Airdrop
A marketing method where new crypto projects distribute free tokens to users to promote awareness or reward community engagement. Often conditional on specific actions, such as holding a certain token or completing a transaction.
Altcoin
Any cryptocurrency other than Bitcoin. Thousands exist, serving different purposes or using different blockchains — examples include Ethereum, Solana, and Avalanche.
ASIC (Application-Specific Integrated Circuit)
A specialized chip designed for one purpose — in crypto, mining a specific coin efficiently. ASICs are faster than regular CPUs or GPUs but expensive and limited to single algorithms.
Bear / Bearish
Refers to a market trend where prices decline, and investor confidence is low. A prolonged period of falling prices is known as a bear market.
Bitcoin (BTC)
The first and largest cryptocurrency, launched in 2009 by the pseudonymous Satoshi Nakamoto. Bitcoin is a decentralized, limited-supply digital currency not controlled by any central authority.
Bitcoin Dominance
Bitcoin’s share of the total cryptocurrency market capitalization. A higher dominance often signals that investors prefer Bitcoin over riskier altcoins.
Blockchain
A distributed digital ledger that records transactions in linked “blocks.” Each block references the previous one, forming a tamper-proof chain secured by cryptography.
Broker
A regulated intermediary that executes crypto trades on behalf of clients and may offer custody, reporting, and fiat on/off-ramps.
Bull / Bullish
A term describing rising markets and optimistic investor sentiment. A long-term uptrend is known as a bull market.
CEX (Centralized Exchange)
A centralized cryptocurrency exchange operated by a company that holds user funds and manages order books. Examples: Binance, Coinbase, Kraken.
DEX (Decentralized Exchange)
A blockchain-based exchange where users trade directly with each other via smart contracts, without intermediaries. Examples: Uniswap, PancakeSwap.
Cloud Mining
A service allowing users to rent computing power for crypto mining from a remote provider instead of running their own hardware.
Consensus Mechanism
The method by which blockchain participants agree on the network’s valid state. The most common are Proof-of-Work (PoW) and Proof-of-Stake (PoS).
CPU / GPU
Central Processing Unit and Graphics Processing Unit. Early crypto miners used these before ASICs became dominant.
DAO (Decentralized Autonomous Organization)
A self-governing organization run by smart contracts and token-based voting instead of a central management team.
DCA (Dollar-Cost Averaging)
An investment strategy where fixed amounts are invested at regular intervals regardless of price, reducing timing risk.
DeFi (Decentralized Finance)
A blockchain-based financial ecosystem offering traditional services — lending, borrowing, trading, and yield — via smart contracts without intermediaries.
ERC-20
The Ethereum standard for fungible tokens — the foundation for most crypto tokens on Ethereum.
ERC-721
The Ethereum token standard for non-fungible tokens (NFTs), representing unique digital assets.
Ether (ETH)
The native cryptocurrency of the Ethereum network, used to pay transaction (“gas”) fees and reward validators.
Ethereum
A blockchain launched in 2015 enabling smart contracts and decentralized applications (dApps). It is the second-largest crypto ecosystem by market cap.
Exchange
A trading venue — either centralized (CEX) or decentralized (DEX) — where cryptocurrencies can be bought, sold, or swapped.
Exit Scam
A fraud in which project creators disappear with investors’ funds, common in unregulated ICOs or DeFi projects.
Fear and Greed Index
A sentiment indicator combining volatility, volume, and social media data to measure market fear or greed.
Fiat Currency
Government-issued money such as the euro or US dollar. Its value is based on trust in the issuing authority rather than a physical asset.
Fork
A blockchain split into two versions. A hard fork creates a new chain, while a soft fork introduces backward-compatible updates.
HODL
Slang derived from “hold” — a long-term investment mindset of keeping crypto through volatility instead of selling.
ICO (Initial Coin Offering)
A fundraising method where a project sells new tokens to early investors, often before launch. Similar to a stock IPO but largely unregulated.
KYC (Know Your Customer)
A compliance process where users verify their identity (e.g., via ID or bank login) to prevent fraud and money laundering.
Layer-1
The base blockchain layer, like Bitcoin or Ethereum, on which other layers and applications are built.
Layer-2
A scalability solution built on top of a Layer-1 blockchain, designed to handle transactions faster and cheaper. Examples: Arbitrum, Optimism.
Layer-3
The application layer built on top of Layer-1 or Layer-2 networks, including decentralized apps (dApps) like Aave or Uniswap.
Lightning Network
An off-chain payment protocol built on Bitcoin that enables near-instant, low-cost transactions by batching settlements.
Block
A data structure containing validated transactions. Each new block references the previous one, creating a secure chain.
Block Reward
The reward miners or validators receive for adding a new block to the blockchain. In Bitcoin, this halves roughly every four years.
Mining
The process of validating transactions and securing the blockchain, usually by solving computational problems. Miners earn new coins and fees.
Market Cap (Market Capitalization)
The total value of a cryptocurrency, calculated as price × circulating supply.
Max Supply
The maximum number of coins that will ever exist for a given cryptocurrency. Bitcoin’s max supply is 21 million.
MiCA (Markets in Crypto-Assets Regulation)
The EU’s comprehensive crypto regulation defining rules for crypto asset issuance, service providers, and consumer protection.
Node
A computer that participates in a blockchain network by validating and storing transaction data. Full nodes maintain the entire ledger.
NFT (Non-Fungible Token)
A unique digital token representing ownership of a one-of-a-kind asset, such as artwork, music, or in-game items.
Ponzi Scheme
A fraudulent investment model where returns are paid to early investors using new investors’ funds.
Proof-of-Stake (PoS)
A consensus method where validators lock (stake) tokens as collateral to secure the network and earn rewards.
Proof-of-Work (PoW)
A consensus mechanism where miners use computational power to solve mathematical problems and add new blocks.
Pyramid Scheme
A scam similar to a Ponzi scheme, where participants earn primarily by recruiting new members rather than from actual products or profits.
Satoshi Nakamoto
The anonymous creator (or group) behind Bitcoin, active between 2007 and 2010. Their identity remains unknown.
SegWit (Segregated Witness)
A 2017 Bitcoin protocol upgrade that increased block efficiency by separating signature data from transactions.
Shitcoin
A derogatory term for a cryptocurrency with little to no value, real use case, or active development.
Stablecoin
A cryptocurrency pegged to a stable asset such as the US dollar or euro. Examples: USDT, USDC, DAI.
Staking
Locking tokens in a Proof-of-Stake network to help validate transactions and earn interest or rewards.
Token
A digital asset created on an existing blockchain. Tokens can represent utility, governance rights, or other assets.
TXID (Transaction ID)
A unique identifier for a blockchain transaction, allowing users to track it on a blockchain explorer.
Volume
The total amount of an asset traded during a specific period. High volume indicates strong market activity and liquidity.
Wallet
A digital or physical tool used to store private keys for cryptocurrency holdings. Hot wallets are internet-connected; cold wallets are offline and more secure.
Whale
A market participant holding large quantities of a cryptocurrency who can influence prices with large buy or sell orders.
White Paper
A document outlining a crypto project’s technical framework, goals, tokenomics, and roadmap — usually released before launch.
When Moon / When Lambo
Crypto slang referring to the hope or expectation of massive price increases (“When will we get rich?”).
Smart Contract
A self-executing computer program on a blockchain that automatically enforces agreements once predefined conditions are met.