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.
Honeypot
Honeypot scams are deceptive schemes that lure unsuspecting victims with the promise of lucrative rewards.
Hooks
In the context of blockchain, ‘hooks’ typically refer to pieces of code that allow developers to customise the behaviour of a blockchain protocol.
Hot Wallet
A hot wallet is a tool that allows for storing cryptocurrency with a connection to the internet.
Iceberg Order
An iceberg order is a single large order that has been divided into smaller limit orders.
Immutability
Immutability underpins the reliability and trustworthiness of blockchain technology by enhancing security, and preventing fraud and unauthorised alterations, making it a reliable ledger for transactions.
Impermanent Loss (IL)
Impermanent loss occurs when the value of a token rises or falls after a trader has deposited it in a liquidity pool.
Impossible Trinity
The Impossible Trinity states that blockchains can only simultaneously achieve two out of either decentralisation, scalability, or security — but never all three.
Initial Coin Offering (ICO)
An initial coin offering (ICO) is a way for companies or projects to raise money by selling a new coin in exchange for investment capital.
Initial Exchange Offering (IEO)
An initial exchange offering (IEO) is when cryptocurrency projects and start-ups list through an exchange in order to generate capital.
Institutional Investor
Institutional investors are large, corporate entities that bring professional expertise, liquidity, and legitimacy to the cryptocurrency market, playing a critical role in its evolution.
Inter-Blockchain Communication Protocol (IBC)
The Inter-Blockchain Communication Protocol (IBC) is an open-source protocol that handles authentication and transport of data between blockchains.
Internet of Things (IoT)
The Internet of Things (IoT) refers to devices able to connect and share information with each other over the internet. IoT technology is most commonly seen in ‘smart home’ products, such as home hubs and multifunctional speakers.
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.
Layer-0
Layer-0 is typically seen as the first layer of a blockchain, offering a stronger and more developed alternative to smart contracts.
Layer-1
Layer-1 is typically defined as a base-layer blockchain.
Layer-2
Layer-2 is a type of scaling solution for Layer-1 blockchains.
Ledger
A ledger is a record-keeping system that tracks participants’ identities, balances, and transactions within a certain network.
Left-Translated Cycle
A left-translated or left-sided cycle refers to a pattern in asset price movement with an earlier-than-expected increase in value, which can then be followed by a significant drop.
Leverage
Leverage can help to increase the potential return on investment for cryptocurrency traders by allowing them to open positions larger than their actual capital by borrowing funds.
LFG
LFG is used to express excitement about a project in the crypto community. It is short for ‘Let’s f—ing go!’.
Lightning Network
The Lightning Network is a Layer-2 protocol built on top of the Bitcoin blockchain.
Liquidation Call
A liquidation call is the process where a trading platform forcibly closes a trader's position because the margin account balance falls below the required maintenance margin.
Liquidity
Liquidity refers to the ease with which a cryptocurrency can be bought or sold in the market without causing a significant impact on its price.
Liquidity Pool
A liquidity pool is a collection of cryptocurrencies used to facilitate transactions on a decentralised exchange.
Liquidity Provider (LP)
A liquidity provider (LP) is a user who commits their cryptocurrency to a liquidity pool.
Lockup
In cryptocurrency and blockchain, ‘lockup’ refers to a period during which certain tokens or coins are restricted from being sold, transferred, or traded.
Long
In trading, ‘long’ refers to a strategy where a trader buys an asset with the expectation that its value will increase over time.
Loss Aversion
Loss aversion is a cognitive bias where traders feel worse from losses than good from gains, even though the losses and gains are of the same amount.
Mainchain
The mainchain is essentially the backbone of any blockchain network, providing the fundamental infrastructure for decentralised applications (dapps) and transactions.
Mainnet
A mainnet is a blockchain that runs independently, typically with its own technology, protocol, and network.
Maker Fee
A maker fee applies when a user places orders that are not immediately filled, adding liquidity to a trading platform's order book.
