Crypto Glossary

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51% Attack
Also known as a majority attack. When one or a group of miners control greater than 50% of the network’s mining hashrate or computational power.

A

Address
String of text that designates the location of a particular wallet on the blockchain. Often a hashed version of a public key.

Airdrop
The distribution of digital assets to the public, either by virtue of holding a certain other token or simply by virtue of being an active wallet address on a particular blockchain.

Algorithm
A sequence of unambiguous instructions used for the purpose of solving a problem.

All or None Order (AON)
An order which once placed, must either be filled in its entirety or not at all. This prevents any partial filling of orders.

All-Time High (ATH)
The highest price of a cryptocurrency in a quote​ currency, such as a dollar, BTC, ETH, or BNB

Allocation
An allotment of tokens or equity, that may be earned, purchased, or set aside for a certain investor, team, group, organization, or other related entity.

Altcoin
A cryptocurrency that is alternative to Bitcoin. Used to describe cryptocurrencies that are not Bitcoin.

Angel Investor
Wealthy investors that seek out opportunities to provide funding for entrepreneurs or start-up companies.

Anti Money Laundering (AML)
A framework consisting of legal and regulatory procedures to minimize and curb the flow of funds that are generated from illegal or dubious activities.

Application Programming Interface (API)
A collection of functions and procedures that allow users to interact/communicate with the data of an application or service, such as an exchange, to execute the features of the service programmatically.

Application-Specific Integrated Circuit (ASIC)
An Integrated Circuit customized for maximum performance in a particular use, rather than general-purpose use.

Arbitrage
Buying and selling of assets over different markets in order to take advantage of differing prices on the same asset.

ASIC-resistant
An ASIC-resistant cryptocurrency has its protocol and mining algorithm configured in such a way that using ASIC machines to mine the coin is either impossible or brings no significant benefit when compared to traditional GPU mining.

Ask Price
The lowest price a seller is willing to accept on their sell order when trading an asset on an exchange.

Asset Management
A system or method that helps individuals or companies manage assets. Either on behalf of their clients or their own.

Assets Under Management (AUM)
AUM (assets under management) is the market value of financial assets managed by an entity on behalf of clients, indicating influence and operational scale.

Asynchronous
Events in electronic systems that do not happen at the same time or speed, or happen independent of the main program flow.

Atomic Swap
Smart contract technology that enables the exchange of one cryptocurrency for another without using centralized intermediaries, such as exchanges.

Auction
A live event where assets or services are negotiated through a bidding process, which is often led by an auctioneer.

Automated Market Maker (AMM)
Automated Market Makers (AMMs) are a subset of decentralized exchange (DEX) protocols. They allow users to trade digital assets without the need for an intermediary.

B

B-Tokens
B-Tokens are the name for a range of fully-collateralized wrapped tokens minted by Binance.

Bags
The portfolio of coins and tokens one is holding. Often related to a poorly performing bag of assets that investors insist to hold.

Beacon Chain
The Beacon Chain is Ethereum’s proof-of-stake (PoS) layer where consensus is reached. It controls and coordinates the network of Ethereum stakers who help validate and secure the network in exchange for staking rewards.

Bear Market
A negative trend in prices of a market. It is widely used not only in the cryptocurrency space but also in the traditional markets.

Benchmark
A measurement standard which can be used to gauge the performance of a particular asset or investment portfolio.

BEP-20
BEP-20 is a token standard on BNB Smart Chain that extends ERC-20, the most common Ethereum token standard. You can think of it as a blueprint for tokens that defines how they can be spent, who can spend them, and other rules for their usage. Due to its similarity to BNB Beacon Chain’s BEP-2 and Ethereum’s ERC-20, it’s compatible with both.

BEP-721
A technical standard that defines a set of rules for the issuance of NFTs in the BNB Smart Chain ecosystem.

BEP-95
BEP-95 is a Binance Evolution Proposal that introduces a real-time burning mechanism to BNB Smart Chain.

Bid Price
In the context of financial markets, it is the value buyers offer for an asset, such as a commodity, security, or cryptocurrency.

Bid-Ask Spread
The difference in price between the lowest asking price and highest bid price on the order book for an asset.

Binancian
A “Binancian” is a term referring to individuals who are actively involved with or contribute to the cryptocurrency exchange Binance.

Bitcoin
A cryptocurrency created by the pseudonymous developer(s) Satoshi Nakamoto. The first cryptocurrency, initially described as a ‘Peer-to-Peer e-cash’.

Bitcoin Core
Leading implementation of the software that enables users to interact with the Bitcoin network. Initially released by Satoshi.

