Your comprehensive guide to cryptocurrency and blockchain terminology
Any cryptocurrency other than Bitcoin. The term is an abbreviation of "alternative coin."
A string of alphanumeric characters that represents a destination for a cryptocurrency payment. Similar to a bank account number but specific to a blockchain network.
A security measure that isolates a computer or network from external connections to ensure it cannot be remotely accessed or compromised.
A distribution of cryptocurrency tokens to numerous wallet addresses, usually for free and as part of a marketing campaign.
The highest price point that a cryptocurrency has reached during its entire existence.
The lowest price point that a cryptocurrency has reached during its entire existence.
A decentralized exchange protocol that uses liquidity pools and a mathematical formula to price assets instead of using an order book.
A set of procedures, laws, and regulations designed to prevent the practice of generating income through illegal actions.
Application-Specific Integrated Circuit. A specialized computer chip designed specifically for mining cryptocurrencies, offering significantly higher performance than general-purpose hardware.
A smart contract technology that enables the exchange of one cryptocurrency for another without using centralized intermediaries.
The first decentralized cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It operates on a peer-to-peer network without central authority.
An event where the reward for mining Bitcoin transactions is cut in half, which happens approximately every four years. This is a key feature of Bitcoin's monetary policy to control inflation.
An application enabling a user to view details of blocks on a given blockchain. Also known as a blockchain browser.
The coins awarded to a miner or group of miners for solving the cryptographic problem required to create a new block on a given blockchain.
The approximate time it takes for a blockchain-based system to produce a new block. Different blockchains have different block times.
A distributed digital ledger that records transactions across many computers so that the record cannot be altered retroactively. This technology underlies most cryptocurrencies.
A market condition in which prices are falling or expected to fall, typically accompanied by widespread pessimism and negative investor sentiment.
A market condition in which prices are rising or expected to rise. The term is typically used to refer to the stock market but can be applied to anything that is traded, such as cryptocurrencies.
A digital or virtual currency that uses cryptography for security and operates on a decentralized network called a blockchain.
The storage of private keys in any fashion that is disconnected from the internet. This is done to safeguard cryptocurrency holdings from unauthorized access and theft.
A method for validating entries into a distributed database and keeping the database secure. Common consensus mechanisms include Proof of Work (PoW) and Proof of Stake (PoS).
A period in the crypto market when prices of major coins fall dramatically from all-time highs and remain low for an extended period.
A field of study and practice to secure information, preventing third parties from reading information to which they are not privy. It's the foundation of blockchain security.
The unauthorized use of another party's computer to mine cryptocurrency without their consent, typically through malicious scripts embedded in websites or malware.
A type of cryptocurrency wallet or service where a third party (custodian) holds and manages your private keys on your behalf.
An application that runs on a decentralized network, combining a smart contract and a frontend user interface. DApps are typically open-source, operate autonomously, and their data is stored on a blockchain.
An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.
A movement that aims to create an open-source, permissionless, and transparent financial service ecosystem that is available to everyone and operates without any central authority.
A digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places at the same time. Blockchain is a type of DLT.
A common phrase in the cryptocurrency community that encourages individuals to conduct their own investigation and analysis before investing in a project or token.
A rapid sell-off of a cryptocurrency, often resulting in a significant price decrease.
A malicious activity where attackers send tiny amounts of cryptocurrency (dust) to a large number of wallet addresses in an attempt to break the privacy of those addresses by tracking their transaction history.
A technical standard used for smart contracts on the Ethereum blockchain for implementing tokens. ERC stands for Ethereum Request for Comment.
A free, open standard that describes how to build non-fungible tokens on the Ethereum blockchain. It's a standard interface for non-fungible tokens.
An open-source, blockchain-based, decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control, or interference from a third party.
A platform where users can buy and sell cryptocurrencies. Exchanges can be centralized (run by a company) or decentralized (run on a blockchain).
A decentralized, open-source blockchain with smart contract functionality. Ethereum is the second-largest cryptocurrency by market capitalization after Bitcoin.
A fraudulent practice where cryptocurrency developers abandon a project and run away with investors' funds.
The feeling of anxiety that you might miss out on a potentially profitable investment opportunity, often leading to hasty investment decisions.
