Crypto Glossary
Every crypto and blockchain term the Academy explains, in one place. Pick a term to read the full definition.
A
Address An alphanumeric string of characters that represents a reservoir/destination where crypto can be sent to and from. Full definition Airdrop A marketing strategy in which free crypto tokens or coins are distributed to holders to promote a new project or encourage community… Full definition Algorithm Coded instructions or rules that are executed by a computer to solve problems. Full definition AltCoin The umbrella term used to define all crypto assets that are not bitcoin. The Alt simply stands for Alternative. Full definition Anti-Money Laundering (AML) A set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income, increasingly applied to… Full definition Arbitrage The practice of simultaneously buying and selling the same asset on different markets or exchanges to profit from a temporary price difference. Full definition ATH (All-Time-High) All-Time High. Refers to the highest price ever reached by a cryptocurrency during its trading history. Full definition ATL (All-Time-Low) All-Time-Low. Refers to the lowest price an asset has ever been at. Full definition
B
Bag Holder A cryptocurrency trader or investor stuck holding large amounts of a crypto asset that has severely depreciated and cannot be sold back… Full definition Bear Market A prolonged period of declining prices, typically defined as a drop of 20% or more from recent highs, accompanied by widespread pessimism… Full definition Bitcoin Dominance A metric representing bitcoin’s market capitalization as a percentage of the total cryptocurrency market’s combined market capitalization. Full definition Block An immutable digital file which stores information regarding activity on the network. Each block has its own timestamp, hash, and set of… Full definition Blockchain A system in which a record of transactions made in bitcoin or another cryptocurrency is maintained across many computers linked in a… Full definition Block Explorer An online tool that allows users to browse and search transaction history, wallet addresses, and blocks on a given blockchain in real… Full definition Block Height The number of blocks in the chain between a given block and the first block on that blockchain (the genesis block, or… Full definition Breakout When the price of a coin or other asset crosses a resistance zone, whether it’s going up or down. Full definition Bull Market A sustained period of rising asset prices, typically accompanied by strong investor confidence, optimism, and increasing trading activity. Full definition
C
Capitulation The process of selling assets or cryptocurrencies at a significant loss because you have lost hope or belief that it will ever… Full definition Central Bank A national institution responsible for managing a country’s currency, money supply, and monetary policy, often acting as the government’s primary financial authority. Full definition Central Bank Digital Currency (CBDC) A digital version of a government-issued fiat currency, issued and managed by a central bank; unlike cryptocurrencies, its legal-tender status depends on… Full definition Circulating Supply The total number of coins or tokens of a given cryptocurrency that are currently publicly available and circulating in the market. Full definition Coin A digital currency that operates on its own independent blockchain, functioning primarily as a medium of exchange or store of value. Full definition Cold Storage Offline storage of cryptocurrencies, typically involving hardware wallets, USBs, offline computers, or paper wallets. Full definition Collateral An asset pledged as security to a lender to guarantee repayment of a loan, allowing the lender to seize it if the… Full definition Confirmation Validation of a transaction or series of transactions. On the Bitcoin blockchain, each individual transaction must be validated by multiple independent nodes… Full definition Cryptocurrency Refers to all digital currencies that are on a blockchain and work in a peer-to-peer fashion. Full definition Crypto Winter An extended bear market period in the cryptocurrency industry characterized by dramatically reduced prices, low trading volume, and diminished public interest. Full definition
D
Dapps (Decentralized Applications) Applications that run on a decentralized blockchain or peer-to-peer network of computers instead of a single centralized server. Full definition Dead-Cat Bounce A temporary, short-lived price recovery within an ongoing downtrend, followed by a resumption of the original decline. Full definition Decentralized Owned by no single entity; ownership is spread out to whoever wants to join. Full definition Decentralized Autonomous Organization (DAO) A system of hard-coded rules, governed by blockchain-based smart contracts, that defines which actions a decentralized organization will take. Full definition Decentralized Exchange (DEX) A peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary. Full definition DeFi (Decentralized Finance) Short for Decentralized Finance, DeFi is the idea that blockchain entrepreneurs can use bitcoin and crypto technology to recreate traditional financial instruments… Full definition DinarView Kurdcoin’s dinar service: the dollar–dinar rate Iraq’s exchange offices are actually quoting, collected through the trading day and published free in five… Full definition
E
F
Faucet Websites that give away a small amount of cryptocurrency in exchange for visiting the site or completing a survey. Full definition Flipping The practice of quickly buying an asset, such as an NFT or newly listed token, with the intent of reselling it shortly… Full definition FOMO (Fear Of Missing Out) A term used to express the anxiety a trader could feel if they don’t act quickly when making trading decisions, generally arising… Full definition Fork A split in a blockchain’s protocol that creates an alternate version of the chain, resulting in two blockchains running simultaneously. Full definition FUD (Fear, Uncertainty, and Doubt) Negative or misleading information spread, deliberately or not, to create fear and doubt among investors, often causing panic selling and price drops. Full definition Fundamental Analysis An investment research method that evaluates an asset’s intrinsic value by examining underlying factors like technology, team, use case, and tokenomics rather… Full definition
G
H
Halving The procedure of reducing the mining rewards on a blockchain by half. For the Bitcoin network, this occurs once every four years,… Full definition Hardware Wallet A physical device, often resembling a USB stick, used to store a cryptocurrency’s private keys offline for enhanced security. Full definition Hash Rate The unit of measurement of a network’s processing power. Full definition HODL A misspelled version of HOLD. Now slang in the cryptocurrency community for holding a cryptocurrency rather than selling it. Full definition Hot Wallet A crypto wallet whose private keys sit on an internet-connected device — an exchange account, a phone app, a browser extension. Convenient… Full definition
I
