POCKET CRYPTO GLOSSARY
1-10
2FA (Two-Factor Authentication):
2FA is an extra layer of security for your accounts â like a double lock. After entering your password, youâll need a second code (usually from an app like Google Authenticator or sent via SMS) to get in. Even if someone steals your password, they still canât access your account without that second factor. In crypto, 2FA is a must-have to help keep your funds safe from hackers.
51% attack:
Uh-oh, when one bad apple controls over half of a blockchain network. It's like a bully taking over the playground and changing the rules of the game. A 51% attack occurs when a single entity or group of entities gains control of more than 50% of a blockchain network's computing power, enabling them to manipulate transactions, double-spend coins, or disrupt the normal operation of the network.
A
Address:
Your crypto mailbox where you send and receive digital money. It's like having your own secret code for money deliveries. In the context of cryptocurrencies, an address is a unique string of characters used to send, receive, and store digital assets. It serves as a destination for transactions on the blockchain, allowing users to identify and interact with specific wallets or accounts.
Airdrop:
Imagine getting free tokens out of the blue. That's what an airdrop is! It's like finding money in your pocket you didn't know you had. An airdrop in the cryptocurrency world refers to the distribution of free tokens or coins to holders of a particular cryptocurrency. These distributions can be used to promote a new project, reward loyal users, or stimulate community engagement.
Altcoin:
If Bitcoin is the king of cryptocurrencies, altcoins are the princes and princesses. They're alternatives to Bitcoin, like Litecoin or Ether, but each with its own twist. Altcoin is a term used to
describe any cryptocurrency other than Bitcoin. These alternative cryptocurrencies often offer different features, functionalities, or use cases compared to Bitcoin.
AML (Anti-Money Laundering):
AML refers to the rules, laws, and processes designed to stop criminals from using crypto (or any financial system) to âcleanâ illegally gained money. In crypto, AML checks often go hand-in-hand with KYC â like identity verification, transaction monitoring, and flagging suspicious activity. It might feel like a hassle, but AML is all about keeping the space safer and stopping bad actors from abusing the system.
Ape:
To âape inâ means to jump into a crypto investment headfirst, usually without doing much (or any)
research. Itâs the YOLO move of crypto _sometimes it pays off, sometimes itâs just bananas.
Asset-backed tokens:
These tokens are like IOUs for real stuff, like gold. So, owning one of these tokens is like saying,
"Hey, I own a bit of that shiny metal over there."Â Asset-backed tokens are cryptocurrencies that are backed by real-world assets such as gold, real estate, or commodities. Each token represents
ownership or a claim on a specific asset, providing holders with exposure to the value of the underlying asset.
Asset tokens:
These tokens are like digital deeds for real-world assets, like shares in a company. So, instead of a paper certificate, you've got a digital high-five saying you're in on the action. Asset tokens are
blockchain-based tokens that represent ownership or rights to physical assets, such as real estate, company shares, or artwork. They enable fractional ownership and facilitate the transfer of ownership in a transparent and efficient manner.
ASIC:
Picture a super-smart chip built just to mine cryptocurrency. That's ASIC. It's like having a Formula 1 car for mining instead of a regular ol' sedan. ASIC (Application-Specific Integrated Circuit) is a specialised hardware device designed to perform a specific task, such as mining cryptocurrencies. These chips are highly efficient at executing the particular algorithms required for cryptocurrency mining, providing a significant advantage over general-purpose computing devices.
Atomic swap:
Think of it as a direct trade between different cryptocurrencies without a middleman. It's like
swapping your sandwich for someone's pizza without needing a cafeteria cashier. Atomic swap is a technology that enables the peer-to-peer exchange of different cryptocurrencies without the need for an intermediary or third-party exchange. It allows users to swap one cryptocurrency for another directly, securely, and without counterparty risk.
B
Bad Actor/s:
Bad actors are the shady players in the crypto world â scammers, hackers, or dodgy developers
looking to exploit people and systems for personal gain. They create fake projects, steal private keys, manipulate markets, or just disappear with your funds. Spotting and avoiding bad actors is a
key skill for surviving and thriving in crypto.
Bag:
Your stash of cryptocurrency. It's like having a secret treasure chest buried in the digital sands. In
cryptocurrency slang, a "bag" refers to a significant quantity or investment in a particular
cryptocurrency. It often implies a long-term holding strategy, with the expectation of potential
future gains.
