Crypto Glossary

Basic Concepts

Bitcoin (BTC)

The first cryptocurrency, created by Satoshi Nakamoto, often referred to as digital gold.

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Blockchain

A decentralized ledger technology that records all transactions across a network.

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Altcoin

Any cryptocurrency other than Bitcoin.

Example:

Ethereum, Solana, Cardano

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Token

A digital asset built on an existing blockchain.

Example:

ERC-20 tokens on Ethereum

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Cryptocurrency

A digital or virtual currency secured by cryptography, typically decentralized.

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Trading And Investing

HODL

A misspelling of 'hold,' meaning to keep your cryptocurrency instead of selling.

Example:

I'm going to HODL my Bitcoin through this market dip.

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FOMO

Fear Of Missing Out - The anxiety of missing out on potential profits in the market.

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FUD

Fear, Uncertainty, and Doubt - Negative news or rumors intended to create panic selling.

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Bull Market

A market characterized by rising prices.

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Bear Market

A market characterized by falling prices.

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Blockchain And Technical

Decentralization

The process of distributing control across a network rather than a single authority.

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Mining

The process of validating transactions and adding them to the blockchain. Miners are rewarded with crypto.

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Staking

Locking up your cryptocurrency to support a network and earn rewards.

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Smart Contract

Self-executing contracts with terms directly written into code.

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Gas Fee

The transaction fee paid to miners or validators for processing transactions on a blockchain.

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DeFi

DeFi

Decentralized Finance - A blockchain-based form of finance that doesn't rely on traditional financial institutions.

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Yield Farming

Earning rewards by lending or staking cryptocurrency in DeFi platforms.

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Liquidity Pool

A pool of crypto funds locked in a smart contract to facilitate trading on decentralized exchanges.

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Stablecoin

Cryptocurrencies pegged to a stable asset like the US dollar.

Example:

USDT, USDC

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Security And Privacy

Private Key

A secret key used to access your cryptocurrency. It must be kept secure.

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Public Key

A cryptographic code that allows users to receive cryptocurrencies.

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Cold Wallet

A crypto wallet not connected to the internet, offering maximum security.

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Hot Wallet

A crypto wallet connected to the internet, suitable for frequent transactions.

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NFT And Metaverse

NFT

Non-Fungible Token - Unique digital assets stored on a blockchain, often used for art, collectibles, or gaming items.

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Minting

The process of creating an NFT on a blockchain.

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Metaverse

A virtual world where users can interact using digital assets like NFTs and cryptocurrencies.

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Miscellaneous

ICO

Initial Coin Offering - A fundraising method where new cryptocurrencies are sold to investors.

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Airdrop

Free tokens distributed to users as a promotional strategy.

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Hard Fork

A permanent divergence in a blockchain resulting in two separate chains.

Example:

Bitcoin and Bitcoin Cash

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Beginner Friendly

DYOR

Do Your Own Research - A reminder to research thoroughly before investing.

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Paper Hands

Someone who sells their crypto at the first sign of trouble.

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Diamond Hands

Someone who holds onto their crypto despite volatility or market drops.

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For Fun

WAGMI

We're All Gonna Make It - A popular phrase in the crypto community indicating optimism.

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NGMI

Not Gonna Make It - A term used humorously for bad decisions or skepticism in the market.

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REKT

A term for getting wrecked, or suffering significant losses in trading.

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To The Moon

A phrase used when cryptocurrency prices are expected to rise significantly.

Example:

Bitcoin is going to the moon!

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