A-Z Glossary of Cryptocurrency Terms and Jargon
The world of cryptocurrency is filled with complex terms and acronyms that can be overwhelming for newcomers. This comprehensive glossary of crypto terms and acronyms provides clear and concise definitions for essential A to Z crypto terms. Whether you are an experienced crypto investor or just starting your crypto journey, this guide will equip you with A to Z crypto glossary of terms & acronyms.
Learn all of the most important blockchain and cryptocurrency terms and jargon here.
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
#
51% Attack
An attack on blockchain by a group of miners controlling more than 50% of network hash rate
A
Address
A unique string of characters used to send and receive cryptocurrency. It acts as a digital location for transactions.
Airdrop
A method of distributing tokens by giving them away for free to promote a new cryptocurrency.
Altcoin
Altcoin stands for alternative coin, which refers to any cryptocurrency other than Bitcoin. Examples include Ethereum, Ripple, and Litecoin.
Arbitrage
The simultaneous purchase and sale of an asset to profit from differing prices.
ASIC
ASIC (Application-Specific Integrated Circuit) is a type of hardware used for mining cryptocurrencies. It is designed specifically for mining and is more efficient than general-purpose computer hardware.
AML (Anti-Money Laundering)
Regulations and procedures aimed at preventing criminals from disguising illegally obtained funds as legitimate income.
ATH (All-Time High)
The highest price ever reached by a cryptocurrency.
ATL (All-Time Low)
The lowest price ever reached by a cryptocurrency.
Ape/Apeing
Buying a new cryptocurrency or NFT without doing much research.
Alpha Insider information or valuable insights about a cryptocurrency.
B
Bear Market
A prolonged period of declining prices in the cryptocurrency market.
Bitcoin BTC
Bitcoin is the first and most well-known cryptocurrency, created by an anonymous person or group known as Satoshi Nakamoto. It operates on a decentralized network using blockchain technology.
Blockchain
Blockchain is a distributed ledger technology that records all transactions across a network of computers. It ensures transparency and security by making the data immutable and publicly accessible.
Bullish
Expecting the price of a cryptocurrency to rise.
BEP-20
A token standard on the Binance Smart Chain.
Bagholder
Someone who holds onto their cryptocurrency even when its value drops significantly.
Bitcoin Maximalist
A person who believes Bitcoin is the only cryptocurrency worth investing in.
Block
A collection of verified transactions on a blockchain.
Bull Market
A prolonged period of rising prices in the cryptocurrency market.
C
Cryptocurrency
A digital or virtual currency that uses cryptography for security and operates independently of a central authority.
Crypto Wallet
A software or hardware tool that stores private and public keys and interacts with various blockchain networks to enable users to send and receive digital currency and monitor their balance.
Cold Wallet
A cold wallet is a type of cryptocurrency wallet that is not connected to the internet, making it secure from hacking attempts. Examples include hardware wallets and paper wallets.
Coin
A colloquial term for a cryptocurrency.
Crypto Exchange
A crypto exchange is a platform where users can buy, sell, and trade cryptocurrencies. Popular exchanges include Binance, Coinbase, and Kraken.
Cryptography
The practice of securing information by transforming it into an unreadable format.
CEX (Centralized Exchange)
An exchange operated by a central authority, like Binance or Coinbase.
Cryptojacking
Unauthorized use of someone’s computer to mine cryptocurrency.
Cryptosis
An obsession with learning and talking about cryptocurrency.
D
dApp (Decentralized Application)
An application that runs on a blockchain network, not controlled by a single entity.
Decentralization
Decentralization refers to the distribution of power and control away from a central authority. In the context of cryptocurrency, it means that no single entity controls the network.
DeFi (Decentralized Finance)
DeFi is a financial system built on blockchain technology that operates without traditional intermediaries like banks. It includes services such as lending, borrowing, and trading.
DAO (Decentralized Autonomous Organization)
An organization represented by rules encoded as a computer program that is transparent and controlled by organization members rather than a central authority.
DEX (Decentralized Exchange)
An exchange that operates without a central authority.