Bitcoin (BTC):
The OG of cryptocurrencies, created by the mysterious Satoshi Nakamoto. It's like the Elvis Presley of digital money. Bitcoin (BTC) is the first and most well-known cryptocurrency, introduced in 2009 by an anonymous person or group known as Satoshi Nakamoto. It operates on a decentralised peer-to-peer network, enabling secure and transparent transactions without the need for intermediaries like banks.
Block reward:
A prize for miners who crack the code and add a block to the blockchain. It's like finding a pot of
digital gold at the end of a mathematical rainbow. Block reward refers to the incentive given to
miners for successfully validating and adding a new block of transactions to the blockchain. It
typically consists of newly created coins (in the case of Proof-of-Work cryptocurrencies) and
transaction fees, serving as a reward for the computational work performed by miners.
Blockchain:
The ultimate ledger that records every crypto transaction ever made. It's like a high-tech diary that everyone can read but no one can change. A blockchain is a distributed and decentralised digital ledger that records transactions across a network of computers in a secure and immutable manner. Each block in the blockchain contains a set of transactions, which are cryptographically linked to previous blocks, forming a chronological chain of data.
Bot:
In crypto, a bot is a software program that automatically performs tasks â like trading, placing orders, or sniping NFTs â faster than any human can. Some bots are used for good (like market-making or automating trades), while others are sneaky (front-running or manipulating prices). They never sleep, they never blink, and they can seriously move markets â for better or worse.
Burn:
When tokens go up in smoke, never to be seen again. It's like tossing your Monopoly money into a
real fireâit's gone forever. Burning tokens refers to the intentional and permanent removal of
cryptocurrency tokens from circulation. This process typically involves sending the tokens to a
specific address where they become inaccessible and unusable, effectively reducing the total supply
of the cryptocurrency.
C
CEX (Centralised Exchange):
A crypto exchange run by a company â like Binance, Coinbase, or eToro. It's kind of like a bank
for crypto. Easy to use, beginner-friendly, but usually requires ID checks (KYC). You donât hold your own keys, though â so trust is a must.
Cold storage:
Keeping your crypto offline, safe from digital thieves. It's like storing your cash in a secret vault
instead of waving it around in public. Cold storage refers to the practice of storing cryptocurrencies
offline in secure hardware wallets or other physical storage devices. By keeping the private keys associated with the cryptocurrency offline, cold storage offers protection against hacking, theft, and unauthorised access.
Consensus:
When all the computers in the network agree on the state of the ledger. It's like reaching a group
decision without anyone throwing a fit. Consensus in the context of blockchain refers to the collective agreement among network participants on the validity and ordering of transactions. It ensures that all nodes in the network maintain a consistent and accurate copy of the ledger, even in the absence of a central authority.
Crypto Bro:
The loud, confident guy at the party who wonât stop talking about Bitcoin â even if you just asked
where the bathroom is. A crypto bro is a slang term for a certain type of investor: often
overconfident, hype-driven, and obsessed with price charts, Lambos, and âgetting in early.â While
some are harmless enthusiasts, others are known for pushing questionable projects or shilling
without doing much research. Not all bros are bad â just make sure you're listening to the right ones.
Crypto Cowboys / Cowgirls:
These are the bold risk-takers of the crypto frontier â the early adopters who dive headfirst into uncharted projects, new tokens, and experimental tech. Sometimes they strike gold, sometimes they get burned. Crypto cowboys and cowgirls thrive on high-risk, high-reward opportunities, often moving faster than the rules can catch them. Yeehaw⌠but tread carefully.
Cryptoasset:
Digital stuff you can buy, sell, or trade, like cryptocurrencies and tokens. It's like having virtual
trading cards, but with real value. A cryptoasset, also known as a digital asset or cryptocurrency, is a digital representation of value that can be exchanged, transferred, or stored electronically. Examples include Bitcoin, Ethereum, and various tokens issued on blockchain platforms.
Cryptocurrency:
Digital money you can use to buy stuff or make trades. It's like regular money, but with a sci-fi
twist. Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on a decentralised network of computers. It enables secure and transparent peer-to-peer transactions without the need for intermediaries like banks.
