Glossary

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Crypto Glossary

5 A B C D E F G H I J K L M O P Q S T U W X

5

51% AttackA 51% attack is a situation where malicious actors gain control of more than 50% of a blockchain network’s mining power. This control allows them to manipulate transactions, such as double spending, blocking new transactions, or even rendering the blockchain unusable.

A

AirdropA crypto airdrop is a distribution of free tokens or coins to a specific group of individuals in the cryptocurrency space.

AlgorithmAn algorithm In the context of cryptocurrency is a predefined set of step-by-step instructions or rules designed to execute specific tasks or solve particular problems

AMLAML (Anti-Money Laundering) in crypto refers to rules and procedures that aim to prevent digital currencies from being used to commit or hide criminal activity.

AMM (automated market maker)AMM stands for Automated Market Maker, which is a type of decentralized exchange (DEX) protocol that relies on mathematical formulas to determine the asset price.

APR in CryptoAPR (Annual Percentage Rate) in the crypto space refers to the projected annual return on digital assets, based on simple interest, excluding compounding. APR offers a clear and straightforward way to evaluate returns without the complexity of compounding.

APY (Annual Percentage Yield)Annual Percentage Yield (APY) reflects the total return on an investment over a year, accounting for compound interest.

ASICAn ASIC (Application-Specific Integrated Circuit) is a chip built to mine a specific cryptocurrency algorithm with maximum speed and efficiency.

B

Bid PriceThe bid price is the maximum price that a buyer is willing to pay for a particular digital asset or cryptocurrency at a given moment.

Bitcoin Cash (BCH)Bitcoin Cash (BCH) is a cryptocurrency created to enable fast, low-cost peer-to-peer payments without relying on banks or payment intermediaries. It is designed to function as digital cash for everyday transactions.

Black Swan EventA black swan event in crypto refers to a sudden, highly unpredictable incident with often negative consequences for digital assets, blockchain networks, or the broader financial ecosystem. These events are rarely natural, often emerging without warning and causing rapid shifts in market behavior, sentiment, and structure.

BlockchainBlockchain serves as a distributed and decentralized digital ledger, securely documenting transactions across a network of computers, creating an unalterable and transparent chain of blocks.

C

Capitulation in CryptoCapitulation in crypto refers to a sharp, emotion-driven sell-off that leads to a steep market drop. It typically signals the end of a downward trend, as panic replaces strategy and sentiment hits a low point.

Cardano (ADA)Cardano is a proof-of-stake blockchain platform designed to support smart contracts, decentralized applications, and secure digital transactions. ADA is the native cryptocurrency of the Cardano network, used to pay transaction fees, participate in network validation, and take part in governance processes.

Cold StorageCold storage is a security practice of keeping private keys or crypto wallet information in an offline environment, enhancing protection against online threats like hacking or malware.

Crypto AdoptionCrypto adoption means the increasing use of digital currencies in everyday life - whether for shopping, sending money abroad, or running a company.

Crypto Gas FeesGas fees are the payments users make to blockchain validators (or miners) for processing and confirming transactions or actions on the network.

Crypto lendingCrypto lending lets individuals and businesses borrow or lend digital assets through set agreements. Borrowers provide collateral, usually in cryptocurrency, to receive a loan in another asset, often a stablecoin, which they repay with fees to retrieve their collateral.

Crypto SnapshotA crypto snapshot captures the state of a blockchain at a specific block height and records all existing wallet balances, transactions, and metadata at a specific moment.

CryptocurrencyCryptocurrency is a virtual currency that utilizes cryptography for security and operates on decentralized networks, typically based on blockchain technology.

D

DAppsDecentralized applications (DApps) running on Bitcoin are applications that operate on the Bitcoin blockchain, leveraging its network for secure, decentralized operations.

DecryptionDecryption is the process of converting encrypted data back into its original and understandable form, using a specific key.

DEXDEX, or Decentralized Exchange, is a type of cryptocurrency exchange that operates without a central authority or intermediary.

Directed Acyclic Graph (DAG)A Directed Acyclic Graph is a type of data structure that organizes and processes information in a way that avoids cycles and ensures data flows in a specific direction. In the world of cryptocurrencies, DAG is used as an alternative to traditional blockchains.

E

ERC-20ERC-20 is a technical standard on the Ethereum network that defines how tokens are created, transferred, and managed. Any token built on this standard follows the same rules and works with Ethereum-based wallets, apps, and services.

ETFETF is an Exchange Traded Fund, which is a type of investment fund that is traded on stock exchanges and can include stocks, bonds, cryptocurrencies, and other assets.

EthereumEthereum is a decentralized blockchain platform that allows users to create and run smart contracts and decentralized applications (dApps) without relying on intermediaries such as banks or centralized service providers.

ExchangeA crypto exchange is a digital platform that allows you to buy and sell various cryptocurrencies.

F

FiatFiat is a type of currency issued by a government that is not backed by a physical commodity.

FUDFUD in crypto stands for Fear, Uncertainty, and Doubt. It refers to the deliberate spread of negative or misleading information intended to influence sentiment and disrupt market activity. In the digital asset space, FUD often appears during periods of high volatility, where emotional responses can lead to rapid price shifts.

