Cryptocurrency Glossary

Altcoin: Any cryptocurrency other than Bitcoin. Examples include Ethereum, Ripple, and Litecoin.

ASIC (Application-Specific Integrated Circuit): A type of hardware optimized for mining certain cryptocurrencies. It’s faster and more efficient than general-purpose mining hardware.

ATH (All-Time High): The highest price ever reached by a cryptocurrency.

Bear Market: A market characterized by declining prices.

Blockchain: A distributed digital ledger that records all transactions made with a cryptocurrency. It's decentralized, meaning it's maintained by multiple users rather than a central authority.

Bull Market: A market characterized by rising prices.

Cold Storage: A method of storing cryptocurrencies offline for security reasons. Examples include paper wallets or hardware wallets.

Consensus: Agreement among nodes (computers) in a network about the state of transactions and balances.

dApp (Decentralized Application): An application that runs on a decentralized network (usually a blockchain), not controlled by any single entity.

DeFi (Decentralized Finance): Financial platforms and protocols that operate without traditional intermediaries, using blockchain technology instead.

Faucet: A website or platform that gives away free cryptocurrency to users.

FOMO (Fear Of Missing Out): The fear of missing a potential profit opportunity in the crypto market.

Fork: A split in the blockchain resulting in two paths: one follows the old protocol, and the other follows the new. Can be "hard" or "soft."

FUD (Fear, Uncertainty, Doubt): Disinformation spread to cause fear and uncertainty.

Gas: A fee paid to process transactions and execute smart contracts on the Ethereum network.

HODL: A misspelled term meaning "hold" that's come to mean "keep and don’t sell" in the crypto community.

ICO (Initial Coin Offering): A type of crowdfunding where new cryptocurrencies sell their tokens to interested investors.

Lightning Network: A "layer 2" payment protocol that operates on top of a blockchain to enable faster transactions.

Mining: The process of using computer power to solve complex algorithms, validate transactions, and secure a cryptocurrency network. Miners are rewarded with new cryptocurrency coins.

Node: A computer connected to the blockchain network that validates and relays transactions.

Private Key: A cryptographic key unique to every coin in a user's possession. It's secret and allows the user to spend the cryptocurrency.

Public Address (or Public Key): An address where others can send you cryptocurrency. It's derived from the private key but can't be used to deduce it.

Pump and Dump: A manipulation scheme where the price of a cryptocurrency is artificially inflated (pumped) to attract unsuspecting buyers, and then sold off (dumped) for profit.

Satoshi: The smallest unit of Bitcoin, worth 0.00000001 BTC.

Smart Contract: A self-executing contract where the terms are written into code. Often used on platforms like Ethereum.

Token: Digital assets issued on a blockchain. While all cryptocurrencies are tokens, not all tokens are cryptocurrencies. Some represent assets like real estate or stock.

Wallet: A software or hardware tool that stores private and public keys, allowing users to send and receive cryptocurrency.

Whale: An individual or entity that holds a large amount of a cryptocurrency.