D
DAO:
An organisation run by code and crypto, no suits required. It's like having a company where the
employees are all robots. A DAO (Decentralised Autonomous Organisation) is an organisation governed by smart contracts and blockchain technology, without a central authority or traditional management structure. It allows members to participate in decision-making and resource allocation through transparent and automated protocols.
dApp:
An app that lives on the blockchain, free from central control. It's like having a digital pet that never needs feeding. A dApp (decentralised application) is a software application that runs on a decentralised network, such as a blockchain, without a central authority or control. It is typically open-source, transparent, and autonomous, allowing users to interact with it directly without intermediaries.
Decentralised exchange:
A trading place where you can swap cryptos without a bossy middleman. It's like a flea market for digital cash. A decentralised exchange (DEX) is a cryptocurrency exchange platform that operates without a central authority or intermediary, allowing users to trade cryptocurrencies directly with one another. It provides greater privacy, security, and control over assets compared to centralised exchanges.
Decentralised finance (DeFi):
Financial services without the big banks sticking their noses in. It's like running a lemonade stand
without asking Mom for permission. Decentralised finance (DeFi) refers to a set of financial services and applications built on blockchain technology, with the goal of eliminating intermediaries and increasing accessibility to financial products. It encompasses lending, borrowing, trading, and other financial activities conducted in a decentralised and permissionless manner.
DeFi (Decentralised Finance):
DeFi is the crypto version of banking â without the banks. Using smart contracts, you can lend,
borrow, earn interest, and trade without a middleman. It's 24/7, borderless, and (mostly) open to anyone with a wallet and internet access.
Degen:
Short for âdegenerate.â A degen is a crypto cowboy or cowgirl who jumps into high-risk trades, low-cap coins, and new tokens with wild abandon. Think of them as the adrenaline junkies of crypto.
Difficulty:
How hard it is to mine new blocks in a blockchain. It's like trying to solve a puzzle, but the pieces
keep changing shape. Difficulty, in the context of blockchain and cryptocurrency mining, refers to
the level of complexity required to solve mathematical problems and validate new blocks on the blockchain. It is adjusted dynamically to ensure a consistent rate of block production, regardless of changes in computing power.
Digital signature:
A fancy code that proves you're you in the digital world. It's like signing a virtual contract with an invisible pen. A digital signature is a cryptographic technique used to verify the authenticity and integrity of digital messages or documents. It involves using a private key to generate a unique code, which can be verified using a corresponding public key, ensuring that the message was created by the owner of the private key.
Distributed ledger technology (DLT):
A high-tech database spread across many computers. It's like having a super-secret club where everyone has a copy of the same notebook. Distributed ledger technology (DLT) is a decentralised and distributed database system that records transactions across multiple locations or nodes. It enables secure, transparent, and tamper-resistant record-keeping, with no single point of control or failure.
Double-spending problem:
The nightmare scenario where digital money gets copied and spent twice. It's like trying to use the
same Monopoly money to buy two different properties. The double-spending problem is a potential flaw in digital currencies where the same digital token or currency unit is spent more than once. It arises from the lack of a central authority to prevent duplicate transactions, requiring alternative mechanisms, such as consensus algorithms, to prevent fraud and ensure transaction validity.
DYOR (Do Your Own Research):
A golden rule in crypto. Donât just take someone elseâs word â read up, verify sources, and understand what youâre investing in. The space is full of hype, and DYOR helps you avoid scams and bad decisions.
E
ERC-20:
A set of rules for making tokens on the Ethereum blockchain. It's like having a DIY kit for digital
money. ERC-20 is a technical standard used for creating and issuing tokens on the Ethereum
blockchain. It defines a set of rules and functions that enable interoperability between different
tokens, facilitating their seamless integration with Ethereum-based applications and platforms.
ETH Fractions/Portions (ETH):
You donât need a whole ETH to get involved â Ethereum is divisible, too! The smallest unit is
called a Wei, and 1 ETH equals 1,000,000,000,000,000,000 Wei (yep, thatâs 18 zeroes). Other common denominations include Gwei (1 billion Wei), which is often used to measure gas fees. Think of it like ETH having its own currency system â just like dollars have cents, Ethereum has Wei, Gwei, and more. You can buy as much or as little ETH as you like â it's not all or nothing!