Margin Call
A margin call occurs when the value of a trader's margin account falls below the required maintenance margin level set by the exchange or trading platform.
Market Bubble
A market bubble is when the prices of cryptocurrencies significantly rise above their intrinsic value due to excessive market speculation and trader enthusiasm.
Market Cap
Market cap refers to the total dollar value of a cryptocurrency in circulation. It is calculated by multiplying the token price by the total number of tokens.
Market Correction
A market correction refers to a temporary price decline that occurs after a period of upward price movement or overvaluation, typically defined as a price drop of 10% or more from its recent peak.
Market Order
A market order is where a trader instructs an exchange to immediately buy or sell a cryptocurrency at the best available current market price.
Market Sentiment
Market sentiment in the cryptocurrency realm reflects the emotions and attitudes of market participants, influences buying and selling decisions, and often drives volatility.
Meme Coin
Meme coins are a type of cryptocurrency inspired by memes and internet jokes.
Mempool
Short for ‘memory pool’, a mempool serves as a temporary storage area for pending transactions that have been broadcast to the network but not yet confirmed by miners or validators.
Merkle Leaf
A Merkle leaf is the bottom-most node of a Merkle tree — a type of data structure that efficiently organises and verifies data using cryptographic hashes.
Merkle Proof
A Merkle proof allows for efficient and secure data verification in blockchain without requiring full access to the entire data structure.
Merkle Root
A key concept in how data is securely and efficiently verified within a blockchain, a Merkle root represents the combined hash of all transactions within a block.
Merkle Tree
A Merkle tree is a data structure constructed by hashing paired data and summarising all the transactions in a block by producing a digital fingerprint of the entire set of transactions.
Metadata
Metadata plays a crucial role in enhancing the usability, transparency, and functionality of blockchain networks, helping participants understand the context and details of the data being processed and ensuring the blockchain operates efficiently and transparently.
Metaverse
The Metaverse is a simulated digital environment that combines aspects of blockchain technology, social media, online gaming, augmented reality (AR), and virtual reality (VR) to create a 3D virtual space.
Miner
A miner is a computer (also known as a node) that solves mathematical problems relating to a cryptocurrency transaction in return for a block reward.
Mining
Mining is the process that projects use to generate new coins and verify blockchain transactions.
Mining Pool
A mining pool is a group of miners that combines its computational resources (hashing power) to increase the probability of finding a block and mining cryptocurrencies.
Mining Reward
A mining reward, otherwise referred to as a block reward, is a newly minted cryptocurrency given to a miner who successfully mines a new block on a blockchain.
Mint
‘Minting’ is the process where non-fungible tokens (NFTs) or new coins/tokens are generally generated on Proof of Stake (PoS) blockchains.
Mint Price
Mint price is the cost an individual would need to pay to publish an NFT on a particular blockchain.
Modern Portfolio Theory (MPT)
In Modern Portfolio Theory, traders aim to achieve an optimal mix of assets that balances the potential for high returns with acceptable levels of risk despite the inherent volatility of the cryptocurrency market.
Moon/Mooning
‘Mooning’ refers to a dramatic increase in the price of a particular cryptocurrency, leading to substantial gains.
Multi-Signature Authentication
Multi-signature authentication is a powerful tool for enhancing security, sharing control, and providing redundancy in cryptocurrency and blockchain applications.
Multi-Signature Wallet
A multi-signature (multisig) wallet is a type of digital wallet that requires multiple private keys to authorise a transaction.
NFT
An NFT, short for ‘non-fungible token’, is a unique, irreplaceable asset that lives on a blockchain.
NFT Collection
An NFT collection refers to a group or series of non-fungible tokens (NFTs), which are digital tokens minted on a blockchain and typically bought, sold, and traded on various blockchain-based marketplaces.
NFT ID
An NFT ID represents the identification number of an NFT in a collection.