Bitcoin Dominance
The ratio of Bitcoin’s market capitalization versus the sum of the market capitalizations of all cryptocurrencies.

Bitcoin Maximalists
Bitcoin Maximalists are individuals who believe that bitcoin is the only valuable cryptocurrency and the future of global finance.

Bitcoin Pizza
The first known transaction where Bitcoin was exchanged for a physical good. Laszlo Hanyecz paid 10,000 BTC for two pizzas.

Block
A computer file that stores transaction data. These can then be arranged in a linear sequence, which will form a blockchain.

Block Explorer
An online Blockchain webpage which allows users to browse information about blocks, transactions, balances, and transaction histories.

Block Header
A section in a block containing metadata and a summary of the block’s transactions. This is the information hashed when mining.

Block Height
The number of blocks in the chain between itself and the first block on that blockchain (genesis block or block 0).

Block Reward
The sum of coins awarded by the blockchain protocol to cryptocurrency miners for each successfully mined and validated block.

Blockchain
A decentralized, digitized ledger that records transaction information about a cryptocurrency in a chronological order.

Blue-Chip Token
Blue-chip cryptos are coins that have withstood the test of time. These assets are established and reliably valuable.

BNB
Launched by Binance after an initial coin offering that ended on July 3rd, 2017. Used for receiving exchange trading fee discounts among other utilities.

Bounty
A reward posted by a group or individual to incentivize certain work, behavior (such as referrals), or development.

BRC-20 Tokens
BRC-20 is an experimental token standard that enables the minting and transferring of fungible tokens via the Ordinals protocol on the Bitcoin blockchain.

Breakout
When the price of an asset moves outside of a defined range or pattern, typically by breaking out of a support or resistance area.

BUIDL
Originally derived from HODL, a term referring to keeping your heads down and focusing on building your product.

Bull Market
A positive trend in prices of a market. It is widely used not only in the cryptocurrency space but also in the traditional markets.

Burner Wallet
A temporary crypto wallet for potentially risky interactions.

Buy Wall
A single huge buy order or the composition of multiple large buy orders at the same price in the order book of a particular market.

C

Candidate Block
A temporary block created by a mining node (miner) to add to the blockchain to receive the block rewards.

Candlestick
A graph representation of price action that displays the open, close, high, and low points within a certain period.

Capitulation
A period of strong selling activity, where investors give up their positions and sell their holdings as quickly as possible.

Central Bank
A financial institution that acts as a monetary authority and manages a states currency, interest rates, and money supply.

Central Bank Digital Currency (CBDC)
A Central Bank Digital Currency (CBDC) is an officially sanctioned digital tender issued by a sovereign central bank. CBDCs can be either wholesale or retail.

Centralized
When the planning and decision-making mechanisms are concentrated in a particular point within a system.

Centralized Exchange
Understand the world of centralized exchanges, traditional crypto marketplaces known for high liquidity, advanced trading tools, and risk considerations.

ChatGPT
ChatGPT is a language processing model developed by OpenAI. It represents a significant advancement in the field of natural language processing (NLP).

Cipher
A method for encrypting and decrypting messages. These can be divided into symmetric or asymmetric, according to their key model.

Circulating Supply
The best approximate number of cryptocurrency coins or tokens that are publicly available and circulating in the market.

Coin
A cryptocurrency or digital cash that is independent of any other platform, which is used as an exchange of value.

Cold Storage
The practice of storing digital assets offline to mitigate risks.

Collateral
Pledging something of value against a loan to guarantee that the person taking the loan will complete repayment.

Compound Interest
Compound interest refers to the interest accumulated on the principal amount, in addition to the interest from previous periods; this allows you to maximize your earnings on the principal sum.

Confirmation Time
The time elapsed when a transaction is submitted to the network and the time it is recorded into a confirmed block.

Consensus Algorithm
Consensus algorithms are mechanisms that help different computers in a blockchain network agree on what’s true, even if some of them aren’t playing fair.

Copy Trading
Copy trading is the process of emulating the successful trades of experienced investors.

Credentials
Personal information. Examples include username, password, email address, qualifications and many more.

Cross-Chain Bridges
Blockchain bridges connect different blockchain networks, enabling the movement of digital assets across networks and facilitating interoperability in the crypto space.

Crypto ETFs
Crypto ETFs allow investors to gain exposure to the price movements of cryptocurrencies without owning, or managing, them directly.

Crypto Fear and Greed Index
The Crypto Fear and Greed Index is a tool that uses several indicators to help measure the overall cryptocurrency market sentiment on a 0-100 score range.

Crypto Protocol
A crypto protocol is a set of rules and procedures that govern behavior in a decentralized network.

