Crypto Jargon Explained, Easy Table

When you want to get your head around cryptocurrencies for the first time, you get bombarded with strange and unfamiliar words that can be pretty daunting.

To make your life easier when surfacing the internet, be that youtube videos or blog articles, we have put an easy table that explains most of the crypto-related terminology.

Term	Definition
Blockchain	A decentralized and distributed digital ledger used to record transactions across multiple computers.
Cryptocurrency	A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Wallet	A digital storage device for cryptocurrencies where one can store, send, and receive digital assets.
Mining	The process of solving complex mathematical problems to validate transactions on the blockchain and earn rewards in the form of cryptocurrency.
Token	A unit of value issued on a blockchain, often representing a specific asset or utility.
Altcoin	Any cryptocurrency other than Bitcoin.
Hash rate	The measuring unit of processing power in the cryptocurrency network.
Fork	A split in a blockchain network resulting in two separate chains with different rules.
Decentralized	A system without a central point of control, relying on individual nodes to maintain and validate the network.
Bear market	A market trend in which prices are declining.
Bull market	A market trend in which prices are rising.
FOMO (Fear of Missing Out)	The feeling of anxiety or regret that results from missing out on a potentially profitable investment opportunity.
HODL	An intentional misspelling of the word “hold,” used to describe the strategy of holding onto cryptocurrency investments for the long term, despite short-term price volatility.
Public Key	A long string of numbers and letters, unique to each user, used to receive cryptocurrency.
Private Key	A secret code, unique to each user, used to sign and approve transactions.
NFT (Non-Fungible Token)	A unique digital asset that represents ownership of a specific item or piece of content, stored on a blockchain.
Dapps (Decentralized Applications)	Applications that run on a decentralized network and use blockchain technology to store data and process transactions.
ICO (Initial Coin Offering)	A way for a company or project to raise funds by selling new cryptocurrency tokens to early investors.
Liquidity	The ease with which an asset can be bought or sold in the market without affecting its price.
Whales	Individuals or entities that hold large amounts of cryptocurrency and have the ability to significantly influence the market.
ATH (All-Time High)	The highest price that a cryptocurrency has reached in its entire history.
PoW (Proof of Work)	A consensus mechanism used by many cryptocurrencies to secure their network and validate transactions. Miners compete to solve complex mathematical problems and the first one to solve it gets to add a block to the blockchain.
PoS (Proof of Stake)	A consensus mechanism used by some cryptocurrencies as an alternative to PoW. In PoS, instead of miners, validators are selected to validate transactions based on the number of coins they hold and are willing to “stake” or lock up as collateral.
STO (Security Token Offering)	A type of ICO where the tokens represent ownership in a company and are subject to federal securities regulations.
Smart Contract	A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
Cold Storage	The offline storage of cryptocurrency to protect it from hacking or theft.
Pump and Dump	The act of artificially inflating the price of a cryptocurrency through coordinated buying, followed by coordinated selling to take advantage of the price increase.
Bear Trap	A situation in which a downward trend in the price of a cryptocurrency is expected to reverse, causing traders to sell and creating a self-fulfilling prophecy of continued price decline.

Recent Posts