NFT Sales Volume Index (7D)
The NFT Sales Volume Index (7D) shows the price and number of editions of a non-fungible token (NFT) collection sold over a 7-day (7D) period.
Nick Szabo
Nick Szabo is credited with the idea of the smart contract and the project Bit Gold.
Node
A node is a computer or device that participates in the network by maintaining a copy of the blockchain and validating transactions.
Non-Custodial Wallet
A non-custodial wallet, also known as a self-custody wallet, is a digital wallet that allows individuals to securely store and manage their digital assets without relying on a third-party custodian.
Non-Fungible Token (NFT)
A non-fungible token (NFT) is a unique, irreplaceable asset that lives on a blockchain.
Nonce
A nonce is an arbitrary number generated only once by a miner when they hash a transaction.
OCO Order
OCO (one-cancels-the-other) orders allow traders to set two orders simultaneously (often a limit order and a stop order), with the idea that if one of the orders gets executed, the other order is automatically canceled.
Off-Chain
Off-chain refers to transactions or activities that occur outside the blockchain, often addressing scalability, speed, and cost issues associated with on-chain transactions.
Offshore Account
An offshore account is a bank account held in a country other than the one in which the account holder resides or where the funds are generated.
Open Price
Open price indicates the price that an asset first trades at within a given period, typically a day.
Open-Source
Open-source is a term used to describe a publicly accessible software programme that users are free to inspect, modify, and share.
Open-Source Blockchain
An open-source blockchain refers to a blockchain network or protocol whose source code is made publicly available, allowing anyone to freely view, modify, and distribute the code.
Optimistic Rollup
An optimistic rollup is a Layer-2 scaling solution designed to enhance the throughput and efficiency of blockchains, allowing transactions to be processed off-chain, where multiple transactions are bundled together in large batches before being submitted to the mainchain.
Oracle
An oracle is a bridge that connects blockchain networks with external data sources or systems.
ORC-20 Token
The ORC-20 token standard is an open framework to enhance BRC-20 tokens on the Bitcoin network.
Order Book
An order book is a real-time, continuously updated list of buy and sell orders for a particular cryptocurrency that displays the prices and quantities of orders.
Ordinals
Ordinals are a means of creating Bitcoin NFTs by inscribing information onto individual satoshis.
Orphan Block
In blockchain technology, an orphan block is a block that was successfully mined and broadcast to the network but ultimately rejected because another block with the same block height had been added to the blockchain prior to the network confirming the orphan block.
Overbought
Overbought is a term to describe a cryptocurrency that has had its price increase more than its fundamentals would allow, either briefly or for an extended period of time.
Oversold
Oversold describes the state of a cryptocurrency that has been sold so much that its price has decreased either briefly or for an extended period of time.
Paper Hands
Paper hands is a term describing individuals who lack the conviction to hold on to their cryptocurrencies.
Parachain
Parachains are blockchains used on the Polkadot and Kusama networks, where they are natively integrated.
Passkey
A passkey is a password or private key used to access a cryptocurrency wallet, sign transactions, or interact with blockchain-based applications.
Pectra
The Ethereum Prague/Electra upgrade — ‘Pectra’ for short — will merge two previously planned upgrades, Prague and Electra, and introduce a range of Ethereum Improvement Proposals (EIPs) aimed at improving the network's efficiency, security, and scalability.
Peer-to-Peer (P2P)
In a peer-to-peer (P2P) network, each user is a member of and contributes to the network, sharing data and/or tasks.
Permissionless
Permissionless refers to a system — typically related to blockchains — in which no person or thing can dictate who is allowed to use it and how it is used.
Plaintext
Plaintext is a form of text that humans can understand without the need for decryption.
Play-to-Earn (P2E)
Play-to-earn (P2E) is an incentive model for blockchain video games.
Politically Exposed Person (PEP)
Politically Exposed Person (PEP) refers to individuals who are or have been entrusted with prominent public functions, such as government officials, senior executives of state-owned corporations, or high-ranking military officers.