Crypto Winter
The term crypto winter refers to an extended period of declining or stagnant prices and negative sentiment in the cryptocurrency market.

Cryptocurrency
A digital currency that is secured by cryptography to work as a medium of exchange within a peer-to-peer (P2P) economic system.

Cryptography
The science of using mathematical theories and computation in order to encrypt and decrypt information.

Custody
Refers to the holding of assets on behalf of a client. Can also refer to the ownership of one’s funds or assets.

D

Danksharding
Danksharding brings a new approach to sharding and plays a crucial role in optimizing data management and transaction processing within the Ethereum network.

Dead Cat Bounce
A brief recovery in the price of a declining asset that is shortly followed by a continuation of the downtrend.

Death Cross
A pattern that indicates the potential for a market downturn.

Decentralized Application (DApp)
DApps are applications that run on a P2P network of computers rather than a central database. Users can freely connect to DApps using crypto wallets.

Decentralized Autonomous Cooperative (DAC)
An organization that is controlled by shareholders rather than a central authority.

Decentralized Autonomous Organization (DAO)
A system of hard-coded rules that define which actions a decentralized organization will take.

Decentralized Exchange (DEX)
An exchange which does not require users to deposit funds to start trading and does not hold the funds for the user. Instead, users trade directly from their own wallets.

Decentralized Finance (DeFi)
The ecosystem comprised of decentralized financial applications developed on top of blockchain networks.

Decryption
The act of reverting an encryption process so that unreadable data (ciphertext) can be converted into readable data (plaintext).

Delisting
The removal of an asset from an exchange either as a request from the project team or as a decision made by the exchange.

Depeg
Learn about causes, effects, and preventive measures to avoid a depeg and ensure stablecoin reliability and trust in the cryptocurrency market.

Diamond Hands
Diamond hands refers to holding a financial asset and not selling it, regardless of its volatility.

Digital Signature
A cryptographic tool to verify the authenticity and integrity of digital data, ensuring the security of data communication and cryptocurrency transactions.

Divergence
When the market price of an asset and a technical indicator (e.g. RSI, Volume, MACD) are heading in opposite directions.

Diversification
The allocation of funds across different types of assets and jurisdictions in order to reduce the overall risks.

Do Your Own Research (DYOR)
A valuable piece of advice. It’s always wise to research a coin or token yourself instead of following what others say.

Dollar Cost Averaging (DCA)
Investing fixed dollar amounts over regular periods of time regardless of the price of the asset.

Double Spending
When a given amount of coins are spent more than once. Usually as a result of a race attack or a 51% attack.

E

EigenLayer

A blockchain protocol that introduced the concept of “restaking collective” for Ethereum.

EIP-4844
EIP-4844, also known as proto-danksharding, is a proposed upgrade that focuses on reducing Ethereum’s fees and increasing transaction throughput.

Encryption
Conversion of information or data into a secure code in order to prevent unauthorised access to the information or data.

Enterprise Ethereum Alliance (EEA)
The industry’s first global standards organization to deliver an open, standards-based architecture and specification to accelerate the adoption of Enterprise Ethereum.

ERC-1155
Discover the versatility of ERC-1155 tokens. Ideal for gaming, digital collectibles and managing multiple token types efficiently.

ERC-20
A technical standard used to issue and implement tokens on the Ethereum blockchain proposed in November 2015 by Fabian Vogelsteller.

ERC-404
An experimental token standard blending fungibility and non-fungibility.

ERC-721
An Ethereum based non-fungible token. This means that each token is unique and as a result, not interchangeable.

ETF
Learn what ETFs are and explore their role in the cryptocurrency market: benefits, impacts, and challenges for investors and the financial ecosystem.

Ethereum Classic
Ethereum Classic (ETC) emerged from the Ethereum hard fork that happened as a result of the 2016 DAO hack. Unlike ETH, ETC still uses Proof of Work.

Ethereum Foundation
A non-profit organization dedicated to the development, improvement, and promotion of the Ethereum blockchain.

Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine (EVM) is a Turing-complete programmable machine that executes smart contracts, which are typically coded in Solidity.

Exchange
A marketplace for cryptocurrencies where users can buy and sell coins.

F

Fakeout
A situation where a trader enters a position betting on a price movement that quickly reverses or ultimately doesn’t happen.

Falling Knife
Refers to the action of purchasing an asset while it is rapidly declining in price under the expectation that it will bounce.

Fan Tokens
Fan tokens are digital assets that are created by sports teams, clubs or brands to increase fan engagement and create new revenue streams.