DLT
Distributed Ledger Technology. The underlying technology behind blockchain.
Diamond Hands
Holding onto a cryptocurrency despite market volatility, showing a high risk tolerance.
Degen
Short for “degenerate,” referring to someone who makes risky investments in the crypto market.
E
Ethereum (ETH)
Ethereum is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). It uses its own cryptocurrency, Ether (ETH).
Exchange
A platform where cryptocurrencies can be bought, sold, and traded.
ERC-20
ERC-20 is a technical standard used for smart contracts on the Ethereum blockchain. It defines a common set of rules for Ethereum tokens, ensuring compatibility and interoperability.
EVM (Ethereum Virtual Machine)
The runtime environment for smart contracts on Ethereum.
F
Fiat Currency
Fiat currency is government-issued money that is not backed by a physical commodity, such as gold or silver. Examples include the US Dollar, Euro, and Yen.
FOMO (Fear of Missing Out)
A common sentiment in trading where investors buy assets out of fear of missing out on potential profits.
Fork
A fork is an event where a blockchain splits into two separate chains. This can happen due to changes in the protocol or disagreements within the community. There are two types: hard fork and soft fork.
FUD (Fear, Uncertainty, and Doubt)
Negative information spread to influence perception and cause panic selling.
Flippening
The potential event where another cryptocurrency surpasses Bitcoin in market capitalization.
G
Gas
Gas is a unit of measurement for the computational work required to execute transactions and smart contracts on the Ethereum network. It is paid in Ether (ETH).
Genesis Block
The first block in a blockchain, often referred to as Block 0 or Block 1.
GPU (Graphics Processing Unit)
GPUs are specialized hardware used for mining cryptocurrencies. They are particularly effective for mining coins that require complex mathematical computations.
H
Halving
Halving is an event in which the reward for mining new blocks is halved. It occurs approximately every four years in the Bitcoin network, reducing the rate at which new bitcoins are created.
Hard Fork
A significant change to the blockchain that results in a new cryptocurrency.
Hash
A unique digital fingerprint of data.
Hot Wallet
A digital wallet connected to the internet.
Hash Rate
Hash rate is the measure of a miner’s performance, indicating the number of hash operations performed per second. A higher hash rate increases the chances of solving the mathematical puzzles required for mining.
HODL
A misspelling of “hold” that has become a term for holding onto cryptocurrency rather than selling it, regardless of market fluctuations.
HFSP (Have Fun Staying Poor)
A phrase used to mock those who don’t invest in cryptocurrency.
I
ICO (Initial Coin Offering)
ICO is a fundraising method used by cryptocurrency projects to raise capital by selling tokens to investors. It is similar to an initial public offering (IPO) in the stock market.
Immutable
Immutability refers to the inability to alter or tamper with data once it has been recorded on the blockchain. This feature ensures the security and integrity of the blockchain.
J
JOMO (Joy Of Missing Out)
JOMO is the opposite of FOMO (Fear Of Missing Out). In the crypto world, it refers to the relief and satisfaction of not getting involved in risky or volatile investments.
JSON-RPC
A standard for remote procedure calls used in cryptocurrency systems.
K
KYC (Know Your Customer)
KYC is a process used by financial institutions and crypto exchanges to verify the identity of their customers. It helps prevent fraud, money laundering, and other illegal activities.
Key
A cryptographic code used to access a cryptocurrency wallet.
L
Ledger
A ledger is a record-keeping system that maintains the history of all transactions in a blockchain. It can be public or private, depending on the type of blockchain.
Liquidity
Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price. High liquidity indicates a stable market with many buyers and sellers.
LTC (Litecoin)
A peer-to-peer cryptocurrency created as a lighter version of Bitcoin.
Lambo
Short for Lamborghini, often used to ask when someone will be able to afford a luxury car from their crypto gains.
M
Mining
Mining is the process of validating transactions and adding them to the blockchain. Miners use specialized hardware to solve complex mathematical problems and are rewarded with cryptocurrency.
