I am not a crypto expert... yet.
I have been in the crypto world for about three months. In that time, I have absorbed a lot of info. In fact, about a university course’s worth.
And one of the things that was most challenging for me was all the ‘jargon’ people were throwing around without explanation.
Imagine you traveled to Egypt, then hiked to an ancient Egyptian tribe. Some people there welcome you, while others warn you of environmental dangers. But you have no clue what's happening. It's all just overwhelming chaos because...
...You don't speak the language.
That's what it was like for my friend Harry when he tried to join Hive. Since he knew nothing about crypto, blockchains, or voting etiquette, he floundered hard. And I get that, because it was the same for me.
When I joined Hive, it felt like everyone spoke another language, which made learning crypto even trickier, as I struggled to make sense of each term or phrase.
So I googled around for glossaries, indexes, and dictionaries, and there's plenty out there. But they were either:
1. Too overwhelming.
Some glossaries I found were way too big. Nearly 100 pages divided up by letter and covering irrelevant terms I was never likely to come across.
2. Too convoluted.
These glossaries used complex concepts I didn't understand to explain other complex concepts I didn't understand.
3. Too small.
These glossaries explained 5 to 10 crypto terms and then ended. They were vaguely helpful but didn't prepare me (or anyone) for the complex crypto world.
So I decided to make a better ‘cryptionary’ to help other newbies like me.
I wanted something I could link to friends new to cryptocurrency, decentralized finance, and blockchain dApps for themselves. Something for people who weren't even sure what terms to google.
So this glossary is aimed to be not too big, not too small. It uses clear, 'explain-like-I'm-five' language. (Or at least tries to.) This means the definitions in this index...
Intentionally skip nuances & details that experts include because it's for beginners.
Hopefully you find it 'just right' for your crypto journey.
One more thing, like many glossaries, each term here has a definition and an in-use example. But I've added a star rating as well to indicate how common each is. Three stars mean the term's pivotal or commonly used. One star means it's peripheral or less likely to crop up. This way readers can focus on learning commonly used '3-star' terms or dig deeper into more obscure '1-star' phrases.
Note: This rating system isn't perfect. It's a rough guide to get you into the crypto world.
If you want a friendly, casual dictionary that gives you the broad strokes needed to start navigating the world of crypto, this may be great for you. I’ve done my best to balance accuracy with simplicity.
If you want master-stroke technical accuracy & high-level language straight out of an Ethereum whitepaper, this isn’t the glossary for you.
(Also, this is my first post in LeoFinance, please be gentle.)
With all that said...
Let's go!
2FA (Two-Factor Authentication) ⭐
Definition | Example |
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2FA (2-Factor Authentication) is an extra layer of security ensuring that people accessing an account are who they say they are. Factor one asks for a username and password. Then, rather than instantly gaining access, factor two beings. In factor two, the user must provide another piece of information. The extra information can take many forms, such as 'secret' questions, a piece of ID, or even fingerprints. | “Man, I hate having to jump through all these hoops for 2FA, but at least I’m sure my crypto is secure.” |
51% Attack ⭐
Definition | Example |
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An attack on a blockchain by a group of miners who control more than 50% of the network's 'mining hash rate' (computing power.) A successful attack would let perpetrators halt new transactions, reverse transactions during their network control, and even double-spend coins. | “I know it’s unethical, but I kind of want to convince some other miners to try a 51% ATTACK on Bitcoin with me.” |
A
Address ⭐
Definition | Example |
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Unique ‘addresses’ are long codes used to send, receive, and store crypto data or funds. Each user’s (or wallet’s) address is special. | “Hey Emma, please send the funds to my ADDRESS, it’s 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy, and I’ll confirm receipt, thank you.” |
Altcoin ⭐⭐
Definition | Example |
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Altcoin: Any and all cryptocurrencies that are not Bitcoin. | “I’ve been a bitcoin purist for so long that now I’m scared to even read about ALTCOINS.” |
