Glossary of Crypto terms
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2FA
Two Factor Authentication is a security solution with two layers, used by most cryptocurrency exchanges and financial institutions. A code obtained by an authenticator app as well as your password is required in order to login.
51% Attack
A 51% attack occurs in a network when one entity controls more than half of the mining power or tokens in a cryptocurrency network.
A
AAVE
AAVE is a decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies without intermediaries. It operates using smart contracts on Ethereum, and its native token, AAVE, is used for governance and protocol incentives.
Adaptive State Sharding
Combines all methods of sharding into one form to boost communication and speed. It's currently used in the Elrond blockchain platform.
Address
A string of letters and numbers representing a wallet where transactions can be sent to and from.
Airdrop
An airdrop is a marketing strategy employed in crypto projects that involves the distribution of free tokens to generate social media hype, reward holders, and build communities.
Algorithm
A set of rules and instructions followed to solve a specific problem or calculation.
Algorithmic Market Operations (AMOs)
Automatically control the supply of algorithmic stablecoins while aiming to improve scalability, decentralisation, and transparency.
Algorithmic Stablecoin
Uncollateralised digital assets designed to stabilise price and balance the circulating supply of an asset through being pegged to a reserve asset to minimise the volatility price swings.
Altcoin
All cryptocurrencies other than Bitcoin. Examples include Ether, Litecoin, and Cardano.
AML (Anti-Money Laundering)
A set of international laws and regulations enacted to minimise the flow of money from illegal activities.
Annual Percentage Rate (APR)
The yearly rate of interest a borrower must pay investors. It is expressed in percentage and determined by multiplying the periodic interest rate by the number of periods.
Annual Percentage Yield (APY)
Annual percentage yield is the real rate of returns earned on an investment (ROI) on an annual basis, taking into account the effect of compound interest.
Anons
Anonymous users or community members.
Apeing
When an investor or trader buys into a project, usually shortly after it’s launched and without researching it thoroughly.
Arbitrage
The practice of buying and selling an asset on different exchanges to profit from the price difference between exchanges.
ASIC (Application-Specific Integrated Circuit)
Dedicated hardware for mining cryptocurrencies. They generate a lot of computing power, enabling users to find results to the cryptographic puzzles in proof-of-work cryptocurrencies quicker and more cost-efficiently.
ATH
ATH, short for all-time high, refers to the highest price of an asset since its launch.
ATL
ATL, short for all-time low, is the lowest price of an asset since its launch.
Authentication
The process of confirming a user’s identity using various methods (passwords, Face ID, fingerprints, SMS codes, authenticator apps) before giving them access to a platform.
Automated Market Maker (AMM)
An automated decentralised exchange protocol that relies on mathematical formulas to price assets, removing intermediaries from the trading process.
Avalanche (AVAX)
Avalanche is a blockchain platform designed for DeFi applications, enterprise solutions, and custom blockchain networks. It features a unique consensus mechanism that enables fast finality and high transaction throughput. AVAX is the network’s native token, used for staking, transaction fees, and governance. Avalanche is known for its scalability, low transaction costs, and energy efficiency.
B
Bag
A term that refers to a large quantity (higher than average) of a specific crypto asset.
Bagholder
An individual or investor that continually holds a large quantity of an asset irrespective of its performance.
Baking
The process of appending a new transaction to the Tezos blockchain.
Bear
A pessimistic investor who expects prices will fall.
Bear Market
Period of declining prices and pessimism.
Bear trap
A false indication of a trend reversal in an asset's price, characterized by a sudden downward price movement that prompts pessimistic investors (bears) to sell short, after which the price reverses upwards.
BEP-2
A technical standard used for the issuance and implementation of tokens on Binance Chain.
BEP-20
A token standard that allows users on BNB Chain (originally referred to as Binance Smart Chain) to deploy fungible tokens.
BEP-721
A BNB Chain (originally referred to as Binance Smart Chain) token standard that enables the generation of non-fungible tokens (NFTs). It serves as an extension of Ethereum's ERC-721.
BEP-95
A proposal that introduces a real-time burning mechanism to the BNB Chain (also known as Binance Smart Chain).
Binance Coin (BNB)
BNB is the native cryptocurrency of Binance, one of the world's largest centralized cryptocurrency exchanges (CEX).
Bitcoin
‘bitcoin’ is a peer-to-peer decentralised digital currency for facilitating payments and exchanges without the need for financial middlemen. When capitalised, Bitcoin refers to the entire network as well as the underlying protocol that governs how assets are moved on the blockchain technology platform.
Bitcoin ATM
A standalone device or kiosk that allows users to trade (buy and sell) bitcoin or other cryptocurrencies from a terminal.
Bitcoin Cash
Like Bitcoin, Bitcoin Cash is a decentralised peer-to-peer currency for facilitating financial activities such as making payments to stores and merchants, remittances, and low-cost cross-border payments. However, Bitcoin Cash is a fork of the original Bitcoin protocol with a larger block size of 32MB.