Ethereum:
The platform that brought us smart contracts and dApps. It's like the Silicon Valley of the
blockchain world. Ethereum is a decentralised blockchain platform that enables the creation and
execution of smart contracts and decentralised applications (dApps). It provides developers with a robust and flexible environment for building blockchain-based applications and services.
Exchange:
A crypto exchange is where you go to buy, sell, or trade cryptocurrencies â kind of like the stock market, but for crypto. Centralised exchanges (like Binance or eToro) are run by companies, while decentralised ones (DEXs) are peer-to-peer and run on smart contracts, such as UniSwap.
F
FOMO (Fear of Missing Out):
Ever felt like the only one without a ticket to the hottest show in town? That's Fear of Missing Out
(FOMO) in the crypto realmâa psychological rollercoaster where individuals nervously eye
potential profit or excitement they might miss. It's akin to watching others ride the rocket of a
bullish market, fearing you'll be left behind if you don't hop on board before it blasts off further.
FOMO can spark hasty buying decisions and illogical trading strategies as investors scramble to avoid the dreaded feeling of being left out in the cold.
Fork:
When a blockchain splits in two, creating two different versions. It's like having twins, but one likes pizza and the other likes sushi. A fork in the context of blockchain technology refers to a divergence in the blockchain's protocol, resulting in the creation of two separate and incompatible versions of the blockchain. Forks can be initiated intentionally (hard fork) or unintentionally (soft fork), and they may lead to the formation of new cryptocurrencies or networks.
FUD (Fear, Uncertainty, and Doubt):
Fear, uncertainty, and doubtâthree things nobody wants in the crypto world. It's like trying to trade
stocks during a thunderstorm. FUD (Fear, Uncertainty, and Doubt) is a term used to describe
negative sentiment or misinformation that can influence market sentiment and investor behaviour in the cryptocurrency industry. It often refers to exaggerated or unfounded concerns about the
viability, security, or future prospects of a particular cryptocurrency or project.
G
Gas:
The fuel that powers transactions on the Ethereum network. It's like paying for your digital taxi ride with cyber-fuel. Gas refers to the unit of measurement for computational work performed on the Ethereum blockchain. It represents the cost of executing transactions, running smart contracts, or deploying dApps on the network. Gas fees are paid by users to compensate miners for their computational efforts.
Gas Fees:
These are the transaction fees you pay to use certain blockchains (like Ethereum). Every time you send crypto, buy an NFT, or interact with a smart contract, gas fees go to the networkâs validators or miners. And yes, they can spike when the networkâs busy â like surge pricing, but for blockchain traffic.
Genesis block:
The very first block in a blockchain, like the Big Bang of digital money. The genesis block is the
inaugural block in a blockchain network, serving as the foundation and starting point for the entire
blockchain. It contains special data and serves as a reference point for subsequent blocks in the chain.
Gwei / Wei:
Ethereum can be broken down into teeny-tiny pieces â you donât need to buy a whole ETH! The
smallest unit is called a Wei (like cents to a dollar, but even smaller). There are 1,000,000,000,000,000,000 Wei in 1 ETH â yep, thatâs 18 zeroes. Now, because Wei is so small, most people use Gwei instead when talking about transaction fees (called gas fees).
1 Gwei = 1 billion Wei.
So, if someone says âItâll cost 30 Gwei,â theyâre telling you how much youâll need to pay in gas fees to send a transaction or interact with a smart contract. Itâs like paying for postage to send a digital letter on the Ethereum network.
H
Hard fork:
A major change to a blockchain's protocol that's not backwards-compatible. It's like upgrading your
phone but finding out your old apps don't work anymore. A hard fork is a significant and irreversible change to a blockchain's protocol that renders previous versions incompatible with the
updated software. It typically results in the creation of a new blockchain and cryptocurrency, branching off from the original chain.
HODL:
Originally a drunken typo on a Bitcoin forum in 2013, HODL was meant to say âholdâ â as in,
donât sell your crypto during market dips. The user, GameKyuubi, titled his post âI AM HODLING,â and the internet did what it does best: turned it into a meme and a movement. Now, HODL stands for holding onto your crypto long-term, no matter the market chaos. Some even say it means Hold On for Dear Life. Either way, if you're not panic-selling every time the market drops, you're officially a HODLer.