Fear Of Missing Out (FOMO)
The feeling of fear and anxiety that you might be missing out on a potentially profitable opportunity.

Fear, Uncertainty and Doubt (FUD)
A marketing strategy used to spread fear and insecurity among customers, traders, or investors.

Fiat
Money that a government has declared to be legal tender.

Finality
The assurance or guarantee that completed (cryptocurrency) transactions cannot be altered, reversed or canceled.

Flappening
The name to describe the moment when Litecoin (LTC) surpassed Bitcoin Cash (BCH) in terms of market capitalization.

Flippening
The name to describe the moment when/if Ethereum (ETH) surpasses Bitcoin (BTC) in terms of market capitalization.

Forced Liquidation
When a trader’s leveraged position is forcibly closed as a result of it not fulfilling the necessary margin requirements.

Forex (FX)
Forex stands for Foreign Exchange Markets. It’s a global market for the trading of fiat currencies.

Fork
A fork is a divergence in the blockchain network by creating a split in the blockchain’s transaction history. There are two types of forks – soft and hard.

Fren
“Fren” is an online slang term used to address someone in a friendly way. It developed in digital communities and is widely used in the crypto community.

Full Node
A computer that fully implements the entirety of rules of an underlying blockchain network and completely validates transactions and blocks on a blockchain.

Fundamental Analysis (FA)
Evaluating an asset based on its underlying characteristics and traits as an effort towards arriving at an intrinsic value of the asset.

Fungibility
The property of an asset whose individual units are indistinguishable from each other in terms of value and functionality.

Futures Contract
A standardized version of forward contracts that are used as a legal agreement to buy or sell an asset in the future at an agreed upon price and date.

G

GameFi
GameFi is a section of DeFi that merges blockchain technology and gaming, offering play-to-earn incentives through NFTs and cryptocurrencies.

Gas
The pricing mechanism employed on the Ethereum blockchain to calculate the costs of smart contracts operations and transaction fees.

Gas Limit
The maximum price a cryptocurrency user is willing to pay as a fee when sending a transaction, or performing a smart contract function.

Genesis Block
The first ever block recorded on its respective blockchain network, also referred to as Block 0 or Block 1.

GitHub
A site/system/folder/repository where a team can share, collaborate, and save their open source or propietary code.

Golden Cross
A bullish chart pattern where a shorter-term moving average crosses above a longer-term moving average.

Golden Ratio
A number that represents a special proportion found in nature, art, architecture, and even financial markets.

Gwei
A small denomination of Ether. It is widely used as a measure of gas prices. 1,000,000,000 wei = 1 Giga wei (Gwei).

H

Hackathon
A blockchain hackathon is a competition where participants build sample applications atop a blockchain ecosystem.

Halving
Halving is a process that reduces the block reward of a PoW crypto like Bitcoin (BTC) to half. The next halving of Bitcoin is expected around 2028.

Hard Cap
The maximum amount of funds a project intends to raise during their Initial Coin Offering (ICO) or alternative fundraising event.

Hash
The output produced by a hash function after a piece of data is mapped. May also be referred to as hash value, hash code, or digest.

Hash Rate
The speed at which a computer or mining hardware is able to calculate new hashes. Usually measured in hashes per second.

Herd Instinct
The tendency of some traders to follow the actions of the majority.

High-Frequency Trading (HFT)
A type of algorithmic trading that involves the execution of a large number of orders in fractions of a second.

HODL
A typo of ‘Hold’ originating from bitcointalk that has also been retrofitted to be an acronym for Hold on for Dear Life – to maintain ownership of coins and not sell.

I

Iceberg Order
A conditional order to buy or sell a large amount of assets in smaller predetermined quantities in order to conceal the total order quantity.

Immutability
The inability to change or be changed. One of the core features behind Bitcoin and blockchain technology.

Index
A financial instrument used to track the price value of a given asset or basket of assets.

Index Funds
A type of investment fund designed to replicate the performance of a specific market index, such as the S&P 500.

Initial Coin Offering (ICO)
A fundraising method in which new projects will sell their cryptocurrency to investors.

Initial DEX Offering (IDO)
An Initial DEX Offering (IDO) is a type of blockchain fundraising method. It’s a public token sale conducted directly on a decentralized exchange (DEX).

Initial Exchange Offering (IEO)
A fundraising method designed to reduce the risk for token purchasers by introducing a trusted intermediary between the project team and the user.

Initial Public Offering (IPO)
Refers to the moment a private company starts offering its shares to the public for the first time.

Inscription
A piece of data attached to individual units of cryptocurrency.