Bitcoin Dominance (BTCD)
A metric used to measure the share market value of Bitcoin in the overall crypto market. It is expressed as the ratio between the market cap of Bitcoin to the rest of the cryptocurrency markets.
Bitcoin Halving
Bitcoin halving is an event that occurs in the Bitcoin network after every 210,000 blocks where block rewards are reduced by 50%.
Block Explorer
A block explorer is a tool for publicly auditing the entire transaction history of a blockchain network.
Block Height
Used to represent the number of blocks that precede a given block in a blockchain. It denotes the position of the given block.
Block Producer
A person or group of people whose hardware is used to verify a block’s transaction and begin a new block in a blockchain platform (mostly Proof of stake).
Block Reward
The coin or token awarded to miners or a group of miners for solving mathematical problems required to create a new block on a given blockchain.
Block Size
The total amount of transactional data that can be stored in a given block.
Block Time
The total time taken for a blockchain system to produce or mine a new block.
Blockchain
Blockchain is a distributed ledger for securely recording data by cryptographically linking blocks of data/transactions in a peer-to-peer network.
Blockchain Transmission Protocol (BTP)
A standard that renders heterogeneous blockchains interoperable and enables them to operate as a fully decentralised settlement layer by securely anchoring transactions using a protocol that is universal.
Bridges
Tools enabling token transfers between blockchains.
BTC
BTC is the commonly used ticker symbol for Bitcoin.
BUIDL
"Build"(deliberately misspelled) – focus on creating products in crypto, not just investing.
Bull
An optimistic investor who expects prices will rise.
Bull Market
Period of rising prices and optimism in crypto markets.
Bull trap
A false indication of a trend reversal in an asset's price, characterized by a sudden upward price movement that prompts optimistic investors (bulls) to enter long positions, after which the price reverses downwards.
C
Capitulation
A sudden increase in selling pressure in a weakening market or asset that signals a widespread surrender by investors. The subsequent steep decrease in prices might signal the bottoming out of the market.
Cardano (ADA)
Cardano is a blockchain platform designed for smart contracts and decentralized applications (dApps). It employs the Ouroboros Proof-of-Stake (PoS) consensus mechanism, which aims to enhance security and scalability while minimizing energy consumption. ADA is the network's native token, used for transactions, governance, and staking.
CBDC (Central Bank Digital Currency)
A digital form of a country's national currency, issued and regulated by its central bank.
CeDefi
CeDefi (Centralised decentralised finance) is the convergence of both the traditional and modern financial practices merging conventional regulatory safeguards in traditional systems and modern innovative financial infrastructure and products.
CeFi (Centralized Finance)
Infrastructure designed to facilitate cryptocurrency investment opportunities that bring together the best features of DeFi and traditional financial instruments in terms of usage and safety.
Centralized Exchange (CEX)
Cryptocurrency exchanges that require central intermediaries to conduct large volumes of transactions via the order book model.
Chain Split
The separation of two or more permanent versions of a blockchain sharing the same history up to a certain time into several independently managed projects.
Chainlink (LINK)
Chainlink is a decentralized oracle network that enables smart contracts to securely interact with real-world data, APIs, and external payment systems. LINK, its native token, is used to incentivize and compensate node operators who provide accurate and reliable data.
Cillionaire
A person that has a large cryptocurrency portfolio or has become a millionaire through crypto.
Circulating Supply
The total number of a particular cryptocurrency in the market.
Cloud Mining
Cloud mining is a process of mining cryptocurrencies without dealing with the hassles of owning and running mining equipment. It involves renting computing power from providers to mine a proof of work cryptocurrency.
Coin
A unit of a particular cryptocurrency.
Cold Wallet / Cold Storage
Offline wallets for securely storing cryptocurrencies.
Consensus
A democratic practice used for decision-making in blockchain. It is achieved when all nodes in the network agree on the order and contents of the blocks on the blockchain.
Consensus Mechanism
An underlying fault-tolerant mechanism used to reach an agreement on a single state of the network among distributed nodes in a blockchain network.
Cross-chain
The mechanism that enables two independent blockchains to communicate with one another due to their uniform construction.
Cryptocurrency (crypto)
Decentralised digital currencies that facilitate value transfers on distributed ledgers without the need for intermediaries.
Cryptocurrency Wallet
Cryptocurrency wallets are digital wallets for securely storing cryptographic keys that give traders access to their cryptocurrencies.
Cryptography
A field of study and practice that involves sending secure, encrypted messages between two or more parties.
D
DDoS Attack
A common cyber-attack tactic where a bad actor disrupts the operation of an application, server, or network by flooding it with large amounts of traffic.
Dead Cat Bounce
A small and brief price recovery in a cryptocurrency that is in a prolonged downtrend. This brief rally can mislead traders into thinking that a reversal is happening, but the price ultimately continues to decline after the “bounce.”
Death Cross
A market chart pattern reflecting recent price weakness that occurs when the short-term moving average falls below a longer-term moving average thereby indicating a potentially big sell-off.