I
ICO:
A wild fundraising party where companies sell digital tokens. It's like crowdfunding, but with
digital confetti. An ICO (Initial Coin Offering) is a fundraising method used by cryptocurrency startups to raise capital by selling digital tokens or coins to investors. It enables companies to
finance their projects and initiatives by offering tokens in exchange for investment, often before the product or service is fully developed.
Impermanent Loss:
When you provide two tokens to a liquidity pool and the price between them shifts. The result? You could have earned more just holding. It's called 'impermanent' because it might go away if prices even out, but if you withdraw early, those losses can become very real.
K
Keys:
Your secret codes for unlocking your crypto treasures. They're like the keys to your digital
kingdom. In the context of cryptocurrency, keys refer to cryptographic codes used to control and access digital assets stored in a wallet. They typically include a public key, which is used for
receiving funds, and a private key, which is used for authorising transactions and accessing funds.
KOL (Key Opinion Leader):
A KOL is someone with major influence in the crypto world â think popular YouTubers, Twitter
personalities, or industry experts whose opinions can move markets. Projects often partner with
KOLs to promote tokens, NFTs, or platforms. But beware: not all KOLs are transparent about being
paid to shill. Just because theyâre loud doesnât mean theyâre legit â always DYOR.
KYC (Know Your Customer):
A standard identity verification process used by crypto exchanges and financial platforms to make
sure you are who you say you are. It usually involves uploading ID documents and sometimes a selfie. KYC helps prevent fraud, money laundering, and dodgy behaviour â and while it can feel a bit annoying, it's all about keeping the crypto space safer and more regulated. If you're using a centralised exchange, chances are youâll need to complete KYC before buying, selling, or
withdrawing crypto.
L
Layer 1 Blockchain:
The main stage of the blockchain world, where all the action happens. A Layer 1 blockchain refers to the primary layer or base layer of a blockchain network, where the fundamental functions and operations of the network occur. It serves as the foundation for higher-level protocols, applications,
and functionalities built on top of it.
Layer 2 Blockchain:
Think of Layer 2 as the backstage pass to the blockchain concert where all the magic happens behind the scenes. Layer 2 solutions are like hidden gems, offering innovative ways to enhance the scalability, efficiency, and functionality of blockchain networks. These solutions build upon the foundation of Layer 1 blockchains, providing off-chain scaling solutions, improved transaction
throughput, and enhanced smart contract capabilities. They enable faster and cheaper transactions, opening the door to a world of new possibilities for decentralised applications and protocols.
Ledger:
The master list of every crypto transaction ever made. It's like a digital history book for money. A ledger in the context of cryptocurrency refers to a record or database that maintains a complete and immutable history of all transactions conducted on a blockchain network. It serves as a transparent
and auditable account of financial activities, accessible to all participants in the network.
Leverage:
Leverage in crypto trading lets you borrow money to increase the size of your trade â kind of like putting a small deposit down to control a much bigger position. For example, 10x leverage means a $100 trade acts like $1,000. While it can supercharge your gains, it can also magnify your losses just as fast. Itâs powerful, risky, and definitely not for the faint-hearted.
Liquidity:
Liquidity refers to how easily you can buy or sell an asset without affecting its price. A liquid market means there are plenty of buyers and sellers, so trades happen fast. Low liquidity?Expect
slippage, delays, and price swings. Good liquidity = smoother trading.
Liquidity Pool:
A pot of crypto locked in a smart contract by users (a.k.a. liquidity providers) to allow others to trade on decentralised exchanges. In return, providers earn a cut of the trading fees. It's like putting your coins to work while you chill.
M
Market Cap (Market Capitalisation):
Market cap is a quick way to gauge how âbigâ a cryptocurrency is. Itâs calculated by multiplying
the coinâs current price by the total number of coins in circulation. For example, if a coin is worth $10 and there are 1 million coins, its market cap is $10 million. It helps investors compare the value
of different cryptos â think of it like the league ladder of the crypto world.
Market Maker:
A market maker is like a crypto matchmaker â always ready to buy or sell to keep trading smooth and prices stable. On exchanges, they provide liquidity by placing both buy and sell orders, so you're never left hanging when you want to trade. Big firms, bots, or even individuals can act as market makers, helping the market move efficiently without massive price swings.
