Volume
24H Volume shows the number of a cryptocurrency’s tokens traded over a 24-hour time frame.
51% Attack
A 51% attack happens when an individual or group with malicious intent controls more than 50% of a network’s mining hashrate.
7D
7D, short for seven days, refers to price data that has been collected for a cryptocurrency over a 7-day period.
Advanced Encryption Standard (AES)
Advanced Encryption Standard (AES) is a widely used encryption algorithm established by the US National Institute of Standards and Technology (NIST) in 2001 and designed to secure sensitive data.
Airdrop
An airdrop is the distribution of cryptocurrency tokens or coins, usually unsolicited and for free, to multiple wallet addresses.
All-Time High (ATH)
Short for ‘all-time high’, ATH refers to the historically highest price in market capitalisation of an asset.
Alpha
Crypto 'alpha' refers to a piece of information that is new or not common knowledge and has the potential to give a trader an edge in the market. In some circles, it is also a metric that measures how successful an investment is in outperforming the market.
Altcoin
Any cryptocurrency other than Bitcoin is referred to as an altcoin.
Anti-Money Laundering (AML)
Anti-money laundering (AML) refers to the procedures, laws, regulations, and any other tools intended to prevent money laundering.
Anti-Phishing Code
An Anti-Phishing Code is a security feature to help protect from phishing attacks, where users can verify the authenticity of communications they receive, particularly via email.
Apeing
Apeing is an internet slang term referring to traders who buy a token shortly after its launch or after discovering it without doing any firsthand or in-depth research.
Application Programming Interface (API)
API, short for Application Programming Interface, is a way for computer or software applications to communicate with each other.
Arbitrage
Arbitrage is a trading strategy in which a digital asset is bought in one market and sold in another to exploit the price difference for a profit.
Artificial Intelligence (AI)
Artificial intelligence (AI) is a branch of computer science that enables machines to perform tasks that typically require human intelligence, using techniques like machine learning (ML), neural networks, and deep learning to analyse large datasets and learn from them.
Ascending Wedge
An ascending wedge is a bearish chart pattern characterised by two converging trendlines that slope upwards.
Asynchronous Byzantine Fault Tolerance (ABFT)
Asynchronous Byzantine Fault Tolerance (ABFT) allows honest nodes in a network to agree on the timing and order of transactions.
Automated Market Maker (AMM)
Automated Market Makers (AMMs) are a way to provide liquidity to a cryptocurrency exchange via automated trading.
Average Price (7D)
Average Price (7D) shows the average price paid for non-fungible tokens (NFTs) in a collection over a seven-day period.
Backward Compatibility
Backward compatibility is the ability of a new version or update of a blockchain protocol or software to interact seamlessly with older versions of the same protocol.
Bagholder
Bagholders are individuals who do not sell their assets, even if the price significantly drops or ends up at zero.
Bank Run
A bank run occurs when many customers withdraw their funds from a bank due to concerns about the bank's insolvency or bankruptcy.
Bear Market
A cryptocurrency bear market describes when the market experiences a decline of at least 20% from recent highs.
Bear Trap
A bear trap is a term that defines a group of traders or an individual who tries to manipulate a cryptocurrency’s price.
BEP-20
BEP-20 is a token standard for the BNB Smart Chain.
Biometric Authentication
Biometric authentication uses forms like fingerprints, facial/voice recognition, or iris scans to verify the identity of users.
Bitcoin
Bitcoin is the first decentralised digital currency, created by an unknown person or group of people using the name Satoshi Nakamoto.
Bitcoin ETF
Bitcoin exchange-traded funds (ETFs) track the value of Bitcoin, providing traders with an opportunity to gain exposure to Bitcoin through traditional stock market exchanges.
Bitcoin Halving
Bitcoin halving occurs when the rewards for mining new blocks are halved after every 210,000 blocks of verified transactions.
Bitcoin Pizza
Bitcoin Pizza refers to the well-known Bitcoin transaction in 2010 involving the purchase of two pizzas for 10,000 BTC.
Block
A block in a blockchain is a dataset that contains transactions and other important information.
Block Producer
A block producer is an entity responsible for generating and validating new blocks in a blockchain network.
Block Reward
A block reward is a form of incentive provided to miners or validators for successfully adding a new block to the blockchain.
Blockchain
Blockchain is a decentralised and immutable digital ledger that is distributed across an entire peer-to-peer (P2P) network using cryptography.