Airdrop ⭐⭐
Definition | Example |
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An airdrop is a 'giveaway' of coins/tokens, usually by the developers. (The air-droppers often set up some criteria to qualify as an airdrop receiver as well.) | “Emma, check this out! Because I got in early for this new crypto, I get a sweet AIRDROP from the devs of thousands of tokens!” |
Anti-Money Laundering (AML) ⭐
Definition | Example |
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AML are rules & processes that combat money laundering, identity fraud, and other financial crimes. | “Have you heard about the new blockchain? Apparently it’s got way better AML than either Bitcoin or Ethereum.” |
ASIC ⭐
Definition | Example |
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An acronym for 'Application Specific Integrated Circuit.' An ASIC is a processor designed to do one thing efficiently. CPUs do many general calculations, GPUs do graphics calculations, and ASICs do purely crypto & mining calculations. | “I made decent money by mining with a PC, but now that I’ve upgraded to an ASIC, I’m raking in the currency.” |
ATL / ATH ⭐
Definition | Example |
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All-Time Low is the lowest price point an asset has traded at. All-Time High is the highest price point an asset has traded at. | “Dude, I’m a literal billionaire, I bought Bitcoin at it’s ATL, and sold it recently when it hit it’s ATH.” |
Automated Market-Maker (AMM) ⭐
Definition | Example |
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Market-Makers began as people who kept an inventory of certain stocks. They were always ready to buy or sell (within a given price range). This gave traders someone available in the market to accommodate their trades instantly. This is called providing 'liquidity' because it enables traders to quickly liquidate their holdings. In crypto, we have ‘Automated’ Market-Makers for certain assets which do a similar thing... but it's not a person, it’s a program (funded by someone) doing the buying/selling/holding of the assets. (Note: In AMMs, formulas determine the price of assets, which means the price of the assets in an automated market-maker moves only when a trade occurs, so it may be less susceptible to external manipulation.) | “All the exchanges I use have AMMs so I’m never worried about being caught with my pants down.” |
B
Basket ⭐
Definition | Example |
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Crypto baskets are kind of like a mutual fund for crypto coins/tokens. They’re ‘bundles’ that allow traders to acquire multiple digital assets in one go without the need to manage them independently. | “I didn’t want to spend forever doing research so I just bought a BASKET.” |
Bagholder ⭐
Definition | Example |
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Bag-holding means holding a stock despite taking a significant loss on it. A bagholder is left 'holding the bag' while other shareholders are selling & fleeing from a sinking ship. | “Everyone calls me a BAGHOLDER for believing in Enron, but I’ll hold for a few more years and then they’ll see who the real bagholders are!” |
Bear / Bearish ⭐⭐⭐
Definition | Example |
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A bear market is a market heading downward (falling stock prices). It means that stocks are plunging downward, like the swipe of an attacking bear’s claws. | “Pessimistic Emma is clearly BEARISH about this situation, she believes Dogecoin’s value is going to plummet in a month.” |
Bitcoin ⭐⭐⭐
Definition | Example |
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Bitcoin is a virtual (or digital) currency. It is the main reason blockchain technology was invented/popularized. Like Ethereum, Bitcoin has its own blockchain (the Bitcoin blockchain), along with its own cryptocurrency (Bitcoin or 'BTC'). At the time of writing, Bitcoin holds the highest market value of any cryptocurrency. | “Everyone’s bragging about their latest token, but I’ll stick with BITCOIN. The original is best.” |
Block ⭐
Definition | Example |
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A block is like a page in a 'record-book.' Each block connects to make up an entire ‘blockchain.’ Whenever someone sends money (or data) on a blockchain, it's called a transaction. And like any transaction, it must be verified, stored, tracked, and so on. Once verified as truthful, a 'hash' of the transaction is made. (A hash is like a secret code that you can only remember if you combine a few other words you always know.) Each transaction is packaged within some notes about its hash. These notes are called 'blocks.' When blocks are linked together, it creates a chain of hashes with links that are impossible to replace without going back and re-doing all the other blocks and hashes. This is virtually impossible, so transactions and blocks are not able to be faked or undone. | “I’m new to mining but I’d really love to win the chance to verify a BLOCK on the chain.” |