Meme Coin:
A meme coin is a cryptocurrency inspired by jokes, internet memes, or pop culture â think Dogecoin or Shiba Inu. They often start as fun or satirical projects but can attract huge communities and wild price swings. While some investors make big gains, meme coins are usually highly volatile and risky, so approach them with a sense of humour and caution.
Metaverse:
A virtual world where your digital self (avatar) can play, shop, build, hang out, and even earn crypto. Think gaming meets social media meets a sci-fi marketplace â all powered by blockchain.
Mining:
Digging for digital gold by solving complex puzzles. It's like panning for gold in a virtual river.
Mining is the process of validating and adding new transactions to a blockchain ledger through computational effort. Miners compete to solve complex mathematical puzzles, with the first to find a valid solution being rewarded with newly created cryptocurrency and transaction fees.
Moon / To the Moon:
A phrase used when a cryptocurrencyâs price skyrockets. If something is âgoing to the moon,â it
means investors are hopeful it will soar in value. Often said with crossed fingers and rocket emojis.
N
NFT:
Unique digital tokens that prove ownership of digital art and collectibles. They're like digital
bragging rights for cool stuff. NFTs (Non-Fungible Tokens) are unique digital tokens that represent
ownership or proof of authenticity for digital assets such as artwork, collectibles, or virtual real
estate. Unlike cryptocurrencies, NFTs are not mutually interchangeable, as each token has unique properties and cannot be replicated or replaced.
Node:
A little worker bee in the blockchain hive. It's like having a tiny accountant that checks every
transaction. A node is a participant in a blockchain network that maintains a copy of the blockchain
ledger and participates in the validation and propagation of transactions. Nodes can be full nodes, which store a complete copy of the blockchain, or light nodes, which rely on other nodes for certain functions.
Nonce:
A special number used in mining to find new blocks. It's like the secret ingredient in a digital recipe. In the context of cryptocurrency mining, a nonce is a 32-bit (or larger) field in a block header that miners manipulate to generate a hash value that meets a specific difficulty target. Miners repeatedly change the nonce until they find a valid hash that satisfies the network's consensus rules, allowing them to add a new block to the blockchain.
O
Off-chain:
Stuff that happens outside the blockchain ledger. It's like having a secret handshake that only some
people know. Off-chain refers to activities, transactions, or data that occur outside the confines of a blockchain ledger or network. It may involve interactions between users, platforms, or systems that do not require on-chain validation or recording.
P
Private Key:
Your ultimate crypto password. It's a long string of letters and numbers that unlocks access to your wallet. Lose it? You lose your funds. Share it? You might as well kiss them goodbye. Guard it like
your life savings âbecause it is.
Proof-of-stake:
A greener way to mine crypto that's all about ownership, not computing power. Proof-of-stake (PoS) is a consensus mechanism used in blockchain networks to achieve distributed consensus and validate transactions. It relies on participants, known as validators, staking or locking up cryptocurrency as collateral to secure the network and create new blocks, rather than relying on computational power as in Proof-of-Work systems.
Proof-of-work:
The original way to mine crypto, using raw computing power to solve puzzles. Proof-of-work
(PoW) is a consensus mechanism used in blockchain networks to achieve distributed consensus and validate transactions. It involves miners competing to solve complex mathematical puzzles, with the first to find a valid solution being rewarded with newly created cryptocurrency and transaction fees.
Public key:
Your digital ID for the blockchain world. It's like having a secret handshake that everyone knows. A public key is a cryptographic code derived from a private key, which is used to encrypt messages,
verify digital signatures, and identify users on a blockchain network. It is shared publicly and
allows others to interact with a user's wallet or address.
R
Rekt:
Crypto slang for âwrecked.â When someone loses a huge amount of money in a trade. As in: âBought the top, sold the bottom. Totally rekt.â
Rug Pull:
A rug pull is a crypto scam where the developers hype up a project, get people to invest, then suddenly drain all the funds and disappear â leaving investors with worthless tokens and zero
recourse. Itâs like pulling the rug out from under your feet. Always DYOR and beware of projects
that pop up overnight and promise the moon.
S
Satoshi Nakamoto:
Satoshi Nakamoto is the mysterious, pseudonymous creator of Bitcoin.
