Glossary

• Airdrop: A promotional tactic where a cryptocurrency project distributes free tokens to existing cryptocurrency holders, typically to raise awareness or encourage adoption of the new token.
• Altcoin: Any cryptocurrency other than Bitcoin (BTC). Altcoins encompass a wide range of digital currencies, each with its unique features, use cases, and underlying technologies.
• ATH (All-Time High): The highest historical price ever reached by a cryptocurrency, often used as a reference point for price analysis.
• Blockchain: A decentralized and distributed ledger technology used to record and timestamp all transactions across a network of computers. It ensures transparency, security, and immutability by chaining data into blocks.
• BTC (Bitcoin): The first and most well-known cryptocurrency, often referred to as digital gold. BTC serves as a decentralized digital currency and store of value.
• CEX (Centralized Exchange): A cryptocurrency exchange operating with a centralized model. CEXs facilitate trading, provide liquidity, and offer a variety of cryptocurrency trading pairs. Users deposit their assets into the exchange’s wallets.
• Cold Wallet: A secure offline storage solution for cryptocurrencies, offering protection against online threats.
• Cryptocurrency: A digital or virtual currency that operates independently of a central authority, aiming to serve as a medium of exchange, store of value, and unit of account. Examples include Bitcoin (BTC) and Litecoin (LTC).
• DApp (Decentralized Application): An application running on a blockchain network rather than a central server. DApps leverage smart contracts for automation, security, and transparency.
• Decentralized: A system or network that operates without a central authority or single controlling entity. Decentralization distributes control among network participants, enhancing security and eliminating single points of failure.
• DeFi (Decentralized Finance): Financial services and applications built on blockchain technology, aiming to replace traditional financial intermediaries.
• DEX (Decentralized Exchange): An exchange that operates in a decentralized manner, allowing users to trade cryptocurrencies directly without relying on a central intermediary. DEXs promote greater user control and security.
• Ether (ETH): The native cryptocurrency of the Ethereum blockchain, used for paying transaction fees, executing smart contracts, and participating in decentralized applications (DApps).
• Ethereum: A blockchain platform enabling the creation of decentralized applications (DApps) and smart contracts. Ethereum is known for its versatility and innovation in the blockchain space.
• Exchange: A digital platform where users can buy, sell, and trade cryptocurrencies. Exchanges facilitate the conversion of cryptocurrencies or fiat currencies.
• Fork: A split in a blockchain, resulting in two separate chains, often due to disagreements within the community. Types include hard fork and soft fork.
• FOMO (Fear of Missing Out): The fear that one might miss out on potential profits, driving impulsive investment decisions.
• FUD (Fear, Uncertainty, Doubt): The spread of negative or misleading information to create fear and uncertainty in the market.
• Hard Fork: A significant and non-backward-compatible change to a blockchain’s protocol, often leading to the creation of a new cryptocurrency.
• HODL: A humorous misspelling of “hold,” used to express the intention to keep and not sell cryptocurrency.
• ICO (Initial Coin Offering): A fundraising method in which new cryptocurrency tokens are sold to investors before being listed on exchanges.
• KYC (Know Your Customer): Verification processes used by exchanges to identify and verify the identity of their users, complying with regulations.
• Liquidity: The ease with which an asset can be bought or sold in the market without affecting its price.
• NFT (Non-Fungible Token): A unique digital asset representing ownership of specific items, art, collectibles, or other digital or physical assets. NFTs are indivisible and cannot be exchanged on a one-to-one basis due to their unique characteristics.
• Mainnet: The live and fully operational blockchain network where transactions are processed and permanently recorded. It contrasts with testnets, which are used for experimentation and testing.
• Market Cap: The total value of a cryptocurrency, calculated by multiplying its price by the total circulating supply.
• Mining: The process of validating transactions and adding them to a blockchain using computational power, often associated with proof-of-work blockchains.
• Node: A device connected to a blockchain network that stores and maintains a copy of the blockchain, contributing to network security.
• Private Key: A secret alphanumeric code that allows access to a cryptocurrency wallet and the ability to make transactions.
• Pump and Dump: A scheme where the price of a cryptocurrency is artificially inflated (pumped) and then sold off (dumped) for profit.
• Public Key: An alphanumeric code generated from a private key that is used to receive cryptocurrency.
• Sharding: A technique to improve blockchain scalability by dividing the network into smaller, more manageable parts, each handling a portion of the transactions.
• Smart Contract: Self-executing contracts with the terms of the agreement directly written into code, automating transactions and agreements.
• Stablecoin: A cryptocurrency designed to have a stable value, often pegged to a fiat currency like the US dollar, reducing price volatility.
• Testnet: A separate blockchain network used for testing and development purposes. Testnets allow developers to experiment with new features, smart contracts, and functionalities without risking real assets or disrupting the mainnet.
• Token: A digital asset issued on an existing blockchain, often representing assets, utility, or governance rights within a specific project or ecosystem. Tokens rely on the underlying blockchain’s technology and security. Examples include Ethereum-based tokens (ERC-20 tokens) and Binance Coin (BNB) on the Binance Smart Chain. Tokens are generally more versatile in their use cases compared to cryptocurrencies.
• Tokenomics: is the amalgamation of “token” and “economics.” It refers to the intricate system of rules and incentives governing a cryptocurrency’s behavior within its ecosystem.
• Whale: An individual or entity that holds a significant amount of cryptocurrency, capable of influencing market prices.
• Whitepaper: A document released by cryptocurrency projects, outlining their goals, technology, and plans, serving as a roadmap for development.