A
Altcoin
Any cryptocurrency other than Bitcoin. Examples include Ethereum, Solana, and Cardano.
AMM
Automated Market Maker - A type of decentralized exchange protocol that uses mathematical formulas to price assets, like Uniswap.
APY
Annual Percentage Yield - The real rate of return on an investment, including compound interest.
Airdrop
Free distribution of cryptocurrency tokens to wallet addresses, often used for marketing or rewarding early adopters.
ATH
All-Time High - The highest price a cryptocurrency has ever reached.
B
Bear Market
A market characterized by falling prices and pessimistic sentiment. Opposite of a bull market.
Blockchain
A distributed ledger technology that records transactions across many computers in a way that cannot be altered.
Block Reward
The cryptocurrency awarded to miners for successfully adding a new block to the blockchain.
Bridge
A protocol that allows the transfer of assets between different blockchain networks.
Bull Market
A market characterized by rising prices and optimistic sentiment.
C
CEX
Centralized Exchange - A cryptocurrency exchange operated by a company, like Coinbase or Binance.
Cold Wallet
A cryptocurrency wallet that is not connected to the internet, providing enhanced security.
Consensus
The mechanism by which blockchain network participants agree on the state of the ledger.
Crypto
Short for cryptocurrency - digital or virtual currency secured by cryptography.
Custodial
A service where a third party holds and manages your private keys on your behalf.
D
DAO
Decentralized Autonomous Organization - An organization represented by rules encoded in a smart contract.
DeFi
Decentralized Finance - Financial services built on blockchain technology without traditional intermediaries.
DEX
Decentralized Exchange - A peer-to-peer marketplace where transactions occur directly between traders.
Diamond Hands
Slang for investors who hold onto their assets despite volatility and price drops.
DYOR
Do Your Own Research - A reminder to investors to research before making investment decisions.
F
Fiat
Government-issued currency not backed by a commodity, like USD, EUR, or GBP.
FOMO
Fear Of Missing Out - The anxiety of missing a profitable opportunity.
FUD
Fear, Uncertainty, and Doubt - Negative information spread to influence perception.
Fungible
Assets that are interchangeable with identical items, like one Bitcoin for another Bitcoin.
G
Gas
The fee required to execute transactions on the Ethereum network.
Genesis Block
The first block of a blockchain, also known as Block 0.
Gwei
A denomination of Ether used to measure gas prices. 1 ETH = 1 billion Gwei.
H
Halving
An event where Bitcoin mining rewards are cut in half, occurring approximately every 4 years.
Hash Rate
The computational power used for mining and processing transactions on a blockchain.
HODL
Hold On for Dear Life - Slang for holding cryptocurrency rather than selling.
Hot Wallet
A cryptocurrency wallet connected to the internet, convenient but less secure than cold storage.
I
ICO
Initial Coin Offering - A fundraising method where new crypto projects sell tokens to investors.
Impermanent Loss
A temporary loss of funds experienced by liquidity providers due to volatility in a trading pair.
L
Layer 1
The base blockchain network, like Bitcoin or Ethereum mainnet.
Layer 2
Scaling solutions built on top of Layer 1 to improve transaction speed and reduce costs.
Liquidity
The ease with which an asset can be bought or sold without affecting its price.
Liquidity Pool
A collection of funds locked in a smart contract to facilitate trading on a DEX.
M
Market Cap
The total value of a cryptocurrency, calculated by multiplying price by circulating supply.
Memecoin
A cryptocurrency based on internet memes, often with no intrinsic utility. Examples: DOGE, SHIB.
Metamask
A popular browser-based cryptocurrency wallet for interacting with the Ethereum ecosystem.
Mining
The process of validating transactions and adding them to a blockchain using computational power.
N
NFT
Non-Fungible Token - A unique digital asset that represents ownership of a specific item on the blockchain.
Node
A computer that maintains a copy of the blockchain and helps validate transactions.
Non-Custodial
A wallet or service where you control your own private keys.
P
Paper Hands
Slang for investors who sell at the first sign of price decline.
Private Key
A secret alphanumeric code that allows you to access and control your cryptocurrency.
Proof of Stake
A consensus mechanism where validators stake cryptocurrency to secure the network.
Proof of Work
A consensus mechanism where miners solve complex puzzles to validate transactions.
Public Key
A cryptographic address that can be shared publicly to receive cryptocurrency.
R
Rug Pull
A scam where developers abandon a project and steal investor funds.
S
Satoshi
The smallest unit of Bitcoin, equal to 0.00000001 BTC.
Seed Phrase
A series of words that can be used to recover a cryptocurrency wallet.
Slippage
The difference between expected and actual price when executing a trade.
Smart Contract
Self-executing code on a blockchain that automatically enforces agreement terms.
Stablecoin
A cryptocurrency designed to maintain a stable value, usually pegged to fiat currency.
Staking
Locking up cryptocurrency to support network operations and earn rewards.
T
Token
A digital asset created on an existing blockchain, like ERC-20 tokens on Ethereum.
Tokenomics
The economic structure and distribution model of a cryptocurrency token.
TVL
Total Value Locked - The total amount of assets deposited in a DeFi protocol.
W
Wallet
Software or hardware used to store, send, and receive cryptocurrency.
Whale
An individual or entity that holds a large amount of cryptocurrency.
Whitepaper
A technical document explaining a cryptocurrency project's technology and goals.
Y
Yield Farming
The practice of moving crypto assets between DeFi protocols to maximize returns.