Decentralisation
Transfer of decision-making control from a central entity (individual, groups, or association) to a distributed network.
Decentralised API (dAPI)
A decentralised application programming interface that is intrinsically interoperable with blockchain networks.
Decentralised Applications (DApps)
Internet applications that function autonomously on public blockchain networks, without centralized servers.
Decentralised Autonomous Initial Coin Offerings (DAICO)
A fundraising methodology that introduces governance in ICO processes where contributors can vote for the return of their funds if certain conditions are met.
Decentralised Autonomous Organisations (DAO)
Blockchain-based organisations run by code and community voting, without the need for a central authority or any hierarchical structures. Decentralised Exchange (DEX) A peer-to-peer marketplace where users can trade crypto assets against the liquidity in smart contracts without the need for intermediaries or a central authority.
Decryption
The process of retransmitting encrypted messages back to their original format.
Delegated Proof of Stake (dPOS)
A type of proof of stake consensus mechanism where users stake their coins to empower a selected group of validators to validate blocks in a cryptocurrency network.
Desktop Wallet
Programs locally installed on a desktop or laptop computer that provide users with complete control over the wallet and enable them to store their funds offline.
Diamond Hands
A popular term used for people with high-risk tolerance for high volatility stocks or assets that they own and plan to hold for the long-term.
Digital Asset
Anything of value that is uniquely identifiable and stored digitally.
Digital Currency
A currency that exists only in digital form.
Digital Gold
Bitcoin is often referred to as digital gold because it has many of the same characteristics as gold.
Digital Signature
A method used to confirm the authenticity of electronically transmitted data.
Directed Acyclic Graph (DAG)
A data structure that is often used for data modelling built in one single direction yet branches out and never repeats.
Distributed Ledger
Ledgers whose data is stored and synchronised across a network of decentralised nodes
Diversification
Putting money into different types of assets in order to lower overall risk.
Dogecoin (DOGE)
Dogecoin is a decentralized, open-source cryptocurrency originally created as a joke in 2013. It gained mainstream popularity due to its meme-based branding featuring the Shiba Inu dog and endorsements from figures like Elon Musk.
Dollar-Cost Averaging (DCA)
An investment strategy that allows investors to split up the total amount to be invested across periodic purchases of a target asset to reduce the impact of volatility.
Dominance (Bitcoin)
The ratio of the total market capitalization of Bitcoin to the total market capitalization of all other cryptocurrencies. This shows how much of the total value of all cryptocurrencies is made up of Bitcoin.
Double Spend
A potential flaw in digital cash schemes that allows spending a single digital currency more than once. For example, sending cryptocurrency to two different wallet locations at the same time.
DYOR (Do Your Own Research)
A popular acronym that stands for “Do Your Own Research.” It encourages investors to do extensive research and background check on a project before investing.
E
Encryption
The process through which information is converted into cryptographic codes (ciphertext).
ENS (Ethereum Name Service)
Human-readable addresses replacing complex wallet addresses.
Epoch
A specific period of time used to specify when specific events in a blockchain network will occur.
ERC-1155
A digital token standard interface that seeks to create a smart contract that can represent and control any number of fungible and non-fungible token types on Ethereum Blockchain.
ERC-20
A digital token standard used to issue and implement fungible tokens on the Ethereum blockchain
ERC-223
An iteration of the ERC-20 standard that enables users to securely transfer tokens to a digital wallet on the Ethereum blockchain.
ERC-721
An Ethereum token standard used to create non-fungible and exchangeable tokens.
ERC-777
A fungible token standard derived from the existing ERC-20 standard that defines a new way to interact with a token contract while staying backward compatible.
ERC-827
An extension of ERC-20 that allows execution of calls inside the transfer and approvals. It addresses the existing limitations of the ERC-20 standard when it comes to the implementation of these calls.
ERC-884
An Ethereum token standard that allows for the creation of tradable ERC-20 tokens, each of which symbolises a numberless share issued by a Delaware corporation.
ERC-948
A standard that facilitates subscription-based transactions and connections between subscription businesses and customers.
Ether (ETH)
The native coin and payment method for operating the Ethereum blockchain.
Ethereum
Ethereum is a decentralised permissionless blockchain platform with smart contracts functionality.
Ethereum Virtual machine (EVM)
The software that developers use to create decentralised apps on the Ethereum blockchain.
Exchange
An online marketplace where buyers and sellers meet to trade.
F
Fakeout
A fakeout, also known as a false breakout, occurs when a trader anticipates a price increase for a cryptocurrency, but the price instead reverses sharply, leading to significant losses. Essentially, the anticipated breakout never materializes.
Faucet
A crypto reward system that enables users to earn small amounts of a cryptocurrency for completing easy tasks.
Fiat Currency
Legal tender without intrinsic value (not backed by any commodity) that is issued and backed by a central bank.
Fiat Pegged Currency
A digital token on a blockchain that is linked to a government or bank-issued currency.
Floor Price
Lowest price for an NFT in a collection.