Interest Rates
Interest rates can refer either to the cost of borrowing money or the return earned on an investment, usually expressed as a percentage of the principal.

Interoperability
A concept of allowing blockchains to be compatible with each other and build upon each other’s features and use-cases.

InterPlanetary File System (IPFS)
An open-source project building a protocol for distributed content storage and access.

IOU
An acronym which stands for “I owe you” and refers to an informal document that acknowledges a debt one party owes to another.

Isolated Margin
The margin balance allocated to a position. Traders can manage risk by restricting the amount allocated to each position.

Issuance
Generation of a new cryptocurrency which occurs in a variety of different ways, depending on parameters specified by the creators.

K

Keccak
A versatile cryptographic function designed by Guido Bertoni, Joan Daemen, Michaël Peeters, and Gilles Van Assche.

Know Your Customer (KYC)
A standard procedure in the finance industry which allows companies to identify their customers and comply with KYC AML laws.

L

Latency
The time between submitting a transaction to a network and the first confirmation of acceptance by the network.

Layer 2
A secondary framework or protocol that is built on top of an existing blockchain system to provide increased scalability.

Ledger
A physical book or a digital computer file where monetary and financial transactions are tracked and recorded.

Leveraged Tokens
Leveraged tokens are a type of cryptocurrency derivative that allows traders to gain leveraged exposure to a particular cryptocurrency without having to actively manage the margin requirements. They are designed to provide traders with a simplified way to trade leveraged positions in cryptocurrencies.

Library
A collection of stable resources, which may include executable files, documentation, message templates, and written code.

Lightning Network
A second layer operating on top of a blockchain, enabling increased transaction speed among participating nodes. This is one proposed scaling solution.

Limit Order
A type of order to buy or sell an asset at a specific price or better.

Liquid Staking
The process of tokenizing staked assets to provide enhanced liquidity.

Liquid Staking Token (LST)
A cryptocurrency token that represents staked assets on a blockchain network.

Liquidity
The ability to sell or buy any given asset without causing significant fluctuations in the market price for that asset.

Liquidity Crisis
A liquidity crisis is a financial situation in which an individual, organization, or market faces a shortage of cash, making it difficult to meet immediate financial obligations.

Liquidity Provider
Liquidity Providers (LPs) are entities or individuals who supply buy and sell orders to the financial markets to increase market liquidity and ensure a stable and efficient market.

Liquidity Ratios
Liquidity ratios are a type of financial metric used to measure a company’s capability to pay short-term obligations.

Listing
The addition of an asset to an exchange either as a request from the project team or as a decision made by the exchange.

M

Mainnet
A blockchain protocol which is fully developed and deployed where transactions are being broadcasted, verified, and recorded.

Mainnet Swap
When a coin migrates from a third party platform such as Ethereum or other token to a native on-chain token on their mainnet.

Maker
You become a “maker” when you place an order and it does not trade immediately, so your order stays in the order book and waits for someone else to fill/match with it later.

Margin Trading
Trading using borrowed funds – note: this is a high risk strategy and should only be done by experienced investors.

Market Capitalization
The total trading value of a given coin – calculated by the product of the supply of the coin by the current price.

Market Momentum
The ability of a certain market to maintain a continuous increase or decrease in price within a particular timeframe.

Market Order
When a taker picks the best available bid or ask for a cryptocurrency, taking the price and quantity available on the order book.

Masternode
Nodes on a network that often require a minimum amount of a given coin staked in order to access staking rewards.

Matching Engine
A matching engine is a piece of software designed to process trading orders, ensuring that buyers and sellers are paid correctly in financial markets.

Maximum Supply
Refers to the maximum number of coins or tokens that will be ever created for a given cryptocurrency.

Mempool
A node’s mechanism for keeping track of unconfirmed transactions that the node has seen (but have not yet been added to a block).

Merged Mining
The act of mining two or more cryptocurrencies at the same time, without sacrificing overall mining performance.

Metadata
Data that includes information about other data, such as information about features of a specific transaction.

Metaverse
The metaverse is a concept of a persistent, online, 3D virtual environment that many believe will be a key element of future digital experiences.

Microtransactions
A small financial exchange using cryptocurrencies, such as bitcoin (BTC) or ether (ETH).

Mining
The verification of transactions on a blockchain network, in which transactions are added as entries into the blockchain ledger.

Mining Farm
A collection of many miners, often in a warehouse or large data center devoted to mining cryptocurrencies.

Minting
Minting adds fresh tokens into the crypto ecosystem, enabling them to be traded or used within its network. Minting is similar to mining, with some key differences.

Moon
A colloquial expression used to describe a cryptocurrency or other asset that is experiencing a strong upward market trend.