Blockchain ⭐⭐⭐
Definition | Example |
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Blockchain is the tech behind crypto. It's basically a 'digital record-book,' recording every transaction or piece of data sent, received, or stored. It's meant to be 'decentralized' and 'immutable.' | “Emma, since I paid you in crypto, receipt of your funds is stored permanently on the BLOCKCHAIN, and no corporation can touch it.” |
Block Size ⭐
Definition | Example |
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The 'size' of a block limits the number of transactions that a particular blockchain is capable of. When blocks fill, the network becomes congested, and transaction fees rise dramatically. Different blockchains often have different block sizes. | “My favorite chains are slowing down, so I’m searching for one with a bigger BLOCK SIZE.” |
Blue Crypt ⭐
Definition | Example |
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Blue Crypt is a play on 'blue-chip' stocks. They're huge, long-running companies with a great reputation and dependable earnings. Coke, IBM, and Boeing are good examples. Blue crypts are cryptocurrencies with similar traits. They're sizable, value-based, long-running cryptocurrencies with a great reputation. | “I love that you’re investing in different coins, honey, but you may want a BLUE CRYPT like Bitcoin in your portfolio.” |
Bots ⭐⭐
Definition | Example |
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Crypto bots are programs designed to automate crypto trading. Bots automate analysis and interpretation of market stats and data. They can calculate the risk, then execute buy/sell orders. Bots can do other things as well, but this is their most common use. | “I wanted to make some vital trades for my portfolio, but I was on vacation, so all I could do was set up a BOT to take care of it for me.” |
Help: I appreciate anyone kindly clarifying this definition for readers and myself.
Bull / Bullish ⭐⭐⭐
Definition | Example |
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A bull market is a market heading upward (soaring stock prices). It means that stocks are surging upward, like the thrust of an attacking bull’s horns. | “Optimistic Cassie is clearly BULLISH about this situation, she believes Dogecoin’s value is going to skyrocket in a month.” |
BT(F)D ⭐⭐
Definition | Example |
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'Buy The (F--king) Dip.' BTD or BTFD is used as a call-to-action when an asset has declined in price (dipped) but has the potential to recover from its current 'dip' position. It's basically a method of 'buying low, selling high.' | “Everyone’s worried about the recent market drop after Elon Musk tweeted, but I’m just going to BTFD!” |
Burning ⭐
Definition | Example |
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Burning is the process of permanently eliminating cryptos from circulation, although the practice reduces inflation. | “The devs have agreed to BURN a bunch of coins off the chain, reducing supply and raising the value of everyone’s coins.” |
Help: I appreciate anyone kindly clarifying this definition for readers and myself.
C
CBDCs (Centralized Bank Digital Currencies) ⭐
Definition | Example |
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A Central Bank Digital Currency is a cryptocurrency backed by a nation's official bank. This means the government 'holds the liability.' (As decentralized currencies like bitcoin have become popular, many nation's central banks are getting into the crypto game using CDBCs.) | “I really want to ‘fight the power’ and embrace DeFi freedom and all, but I have to tell you, I’m really interested in CBDCs.” |
Censorship Resistance ⭐
Definition | Example |
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Something that has 'censorship resistance' is something no party can prevent participation in. On a blockchain, censorship resistance means rules of the network apply to all users equally. The rules are unchangeable for personal gains. Censorship resistance is related to the amount of decentralization in a network. Decentralized data is widely distributed, uncontrollable by a single, corrupt entity, so censorship is difficult to achieve. Note: Many people view blockchains as freedom from the oppression of current systems, but the reality is that censorship of a blockchain is difficult, but not impossible. (See Also: Trustlessness.) | |