Crypto Dictionary

ATH - All Time High

Used to describe the highest price point reached by a crypto asset, such as Bitcoin. Current highs are updated when a new, higher price is recorded.

AUM - Assets Under Management

Total market value of the investments that a person or entity manages on behalf of clients. It fluctuates daily reflecting the price performance of the assets.

BTC - Bitcoin

Invented by the pseudonym Satoshi Nakamoto. the first cryptocurrency based on blockchain technology that was published in 2008.

BTFD - Buy The F*cking Dip

Recommendation to buy a cryptocurrency. An advice traders give each other to buy a crypto asset that is currently on a low value.

CBDC - Central Bank Digital Currency

Digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country's fiat currency.

DEFI - Decentralized Finance

Financial services on blockchains, e.g. Ethereum. It is global, and can be peer-to-peer, pseudonymous, and open to all.

DEGEN - Degenerate

Describes someone who chases after seemingly promising opportunities with zero or poor information. Being a degen can certainly be a bad thing, although it’s commonly used by crypto traders to jokingly refer to themselves.

DEX - Decentralized Exchange

Peer-to-peer marketplace where transactions occur directly between crypto traders. The most popular EXs utilize the Ethereum blockchain and are part of the growing suite of decentralized finance.

DLT - Distributed Ledger Technology

Digital system that records transactions related to assets. The transactions and other details are simultaneously recorded at numerous places.

DYOR - Do Your Own Research

It emphasizes the importance of educating yourself on a project before blindly investing in it. Many content creators use this term as a disclaimer for their opinion on crypto coins.

ERC-20

Technical standard for fungible tokens created using the Ethereum blockchain. The number represents a proposal identifier within the blockchain.

ETH - Ethereum

Blockchain network invented by Vitalik Buterin. Network enabling to run smart contracts and having its own cryptocurrency Ether.

FOMO - Fear Of Missing Out

To buy crypto for irrational reasons. Anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on social media.

FUD - Fear, Uncertainty, Doubt

A pessimistic mindset regarding a crypto asset. Spreading unwarranted negativity about a crypto asset to provoke a price drop.

GAS

Fee charged to a person in order to engage in a transaction or other operation on a Blockchain network.

On the Ethereum network, Gas is the amount of Ether required to process a transaction or run a Smart Contract or Decentralized Application.

GIT

Open-source and distributed version control system that allows software developers to track changes and coordinate work on different source codes. Keeps a history of changes in shared or private data repositories, essential for peer review .

Header

A block header is used to identify a block on the blockchain; it contains information about all the transactions in the block, as well as the hash value of the previous block.

This practice is used by the Bitcoin blockchain and was first introduced by Satoshi Nakamoto in 2008.

HODL - Hold On For Dear Life

To make a long-term investment. To avoid selling cryptocurrencies despite fluctuations in price for fear of losing out on future profits.

ICO - Initial Coin Offering

Process to raise capital by selling new cryptocurrency or token. Tokens might be traded on secondary platforms later on.

IOTA - Internet of Things Application

Blockchain network designed to record and execute transactions between devices in the Internet of Things ecosystem. Specifically designed to solfe the problem of how to manage a lot of data.

MEW - My Ether Wallet

Free, open-source utility used for generating ERC-20 wallets (public and private keys) and interacting with the Ethereum blockchain. Currently the most popular ERC-20 wallet generator

MOON - To The Moon

A cryptocurrency being under a strong upwards trend. The moment when crypto reaches a total market capitalization of 1 trillion USD.

NFA - No Financial Advice

Term used on social media and forums to ensure you do not regard their post as legal financial advice. It also means that you have to perform your own due diligence in a token or investment

NFT - Non Fungible Token

Unique and not interchangeable digital token. Used in the areas of digital art, collectables, real estate and more.

NGMI - Not Gonna Make It

Stresses the point that a crypto investor could miss a huge profit on a certain trade. Used to express personal bad trading decisions.

NONCE - Number Used Only Once

This number represents the culmination of a rather technical process in cryptography. In essence, the nonce is the number that crypto miners are ‘solving’ for.

POS - Proof Of Stake

Consensus mechanism for processing transactions and creating new blocks in a blockchain. Incentivizes the validation of block transactions with staking.

POW - Proof Of Work

Consensus mechanism that requires participants to expend effort to validate transactions. Used by the Bitcoin network.

Private Key

Sequence of data that enables entry to a digital asset stored in either software or hardware wallet. This key is employed to unlock a digital signature, allowing for the spending or trading of the digital asset.

REKT - Wrecked

Refers to a cryptocurrency trader who is utterly ruined and destroyed due to losses from a recent price crash. It was first recorded around 2010–15 in the context of video games.

SAT

"Satoshi" the smallest unit of measurement for Bitcoin. One Bitcoin is equal to 100 million Satoshi. Creator of Bitcoin, Satoshi Nakamoto, who wrote the Bitcoin White Paper.

SCAM

Dishonest or fraudulent scheme that attempts to take money or something of value from people. investment scams often promise you can "make lots of money" with "zero risk".

SegWit

Protocol that changes how data is stored by moving signature information outside of a block. It also supports second-layer solutions such as the Lightning Network.

TA - Technical Analysis

Investment tactic used to predict market shifts. Generally, TA is based on careful analysis of recent trends. It operates on the assumption that what has happened in the past will repeat in the future.

TOR - The Onion Router

Network that allows users to connect to the internet in a decentralized and anonymous way. Tor achieves this via a mix of encryption and indirect routing.

UTXO - Unspent Transaction Output

Amount of digital currency that remains after a cryptocurrency transaction. The Bitcoin network uses a UTXO protocol.

WAGMI - We All Gonna Make It

Widely used in the crypto space. A mantra, a call to encourage one another to not lose hope and to build confidence about the crypto project.

Wallet

A wallet is a place to store your coins and tokens, e.g. Bitcoin or Ethereum. It is a software program that stores private and public keys and enables users to send and receive coins or tokens and monitor their balance.

Web3

Is the name some technologists have given to the idea of a new kind of internet service that is built using decentralized blockchains. Will also make use of machine learning and artificial intelligence (AI) to help empower more intelligent and adaptive applications.

WHALE

It refers to a single wallet address with over 1,000 BTC. People owning large amounts of other cryptocurrencies can be referred to as “crypto whales.”

Zero knowledge proof

Blockchain protocol that allows for verification of information without revealing the source. It can be used to verify transactions on a Blockchain without revealing sender, recipient, asset, or amount.