Mt. Gox
A defunct Bitcoin exchange based in Japan that was once the largest in the world.

Multisignature
Wallet which requires another party to authorize a transaction before it is broadcasted to the network.

N

NFT
NFT (Non-Fungible Token) is a unique digital asset verified using blockchain technology, representing ownership of a specific item such as art, music, or virtual real estate, and is not interchangeable with other tokens.

NFT Mystery Boxes
Non-fungible token (NFT) mystery boxes are a type of digital collectible that contain a random assortment of NFTs that are unknown the buyer until they open the box.

NGMI
NGMI is an acronym for “Not Gonna Make It,” used to convey a sense of pessimism in achieving success or overcoming a challenge.

Node
A participant on a blockchain network that communicates with other participants to ensure the security and integrity of the system.

Nonce
A single-use arbitrary string or number generated for verification purposes to prevent replaying past transactions.

O

OCO Order
An OCO (One Cancels the Other) order allows you to place two orders at the same time. It combines a limit order with a stop-limit order but only one of them can be executed.

Off-Chain
The processes and transactions that occur outside the main blockchain, often used to enhance scalability.

Offshore account
An account that is registered in a jurisdiction that is different to the jurisdiction of the holder’s citizenship.

On-Chain
On-chain refers to transactions and activities directly recorded on the blockchain, ensuring data transparency, security, and immutability.

Oracle
A data source or feed from a third party used for determining outcomes for smart contracts.

ORC-20 Tokens
ORC-20 tokens run on the Bitcoin blockchain and are represented as JSON (JavaScript Object Notation) files inscribed onto satoshis with an Ordinal serial number, similar to BRC-20 tokens.

Order Book
An electronic list of outstanding buy and sell orders for a specific asset on an exchange or marketplace.

Ordinals
Ordinals are NFT-like entities that can be minted directly on the Bitcoin blockchain.

Orphan Block
A block whose parent block is unknown, formed in older versions of Bitcoin Core, where ancestry data wasn’t required.

P

PancakeSwap
PancakeSwap is a decentralized exchange (DEX) that uses an AMM model. It’s available in multiple blockchain networks with various DeFi products and services.

Paper Wallet
A piece of paper on which a cryptocurrency address and its corresponding private key are physically printed out.

Peer-to-Peer (P2P)
A decentralized network where transactions are conducted directly between users without the need for intermediaries like banks or exchanges.

Pegged Currency
A currency where the price is designed to remain the same as a designated asset. For example: 1 USDT is pegged to 1 USD. Also referred to as a stablecoin.

Permissionless Blockchain
Permissionless blockchains are open networks that allow anyone to participate in the consensus process without the need to obtain approval, permission, or authorization.

Phishing
A malicious attack where a bad actor will attempt to obtain the credentials of a user in order to gain unauthorised access into their account.

Plasma
An Ethereum off-chain scaling solution which may allow Etherum to greatly increase the transactions per second capablities.

Ponzi Scheme
A scam in which new investors’ funds are used to pay returns promised to previous investors. Do not invest in these.

Price Action
The price movements of a financial asset over time. Plotted on a chart, it can be used by traders to identify trade setups.

Private Key
In cryptocurrency, a private key is a lengthy number that allows users to sign transactions and to generate receiving addresses.

Private Sale
An early stage investment round for strategic investors with a considerable amount of investible funds.

Proof of Reserves (PoR)
Proof of Reserves (PoR) is a verification proving an exchange maintains funds to cover users’ assets.

Proof of Stake (PoS)
A consensus mechanism that reward block validators according to the amount of coins they have at stake.

Proof of Work (PoW)
Proof of Work is a crypto consensus mechanism where miners use special equipment to solve cryptographic puzzles to validate transactions and create new blocks.

Public Key
A public key is one-half of a key pair used to encrypt messages or verify digital signatures. In the crypto space, it essentially works as your wallet address.

Pump-and-dump
Pump-and-dumps are a deceptive practice used in crypto, where the price of a digital asset is artificially inflated and dumped, causing a sharp decline in the token value.

Q

QR Code (Quick Response Code)
A machine-readable code used to store and quickly share information, such as wallet addresses, in the form of a black-and-white grid. Widely used in cryptocurrency transactions for easy transfer of addresses.

Quorum
A minimum number of stakeholders or nodes required to be present to validate and agree on a transaction or a decision within the network.

R

Race attack
When two transactions are created with the same funds at the same time, with the intention of spending those funds twice.

Real World Assets (RWAs)
Real World Assets refer to tangible, physical assets with intrinsic value—like real estate, commodities, or art—that are tokenized for use on the blockchain.