Market Cap (Market Capitalization)
Market capitalization is the total value of a cryptocurrency, calculated by multiplying the current price by the total supply of coins. It is a key indicator of a coin’s market value.
MEV (Miner Extractable Value)
The profit miners can make through their ability to include, exclude, or reorder transactions.
Moon
When the price of a cryptocurrency is expected to rise dramatically.
McAfee
Refers to John McAfee, often used in the context of bold and sometimes outrageous predictions about cryptocurrency prices.
Mnemonic Phrase
A list of words used to recover a cryptocurrency wallet.
N
Node
A node is a computer that participates in the blockchain network, validating and relaying transactions. Nodes help maintain the integrity and security of the blockchain.
Nonce
A nonce is a random number used in the process of mining to find a valid hash. It is combined with other data to create a unique input for the hash function.
NFT (Non-Fungible Token)
A unique digital asset representing ownership of a specific item or piece of content.
NGMI (Not Gonna Make It)
A pessimistic outlook on someone’s investment decisions.
O
Oracle
An oracle is a service that provides external data to smart contracts on the blockchain. It acts as a bridge between the blockchain and the real world, enabling smart contracts to interact with outside information.
Over-the-Counter (OTC)
Trading of cryptocurrencies directly between two parties without the supervision of an exchange.
Open Source
Open source refers to software that is freely available and can be modified by anyone. Many blockchain projects are open source, promoting transparency and collaboration.
P
Peer-to-Peer (P2P)
A decentralized platform whereby two individuals interact directly with each other without a third-party intermediary.
Private Key
A private key is a secret code that allows users to access and manage their cryptocurrency. It must be kept secure, as anyone with the private key can control the associated funds.
Public Key
A public key is a cryptographic code that allows users to receive cryptocurrency. It is derived from the private key and can be shared openly without compromising security.
Proof of Work (PoW)
A consensus mechanism where miners solve complex problems to validate transactions.
Proof of Stake (PoS)
A consensus mechanism where validators are chosen based on the number of tokens they hold and are willing to “stake” as collateral.
Paper Hands
Selling a cryptocurrency at the first sign of trouble, showing a low risk tolerance.
Q
QR Code
A QR code is a machine-readable code that stores information, such as a cryptocurrency address. It allows for quick and easy transactions by scanning the code with a smartphone.
Quantitative Easing
Quantitative easing is a monetary policy used by central banks to increase the money supply by purchasing government securities. It aims to stimulate the economy but can lead to inflation.
Quantum Computing
A type of computing that uses quantum mechanics. It is an area of computing focused on developing computer technology based on the principles of quantum theory, which could potentially disrupt blockchain technology due to its computational power.
R
Ripple
Ripple is both a digital payment protocol and a cryptocurrency (XRP). It aims to enable fast and low-cost international money transfers by connecting banks and payment providers.
ROI (Return on Investment)
ROI is a measure of the profitability of an investment, calculated by dividing the net profit by the initial investment cost. It is used to evaluate the performance of a cryptocurrency investment.
Rug Pull
A scam where developers abandon a project and run away with investors’ funds.
S
SATS (Satoshis)
A satoshi is the smallest unit of Bitcoin, equal to 0.00000001 BTC. It is named after the pseudonymous creator of Bitcoin, Satoshi Nakamoto.
Smart Contract
A smart contract is a self-executing contract with the terms of the agreement directly written into code. It automatically enforces the contract’s terms when predefined conditions are met.
SHA-256 (Secure Hash Algorithm 256-bit)
A cryptographic hash function used in Bitcoin mining.
Shill
Promoting a cryptocurrency for personal gain, often without disclosing conflicts of interest.
Sats (Satoshis)
The smallest unit of Bitcoin, named after its creator, Satoshi Nakamoto.
Stablecoin
A type of cryptocurrency designed to have a stable value, often pegged to a fiat currency like the US Dollar.
Staking
The process of holding cryptocurrency to support a blockchain network.
T
Token
A token is a digital asset that represents a unit of value on a blockchain. It can be used for various purposes, such as accessing services, voting in governance, or representing ownership.
