Airdrop
Free distribution of cryptocurrency tokens to wallet addresses, often used for marketing or rewarding early adopters.
All-Time High (ATH)
The highest price a cryptocurrency has ever reached since its creation.
Altcoin
Any cryptocurrency other than Bitcoin. Includes Ethereum, Solana, and thousands of other tokens.
APY (Annual Percentage Yield)
The yearly interest rate earned on an investment, including compound interest. Common in DeFi staking.
Bear Market
A period of declining prices in the crypto market, typically defined as a 20%+ drop from recent highs.
Bitcoin (BTC)
The first and largest cryptocurrency by market cap, created by Satoshi Nakamoto in 2009.
Blockchain
A distributed, immutable digital ledger that records all transactions across a network of computers.
Bull Market
A period of rising prices in the crypto market, characterized by optimism and buying momentum.
Cold Wallet
A cryptocurrency wallet that's not connected to the internet, offering enhanced security. Examples: Ledger, Trezor.
Cost Basis
The original value of an asset for tax purposes, typically the purchase price plus fees.
DCA (Dollar Cost Averaging)
An investment strategy where you invest a fixed amount at regular intervals, regardless of price.
DeFi (Decentralized Finance)
Financial services built on blockchain without traditional intermediaries like banks.
DEX (Decentralized Exchange)
A cryptocurrency exchange that operates without a central authority, using smart contracts. Examples: Uniswap, SushiSwap.
Diamond Hands
Slang for holding crypto through volatility without selling, especially during price drops.
DYOR (Do Your Own Research)
Common advice to research investments thoroughly before buying, rather than following others blindly.
Ethereum (ETH)
The second-largest cryptocurrency and leading smart contract platform, enabling DeFi and NFTs.
FOMO (Fear Of Missing Out)
The anxiety that others are profiting from an opportunity you're missing, often leading to impulsive buying.
FUD (Fear, Uncertainty, Doubt)
Negative information or rumors spread to create fear and drive down prices.
Gas Fee
Transaction fee paid to validators on a blockchain network. Higher during network congestion.
HODL
Slang for holding cryptocurrency long-term without selling. Originated from a misspelling of 'hold'.
Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience but less security than cold storage.
ICO (Initial Coin Offering)
A fundraising method where new projects sell tokens to early investors before public launch.
Impermanent Loss
Temporary loss experienced by liquidity providers when token prices change relative to when deposited.
Layer 1 (L1)
The base blockchain network (e.g., Bitcoin, Ethereum, Solana) that processes transactions directly.
Layer 2 (L2)
Scaling solutions built on top of Layer 1 blockchains to increase speed and reduce fees.
Liquidity
How easily an asset can be bought or sold without significantly affecting its price.
Liquidity Pool
Smart contracts containing locked tokens that provide liquidity for decentralized trading.
Market Cap
Total value of a cryptocurrency, calculated by multiplying price by circulating supply.
Memecoin
Cryptocurrency created as a joke or based on internet memes. Examples: Dogecoin, Shiba Inu.
Mining
The process of validating transactions and creating new cryptocurrency using computational power.
NFT (Non-Fungible Token)
Unique digital tokens representing ownership of items like art, collectibles, or virtual real estate.
Paper Hands
Slang for someone who sells their crypto quickly during volatility or at a loss.
Portfolio
The collection of all cryptocurrency assets owned by an individual or entity.
Private Key
A secret code that allows you to access and control your cryptocurrency. Never share it.
Proof of Stake (PoS)
A consensus mechanism where validators stake crypto to verify transactions and earn rewards.
Proof of Work (PoW)
A consensus mechanism where miners solve complex puzzles to validate transactions. Used by Bitcoin.
Public Key
Your wallet address that others can use to send you cryptocurrency. Safe to share.
Pump and Dump
A scam where prices are artificially inflated (pumped) before insiders sell (dump).
Rebalancing
Adjusting your portfolio by buying or selling assets to maintain desired allocation percentages.
Rug Pull
A scam where developers abandon a project and steal investor funds.
Satoshi
The smallest unit of Bitcoin (0.00000001 BTC), named after Bitcoin's creator.
Seed Phrase
A 12-24 word recovery phrase that can restore access to your wallet. Keep it secure offline.
Slippage
The difference between expected and actual trade prices, common in volatile markets.
Smart Contract
Self-executing code on a blockchain that automatically enforces agreement terms.
Stablecoin
Cryptocurrency designed to maintain a stable value, usually pegged to USD. Examples: USDT, USDC.
Staking
Locking up crypto to support network operations and earn rewards in return.
Token
A digital asset built on an existing blockchain (e.g., ERC-20 tokens on Ethereum).
Total Value Locked (TVL)
The total amount of crypto assets deposited in DeFi protocols.
Volatility
The degree of price fluctuation in a market. Crypto is known for high volatility.
Wallet
Software or hardware that stores your cryptocurrency private keys and lets you send/receive crypto.
Whale
An individual or entity holding a large amount of cryptocurrency that can influence prices.
Yield Farming
Earning rewards by lending or staking crypto across multiple DeFi protocols.