Practical Byzantine Fault Tolerance (PBFT)
Practical Byzantine Fault Tolerance (PBFT) is an algorithm that prevents Byzantine faults in asynchronous environments and optimises for low latency.
Price Discovery
Price discovery is the process by which the market determines the price of a specific cryptocurrency, which is driven by various factors like supply and demand, market sentiment, news, and macroeconomic indicators.
Private Chain
A private chain (blockchain) is an invitation-only network governed by a central entity.
Private Key
A private key is a secret key comprising letters and numbers that enables a crypto wallet user to access their funds and authenticate transactions. One of the most common use cases in the crypto space is to encrypt crypto wallets.
Proof of Activity (PoA)
A hybrid of the Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanisms, Proof of Activity (PoA) ensures all transactions on a network are legitimate and all miners reach a consensus.
Proof of Authority (PoA)
A variant of the Proof of Stake (PoS) consensus mechanism, Proof of Authority (PoA) selects its validators based on reputation.
Proof of Burn (PoB)
A consensus mechanism with minimal energy consumption, Proof of Burn (PoB) requires miners to ‘burn’ a portion of their tokens in order to earn the right to add a new block to the network.
Proof of Capacity
Proof of Capacity (PoC) is a type of consensus mechanism that bases its mining algorithm on the amount of space available on a miner’s hard drive.
Proof of Elapsed Time (PoET)
Proof of Elapsed Time (PoET) is a consensus algorithm used in permissioned blockchains to decide on mining rights.
Proof of History (PoH)
A type of consensus mechanism, Proof of History (PoH) nodes use their own internal clocks to encode a passage of time onto the blockchain ledger. The events are hashed with a Verifiable Delay Function (VDF).
Proof of Importance (PoI)
Proof of Importance (PoI) is a consensus mechanism that uses ‘importance scores’ to determine which nodes are eligible to mine new blocks. This helps to ensure that the network runs smoothly and all participants are contributing to its success.
Proof of Replication (PoRep)
Proof of Replication (PoRep) is a proof system used to demonstrate the dedication of unique resources to storing replicas of a data file.
Proof of Reputable Observations (PRO)
Proof of Reputable Observations (PRO) is a consensus mechanism that uses a combination of reputation scores and cryptographic mechanisms.
Proof of Stake (PoS)
Proof of Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. It works by selecting validators based on the amount of tokens staked.
Proof of Work (PoW)
Proof of Work (PoW) is a decentralised consensus mechanism that requires miners to solve complex mathematical problems in order to win the right to verify transactions and add new blocks to the blockchain.
Public Chain
A public chain (blockchain) is a completely decentralised and open network in which anyone can join and participate.
Public Key
A public key is a series of letters and numbers used to encrypt plaintext into ciphertext; one of the most well-known uses is as a crypto wallet address.
QR Code
A QR code is a two-dimensional barcode that contains information related to a specific cryptocurrency transaction.
Quantum Computing
Quantum computing refers to the possible impact of quantum computers, which have the ability to perform certain types of calculations much faster than classical computers and can pose a threat to cryptocurrency security.
Rank
Rank shows the position of a non-fungible token (NFT) collection by 7-day volume.
Recency Bias
Recency bias is a cognitive bias that states a trader puts more importance on recent occurrences than past ones when making trading decisions.
Rekt
In the cryptocurrency world, the term ‘rekt’ is a slang word for ‘wrecked’, which means to receive a significant loss in a trade or investment.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a popular momentum indicator used in technical analysis to measure the speed and change of recent price movements in a cryptocurrency.
Remittances
A remittance is any form of payment transferred to another party — from sending money to family members, making a payment, or settling an invoice.
Resistance Level
A resistance level is a crucial price point in cryptocurrency trading where upward momentum tends to stop and might even reverse due to increased selling pressure.