Fork
An upgrade of a blockchain’s software that has been made to improve functions, capabilities, and/or security.
FUD (Fear, Uncertainty, Doubt)
A popular acronym meaning Fear, Uncertainty, and Doubt. It is often attached to spreading negative or misleading information about a crypto asset.
Full Node
Infrastructure that validates transactions and blocks by downloading a blockchain's entire history in order to observe and enforce its rules.
Fully Diluted Valuation (FDV)
The total market capitalisation of a cryptocurrency if all tokens were in circulation. A high FDV relative to market cap indicates a risk of supply inflation and future selling pressure.
Fungible
The ability of an asset to be interchangeable with another of its kind.
G
GameFi
The convergence of cryptocurrency and games through a design that involves economic and financial benefits and users having full ownership of their in-game assets.
Gas
A term used on the Ethereum blockchain to denote the unit of computational effort required to validate a transaction on the network.
Gas Fees
Fees for executing transactions on a blockchain.
Genesis Block
The first block that is processed and validated on a blockchain.
GM/GN
“Good morning” and “Good night” – popular greetings in crypto communities.
GMI
Stands for "Going to make it,"an acronym used within online trading communities to express solidarity and shared optimism. It's often used in the plural form, WAGMI ("We are going to make it")
Golden Cross
A technical trading chart pattern that indicates a price increase when a stock or cryptocurrency's short-term moving average crosses above its long-term moving average.
Governance token
Tokens that enable users to vote on the future of a crypto project.
Gwei
Also known as giga wei, gwei is the smallest unit of ether that denotes the cost of gas in transactions in the Ethereum blockchain.
H
Hard Cap
The maximum funding a team is willing to collect from investors during an ICO/IEO. It also denotes the absolute maximum supply of a particular cryptocurrency.
Hard Fork
A hard fork is a radical protocol change in a blockchain that splits it into two chains.
Hardware Wallet
An offline cryptocurrency wallet that is used to store the private keys of users. Hardware wallets usually come in the form of a flash drive.
Hash
A mathematical function used in cryptography that creates a unique, fixed-length string to encrypt and secure a certain selection of data.
Hash Function
A function that takes a set of inputs of any arbitrary size and fits them into a fixed-size output.
Hash Rate
The total computational power required to process a transaction in a blockchain network.
Hashing Power
The amount of computing power a computer or mining hardware uses to run and continuously solve the different cryptographic puzzles in proof-of-work cryptocurrencies.
HODL (Hold On for Dear Life)
An acronym that translates to "hold on for dear life,"used to refer to a long-term buy-and-hold strategy among crypto investors.
Hot Wallet
A digital currency wallet connected to the internet and accessible online to facilitate cryptocurrency transactions. It's also used for interacting with decentralised applications on open blockchain networks.
I
Immutable X
Immutable X is a layer-2 scaling protocol for NFTs on the Ethereum blockchain. It offers instant trade confirmation and almost zero gas fees for minting and trading NFTs.
Impermanent Loss
Temporary losses encountered by a liquidity provider due to the volatility in crypto assets held in a decentralised liquidity pool.
Initial Bounty Offering (IBO)
A method of launching a crypto project that requires people to contribute their skills and time to earn rewards in the new cryptocurrency.
Initial Coin Offering (ICO)
The cryptocurrency industry's equivalent of an initial public offering (IPO). An initial coin offering (ICO) can be used by a firm to acquire funding for the development of a new crypto project.
Initial DEX Offering (IDO)
When a blockchain project launches a coin on a decentralised exchange (DEX) to raise funds from investors.
Initial Exchange Offering (IEO)
A method employed by startups to acquire funds by selling utility tokens that confer privileged status with the company on a cryptocurrency exchange or platform.
Initial Farm Offering (IFO)
A fundraising technique that allows new DeFi projects to raise funds by selling tokens on a yield farming protocol.
Initial Game Offering (IGO)
Allows individuals to invest in gaming initiatives at an early stage by purchasing the blockchain game’s token or NFTs.
Initial NFT Offering (INO)
A new cryptocurrency fundraising invention that involves selling a set of limited edition NFTs via a launchpad. It is based on the notion of an Initial Coin Offering (ICO).
Initial Stake Pool Offering (ISPO)
A novel way of obtaining funds for the development of projects that uses a staking pool. This method is only currently employed in Cardano.
Initial Token Offering (ITO)
ITOs are comparable to initial coin offerings, but they focus more on offering tokens with utility, such as software or ecosystem usage.
Interoperability
The capacity of a blockchain network to share and receive data from other blockchain networks.
J
JOMO (Joy Of Missing Out)
Stands for the "joy of missing out". It is the opposite of FOMO (fear of missing out). It is a term used by people to declare their joy of not being involved with cryptocurrencies when prices are tanking, or a project is revealed to be a scam.
K
KYC (Know Your Customer)
A verification required on most crypto exchanges to verify the identity of their users.
