Crypto Dictionary
Your go-to guide for all things Web3
APY
Short for annual percentage yield, APY is the rate of return (profits) on an investment once the principal has been returned and compounded interest has been accounted for.
Bitcoin
The most popular decentralized digital currency in the world, Bitcoin runs in a collaboratively-managed ledger built on computer science, cryptography, and economics. Bitcoins are exchanged peer-to-peer without needing to rely on any central authority, like a bank or government.
Important terms to keep in mind:
bitcoins: the currency.
Bitcoin: community, network, and software.
Blockchain
A distributed ledger system, a blockchain consists of units, known as “blocks” of digital information. All information in a blockchain is stored on a digital database that anyone with a computer can access.
Block
A file containing data on transactions completed in the network. Blocks are the “pages” to the ledger and act as permanent data recorders within a blockchain.
Cold Wallet
A cryptocurrency wallet that is not connected to the internet. Cold wallets add an extra layer of protection by storing users' crypto assets offline. The most popular cold wallets today are Ledger and Trezor.
Cryptocurrency
A digital version of a currency. Cryptocurrencies come in the form of various tokens and new ones are frequently being created. Often, a cryptocurrency token is similar to a share in a traditional company- you can invest in it if you believe in the underlying project. If the project is successful, its native cryptocurrency will rise in value.
Composability
Composability means that all dApps built in one blockchain network (like Ethereum) are interoperable. Developers can build on top of different apps and they can mix and match different dApps to create their services. Think Legos!
DeFi
Decentralized Finance is everything you know from the traditional financial system (loans, exchanges, lending), but built on blockchain without using third parties (like banks).
DEX
Short for “Decentralized Exchanges”, DEXs are online marketplaces where cryptocurrency transactions take place between crypto traders (peer to peer) without the presence of an intermediary (i.e. a bank or a broker.)
DAOs
DAO stands for Decentralized Autonomous Organizations. In the broadest sense, DAOs are communities of people who share the same goals. Unlike traditional companies, all participants in a DAO own a portion of the organization.
Ethereum
The second largest blockchain to date, you can think of Ethereum as a giant database that not only stores information, but is also used by developers to build on top of and deploy apps. In this sense, Ethereum is like “The App Store,” yet there are no restrictions on who can or can’t build on it.
Ether
Ethereum’s native token/currency.
Gas Fee
The fee you pay to use the Ethereum network. Gas fees go to Ethereum miners, who keep the network running. The busier the network is, the higher you’ll find the price of gas.
Immutable
Something that is impossible to change, edit or alter.
Mining
The process of how some cryptocurrencies, like Bitcoin, are created. Miners across the world compete by solving a computational puzzle. Miners keep the network running and are rewarded in the blockchain’s native currency.
NFT
A non-fungible-token is a unique and non-equivalent digital asset stored on a blockchain. NFTs can represent things like art, music, videos, and memberships to name a few.
Permissionless
Blockchains like Bitcoin and Ethereum are permissionless which means that anyone can access the network and become a contributor without needing a permission from anyone.
Solana
A public blockchain platform that uses a combination of the proof-of-stake and proof-of-history consensus mechanisms. Solana has close to no transaction fees and can process around 50,000 transactions per second, while Ethereum can currently only process 13 transactions per second. Solana’s native currency “SOL” is currently the fifth-largest digital coin in the market.
Web3
A new decentralized version of the internet where ownership belongs to the users instead of a few companies. In Web3, everyone has access to software infrastructure and can build on top of each other.
Crypto Slang
Ape in: To quickly dive into a project or investment without enough research or knowledge about it.
DD: Due diligence - the act of researching a project before deciding to invest.
DYOR: Do your own research - customary advice often given in crypto circles.
Delist: To delist your NFT from the marketplace, make it unavailable for purchase.
Diamond hands: People who don’t sell their assets in panic have diamond hands. Whether the price is going up or down, diamond hands hold.
Doxxed: In crypto, it means that the team revealed their real identity. In general, doxxing means revealing someone’s real identity, usually without their consent.
FOMO: Fear of missing out - a feeling we’re all too familiar with, but one we should not follow when it comes to financial matters.
FUD: Fear, uncertainty, and doubt. In context, to spread FUD might mean someone is talking negatively about a project without something to back up those statements. Sometimes the statements will make sense but the poster might be accused of FUDing because the project supporters don’t want anyone to burst their bubble.
Flip: To buy an NFT at a cheap price and sell fast, usually just a little bit higher, for a quick profit.
Floor (price): The lowest listed price of an NFT in a collection.
Floor sweep: The act of buying NFTs at floor price, usually with the goal to increase it.
GM: Good morning
GMI: Going to make it
GN: Good night
HODL: Hold / hold on for dear life - similar to diamond hands, refers to the act of not selling NFTs or crypto even when the price goes down. “People who hodled Bitcoin since 2011 are sure happy now.”
IRL: In real life
MM: MetaMask
Moon: When a cryptocoin or NFT price ''goes to the moon'' it means it is going up considerably.
NFA: Not financial advice - usually used when someone shares an opinion that might hype up someone to invest. Example: “I really like this project and I’ll be definitely minting, but NFA, DYOR.”
NGMI: Not going to make it - usually reserved for people who don’t get Web3 (yet).
OG: Old gangster - it means that something is “old school”, original, first of its kind. “She’s an OG, she’s played CryptoKitties in 2017.”
OS: OpenSea, the largest NFT marketplace.
PFP: In crypto, it refers to NFT profile pictures. In general, it can also mean picture for proof.
Paper hands: The opposite of diamond hands, the ones who sell their assets after the first signs of value decrease.
Reveal: The post-mint reveal of the NFT art. Usually, collections reveal the art once all NFTs are minted.
Rugpull: A rugpull, or simply a rug, happens when the team of a crypto or NFT project abandons the project/community but takes all their investments. The team pulls a rug under their supporters. Very bad practice..
Shilling: To aggressively promote your crypto/NFT project on social media or in specific shilling spaces inside Discord communities.
WAGMI: We’re all going to make it - wherein “to make it” means we will all find success in Web3.
Wen ____: Short for ''when''. Usually used to ask “wen moon, wen mint, wen reveal”.
Whale: A person who owns a considerable amount of assets in an NFT project or in a certain cryptocurrency.