Retail Investors
Retail investors are individual, non-professional investors who buy and sell cryptocurrencies using their personal funds.
Right-Translated Market Cycle
Right translation is the tendency of prices to peak in the latter part of the cycle during bull markets.
Roadmap
A roadmap conveys the objectives, goals, and milestones of a project to potential backers.
RPC
RPC, short for Remote Procedure Call, is a mechanism that enables different components of a cryptocurrency network to communicate and interact effectively, facilitating transactions, data retrieval, and network operations.
RSA
RSA (short for Rivest–Shamir–Adleman) is one of the widely used public-key encryption algorithms for secure data transmission and is used to securely transmit messages over the internet.
Rug Pull
A rug pull is a type of scam in which the creators or developers of a project take traders' money and then abandon the project entirely.
Sales (7D)
Sales (7D) is an indicator showing the number of NFT sales over a seven-day period.
Satoshi Nakamoto
Satoshi Nakamoto is the pseudonym for the to-date unknown individual or group accredited with the creation of Bitcoin.
Satoshis/Sats
Satoshis, known as ‘sats’, are the smallest unit available in bitcoin.
Scalability
Blockchain scalability refers to the ability of a blockchain network to handle an increasing amount of transactions and data without compromising performance, security, or decentralisation.
Scalability Trilemma
The blockchain scalability trilemma states that blockchains can only simultaneously achieve two out of either decentralisation, scalability, or security — but never all three.
Security Token
Security tokens are digital forms of traditional securities and represent ownership of the underlying project, company, or asset.
Seed Phrase
A seed phrase is a series of 12 to 24 words used to access the digital assets in a cryptocurrency wallet.
SHA-256
SHA-256 is a cryptographic hash function used to generate unique identifiers (hashes) for blocks in the blockchain, ensuring data integrity and consistency.
Sharding
Sharding is a scaling method in which a large database is separated into smaller and more easily managed parts in order to increase the transaction load capacity and improve a network’s efficiency.
Shill
Shill, or shilling, is the act of promoting a cryptocurrency project.
Short Selling
Short selling is a form of advanced trading of assets, where a ‘short’ position is opened on an asset when the trader anticipates a drop in its price; a short sell is only profitable if the asset’s price decreases.
Sidechain
A sidechain is a separate blockchain that runs in parallel, and acts as an extension, to the main blockchain.
Slashing
Slashing is an essential feature of Proof of Stake (PoS) networks, helping to maintain the security, functionality, and trustworthiness of the PoS network by ensuring that validators act honestly and reliably.
Slippage
Slippage occurs when a trader locks in a price for a trade but ultimately receives a different price from the original request due to price movement.
Smart Contract
Smart contracts are self-executing, where the contents of the agreement between the buyer and seller are embedded into lines of code.
Soft Fork
A soft fork is a backward-compatible upgrade that introduces new rules to a blockchain's protocol, allowing both old and new versions of the software to coexist on the same network.
Software Wallet
A software wallet is a computer programme or mobile application that allows users to store cryptocurrency keys and make transactions.
Solana Program Library
The Solana Program Library (SPL) is a collection of ready-to-use, open-source components for building decentralised applications (dapps) on the Solana blockchain.
Solidity
Solidity is the programming language used to develop smart contracts on blockchain networks.
Sound Wallet
A sound wallet in cryptocurrency is a novel way of storing private keys using sound or audio.
Stablecoin
Stablecoins are cryptocurrencies designed to have a relatively stable price, which is typically achieved through pegging to an external asset, such as a commodity or fiat currency.
Staking
Staking is the process of providing funds to a blockchain network in return for interest.
Staking Pool
A staking pool is a mechanism that allows multiple participants to combine their resources to increase their chances of earning rewards through staking.
State Channels
State channels are peer-to-peer protocols in which users can interact off the blockchain, where two parties exchange transactions with each other before ultimately posting to the blockchain.