Blockchain Interoperability
Blockchain interoperability refers to the ability of different blockchains to communicate with each other, enabling the seamless transfer of information and assets across distinct blockchains.
Blockchain Oracle
Oracles allow blockchains to connect to things externally, allowing smart contracts to interact and make decisions based on inputs and outputs from the real world.
Blockchain Trilemma
The blockchain trilemma refers to a common problem that all networks currently face, where they can only optimally provide two out of the following three benefits: decentralisation, scalability, and security.
Bollinger Band
A Bollinger Band is an indicator used in technical analysis that tracks an asset and gives traders insight into whether it is oversold or overbought.
Bonding
Bonding is the act of a user locking their digital assets to someone else’s validator node for it to begin working.
BRC-20
BRC-20 is a fungible token standard for the Bitcoin blockchain, enabling developers to create and transfer fungible tokens using the Ordinals protocol.
Breakout
In cryptocurrency trading, a breakout occurs when the price of a digital asset moves above a specific resistance level or below a support level with increased volume.
Bridge
Bridges are points that allow users to move between two different blockchains. They can be either centralised or decentralised.
BTFD
In the crypto community, ‘BTFD’ is short for ‘Buy the f------ dip’, a common term used by supporters of a particular asset or the crypto market in general. It (emphatically) means to take advantage of a recent market downtrend and buy.
Bull Market
A bull market is the state of a financial market in which asset prices are rising or expected to rise.
Bull Trap
A bull trap refers to a situation that occurs on a cryptocurrency's chart, showcasing its price declining before appearing to reverse until ultimately ending up falling further downwards.
Burn
Burning refers to the removal of cryptocurrency tokens from circulation, thus reducing a token’s total circulating supply.
Byzantine Fault Tolerance (BFT)
Byzantine Fault Tolerance (BFT) is the ability of a computer to continue operating in the event of a node failure or malicious attack.
Byzantine Generals Problem
The Byzantine Generals Problem is a challenge that arises when trying to maintain security and consensus on a distributed network.
Calldata
Calldata is an essential component for passing inputs to smart contract functions, optimising for cost by being temporary and non-modifiable during execution.
Candidate Block
A candidate block refers to a block that has been proposed by a participant in a blockchain network and is undergoing verification before being added to the blockchain.
Candlesticks
Candlesticks are a method of displaying an asset's high, low, open, and closing prices in a specific time period.
Centralised
A centralised system is the concentration of power and authority under a single entity or small group.
Centralised Exchange (CEX)
A centralised exchange (CEX) is a type of cryptocurrency exchange that a company centrally runs and controls.
Cipher
A cipher is an algorithm used to encrypt or decrypt information.
Ciphertext
Ciphertext, or encrypted text, is a term used in cryptography to describe the encrypted form of a message.
Circulating Supply
Circulating supply is the amount of a cryptocurrency currently on the market. The number can grow or shrink for various reasons.
Close Price
The close price is the price an asset last trades at within a given time period, which can be defined freely but is most commonly set at one day.
Coin
A cryptocurrency coin represents a store of value native to a blockchain. All coins are considered tokens, but not all tokens are considered cryptocurrency coins.
Cold Wallet
A cold wallet is an offline wallet used to store cryptocurrencies.
Collateral
Collateral refers to assets pledged in order to obtain a loan. A lender requires collateral in order to reduce the risk of a borrower not paying them back.
Collateralisation
Collateralisation refers to the practise of using one asset as insurance in order to borrow another asset or secure a loan.
Collection Value
Collection Value is the aggregated monetary value of all the NFTs in a collection.
Composability
Composability is combining or linking different decentralised finance (DeFi) protocols and applications.
Confirmation Bias
Confirmation bias is a psychological phenomenon where individuals subconsciously tend to favour information that proves them right and disregard information that does not.
Confirmation Time
Confirmation time refers to the amount of time it takes for a transaction to be verified and added to the blockchain.
Consensus
Consensus is how a blockchain achieves agreement in a decentralised peer-to-peer (P2P) network.
Consensus Mechanism
A consensus mechanism represents the rules that govern the block verification process on a blockchain.
Consortium Blockchain
A consortium blockchain is privately owned and managed by a group of corporations, where a consortium can share information privately while having the security and immutable benefits of a blockchain.
Cross-Chain
Cross-chain typically refers to technology that allows for interoperability between blockchains.
Crypto Asset
Crypto assets are transferable digital representations of value made possible by cryptography and blockchain technology.