Recession
An extended period of significant economic activity decline.

Rekt
A slang term used to define someone or something that has been destroyed or experienced catastrophic failure and a synonym for liquidated.

Relative Strength Index (RSI)
A technical indicator that measures market momentum & used to identify overbought and oversold conditions.

Resistance
A term in Technical Analysis (TA). When a price that is increasing finds resistance. Usually compared with previous highs.

Return on Investment (ROI)
A measure used in order to assess the efficiency of an investment. The ratio between net profit and net cost.

Roadmap
A business planning technique which lays out the short and long term goals of a company within a flexible estimated timeline.

Rug pull
A rug pull in the crypto industry is when a development team suddenly abandons a project and sells or removes all its liquidity.

S

Satoshi
The smallest unit of a bitcoin, as defined by the Bitcoin protocol. It equals one-hundred-millionth of a bitcoin or 0.00000001 BTC.

Satoshi Nakamoto
The pseudonym of the creator or creators of the bitcoin protocol and whitepaper.

Secure Asset Fund for Users (SAFU)
Secure Asset Fund for Users is an emergency insurance fund created by Binance in 2018.

Securities and Exchange Commission (SEC)
An independent governmental agency responsible for regulating securities markets.

Security Audit
A systematic analysis to evaluate how safe a system, smart contract, or blockchain is agaisnt attacks or technical failures.

Security Token Offering (STO)
A fundraising method that involves the issuance of security tokens.

Seed Phrase
A seed phrase or menmonic seed is a collection of words that can be used to access your cryptocurrency wallet.

Seed Tag
A tag used to classify cryptocurrencies that are usually in their initial stages of development and may not yet have a working product or established user base.

Segregated Witness (SegWit)
Segregated Witness, often abbreviated to SegWit, is an update to the Bitcoin protocol designed to address the network’s scalability and security issues.

Sell Wall
A very large limit sell order or a cumulation of sell orders at the same price level on an order book for an asset.

Sentiment
The overall attitude of a community in regards to a cryptocurrency or within investors towards a certain financial market.

Sharding
Sharding is a method of splitting blockchains (or other types of databases) into smaller, partitioned blockchains that manage specific data segments.

Sharpe Ratio
A ratio created in 1966 that investors and economists use to assess the potential return of investment (ROI).

Sidechains
Sidechains are independent blockchains linked to a parent blockchain, designed to enhance scalability and facilitate digital asset transfers between networks.

Slippage
When a trade settles at a different price than originally requested or expected, usually in low-liquidity markets and when using market orders.

Smart Contract
Smart contracts are self-executing contracts that exist on certain blockchain networks. Their conditions and terms are written directly into lines of code.

Smart Contract Wallet
Smart contract wallets are crypto wallets that leverage programmable smart contracts to introduce advanced functionalities and enhanced security features.

Snapshot
The ability to record the state of a blockchain ledger, storage device, or computer system at a specific point in time.

Social Recovery Wallet
Social recovery wallets are crypto wallets allowing crypto recovery. They utilize trusted contacts so users can regain access in case of lost keys or forgotten passwords.

Social Trading
Social trading is a strategy that enables individuals to mimic the trading behavior of expert investors and market professionals, often in real time.

SocialFi
SocialFi, short for Social Finance, represents a convergence of decentralized finance (DeFi) principles with the dynamics of social media.

Solidity
Solidity is a programming language specially designed to write and implement smart contracts on the Ethereum blockchain.

SRC-20 Tokens
SRC-20 tokens leverage the Bitcoin Stamps technology to increase the utility of the Bitcoin blockchain.

Stablecoin
A type of cryptocurrency that is designed to maintain a stable value, rather than experiencing significant price changes.

Staking Pool
A pool where stakeholders combine their staking power to increase their chance of successfully validating a new block.

stETH
A token designed to make Ethereum staking more inclusive and flexible for investors.

Store of Value
A commodity, asset or currency that can be saved, retrieved and exchanged at a future date, without suffering depreciation.

Supply Chain
A network of people and businesses involved in creating and distributing a particular product or serving a particular customer.

Support
A term in Technical Analysis (TA). When a price that is decreasing finds ‘support’. Usually compared with lows.

Sybil Attack
A cyber attack where an entity creates and controls fake identities or nodes on a P2P network to gain influence.

T

Taker
The ‘taker’ is someone who decides to place an order that is instantly matched with an existing order on the order book.

Testnet
Testnets are replicas of the mainnet, offering risk-free, secure environments for exploring and testing blockchain features.

