The most common crypto terms and definitions

Airdrop: crypto slang for a free distribution of coins or tokens.

Altcoin: any crypto coin other than Bitcoin.

Bear market: a period of time in which crypto prices are falling.

Bitcoin: the first and most well-known cryptocurrency, created in 2009.

Blockchain: a digital ledger of all crypto transactions.

Bull market: a period of time in which crypto prices are rising.

Centralized exchange: a type of crypto exchange where trade orders are processed by a company or organization.

Cryptocurrency: a digital or virtual currency that uses cryptography to secure its transactions.

Cryptojacking: the unauthorized use of someone else's computer to mine crypto.

Crypto lending: the practice of lending crypto to earn interest income.

Crypto wallet: a digital or physical storage device for cryptocurrency.

dApp: a decentralized application that runs on a blockchain.

Decentralized exchange: a type of crypto exchange where orders are processed directly between users, without the need for an intermediary.

Decentralized finance (DeFi): financial applications, often built on Ethereum, that are running on the decentralized web.

Distributed ledger: a digital database that is shared across a network of computers.

Ethereum: a blockchain platform that runs smart contracts.

Ether: the native crypto token of the Ethereum network.

Exchange: a platform where users can buy and sell cryptocurrency.

Fiat currency: traditional government-issued currency, such as the US dollar.

Governance token: crypto tokens that give holders voting rights on a blockchain protocol.

HODL: crypto slang for holding onto your coins or tokens for a long-term investment.

Initial Coin Offering (ICO): a fundraising event in which a coin becomes available to purchase for the first time

Know Your Customer/Anti-Money Laundering (KYC/AML): the process of verifying the identity of a customer and preventing money laundering.

Liquidity: the ability of an asset to be bought or sold quickly and easily.

Market cap: the total value of all coins or tokens in circulation.

Mining: the process of verifying and adding crypto transactions to the blockchain.

Mooning: crypto slang for a sharp increase in price.

Private key: a secret piece of code that allows crypto holders to access their funds.

Public key: a piece of code that allows crypto holders to receive funds.

Security token: crypto token that represent an investment in a company or project.

Smart contract: a self-executing contract written in code that lives on a blockchain.

Stablecoin: a crypto coin that is pegged to a fiat currency or asset to minimize price volatility.

Staking: crypto slang for holding crypto in a wallet to support the network.

Synthetic crypto: crypto tokens that are backed by real-world assets.

Token: a unit of value on a crypto platform, such as Ethereum.

Trading pairs: the two cryptocurrencies or tokens that are being traded on an exchange.

Utility token: crypto tokens that give users access to a product or service.

Pump and dump: crypto slang for artificially inflating the price of an asset followed by selling it.

Non-fungible token (NFT): a crypto token that represents a unique, indivisible asset.

Wrapped crypto: crypto tokens that are backed by another cryptocurrency.

Whales: large crypto investors who can influence the market.

Whitelist: a list of people who are allowed to participate in a token sale.

51% attack: a type of crypto hacking in which an attacker controls more than 50% of the network.

The bottom line

Hopefully this article has helped you feel more confident about exploring the world of crypto for yourself. Remember, there is no such thing as a stupid question – so don't be afraid to ask!