An airdrop is a type of marketing strategy that involves sending crypto wallet addresses a few tokens or coins in exchange for small tasks, such as sharing a social media post. This is usually done to increase public awareness of a new cryptocurrency.
All-Time High (ATH)
All-time high, or ATH, is a term that refers to the highest historical price a cryptocurrency has reached since its initial launch.
ASIC stands for application-specific integrated circuit, which has superior mining capability compared to traditional graphics cards. Cryptocurrencies with ASIC-resistant qualities cannot be mined with ASIC mining rigs.
BEP 2 stands for Binance Chain Evolution Proposal 2. It’s a tokenization standard used on the Binance chain system that ensures cryptocurrencies will enjoy a smoother and more seamless integration with each other on the system.
Bitcoin Dead Cat Bounce
A Bitcoin dead cat bounce refers to the brief recovery of Bitcoin prices from an extended decrease in prices. A dead cat bounce is usually followed by a noticeable downward trend.
A blockchain address is a form of identification, usually comprising a sequence of alphanumeric characters unique to a specific user. It serves as the primary way to receive and send cryptocurrencies on a blockchain network.
Blockchain 3.0 is the next blockchain development stage after Blockchain 2.0. It aims to resolve existing issues in the blockchain industry to facilitate mainstream adoption.
BUIDL is a technical term, similar to “HODL.” It refers to a crypto investment strategy whereby traders need to actively build and contribute to the existing system to improve its status.
Buy Walls and Sell Walls
Buy walls and sell walls refer to the act of trying to manipulate market prices by placing a massive buy or sell order. This is usually done by “whales” (large shareholders) who want to ensure that prices don’t fall below what they consider acceptable.
Censorship resistance in blockchain networks prevents external parties from modifying the transactions on the network. It’s designed to promote transparency and decentralization in crypto.
Circulating supply refers to the number of tokens or cryptocurrencies currently available for trade. It’s a portion of the total supply publicly available for circulation.
A consensus mechanism, also known as a consensus protocol, allows a distributed system of computers to work together and stay secure. There are many different types of consensus mechanisms, but the most common are proof of work (PoW) and proof of stake (PoS).
Decentralized Autonomous Organization (DAO)
Decentralized autonomous organizations (DAOs) are democratized internet-native groups of compatible individuals. DAOs work on the principles of flattened hierarchy and transparency and come together to achieve a common agenda.
Decentralized Finance (DeFi)
Decentralized Finance, or DeFi, is a movement based on the idea that financial structures should be free from the control of any single entity, government, or third party.
Decentralized Exchange (DEX)
Decentralized exchanges, or DEXs, are platforms which enable peer-to-peer transactions of cryptocurrencies to occur without the need for brokers.
Delegated Proof of Stake (DPoS)
Delegated proof of stake (DPoS) is a type of consensus algorithm used by blockchain networks to reach an agreement on the status of a ledger. It allows a subset of network participants, called “delegates,” to do this on behalf of the network.
Dogecoin is a peer-to-peer altcoin with a fascinating birth story. It’s a cryptocurrency that started as a joke in 2013, and has since exceeded expectations as one of the most valuable cryptocurrencies currently on the market.
Definition: Fill or Kill Order (FOK)
A fill-or-kill (FOK) order is a type of conditional, short-lived trade that must be fulfilled immediately. Otherwise, the order will be canceled.
A crypto fork, or simply “fork,” refers to a split or change in a blockchain’s network, specifically in terms of the software protocol it uses to determine an existing rule’s or transaction’s validity.
Fundamental analysis is a method for determining a particular crypto asset’s intrinsic value, and assessing internal and external financial and economic factors affecting its future price.
Gas limit is the maximum amount of gas consumers are willing to pay for a particular transaction on the Ethereum blockchain. Higher gas limits mean higher fees, but faster transactions.
Short for gigawei, a gwei refers to the smallest denomination on the Ethereum network. A gwei is one-billionth of 1 ETH, and is usually used to pay for gas fees on the Ethereum blockchain network.
Halving in cryptocurrency means that the production of new tokens or coins is reduced by half, which usually happens after a specific period of time in order to stabilize the currency.
A hard fork is a change in the code of a cryptocurrency that splits a particular blockchain into two separate protocols.
HODL is an expression which means an investor refuses to sell their assets, essentially “holding” them for an extended period, regardless of the current price on the market.
Key Management Interoperability Protocol (KMIP)
Key Management Interoperability Protocol (KMIP) is a universal language for securing data across platforms and networks.
Know Your Customer (KYC)
Know Your Customer (KYC) is a process instituted by organizations or governing bodies to verify the identities of individuals wishing to conduct business with them.
Layer 1 Blockchain
This term describes the main blockchain architecture, on top of which developers build other solutions and layers. A network like Ethereum, on which many applications are built, is an example of a Layer 1 blockchain.