FuturesFutures in crypto are standardized financial contracts that obligate parties to buy or sell an asset at a predetermined date in the future and an agreed-upon price.

G

Golden CrossThe Golden Cross is a bullish technical pattern in crypto trading when a short-term moving average crosses a long-term moving average.

GovernanceGovernance refers to the decision-making processes and structures that guide the development and evolution of blockchain or other crypto projects.

H

Hard CapA hard cap is the maximum amount of a specific cryptocurrency that will ever be issued.

HashA hash is an output by a hash function that takes data and produces a string of characters, which is typically a sequence of numbers and letters.

I

ICOAn Initial Coin Offering (ICO) is a fundraising method used by emerging crypto projects that involves issuing and selling of new cryptocurrencies to investors to raise capital for development and implementation.

InteroperabilityInteroperability is the ability of different blockchain networks and their associated applications to seamlessly communicate, share data, and operate cohesively.

J

JOMOJOMO (Joy of Missing Out) is the satisfaction experienced by individuals who choose not to participate in crypto market activities, avoiding the associated stress and potential losses.

K

KeyloggerA keylogger is malicious software or hardware designed to record keystrokes on a user's computer, enabling attackers to capture sensitive information such as passwords, private keys, and other confidential data.

KYB (Know Your Business)KYB (Know Your Business) is a verification process that confirms the legitimacy of companies in crypto transactions to ensure compliance with Anti-Money Laundering (AML) regulations.

KYCKYC, or Know Your Customer, is the verification process implemented by exchanges and other platforms to collect and verify customer information.

L

Limit OrderA limit order is a specific type of trading order where a trader sets a predetermined price at which they are willing to buy or sell an asset.

LiquidityLiquidity refers to the ease with which an asset can be quickly converted into cash or another asset without significantly affecting its price.

M

Market capMarket capitalization, also known as market cap, is the total monetary value of a cryptocurrency, calculated by multiplying the current price of a single coin/token by the total number of coins/tokens in circulation

MiCaMiCA (Markets in Crypto-Assets Regulation) is the European Union’s legal framework that standardizes regulations for digital asset issuers, trading platforms, and custody providers.

O

On-chain vs off-chainOn-chain transactions happen directly on the blockchain, creating permanent and public records. Off-chain transactions take place outside the blockchain, making transfers faster and cheaper, with final updates added later.

P

Pepe (PEPE Coin)Pepe (PEPE) is an ERC-20 meme coin launched on the Ethereum blockchain, created as a community-driven cryptocurrency inspired by internet meme culture, without intrinsic utility or financial guarantees.

Price VolatilityPrice volatility is a metric that shows how much the price of an asset fluctuates over time. It reflects both the frequency and the scale of price changes, whether upward or downward.

Pump and dumpA pump and dump happens when a group of individuals buys a cheap token and creates hype to get others to buy. As the price jumps, they sell their tokens, which causes the price to fall quickly. People who bought late end up with tokens that lose most of their value. It usually happens very fast and can cause serious losses.

Q

QR CodeA payment QR code is a tool that allows businesses to accept cryptocurrency without manual wallet address input. It links the customer’s wallet to a fixed wallet address. This method reduces errors and speeds up the process. It can be used online, offline, or across devices. The code is generated by the merchant and scanned by the buyer.

S

SaaS Payment Gateway

Smart TokenSmart tokens are programmable digital assets that use smart contracts to perform specific functions automatically on a blockchain network.

StablecoinsStablecoins, launched in 2014, were designed to maintain value and reduce crypto price swings. Many are backed by fiat currencies like USD or EUR.

T

ThroughputThroughput refers to a number of transactions a blockchain network can process within a given time, usually measured in transactions per second (TPS)

Ticker SymbolA crypto ticker symbol is a unique code that identifies a cryptocurrency, like BTC for Bitcoin.

TokenA token is a digital asset created on an existing blockchain that represents value, rights, or access within decentralized platforms.

Token IssuanceToken issuance is the process of creating new tokens within a blockchain system. It defines how new tokens are introduced to the ecosystem, covering aspects like initial distribution and supply mechanisms.

TRON (TRX)TRON is a Layer-1 blockchain designed for high throughput and low fees.

TXID (Transaction ID)TXID (Transaction ID) is a unique identifier assigned to every transaction in a blockchain network. It allows users to track, verify, and confirm cryptocurrency transfers in a transparent and immutable way.

U

USDCUSDC is a stablecoin that targets a 1:1 peg to the US dollar. It gives businesses and users a dollar‑denominated asset for payments, settlements, and on‑chain finance.

USDTUSDT is a stablecoin that aims to track the US dollar at 1:1. It gives crypto users a price‑stable asset for payments, trading, and settlements.

W

Wallet AddressA wallet address is a unique string of characters used to receive cryptocurrency. It acts as the destination for digital asset transfers on a blockchain. Each address is linked to a crypto wallet.

WhitelistA whitelist in crypto refers to a list of pre-approved users who are granted early access to token presales, NFT mints, or other blockchain events.

WhitepaperA whitepaper in the crypto industry is a document that covers a blockchain project's purpose, core idea, and technical framework, often released early to explain how the system works and its long-term vision.

X

XRP (Ripple)The XRP Ledger (XRPL) is a public, open-source network that reaches agreement without mining.