Stochastic Oscillator
The stochastic oscillator is a momentum indicator used in technical analysis of securities trading.
Stop-Limit Order
A stop-limit order in cryptocurrency trading is a two-step order that combines elements of a stop order and a limit order.
Stop-Loss Order
A stop-loss order is an order that gets placed with a broker, which tells them to buy or sell a stock via a market order once it reaches a specific price.
Support Level
A support level is a key price point where a cryptocurrency tends to halt its decline and might even bounce back up due to increased buying interest.
Symmetrical Triangle
A symmetrical triangle is a chart pattern that can indicate a period of price consolidation before both a breakout or breakdown, making it a neutral trading signal.
Taker Fee
A taker fee is the cost incurred by traders who execute orders that are immediately matched, removing liquidity from the order book.
Technical Analysis
Technical analysis is a method to evaluate and predict future price movements of cryptocurrencies based on historical price data and trading volume.
Tendermint
Tendermint is a blockchain protocol used to replicate and launch blockchain applications across machines in a secure and consistent manner.
Testnet
An alternative to the mainnet blockchain, the testnet allows developers to test their projects or updates before applying them to the mainnet.
The DAO Hack
The DAO Hack occurred in June 2016, where an individual exploited The DAO on Ethereum and siphoned US$60 million from it.
Time to Finality (TTF)
Time to Finality (TTF) describes the amount of time it takes a block on a blockchain to finalise after a transaction is included in it.
Timestamp
A timestamp refers to the exact moment when a particular block is mined and validated to the blockchain.
Token
A cryptocurrency token is a digital asset that can be assigned a price. It represents a tradeable or utility asset built on top of an existing blockchain network.
Tokenomics
Tokenomics refers to the structure and governing aspects of a cryptocurrency.
Tower Byzantine Fault Tolerance (Tower BFT)
Tower Byzantine Fault Tolerance is a consensus algorithm with a hierarchical structure designed to ensure the security and reliability of distributed systems like blockchain networks.
TradFi
Traditional finance, or TradFi, is a conventional approach to financial activities that relies on established institutions, such as banks, insurance companies, investment companies, and stock exchanges.
Trading Fees
Trading fees are costs that users pay when they engage in transactions on a blockchain network or trade cryptocurrencies on an exchange.
Transaction Volume
Transaction volume represents the total number of transactions of a cryptocurrency traded within a specified time period.
Transactions Per Second (TPS)
Transactions per second (tps) measures the number of transactions a network can execute in one second.
Trendline
A trendline in cryptocurrency trading is a straight line drawn on a price chart to help identify and visualise the direction of the market’s trend, usually to detect uptrends, downtrends, and sideway trends.
Trustless
Trustless is a term that describes a space where there is no centralised authority.
Two-Factor Authentication (2FA)
By requiring two forms of identification, two-factor authentication (2FA) provides a robust defence against many types of cyber threats, making it an essential security feature in the cryptocurrency and blockchain space.
Unit of Account
In the context of cryptocurrencies, a unit of account refers to the function of a digital currency to serve as a standard measure of value for goods, services, assets, or debt within an economy.
Unspent Transaction Output (UTXO)
Unspent transaction output (UTXO) represents the remaining balance of digital currency following a cryptocurrency transaction.
URI Schemes
Cryptocurrency URI schemes are used to define a standard way of identifying and interacting with resources like cryptocurrency addresses, transactions, or payment requests.
User Interface (UI)
In blockchain technology, ‘user interface’ (UI) typically refers to the graphical or visual elements through which users interact with a cryptocurrency platform, wallet, or decentralised application (dapp). UI plays a crucial role in providing a user-friendly experience.
Utility Token
Utility tokens are a type of cryptocurrency that has specific use cases within a blockchain network ecosystem.
UTXO
UTXO is an abbreviation for ‘unspent transaction output’, which represents the remaining balance of digital currency following a cryptocurrency transaction.