TPS (Transactions Per Second)
TPS is a measure of the speed and capacity of a blockchain network, indicating the number of transactions it can process in one second. Higher TPS means faster and more efficient transaction processing.
To the Moon
A phrase indicating that the price of a cryptocurrency is expected to rise significantly.
Transaction
The transfer of value between cryptocurrency addresses.
Transaction Fee
A fee paid to the network for processing a transaction. This fee incentivizes miners or validators to confirm transactions.
Tokenomics
The economics of a cryptocurrency token, including supply, distribution, and utility.
U
Unconfirmed Transaction
An unconfirmed transaction is a transaction that has been broadcast to the network but has not yet been included in a block. It is waiting for confirmation by miners.
Utility Token
A utility token is a type of token that provides access to a specific product or service within a blockchain ecosystem. It is not intended to be used as a currency or investment.
Uniswap
A popular decentralized exchange (DEX) that enables users to swap ERC-20 tokens directly from their wallets.
V
Volatility
Volatility refers to the degree of variation in the price of an asset over time. High volatility indicates significant price fluctuations, while low volatility suggests stable prices.
Validator
A validator is a participant in a blockchain network that verifies and validates transactions. Validators are essential for maintaining the security and integrity of the blockchain.
W
WAGMI (We’re All Gonna Make It)
A term expressing optimism and solidarity within the crypto community.
Wallet
A wallet is a digital tool that allows users to store, send, and receive cryptocurrencies. There are different types of wallets, including hot wallets (online) and cold wallets (offline).
Whale
A whale is a term used to describe an individual or entity that holds a large amount of cryptocurrency. Whales can influence market prices due to their significant holdings.
Whitepaper
A document that outlines the technical details of a cryptocurrency.
X
XMR (Monero)
Monero (XMR) is a privacy-focused cryptocurrency that aims to provide anonymous transactions. It uses advanced cryptographic techniques to ensure the privacy of its users.
XRP (Ripple)
The native cryptocurrency of the Ripple network. A digital payment protocol and cryptocurrency designed for cross-border payments and remittances.
Y
Yield Farming
Yield farming is a practice in DeFi where users lend or stake their cryptocurrency to earn rewards, typically in the form of interest or additional tokens.
YTD (Year to Date)
A period starting from the beginning of the current year to the present date.
Z
ZKP (Zero-Knowledge Proof)
A zero-knowledge proof is a cryptographic method that allows one party to prove to another that they know a value without revealing the actual value. It enhances privacy and security in blockchain applications.
Note: This glossary is not exhaustive and there are many other terms and acronyms used in the cryptocurrency industry.
Conclusion
In conclusion, understanding A to Z crypto glossary of terms & acronyms is important for anyone involved in this crypto world. From Bitcoin to zero-knowledge proofs, each term plays a role in the complex and dynamic ecosystem of digital currencies. As the crypto world continues to evolve, staying informed will help you navigate and make the most of your crypto journey.
Moreover, we suggest you follow our How to Get Started Investing in Cryptocurrency Guide to learn about today crypto market news and more.
Connect with us
Finally, we keep writing new blog posts on New Cryptocurrencies, Crypto Trading Platforms, and Top Crypto Wallets. So, please get in touch for the regular updates.
Ask a Question
If you have any other questions or need further assistance, just let us know via sales@koinize.com
A to Z of Cryptocurrency - Frequently Asked Questions (FAQs)
Here are some commonly asked questions about A to Z of crypto terms:
What is the Difference Between a Coin and a Token?
A coin operates on its own blockchain, like Bitcoin or Ethereum, while a token is built on an existing blockchain and often serves a specific function within a project.
What is the Difference Between Bitcoin and Altcoin?
Bitcoin is the original cryptocurrency, while altcoins are alternative cryptocurrencies that were developed after Bitcoin. Altcoins often aim to improve upon Bitcoin’s technology or offer unique features.
See Also
We recommend reading the following articles for further information on related cryptocurrency topics: