Commonly Used Crypto Terms

Blockchain: Also known as distributed ledger or block chain, this technology forms the basis of cryptocurrencies. It is a decentralized database that records all transactions with a timestamp.
Cryptocurrency: Digital or virtual assets that use cryptography for secure and encrypted transactions.
Bitcoin (BTC): The first and most well-known cryptocurrency, created in 2009 by the pseudonymous person or group Satoshi Nakamoto.
Altcoin: A general term for cryptocurrencies other than Bitcoin. Examples include Ethereum, Ripple, Litecoin, etc.
Ethereum (ETH): The cryptocurrency of a platform that supports smart contracts and decentralized applications.
ICO (Initial Coin Offering): A fundraising method used for the launch of a new cryptocurrency, offering investors the right to purchase the cryptocurrency at a pre-established price.
Token: Custom digital assets used by blockchain-based projects to represent functionality. They are referred to as "tokens."
Wallet: A digital wallet where cryptocurrencies are stored and managed. There are hot and cold wallets, among other types.
Mining: The process of creating cryptocurrencies. Miners solve mathematical problems to add new blocks to the blockchain and receive cryptocurrency as a reward.
Hash (Hash Function): A mathematical function that transforms a data set into a fixed-size string of characters. It is used in blockchain to ensure data integrity.
Fork: A change in the blockchain network. A hard fork implies backward-incompatible changes in the software.
Smart Contract: A self-executing contract with the terms directly written into code. It automatically executes when predefined conditions are met, commonly used on platforms like Ethereum.
Decentralized Finance (DeFi): The general term for cryptocurrency projects that offer financial services without a central authority.
Stablecoin: Cryptocurrencies with prices pegged to a stable asset, often a fiat currency (USD, EUR, etc.), to minimize price volatility.
Whale: Term used for large cryptocurrency holders who can influence the market due to their substantial holdings.
FOMO (Fear of Missing Out): The fear that one may miss out on potential gains, causing investors to make decisions based on anxiety.
FUD (Fear, Uncertainty, Doubt): A strategy of spreading fear, uncertainty, and doubt about a particular asset to create panic in the market.
Hash Rate: The measure of how much processing power is contributing to a blockchain network.
Private Key: The encryption key known only to the owner of a wallet, used for secure transactions.
Public Key: A key known to everyone and paired with the private key for secure transactions.
Market Cap: The total value of a cryptocurrency calculated by multiplying its circulating supply by the price per unit.
White Paper: The official document that outlines the objectives, technical details, and operation of a cryptocurrency project.
Pump and Dump: A scheme where the value of an asset is artificially inflated (pump) and then rapidly sold off (dump) for profit.
Liquidity: The ability of an asset to be quickly converted to cash.
DAO (Decentralized Autonomous Organization): Organizations managed through smart contracts, eliminating the need for central governance.
Airdrop: The distribution of free tokens or cryptocurrency to users who meet specific conditions.
Gas Fee: The fee paid for an Ethereum transaction to be processed and added to the blockchain.
KYC (Know Your Customer): The process by which financial service providers verify the identity of their customers.
Hashing Power: The computing power expended by a miner or mining pool to solve a block.
Node: A computer or device running on a blockchain network. It validates transactions and maintains a copy of the blockchain.