Validator
Responsible for achieving consensus, a validator is a participant in a Proof of Stake (PoS) blockchain network chosen to create new blocks and validate transactions based on the amount of cryptocurrency they ‘stake’ in the network.
Value (ETH)
Value (ETH) is a metric on the Crypto.com Price page that represents the price of an asset in Ether (ETH).
Vapourware
Vapourware refers to a technology that has been announced — yet not released, even long after its projected release date. Often, vapourware is never released or even officially cancelled.
Vault
Vaults are secure storage solutions for digital assets, designed with multiple layers of security for storing cryptocurrencies to protect against theft and hacking.
Verifiable Delay Functions (VDFs)
A Verifiable Delay Function (VDF) is a mathematical puzzle that requires a certain amount of time and computational effort to solve; once solved, its correctness can be efficiently verified by anyone.
Verkle Tree
A Verkle tree is a data structure that combines elements of both Merkle trees and vector commitments to improve the efficiency of proof sizes in blockchain applications, particularly for verifying large datasets.
Vest/Vesting Period
A vesting period is when a project restricts the sale of a token over a specific period.
Virtual Machine
In cryptocurrency, a virtual machine is a software environment that mimics a physical computer and is designed to execute smart contracts or decentralised applications (dapps) on the blockchain network.
Vitalik Buterin
Vitalik Buterin is the creator of Ethereum, which sits behind Bitcoin as the second-largest cryptocurrency by market capitalisation.
Volatility
In cryptocurrency, volatility refers to the degree of variation in the price of a particular digital asset over time.
Volume
In cryptocurrency, ‘volume’ refers to the total amount of a particular cryptocurrency that has been traded within a specific time frame, indicating the level of trading activity for a particular asset.
Volume (7D)
Volume (7D) is the total amount of a cryptocurrency asset traded within a seven-day period.
WAGMI
Meaning ‘We’re all gonna make it’, WAGMI is commonly used in the crypto space to instil confidence and encourage the community.
Wallet
A cryptocurrency wallet is a software programme or device that stores a user’s public and private keys.
Wash Trading
Wash trading is a form of trading where an asset is sold and bought back simultaneously or in close succession. Wash trading is an illegal form of trading in most jurisdictions.
Web1
Web1 is the ‘read-only’ web, which is a one-way communication channel that contains only static images and text.
Web2
Web2 is the second version of the World Wide Web (WWW) — the current version of the internet — characterised by the shift from the static web pages of Web1 to dynamic or user-generated content.
Web3
Sometimes referred to as the semantic web, Web3 is the ‘read-write-execute’ version of the internet, currently in development.
Whale
A whale is an individual or organisation that holds a significant amount of Bitcoin or other cryptocurrencies.
White Paper
A white paper is a technical write-up for a project that explains everything from the purpose to its tokenomics to the technology of how the project works.
Witness
A ‘witness’ is a transaction signature attesting to the authenticity of a specific transaction, verifying a cryptographic claim.
Yield
In cryptocurrency, ‘yield’ refers to the return or profit generated from holding or staking digital assets through DeFi protocols.
Yield Farming
Yield farming is a process for users to be rewarded with tokens or fees for locking up their cryptocurrency.
Zero-Knowledge Proof
A Zero-Knowledge (ZK) proof is a system that allows a party to prove their possession of certain information without revealing the information itself.
ZK Rollup
A Zero-Knowledge (ZK) rollup is a Layer-2 scaling solution for blockchains, particularly designed to improve scalability and reduce transaction costs.
ZK-SNARK
A ZK-SNARK is a cryptographic technique used to prove possession of certain information without revealing that information itself. In relation to cryptocurrencies, ZK-SNARKs are used for privacy and scalability purposes.
ZK-STARK
A ZK-STARK is a cryptographic proof system used in blockchain and cryptocurrencies designed to provide a way for users to prove the validity of certain information or computations without revealing any of the underlying data.