A strategy to influence perception by disseminating negative and dubious or false information to induce fear in others.
A token that is interchangeable with another token of the same type, where all tokens have the same value and properties.
Government-issued currency that is not backed by a physical commodity like gold, but rather by the government that issued it. Examples include the US Dollar, Euro, and Japanese Yen.
A change to a blockchain's protocol that creates two separate versions of the blockchain. Soft forks are backward-compatible, while hard forks create a permanent divergence.
A small fee required to conduct a transaction or execute a contract on the Ethereum blockchain platform. Gas is paid in Ethereum's native currency, ether (ETH).
The first block of a blockchain. Modern versions of Bitcoin number it as block 0, though very early versions counted it as block 1.
A physical device that stores a user's private keys offline, providing enhanced security for cryptocurrency holdings.
The computational power used to mine and process transactions on a Proof of Work blockchain. Higher hash rates indicate more miners securing the network.
A fundraising method in which new projects sell their underlying crypto tokens in exchange for bitcoin or ether. Similar to an Initial Public Offering (IPO) for stocks.
The temporary loss of funds experienced by liquidity providers due to price volatility in a trading pair.
The smallest denomination of Binance Coin (BNB). Similar to a satoshi in Bitcoin, 1 BNB = A hundred million (100,000,000) jager.
The process of verifying the identity of customers, typically required by cryptocurrency exchanges to comply with anti-money laundering (AML) regulations.
A set of two keys - a public key and a private key - used in cryptocurrency to secure transactions. The public key is shared to receive funds, while the private key must be kept secret to access and manage those funds.
A collection of funds locked in a smart contract, used to facilitate decentralized trading, lending, and other financial activities.
Secondary frameworks or protocols built on top of an existing blockchain (Layer 1) to improve its scalability and efficiency.
The process of validating transactions and adding them to a blockchain using computational power. Miners are rewarded with newly created coins and transaction fees.
The total market value of a cryptocurrency's circulating supply, calculated by multiplying the current market price by the circulating supply.
A unique digital asset that represents ownership of a specific item or piece of content, such as art, music, or collectibles. Unlike cryptocurrencies, NFTs are not interchangeable with one another.
A computer connected to a blockchain network that validates and relays transactions. Nodes maintain a copy of the blockchain and enforce its rules.
A service that provides external data to a blockchain, allowing smart contracts to interact with information outside their network.
Trading that occurs directly between two parties without the supervision of an exchange, often used for large volume trades.
A secret number that allows cryptocurrencies to be spent. Anyone with knowledge of a private key has control over the associated cryptocurrency.
A consensus mechanism where validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake" as collateral.
A machine-readable code consisting of an array of black and white squares, typically used for storing wallet addresses or transaction information in cryptocurrency applications.
A type of scam where cryptocurrency developers abandon a project and run away with investors' funds.
A pre-programmed event in some cryptocurrencies (like Bitcoin) where the reward for mining new blocks is cut in half, typically occurring at regular intervals.
Self-executing contracts with the terms directly written into code. Smart contracts automatically execute when predetermined conditions are met, without the need for intermediaries.
A type of cryptocurrency designed to maintain a stable value by pegging it to a reserve of assets, typically a fiat currency like the US Dollar.
A digital asset that is created on an existing blockchain, rather than having its own blockchain. Tokens can represent various assets or utilities within a specific ecosystem.
The total amount of a cryptocurrency that has been traded during a specific time period. High trading volume often indicates high liquidity and market interest.
A popular decentralized exchange protocol built on Ethereum that uses an automated market maker (AMM) model instead of a traditional order book.
A measure of how much the price of an asset fluctuates over time. Cryptocurrencies are known for their high volatility compared to traditional financial assets.
A digital tool that allows users to store, send, and receive cryptocurrencies. Wallets can be software-based (hot wallets) or hardware-based (cold wallets).
An individual or entity that holds a large amount of a particular cryptocurrency, enough to potentially influence the market price through large buy or sell orders.
The native cryptocurrency of the Ripple network, designed for fast and low-cost international money transfers.
A strategy where cryptocurrency holders lend or stake their assets in DeFi protocols to earn interest, fees, or additional tokens as rewards.
A cryptographic method that allows one party to prove to another that a statement is true without revealing any additional information beyond the validity of the statement itself.