Crypto Prepaid Card
A crypto prepaid card is a payment card funded with cryptocurrency and used for everyday transactions, such as purchasing goods and services.
Cryptocurrency
Cryptocurrency is a peer-to-peer (P2P) digital payment system that relies on cryptography and blockchain technology to verify transactions and maintain security.
Cryptocurrency Exchange
A cryptocurrency exchange, also known as a digital currency exchange, is a platform that facilitates the trading of cryptocurrencies.
Cryptocurrency Wallet
A cryptocurrency wallet is a software programme or device that stores a user’s public and private keys.
Cryptographic Hash Function
A cryptographic hash function is an equation that verifies the validity of data.
Cryptographic Key
A cryptographic key is a series of symbols used in an algorithm to encrypt or decrypt text.
Cryptographic Proof
Cryptographic proof refers to cryptographic techniques to verify the authenticity, integrity, and validity of data and transactions.
Cryptography
Cryptography is keeping information secure from malicious actors by transforming an original text into something only the intended reader can understand.
CryptoPunks
CryptoPunks is a generative art collection of over 10,000 ‘punks’ as non-fungible tokens (NFTs) on the Ethereum blockchain.
Cup and Handle
In relation to price charts, a ‘cup and handle’ is a bullish technical indicator that looks like a cup with a handle on the right side when viewed on the charts.
Custodial Wallet
A custodial wallet is held by an entity, such as a centralised exchange (CEX), and the user does not hold their assets’ private keys, as the service provider is in charge of holding the user's wallet.
Customer Due Diligence (CDD)
Customer Due Diligence (CDD) assesses and verifies the identity of customers, which aims to mitigate the risk of financial crime and ensure the integrity of the cryptocurrency ecosystem.
Cypherpunk
The cypherpunk movement played a foundational role in the development of digital currencies like Bitcoin and focused on using cryptography and privacy-enhancing technologies to promote individual freedom, privacy, and political independence.
Dead Cat Bounce
A dead cat bounce is a market trend where an asset with a falling price may have a slight recovery for a brief period of time before continuing to drop further.
Death Cross
A death cross signals a long-term bear market moving forward.
Decentralisation
Decentralisation refers to a system that has no central point of authority. It is a body of multiple entities that conducts decision-making processes without a central point.
Decentralised Applications (Dapps)
Decentralised applications (dapps) are applications or programmes that operate on a blockchain or peer-to-peer (P2P) network.
Decentralised Autonomous Organisation (DAO)
A decentralised autonomous organisation (DAO) is an entity designed to be fully autonomous and without a central point of control.
Decentralised Exchange (DEX)
A decentralised exchange (DEX) is a cryptocurrency exchange not handled in a centralised manner, as it acts in a non-custodial and anonymous way to swap cryptocurrencies.
Decentralised Finance (DeFi)
DeFi is an abbreviation of ‘decentralised finance’, which is software built on top of a blockchain that enables the creation of services much like traditional centralised financial services, with the added benefit of decentralisation.
Decryption
In blockchain technology, decryption is crucial for protecting and securing data and transactions from unauthorised access, allowing for authorised parties to access and read original information (plaintext).
Deflation
Deflation — the opposite of inflation — is a decline in prices of goods and services.
Degen
‘Degen’ is a slang term derived from the word ‘degenerate’, often used in the cryptocurrency space to refer to individuals who engage in high-risk and speculative trading.
Delegated Proof of Stake (DPoS)
Delegated Proof of Stake (DPoS) is a consensus mechanism that evolved from Proof of Stake (PoS). It allows users of a network to vote in delegates who then validate blocks.
Derivatives
Cryptocurrency derivatives are financial contracts derived from the price of an underlying digital asset that allow traders to speculate on the future price movements of cryptocurrencies without actually owning the underlying assets.
Descending Triangle
A descending triangle is a bearish chart pattern observed in technical analysis of financial markets, including cryptocurrency markets.
Descending Wedge
A descending wedge is a bullish chart pattern that indicates a potential price reversal or continuation.
DevP2P
DevP2P plays a vital role in enabling the peer-to-peer (P2P) architecture of blockchain networks, promoting decentralisation and efficient communication amongst network participants.
DEX Aggregator
A decentralised exchange (DEX) aggregator is a platform or service that simultaneously sources from multiple DEXs in order to achieve the best possible trading prices and liquidity.
Diamond Hands
Diamond hands is a slang term for a market participant who refrains from selling an asset despite downturns or losses.
Digital Asset
A digital asset is any form of electronic data that has economic value, including cryptocurrencies, tokens, securities, art and collectibles, data, and intellectual property.