Ticker
The trading ‘symbol’ or shortened name (typically in capital letters) that refer to a coin on a trading platform. Example: BNB.

Token
Tokens (not to be confused with coins) are digital units issued on a blockchain. They can hold value or be redeemed for assets.

Token Generation Event (TGE)
A crowdfunding method used by blockchain projects and companies to launch tokens and raise funds.

Token Lockup
Token lockup or vesting period refers to the time span in which tokens or coins are not allowed to be transferred or traded.

Token Sale
The issuance of tokens in exchange for another cryptocurrency. Also referred to as an Initial Coin Offering.

Tokenization
Tokenization refers to the process of converting real-world assets, such as real estate, art, or financial instruments, into digital tokens on a blockchain.

Tokenomics
The word “tokenomics” combines two words, ‘token’ and ‘economics.’ It allows us to see how a token functions, along with various factors that may affect its value.

Total Supply
Refers to the number of coins or tokens that currently exists and are either in circulation or locked somehow.

Total Value Locked (TVL)
Total Value Locked (TVL) is a widely used metric in the cryptocurrency industry that measures the total value of assets locked in a decentralized finance (DeFi) protocol.

TradFi
TradFi (traditional finance) is the established financial system most people interact with in their daily lives.

Transaction ID (TXID)
A transaction ID (TXID) is a unique string of characters that labels each transaction on the blockchain.

Transactions Per Second (TPS)
The number of transactions that a blockchain network is capable of processing each second.

TrueUSD (TUSD)
TrueUSD is a stablecoin pegged to the U.S. dollar. It is integrated with multiple blockchain networks and is among the fastest-growing stablecoins.

Trustless
No single entity has authority over the system and consensus is achieved between participants who do not have to trust each other.

U

Unspent Transaction Output (UTXO)
An output created in a transaction, which must be referenced in a future transaction to spend funds.

User Interface (UI)
The interface where interactions between humans and machines occur. It establishes how a user can interact with a machine.

Utility Token
A digital token issued through a blockchain network, often via an initial coin offering (ICO), initial exchange offering (IEO) or token generation event (TGE).

V

Volatility
How quickly and how much the price of an asset changes. Calculated in terms of standard deviations in the annual return of an asset over a set period of time.

Volume
A measurement of the number of individual units of an asset that changed hands in a market during a given time.

W

WAGMI
WAGMI is an acronym for “We’re All Gonna Make It” that encourages an optimistic attitude, particularly within the crypto community.

Wallet
Used to send and receive cryptocurrencies. Different types include software wallets, hardware wallets, and paper wallets.

Wash Trading
An unethical and deceptive practice involving the simultaneous buying and selling of a certain asset to create false market activity.

Weak Hands
A term referring to traders or investors who lack the confidence to hold their assets or to follow their trading plans.

Web 3.0
Web 3.0, also known as the decentralized web, is an evolution of the internet that leverages blockchain technology, smart contracts, and decentralized applications (dApps) to create a more secure, user-centric, and trustless online environment.

Wei
The smallest possible denomination of ether (ETH), the currency used on the Ethereum network. Often used when referring to gas prices.

Whale
An individual or organization that holds a large amount of Bitcoins or other cryptocurrency, allowing them to impact the markets.

Whiskers
The lines extending from the colored bar in a candlestick chart that indicate the full low-high range of a trading pair within a certain time frame. Also referred to as wicks or shadows.

Whitelist
A list of allowed or trusted individuals, computer programs, or cryptocurrency addresses in relation to a service or event.

Wick
A line found on a candlestick chart which is used to indicate where the price of an asset is fluctuating in regards to its opening and closing prices.

Win Rate
In financial markets, win rate (or win ratio) is a metric that indicates how profitable a trader might be.

Wrapped Ether (WETH)
ERC-20 token representing Ether at a 1:1 ratio. It allows users to trade ETH to ERC-20 tokens on decentralized platforms.

Y

Yield Farming
Yield farming is a high-risk practice in DeFi where investors lock up assets to provide liquidity, lend or stake in return for rewards or interest.

Z

Zero-Knowledge Proofs
Proofs to verify that transactions are valid without revealing any information about these transactions, providing privacy to the transaction while maintaining its legitimacy.

Zk-rollup
Zk-rollup is a layer-2 scaling solution designed to increase the transaction throughput of blockchain networks without compromising on security.

zk-SNARKs
“Zero-Knowledge Succinct Non-Interactive Argument of Knowledge” – an approach to zero-knowledge proofs.

zk-STARKs
zk-STARKs allow one party (the prover) to communicate validated data or execute computations with a third party without the data or analysis being revealed to the counterparty (the verifier).

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