Layer 2 Blockchain
A Layer 2 blockchain is a blockchain that acts as infrastructure, runs parallel to another blockchain like Bitcoin or Ethereum, and supports systems that require high transaction throughput.
Leveraged trading allows investors to make timely investments with the help of capital borrowed from brokers.
A limit order is a function in cryptocurrency trading that allows you to establish the exact price range for selling or buying your digital assets, particularly in terms of the minimum and maximum prices.
Liquid Proof of Stake (LPoS)
Liquid proof of stake (LPoS) is a consensus algorithm that was designed to be an improvement on the proof of stake (PoS) and delegated proof of stake (DPoS) algorithms.
A mainnet is an independent blockchain with a unique network, technology and protocol. It’s a blockchain project’s end product, with cryptocurrencies or tokens with monetary value available to the public.
The market capitalization of a specific cryptocurrency refers to the total value of its mined coins. It represents its current market value, and showcases its popularity.
In crypto trading, a market order enables investors to buy or sell digital assets at the current market price.
Merged mining is simultaneously mining two different cryptocurrencies by using auxiliary proof of work (AuxPoW). It helps miners earn extra coins with the same hashing algorithm without splitting the hash rate.
Network congestion on a blockchain occurs when the number of transactions exceeds the network’s capacity. This results in slow transaction processing and high transaction fees.
NGMI stands for "Not Going to Make It." It’s often used when one anticipates a future loss as a result of a poor decision.
Nominated Proof of Stake (NPos)
Nominated proof of stake (NPoS) is a type of blockchain consensus algorithm that uses stakeholder voting to determine which nodes are able to participate in the validation of new blocks. Only nodes that have been nominated by other voters are allowed to validate new blocks, and earn rewards for doing so.
Non-Fungible Token (NFT)
Non-fungible tokens (NFTs) are one-of-a-kind digital assets stored on the blockchain that are not fungible — that is, unique and not interchangeable.
A private key is an encrypted string of alphanumeric characters that creates a unique digital signature and safeguards crypto transactions. It lets users send, receive and access cryptocurrencies.
Proof of Authority (PoA)
Proof of authority is a consensus mechanism that provides fast transactions using identity as a stake. More commonly referred to as PoA, it relies on well-known vendors to produce blocks. It allows the blockchain network to perform transactions more quickly using a Byzantine fault tolerance (BFT) algorithm.
Proof of Burn (PoB)
Proof of burn (PoB) is a type of proof of work (PoW) algorithm that incentivizes miners to burn a portion of their rewards in order to receive block rewards.
Proof of Capacity (PoC)
Proof of capacity (PoC) is an energy-efficient consensus mechanism that allows nodes on a blockchain to use the empty space on their hard drives to mine crypto.
Proof of Developer (PoD)
Proof of Developer, or PoD, is a verification system designed to prove to investors who the real developer behind a certain cryptocurrency or crypto project is. It’s intended to prevent investors from falling victim to fraudulent transactions.
Proof of Replication (PoRep)
Proof of replication (PoRep) is an extension of proof of work (PoW) that allows distributed systems to agree on the state of a blockchain without trusting any single node.
Proof of Stake (PoS)
Proof of stake, or PoS, is a consensus mechanism for processing transactions and creating new blocks in a blockchain. With a PoS consensus, miners are replaced by validators, who stake their cryptocurrency to bet on the next block. If the block they bet on is validated, they earn rewards.
Proof of Work (PoW)
Proof of work is a system that uses computational power to secure networks, process transactions and add new blocks to a blockchain. It is the most popular consensus mechanism in crypto and is used most prominently in Bitcoin.
A shard chain is a sub-blockchain of the main Ethereum blockchain that’s intended to ease blockchain network congestion issues and improve the transactions per second (TPS) rate.
A soft fork is a change in a blockchain’s software protocol that is backward compatible with older nodes.
To the Moon!
“To the moon” is a slang expression in the crypto world. It refers to a significant spike in volume and price for a specific digital currency. It’s also used to describe a trader’s desire to see their assets gain a sky-high value.
A transaction ID (TXID) is a unique string of alphanumeric characters that identifies a blockchain transaction. Every verified cryptocurrency transaction receives a TXID, ensuring transparency, authenticity and security.
Transactions Per Second (TPS)
Transactions per second (TPS) refers to the number of transactions a particular blockchain can handle per second. Higher speeds mean higher payment efficiency, possibly at the expense of decentralization.
A trustless system is a decentralized platform that functions without the need for participants to know or trust each other. Blockchain technology ensures trust, eliminating the need for third-party intermediaries such as banks.
WAGMI stands for “We’re All Going to Make It.” It’s a phrase often used in the crypto community to inspire confidence and encourage community members not to lose hope.
Wrapped Ether (WETH) is an ERC20-compatible token pegged to Ether’s value, meaning that users can redeem it for the original coin anytime without affecting its value.