Digital Signature
A digital signature is a cryptographic technique to validate the authenticity of digital messages and documents.
Dip
A ‘dip’ refers to a decline in the price of an asset.
Directed Acyclic Graph (DAG)
A directed acyclic graph (DAG) is a type of structure commonly found as a form of consensus for a cryptocurrency.
Distributed Ledger
A distributed ledger in cryptocurrency is a secure, decentralised system for recording and maintaining transactions, providing an immutable history through various consensus mechanisms.
Distributed Ledger Technology
Distributed Ledger Technology (DLT) enables multiple participants to have a synchronised copy of a constantly updated digital ledger. Blockchain is a type of DLT.
Double Bottom
A double bottom is a bullish technical indicator pattern that identifies a potential reversal in a downward trend, where it forms when an asset price reaches a low two times in a row with a moderate increase between the two lows.
Double Top
A bearish technical indicator, a double top forms when an asset price reaches a high price two consecutive times with a moderate decline between the two highs.
Double-Spending
Double-spending is the event in which a unit of an asset is spent more than once.
Dump
Dump is a term referring to the sudden price drop of a specific asset or downward market movement.
DYOR
DYOR means ‘do your own research’ and due diligence before committing to any project.
EIP
EIP stands for Ethereum Improvement Proposal, which are motions that propose different features, changes, or processes to Ethereum.
Encryption
Encryption — the process of converting data or information into a secure and encoded format — plays a crucial role in ensuring the confidentiality, integrity, and security within blockchain networks and cryptocurrency transactions.
ERC
ERC stands for Ethereum Request for Comment. It provides application-level standards for the Ethereum blockchain.
ERC-1155
Created by Enjin, ERC-1155 aims to be a more secure token standard compared to older ones.
ERC-20
The ERC-20 token standard defines how a token should function on the Ethereum blockchain. It has become the most widely adopted token standard in the Ethereum ecosystem.
ERC-223
ERC-223 is a token standard on the Ethereum blockchain aimed at expanding upon the ERC-20 token standard.
ERC-721
ERC-721 is a token standard representing ownership of non-fungible tokens (NFTs) on Ethereum.
ERC-777
ERC-777 is a token standard that aims to improve on the existing ERC-20 standard.
ERC-827
ERC-827 is an Ethereum token standard used as an extension of the ERC-20 token standard. It aims to add more functionality to transfer tokens.
ERC-884
ERC-884 is a token standard that allows for the creation of ERC-20 tokens.
ERC-948
ERC-948 is an Ethereum protocol to connect subscription-model businesses with their customers.
ETH
ETH is the ticker symbol for Ether, which is the native cryptocurrency of the Ethereum platform.
Ethereum
Ethereum is a decentralised, open-source blockchain platform introduced in 2015 by Vitalik Buterin. It is the second-largest cryptocurrency by market capitalisation.
Ethereum Virtual Machine (EVM)
Ethereum Virtual Machine (EVM) is a platform for executing dapps and smart contracts on the Ethereum blockchain.
Exchange
A cryptocurrency exchange, also known as a digital currency exchange, is a platform that facilitates the trading of cryptocurrencies.
Exchange-Traded Fund (ETF)
Exchange-traded funds (ETFs) track the performance of an underlying asset and offer diversified exposure to various assets, providing better accessibility, transparency, and cost-efficiency for traders.
Exit Liquidity
Exit liquidity is the ease with which a trader can exit their position and cash out their cryptocurrency assets. Traders can become someone’s exit liquidity when they trade their money for an asset without the ability to resell it due to various reasons.
Exit Strategy
Crucial for managing risk and securing profits, an exit strategy is a plan for selling or liquidating a position in a cryptocurrency to achieve the best possible financial outcome.
False Breakout
A false breakout is common in volatile markets like cryptocurrencies, where the price of a digital asset can move beyond a significant support or resistance level (breaking out), only to quickly reverse and move back within the previous trading range.
Faucet
A faucet is a tool in the cryptocurrency space that can either be used as a reward system to compensate cryptocurrency users for completing specific tasks or to help onboard new users to an ecosystem.
Fear & Greed Index
The Fear & Greed Index provides insights for traders looking to time the market, offering a sense of whether conditions might be ripe for a correction or a potential rally.
Federated BFT (fBFT)
Federated Byzantine Fault Tolerance (fBFT) is a consensus mechanism that enhances the scalability, speed, and security of blockchain networks by using a trusted set of federated nodes to validate transactions while maintaining fault tolerance against malicious behaviour.
