Cryptocurrency Glossary

The distribution of free cryptocurrency tokens to wallet addresses, often used as a marketing strategy or to reward early supporters.

Any cryptocurrency other than Bitcoin. The term is derived from "alternative coin" and includes thousands of different cryptocurrencies.

A market condition characterized by falling prices and pessimism. Typically defined as a decline of 20% or more from recent highs.

The first and most well-known cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. Bitcoin operates on a decentralized peer-to-peer network.

A distributed ledger technology that maintains a continuously growing list of records (blocks) that are linked and secured using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

A market condition characterized by rising prices and optimism. Investors are confident and buying activity is high.

A method of storing cryptocurrency offline, away from internet-connected devices, to enhance security. Examples include hardware wallets and paper wallets.

An application that runs on a decentralized network, typically a blockchain, rather than a centralized server.

Financial services built on blockchain technology that operate without traditional intermediaries like banks. DeFi includes lending, borrowing, trading, and yield farming.

A decentralized, open-source blockchain platform that enables smart contracts and decentralized applications (DApps). Ether (ETH) is the native cryptocurrency of the Ethereum network.

A platform where users can buy, sell, and trade cryptocurrencies. Exchanges can be centralized (CEX) or decentralized (DEX).

The anxiety that one might miss out on a profitable opportunity, often leading to impulsive buying decisions.

Negative information or rumors spread to create fear and uncertainty in the market, often causing prices to drop.

A fee paid to process transactions on a blockchain network, particularly on Ethereum. Gas fees compensate network validators for their computational work.

An event that reduces the reward for mining new blocks by half. Bitcoin undergoes a halving approximately every four years, reducing the rate at which new bitcoins are created.

A misspelling of "hold" that became a popular term in the crypto community. It means to hold onto cryptocurrency rather than selling it, regardless of price fluctuations.

A cryptocurrency wallet that is connected to the internet, making it convenient for frequent transactions but potentially less secure than cold storage.

A fundraising method where new cryptocurrency projects sell their tokens to early investors in exchange for established cryptocurrencies like Bitcoin or Ethereum.

The ease with which an asset can be bought or sold without significantly affecting its price. High liquidity means there are many buyers and sellers.

The total value of all coins of a cryptocurrency in circulation. Calculated by multiplying the current price by the total supply.

The process of validating transactions and adding them to the blockchain. Miners use computational power to solve complex mathematical problems and are rewarded with cryptocurrency.

A unique digital asset that represents ownership of a specific item or piece of content. NFTs are stored on a blockchain and cannot be replicated.

A secret cryptographic key that allows you to access and control your cryptocurrency. It should be kept secure and never shared with anyone.

A consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to "stake" as collateral.

A consensus mechanism used by Bitcoin and other cryptocurrencies where miners compete to solve complex mathematical problems to validate transactions and create new blocks.

A cryptographic key that can be shared publicly and is used to receive cryptocurrency. It is derived from the private key but cannot be used to access funds.

Self-executing contracts with the terms of the agreement directly written into code. They automatically execute when predetermined conditions are met.

The process of holding cryptocurrency in a wallet to support the operations of a blockchain network and earning rewards in return.

A digital asset built on top of an existing blockchain. Tokens can represent various things, including utility, governance rights, or assets.

A digital tool used to store, send, and receive cryptocurrencies. Wallets can be software-based (hot wallets) or hardware-based (cold wallets) for enhanced security.

An individual or entity that holds a large amount of cryptocurrency, capable of influencing market prices through large trades.