Crypto lingo & terms

Here's a compiled list of the most common crypto terms and slang.

Airdrop: free tokens distributed to wallet holders, often to promote a new project.

Altcoin: any cryptocurrency that isn't Bitcoin.

Bitcoin: the first, largest and most decentralized cryptocurrency.

Blockchain: a digital ledger of transactions, made up of blocks linked in sequence.

Cold wallet (cold storage): a device that keeps your keys offline. The most secure way to store crypto.

Cryptocurrency: digital, decentralized money used for payments or as a store of value.

DCA (dollar-cost averaging): investing a fixed amount on a regular schedule, regardless of price.

Decentralization: when no single authority is in control, and power is spread among many participants.

DeFi (decentralized finance): lending, trading and other financial services run by code instead of banks.

dApps (decentralized apps): applications that run on a blockchain without middlemen.

ETF (exchange-traded fund): a fund traded on the stock market. US spot Bitcoin ETFs launched in January 2024.

Exchange: a marketplace for buying and selling crypto.

FOMO: fear of missing out. What new investors often feel during big rallies.

FUD: fear, uncertainty and doubt. Negative sentiment, sometimes spread on purpose.

Gas fees: fees paid to process transactions on networks like Ethereum.

Halving: the event, about every four years, that cuts the reward for mining new bitcoin in half. The latest was April 2024.

HODL: originally a typo for "hold". Now means holding through market swings.

Hot wallet: a wallet connected to the internet. Convenient, but more exposed to hacks.

ICO (initial coin offering): raising money for a new crypto project by selling tokens, similar to a stock IPO.

Market cap: a coin's total value: circulating supply multiplied by price.

Mining: using computing power to secure a Proof of Work network and earn new coins.

NGMI: "not gonna make it". Crypto slang for a bad decision.

Private key: the secret code that controls your crypto. Never share it.

Public key / address: like your account number. Share it so people can send you crypto.

Recovery (seed) phrase: 12 or 24 words that back up your wallet. Anyone with them controls your funds.

Rekt: wrecked. Suffering heavy losses.

Sats (satoshis): the smallest unit of bitcoin. 100 million sats make one bitcoin.

Satoshi Nakamoto: the pseudonymous creator of Bitcoin, whose identity remains unknown.

Self-custody: holding your own keys instead of leaving crypto with an exchange.

Shill: promoting a coin for your own benefit, often without disclosing it.

Smart contract: a program on a blockchain that runs automatically when its conditions are met.

Stablecoin: a cryptocurrency designed to hold a steady value, usually pegged to the US dollar.

Staking: locking up coins to help secure a Proof of Stake network in exchange for rewards.

Token: a crypto asset built on an existing blockchain, representing an asset or a use.

Wallet: software or hardware that stores your keys, either online (hot) or offline (cold).

Whale: someone holding enough of a coin to move its price.