Fiat
Fiat money is a form of currency backed solely by the government or central bank that issued it.
Fiat-Collateralised Stablecoin
A fiat-collateralised stablecoin is a cryptocurrency backed by fiat currency, offering a stable value pegged to the currency in which it's linked.
Fibonacci Retracement
Fibonacci retracement is a popular technical analysis tool that helps traders identify potential levels of support and resistance likely to occur.
Floor Price
Floor Price is equal to the lowest-priced NFT in a collection.
FOMO
FOMO is an acronym that stands for ‘fear of missing out’.
Forks
A fork is when a project or blockchain is split, creating two blockchains that run simultaneously alongside each other.
Fraud Proof
Fraud proofs are an essential security mechanism that ensures trust in scalable blockchain solutions by detecting and penalising dishonest or erroneous activity without needing to immediately check every transaction.
Froth
‘Froth’ refers to a period when asset prices, such as cryptocurrencies, rise rapidly and beyond their intrinsic value, driven more by hype and speculation than by fundamental factors.
FUD
A strategy to mislead people on a certain project, FUD stands for ‘fear, uncertainty, and doubt’ and is the act of spreading misleading or false information about a project to negatively impact it.
Fully Diluted Valuation (FDV)
Fully diluted valuation (FDV) is a metric used to estimate the total value of a cryptocurrency or token if all of its possible supply were in circulation.
Fungible
Fungible refers to the interchangeability of an identical coin or token.
GameFi
GameFi combines gaming and finance in cryptocurrency, where game mechanics create a virtual environment in which players may participate and receive tokens.
Gas (ETH)
Gas is the cost of a transaction on the Ethereum network.
GM
GM stands for ‘good morning’ and is commonly used in the crypto community as a positive sentiment.
Golden Cross
A golden cross indicates a long-term bull market moving forward.
Governance
Governance is the method by which people and entities make decisions for a cryptocurrency project.
Governance Token
A governance token is a form of utility token representing governance rights within a blockchain ecosystem, decentralised app (dapp), or decentralised finance (DeFi) protocol.
Graphics Processing Unit (GPU)
Commonly referred to as graphics cards or GPUs, a Graphics Processing Unit is a computer chip used in computers to create 3D images.
Gwei
Gwei is a denomination of Ethereum, representing a fraction of Ether. 1 Ether (ETH) is equal to 1 billion Gwei.
Hal Finney
Hal Finney was a pioneering figure in the world of cryptocurrency and is considered one of the most important early contributors to Bitcoin. His work has had a lasting impact on the development and adoption of cryptocurrencies.
Halving Event
A halving event is aimed at reducing inflation by lowering the amount of new coins created and cutting mining rewards in half.
Hard Fork
A hard fork is a fundamental change to a blockchain's protocol that is not backward-compatible, resulting in a split between the old and new versions of the blockchain.
Hardware Wallet
A hardware wallet is an offline physical cryptocurrency wallet.
Hash
In blockchain, a hash is the result of a cryptographic function that takes an input and produces a fixed-size string of characters.
Hashing
Hashing is an algorithm that inputs data into a fixed-size string, thus encrypting and securing it.
Hashpower
Hashpower, also known as hashrate, is a critical metric that represents the total computational power used to solve cryptographic puzzles necessary for mining, processing, and validating transactions.
Hashrate
In blockchain technology, a hashrate refers to the speed at which a computer can perform operations in the hashing algorithm.
Hedging
Hedging refers to strategies that aim to reduce the risk of adverse price movement in an existing position.
Herd Behaviour
Herd behaviour is a psychological phenomenon that occurs when market participants ‘follow the herd’ in their dealings, making decisions that are influenced by the collective decisions of other traders.
Hierarchical Deterministic (HD) Wallet
A Hierarchical Deterministic (HD) wallet is a type of cryptocurrency wallet that allows users to create and manage all of their public and private keys from a single root or master ‘seed’, organising these keys in a hierarchical, tree-like structure.
High-Frequency Trading (HFT)
High-frequency trading (HFT) is a type of trading that involves high-speed trade execution.
HODL
HODL is a crypto slang term used to represent a style of investing. It stands for ‘Hold on for dear life’, meaning to hold onto investments for a long period of time, through both bull and bear markets.
HODLer
A ‘HODLer’ is someone who holds onto their digital assets long term, regardless of market volatility or price fluctuations.