L
Laser Eyes
"Laser eyes"was a viral Twitter meme used by Bitcoin enthusiasts to express and promote a bullish outlook for Bitcoin, with the goal of pushing its price to $100,000. Now that Bitcoin has surpassed that milestone, the meme has evolved to represent the continued belief in Bitcoin's long-term growth and its potential for even greater price appreciation.
Layer 1 (L1)
Base blockchain networks like Ethereum, Solana, or Avalanche.
Layer 2 (L2)
Solutions built on top of L1 to enhance scalability (e.g. Polygon, Arbitrum).
Ledger
In the context of cryptocurrency, a ledger is a digital record-keeping system that tracks all cryptocurrency transactions. It's the underlying technology that makes cryptocurrencies work.
Lightning Network
A peer-to-peer routed payment protocol with bidirectional channels that operates as a second layer on top of a blockchain, allowing for smaller, faster, and cheaper transactions.
Liquidity
The ease with which cryptocurrencies can be swapped with other tokens or fiat currencies, without substantial impact to market price.
Liquidity Mining
Liquidity mining is a method of earning rewards (in the form of protocol tokens) for providing liquidity to decentralised trading or lending pools.
Liquidity Pool
A liquidity pool is a pool of cryptocurrencies or tokens that are locked in a smart contract and used to facilitate trades between assets on a decentralised exchange (DEX).
Liquidity Provider
An individual or a party that funds a liquidity pool with crypto assets to facilitate trading on a decentralised exchange platform.
Liquidity Provider (LP) Tokens
Tokens issued to liquidity providers that represent their share of a liquidity pool.
Litecoin (LTC)
Litecoin is a peer-to-peer cryptocurrency created as a faster and more scalable alternative to Bitcoin. It utilizes the Proof-of-Work (PoW) consensus mechanism with the Scrypt hashing algorithm, enabling quicker block generation.
M
Mainnet
Refers to a developed independent blockchain protocol that processes transactions with real monetary value.
Market Capitalisation (or market cap)
The total market value of a cryptocurrency, calculated by multiplying the total number of tokens in circulation by the current price of a single token.
Max Supply
The max or maximum supply of a cryptocurrency refers to the maximum number of coins that will ever be created.
Memecoin
A memecoin is a cryptocurrency that originated from an internet meme or a joke, such as Dogecoin or Shiba Inu.
MetaMask
A software wallet that serves as a smartphone application or web browser extension for interacting with the Ethereum blockchain.
Metaverse
The metaverse is an interconnected entity of digital environments comprising social media, NFTs, and virtual currency, powered by virtual and augmented reality.
Micro Cap
Micro cap in crypto refers to digital assets with small capitalisation, usually less than $300 million. These types of cryptocurrencies show more volatility, making them riskier to trade.
Miner
An individual or a company that uses their computing power to validate transactions in cryptocurrency networks.
Miner Extractable Value (MEV)
The maximum profits miners can make at the expense of users by arbitrarily including, excluding, or reordering transactions within the blocks they generate.
Mining
Mining refers to the process of validating transactions in a cryptocurrency network by expending computing power to solve cryptographic equations, and in turn, earning rewards in newly minted tokens and transaction fees
Mining Pool
A group of cryptocurrency miners who pool their computing resources together to enable them to validate transactions quicker, and in turn, share block rewards proportionally based on computing power contributed.
Mining Rewards
The amount of cryptocurrency miners get in return for successfully validating blocks of transactions in a blockchain network.
Minting
The process of generating new tokens on a blockchain network without reliance on centralised intermediaries. These tokens can be coins or NFTs.
Mobile Wallet
Smartphone applications for securely storing keys that give traders access to observe, send and receive the coins they own.
Mooning (or going to the moon)
Mooning is a slang term used in the crypto space to describe a crypto asset that is experiencing a rapid and significant surge.
Move-to-Earn (M2E)
Apps incentivising physical activity with crypto rewards.
Multi-Coin Wallet
Cryptocurrency wallets that can support more than one crypto asset.
Multi-Signature Wallet
Cryptocurrency wallets that require two or more private keys to sign a transaction before they are successful. These types of wallets allow a group of users to collectively own crypto assets.
N
Network Fee
A transaction fee paid to miners in exchange for the processing power used to secure the network whenever a cryptocurrency is sent from one wallet to another.
NFTs (Non-fungible tokens)
Unique digital assets representing ownership of a specific item or piece of content. Unlike cryptocurrencies which are fungible (interchangeable), each NFT is distinct and has its own unique identifying information recorded on a blockchain. This uniqueness makes NFTs suitable for representing things like digital art, collectibles, in-game items, and even real-world assets.
NGMI (Not Gonna Make It)
Acronym for “Not going to make it”, which is typically used in the internet trading environment to express solidarity with other investors. (Also see GMI).
Node
Nodes are basic blockchain infrastructures that store data within the blockchain network.
Nonce
An arbitrary number used by a miner in mining cryptocurrencies.
O
Off-Chain
Transactions that are processed outside the main blockchain network, increasing speed and reducing cost in the process.
Offline Storage
Cryptocurrency storage options that are not connected to the internet.