Inflation The rate at which the general price level of goods and services rises, causing the purchasing power of a currency to decline… Full definition Initial Coin Offering (ICO) A fundraising method in which a new cryptocurrency project sells its tokens to early investors, typically in exchange for established cryptocurrencies like… Full definition Initial Public Offering (IPO) The traditional process through which a private company offers shares to the public for the first time on a stock exchange, raising… Full definition Interest Rate A time-dependent charge or return made in proportion to the amount of money deposited, borrowed or lent. Full definition
K
L
Layer 2 A scaling solution built on top of a blockchain, enabling high throughput while fully inheriting the security of the underlying blockchain. Full definition Ledger A record of financial transactions that cannot be changed, only appended with new transactions. Full definition Leverage Money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital… Full definition Lightning Network A second layer operating on top of a blockchain, enabling increased transaction speed among participating nodes. One proposed scaling solution. Full definition Liquidity Liquidity indicates how easy it is to convert a cryptocurrency into cash quickly — and whether this can be achieved without the… Full definition Listing The process by which a cryptocurrency becomes officially available for trading on an exchange, making it accessible to that platform’s user base. Full definition
M
Mainnet An independent blockchain running its own network with its own technology and protocol. For example bitcoin and Ethereum. Full definition Margin Trading A practice where a trader uses borrowed funds from a broker to trade a cryptocurrency. Full definition Market Cap The total value of a cryptocurrency project, calculated by multiplying the current price of a token by its total circulating supply. Full definition Maximum Supply The absolute maximum number of coins or tokens that will ever exist for a given cryptocurrency, as defined by its underlying protocol. Full definition Meme Coin Refers to the coins or tokens that are based on a meme and have no practical use. Most promise unrealistic profits, examples… Full definition Miner The node/node operator which chooses to participate in the gamified/incentivized process of extracting bitcoin and securing its network. Full definition Mining The process of clumping transactions together in blocks and adding them to the blockchain by solving a computationally demanding puzzle, creating new… Full definition Mining Pool A group of miners that have unified their computing resources in order to distribute the mining rewards more consistently between its participants. Full definition Money Laundering Money laundering is a technique used for illegal businesses to hide their money from the authorities. Full definition Moon A colloquial expression used to describe a cryptocurrency or asset experiencing a strong upward market trend. Full definition
N
NFT (Non-Fungible Token) Short for non-fungible token, NFTs are digital tokens used to prove ownership of unique tangible and intangible items — unlike cryptocurrencies, they… Full definition Node A computer or device that connects to a cryptocurrency network and helps strengthen the network’s resilience. Full definition
O
P
Paper Wallet A physical document containing a public address and its corresponding private key, printed or written down for offline cold storage of cryptocurrency. Full definition Peer-to-Peer (P2P) A decentralized network structure in which participants interact and transact directly with one another without relying on a centralized intermediary. Full definition Phishing A type of hack when a scammer pretends to be a trusted institution or person to trick people into revealing sensitive information… Full definition Ponzi Scheme A fraudulent investment scheme that pays returns to earlier investors using funds contributed by newer investors, rather than from legitimate profit. Full definition Portfolio A collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual. Full definition Private Key A piece of code generated in an asymmetric-key encryption process, paired with a public key, used to decrypt information hashed with the… Full definition Proof-of-Stake (PoS) An alternative mechanism to PoW that needs much less energy. Miners are not needed, but holders stake coins for a set period,… Full definition Proof-of-Work (PoW) Proof-of-work (PoW) is a consensus mechanism used in many cryptocurrencies to validate transactions and create new blocks on the blockchain. This process… Full definition Public Key Also known as wallet address, it refers to a series of alphanumeric characters sent by the owner of a wallet to their… Full definition Pump and Dump A form of fraud involving the artificial inflation of a cryptocurrency's price through false or misleading hype, followed by coordinated selling at… Full definition
R
S
Satoshi The smallest divisible unit of bitcoin, equal to one hundred millionth of a single bitcoin (0.00000001 BTC). Full definition Satoshi Nakamoto The pseudonymous person or group who created and released bitcoin, the blockchain, and distributed ledger technology to the world. Full definition Scamcoin/Shitcoin A cryptocurrency with little to no real utility, value, or long-term viability, often created purely to profit its founders at the expense… Full definition Smart Contract A self-executing protocol on a blockchain that automatically carries out the terms of a contract when specific conditions are met, without the… Full definition Staking A form of participation in a proof-of-stake system where you lock up your tokens for a set period to serve as a… Full definition
T
Technical Analysis A method involving statistical analyses of the market, such as price and volume. Charts and other tools are used to identify patterns… Full definition Token A subdivision of cryptocurrency that doesn’t have its own blockchain but works on another coin’s blockchain. Full definition Total Supply The total amount of coins in existence right now either in wallets or in the market, minus any coins that have been… Full definition Transaction Fee A small amount paid by a user to have their transaction processed and included in a block on the blockchain network. Full definition
V
W
Wallet A storage facility for cryptocurrencies. Software that allows users to store their cryptocurrencies in a user-friendly way. Comes in many forms: paper,… Full definition Web 1.0 Web 1.0 is a term often used to describe the early version of the internet, where it was read-only and nothing could… Full definition Web 2.0 It refers to the current state of the internet where the user can curate content and add information, like social media platforms. Full definition Web 3.0 Web3 refers to the use of blockchain technology to decentralize and improve the current internet infrastructure, envisioning a more open and secure… Full definition Whale A term used to refer to very high net worth crypto wallet addresses whose trading decisions are large enough to directly and… Full definition Whitepaper A document released by a crypto project that gives investors technical information about its concept, and a roadmap for how it plans… Full definition
#
No term matches that search. Try a shorter word, or clear the search to see every term.