On-Chain
Transactions that are recorded on the blockchain and distributed among all nodes.
Online Storage
Cryptocurrency storage options connected to the internet.
Oracles
Third-party services that provide smart contracts with information from the outside world.
Order Book
An electronic list of buy and sell orders of a particular asset on a cryptocurrency exchange.
OTC (Over-the-Counter)
A method of trading cryptocurrencies directly between two parties via a broker-dealer network.
P
Paper wallet
A piece of paper that has private/public keys printed on them.
Parachain
Specific blockchains that run in parallel within the Polkadot network.
Peer-to-Peer (P2)
A decentralised communication network between two parties often known as nodes without a central server/ intermediary.
Peg
A peg is a specified price a cryptocurrency aims to track or stay at.
Pegged Currency
Pegged currencies are cryptocurrencies that maintain a price peg to traditional assets.
Perpetual Futures
Exchange settled leveraged derivative contracts that enable traders to hold positions indefinitely without an expiration date. They are used for short-term trading strategies and require periodic funding fees on exchanges.
PFP (Profile Picture NFT)
NFTs used as profile pictures like CryptoPunks and Bored Ape Yacht Club (BAYC).
Phishing
A type of cyber-attack in which a bad actor assumes the identity of a trustworthy organization or corporation in order to trick people and obtain their personal data, including credit card numbers, usernames, passwords, and other credentials.
Play-to-Earn (P2E)
Play to earn is a gaming model that allows users to earn cryptocurrencies or NFTs that can be sold in the crypto market.
Polkadot (DOT)
Polkadot is a multi-chain blockchain platform that enables interoperability between different blockchains. It uses a unique relay chain and parachain architecture, allowing networks to connect and share data securely. DOT, its native token, is used for governance, staking, and bonding new parachains.
Private Key
Private keys are strings of alphanumeric characters that traders can use to access and manage their crypto funds.
Proof of Authority (PoA)
An energy-efficient consensus mechanism that relies on the identities of validators as a stake instead of coins or computing power.
Proof of Burn (PoB)
Proof of burn is the process of burning tokens in a cryptocurrency network by sending them to an address where they can never be accessed in exchange for the rights to validate blocks in a cryptocurrency network.
Proof of Developer (PoD)
Proof-of-developer is any verification that shows evidence of a real developer behind a crypto project with a delivery working model to prevent an anonymous figure from making away with any raised funds.
Proof of History (PoH)
Proof of history is a type of consensus mechanism that uses a series of computations (or verifiable delay functions) to cryptographically verify the passage of time between two events in a blockchain network.
Proof of Immutability (PoIM)
Proof of Immutability is a type of blockchain system (usually in permissioned blockchains) that upholds high privacy by distributing hashes of the metadata to users as opposed to the metadata itself.
Proof of Reserves (PoR)
Auditable verification that centralised platforms have sufficient assets.
Proof of Stake (PoS)
Proof of stake is a consensus mechanism that involves the use of coins to validate transactions in a cryptocurrency network.
Proof of Validation (PoV)
Proof of validation is a type of proof of stake consensus mechanism of reaching consensus via staked validator nodes.
Proof of Work (PoW)
Proof of work is a consensus mechanism employed in crypto networks that involves expending computing power to solve cryptographic puzzles to validate transactions.
Public Address
A unique string of cryptographic codes that are used to receive cryptocurrencies.
Public Blockchain
Decentralised blockchains that allow anyone to access information within their ledger.
Public Key
Strings of alphanumeric characters used for receiving crypto funds.
Pump and Dump
A manipulative scheme employed by scammers to push the price of a cryptocurrency after which they sell at a profit and abandon the coin, causing its price to crash.
R
Rarity
Measure of how unique an NFT's attributes are.
Recovery Seed
A list of words in a particular order storing the necessary information needed to recover a cryptocurrency wallet.
REKT
Suffering significant financial losses.
Reward
Amount of cryptocurrency included in each new block as a network reward to the miner who discovered the proof-of-work solution.
Ripple
Ripple is a fintech company that develops RippleNet, a payment network for fast and low-cost cross-border transactions using XRP as a bridge currency.
Roadmap
The plan outlining the long and short-term goals of a crypto project and how they will be achieved within a flexible timeline.
ROI
ROI (Return on Investment) is a metric used by crypto investors to calculate the profitability of a trade or investment.
Rollups
L2 scaling solution bundling transactions off-chain for cheaper execution.
Rug Pull
Rug pulls occur when the founding team/developers behind a crypto project withdraws all its liquidity and abandons the project.
S
Sanctions Screening
Blocking crypto use for sanctioned individuals/entities.
Satoshi (SAT)
The smallest subdivision of a bitcoin. There are 100 million Satoshis in one Bitcoin.
Satoshi Nakamoto
The anonymous figure or entity responsible for creating Bitcoin, the first cryptocurrency.
Scamcoin
Scamcoins are cryptocurrencies that are created to benefit their creators by illegally stealing the funds of those who invested in the coin.
SEC (Securities and Exchange Commission)
The U.S. government agency responsible for protecting investors.
Security Token
Digital tokens on a blockchain that represents ownership of a share of traditional securities or assets.
Security Token Offering (STO)
Security tokens offerings are a type of public offering where tokenised securities are publicly sold on cryptocurrency or security token exchanges.
Seed Phrase
A list of cryptographically generated words that gives traders access to the cryptocurrency associated with a wallet
Sentiment
The general feeling that traders and investors have in relation to an asset's price movement. Crypto sentiment monitoring can be a key tool for traders and investors to forecast price fluctuations.
SHA-256
SHA-256 (Secure hash algorithm 256 is a cryptographic hash function that gives a 256-bit output. It's the hashing and mining algorithm of the Bitcoin network.
Shard
A shard is a sub-blockchain for scaling the main chain.
Shard Chain
Shard chains are smaller pieces of a blockchain network that provides extra and cheaper storage layers for applications and transactions.
Sharding
Sharding is a way of partitioning a blockchain network into smaller pieces known as shards to boost its scalability.
Shielded Address
A shielded address is an address that uses zero-knowledge proofs to allow transactions to be encrypted but still verifiable in a blockchain network.
Shielded Transaction
A shielded transaction is a transaction between two shielded addresses.
Shilling
Shilling is the process of overly promoting a cryptocurrency with the aim of creating buzz and pumping the price of the coin.
Side Chain
A side chain is a separate blockchain that connects to a parent blockchain or main net through a two-way peg.
Smart Contract
Smart contracts are self-executing programmes on a blockchain that acts based on predetermined agreements.
Smart Token
Smart tokens are tokens that transmit both the value they contain and codes containing the information needed to execute a transaction simultaneously.
Social Tokens
Crypto tokens representing membership in a community or access to exclusive content or benefits.
Soft Cap
Soft cap refers to the minimum viable funding amount a crypto project needs to reach through an ICO/IEO.
Soft Fork
A soft fork is a backward-compatible way for upgrading or adding features to a blockchain network.
Software Wallet
Software wallets are digital wallets that give traders access and control over their cryptocurrencies.
Solana (SOL)
Solana is a high-performance blockchain designed for decentralized applications (dApps) and smart contracts. It differentiates itself with a unique hybrid consensus mechanism combining Proof-of-Stake (PoS) and Proof-of-History (PoH), which enhances transaction speed and scalability. Solana supports various applications, including DeFi, NFTs, gaming, and e-commerce, positioning itself as a competitor to Ethereum.
Soulbound Token (SBT)
Soulbound tokens are non-transferable, publicly verifiable digital tokens that can act as a type of CV for web3 users, showing an individual’s memberships, credentials, and affiliations.
Spot Market
In the spot market, traders buy and sell cryptocurrencies at spot prices for immediate settlements.
Spot Trading
refers to the exchanging of cryptocurrencies at a spot price for instant settlements.
Stablecoin
A type of cryptocurrency designed to maintain a stable value, either by following the price of another asset (such as the USD) or by having its supply regulated by an algorithm. Stablecoins combine some advantages of fiat and crypto. Their limited volatility makes them ideal for payments and transactions.
Staking
Staking is a process of locking funds in a cryptocurrency network to keep it secure and earn rewards in return.
Staking Pool
Staking pools involve multiple users combining resources (coins) to increase their chances of validating transactions and earning rewards.
T
Terahashes Per Second (Th/s)
Terahash per second is the equivalent of one trillion (1,000,000,000,000) hashes per second. It is a measurement unit for the computing power generated by a mining machine.
Testnet
Testnets are alternative blockchain networks used by developers for testing new features without worrying about disrupting the main blockchain.
Tether (USDT)
USDT is a stablecoin issued by Tether, a Hong Kong-based company. It is designed to maintain a 1:1 peg with the U.S. dollar by being backed by reserves, which include cash, U.S. Treasury bills, and other assets. USDT facilitates transactions on blockchain networks while minimizing price volatility, making it popular for remittances, trading, and digital payments.
Timestamp
A timestamp is a small data identification indicating when a block/transaction was mined in a blockchain network.
Token
Tokens are digital units representing value on a blockchain.
Token Sale
Token sale refers to the initial sale of a crypto token to a pool of investors in exchange for another crypto asset before it goes live in the market.
Tokenization
The process of converting real-world assets into tradable digital assets.
Tokenomics
Tokenomics refers to the economics of a crypto network’s token.
Total Supply
Total supply is the total number of coins that currently exist minus the total coins that were verifiably burned.
Total Value Locked (TVL)
Total value locked refers to the overall value of the total asset deposited in a decentralised protocol.
TradFi (Traditional Finance)
Refers to the traditional or mainstream financial sector, its products, and institutions, such as banks and brokerages, characterized by a significant degree of centralization.
Trading Volume
Trading volume refers to the number of units of a crypto asset exchanged within a specific timeframe.
Transaction (TX)
A transaction is the act of exchanging crypto assets in a cryptocurrency network.
Transaction Per Second (TPS)
Transaction per second refers to the maximum number of transactions a cryptocurrency network can process in a second.
Tron (TRX)
Tron is a blockchain platform that supports smart contracts and decentralized applications (dApps). It utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism to optimize transaction speed and reduce costs. Tron is particularly known for its low-fee transactions and focus on digital entertainment and content-sharing applications.
Two-Factor Authentication (2FA)
2FA is an extra layer of security on platforms beyond usernames and passwords that requires two different types of authentication.
U
Unbanked
A term for people who do not use banks or banking institutions, typically due to a lack of access.
Uniswap (UNI)
Uniswap is a decentralized exchange (DEX) built on Ethereum that facilitates automated token swaps without intermediaries. UNI is its governance token, allowing holders to influence protocol development and governance decisions. Uniswap uses liquidity pools instead of order books, making it a key player in the decentralized finance (DeFi) ecosystem.
Unspent Transaction Output (UTXO)
Unspent transaction output refers to a transaction output that can be used as an input for a new cryptocurrency transaction.
USD Coin (USDC)
USDC is a fully reserved, fiat-backed stablecoin issued by Circle and managed by Centre, a consortium founded by Circle and Coinbase. It is pegged 1:1 to the U.S. dollar and operates on multiple blockchain networks.
Utility Token
Tokens that serve a specific use case within a specific crypto ecosystem.
V
Validator
Validators are nodes that verify blocks of transactions in a cryptocurrency network.
Vitalik Buterin
Vitalik Buterin is a Russian-born Canadian writer and programmer responsible for co-founding Ethereum and Bitcoin Magazine.
W
WAGMI (We’re All Gonna Make It)
Optimistic community slogan (also see GMI).
Wallet
A digital tool (such as MetaMask, Ledger, Trezor) used to manage and store cryptocurrencies, essential for interacting with the blockchain. Key aspects include private key management, account access and management, and interaction with smart contracts.
Weak Hands
A term used to describe investors who lack the conviction or resources to hold their positions or stick with their trading strategies.
Web 1.0
Web 1.0 also referred to as the Static web, is the first generation of the web and it was used specifically for communication purposes.
Web 2.0
Web 2.0, also referred to as the social web, is the second iteration of the web that enabled interactive platforms where users can generate and share content.
Web 3.0
Web 3.0 is the third iteration of the world wide web where applications and websites process information via emerging technologies like blockchain, big data, the internet of things, and machine learning.
Web3 Foundation
Web3 Foundation was co-founded by Gavin Wood to nurture and steward technologies and applications in the fields of decentralised web software protocols.
Whale
Whales are individuals or entities that hold a large amount of a particular cryptocurrency.
White Paper
A document released by a crypto project that explains its purpose, technical concepts, and details a roadmap.
Whitelist
Whitelist in the world of crypto refers to a list of participants or addresses allowed to partake in an ICO or withdrawal.
Wholecoiner
Someone who owns one or more entire Bitcoins, signifying a substantial level of Bitcoin ownership.
X
XBT
XBT is also a ticker symbol for Bitcoin, often used by financial institutions and exchanges following international currency code standards (ISO 4217). However, BTC remains the more widely recognized and commonly used symbol in the cryptocurrency community.
XRP (Ripple)
XRP is the native cryptocurrency of the XRP Ledger, an open-source, decentralized blockchain focused on fast and cost-effective cross-border payments. Unlike traditional Proof-of-Work blockchains, XRP Ledger uses a consensus protocol that enables quick settlement times with minimal energy consumption. XRP is widely used by financial institutions for international transactions.
Y
Yield Farming
Yield farming is the process of lending or staking crypto assets to earn rewards and interest/fees paid in cryptocurrency.
YTD
YTD (Year to Date) is a metric that shows the performance of a crypto asset from the beginning of the year to its current price.
Z
Zero-Knowledge Proofs
Zero-knowledge proofs are a way of cryptographically proving the authenticity of an information/transaction without revealing the details of the said information/transaction.
Zk-SNARKs
Zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) is a type of zero-knowledge proof that requires an initial trust system.
Zk-STARKs
A type of zero-knowledge proof that doesn't require a trusted phase. Instead, it uses publicly verifiable proof of randomness, enhancing privacy, scalability, and security.
The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Cryptocurrencies (such as Bitcoin) are extremely volatile and can move or jump in price with no apparent reason due to lack of liquidity and ad hoc news. There is little or no fundamental reasoning behind its pricing and as such trading CFDs in cryptocurrencies poses a significant risk to clients. For any Cryptocurrency CFDs that we limit to Monday – Friday trading, it is important to note that the underlying market will continue to trade over the weekend, meaning there could be a significant price change between Close of Business on Friday and open for business on Monday. Therefore, these symbols should be traded by clients with sufficient experience to understand that, subject to negative balance protection (where available), they risk losing all their investment, or more, in a short period of time, and only a very small part of their portfolio should be allocated.
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