In 2008âright in the middle of the Global Financial CrisisâSatoshi dropped a digital bombshell: the Bitcoin Whitepaper. It introduced a revolutionary idea: a decentralised, peer-to-peer currency that cut out banks and governments entirely. Bitcoinâs design gave people the power to control their own money, with no middlemen and no trust needed.
Satoshiâs message was crystal clear: the first-ever Bitcoin block (known as the Genesis Block)
included a hidden note â a headline from The Times that read: âChancellor on brink of second
bailout for banks.â It was a quiet but powerful protest. Bitcoin wasnât just tech â it was a
movement born from broken systems. To this day, Satoshiâs identity remains a mystery⌠and their
stash of Bitcoin? Still untouched.
Sats (Satoshis):
Sats are the smallest unit of Bitcoin â named after its creator, Satoshi Nakamoto. One Bitcoin can be broken down into 100,000,000 Sats. So if you donât have tens of thousands to buy a whole BTC, donât worry â you can stack sats instead. Itâs like cents to a dollar, but for digital gold. When someone says "stacking sats," theyâre just slowly building up their Bitcoin stash, one tiny piece at a time.
SEC (U.S. Securities and Exchange Commission):
The SEC is the big financial watchdog in the United States. It regulates the stock market and keeps an eye on investments â including crypto. If a crypto project is offering something that looks like a security (like shares in a company), the SEC might step in with lawsuits or regulations. Theyâre a key player shaping how crypto is treated legally around the world.
Shill:
To promote a crypto project â sometimes genuinely, sometimes not-so-genuinely (especially if youâre being paid to do it). Shillers are loud, persuasive, and often very biased. DYOR before you buy the hype.
Slippage:
When the price you thought you were getting on a trade turns out to be a little⌠off. This usually
happens in volatile markets or low liquidity pools. Itâs the crypto version of sticker shock.
Smart Contract:
A smart contract is a self-executing bit of code on the blockchain that automatically does what it's
programmed to do â no middleman needed. Whether itâs handling payments, triggering events, or managing digital agreements, once itâs deployed, it runs exactly as written. No backsies.
Snapshot:
A snapshot captures who held what (and how much) at a specific moment. Projects use snapshots to decide who gets airdrops, voting rights, or rewards. It's like taking a group photo before handing out the goodies.
Stablecoin:
A crypto with a steady value, like the rock of Gibraltar in a sea of digital waves. A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its price to a fiat currency,
commodity, or algorithmic formula. It provides users with the benefits of cryptocurrencies, such as fast and borderless transactions, while mitigating the price volatility associated with other digital assets.
Staking:
Staking involves locking up your crypto to support the network and earn rewards â kind of like earning interest in a savings account. Itâs common with proof-of-stake blockchains like Ethereum 2.0 or Cardano.
T
Token:
Digital goodies that live on a blockchain and do all sorts of cool stuff. They're like magical coins in
a digital arcade. In the context of blockchain and cryptocurrency, a token is a digital asset or unit of value issued on a blockchain network. Tokens can represent various assets, rights, or utilities and are typically created and managed using smart contracts on platforms like Ethereum.
Tokenomics:
Short for token economics, tokenomics is the study of how a cryptocurrency token works within its
ecosystem â like a digital economy breakdown. It covers everything from how many tokens exist,
how theyâre distributed, what gives them value, and how theyâre used (or burned). Good tokenomics can help a crypto project grow and stay strong, while poor tokenomics can send it sinking fast. Think of it as the financial game plan behind the token.
TradFi (Traditional Finance):
TradFi is short for âtraditional financeâ â basically, the old-school system of banks, stock markets,
credit cards, and government-backed currencies. Itâs the world crypto is trying to upgrade (or
replace). Think slow transfers, middlemen, high fees, and strict rules. In contrast, DeFi offers faster,
borderless alternatives â but TradFi still dominates most of the global economy⌠for now.
TVL (Total Value Locked):
The total amount of crypto locked into a DeFi protocol. Itâs a way of measuring how much trust
(and money) is sitting inside. Higher TVL usually means more users, more activity, and more confidence.
V
Validator:
A participant in a Proof-of-Stake blockchain who confirms transactions, keeps the network secure, and earns rewards. Like a miner, but greener and less power-hungry.
VC (Venture Capitalist):
A VC is a deep-pocketed investor or firm that funds early-stage crypto projects in exchange for
equity or token allocations. They often get in way before the public â sometimes at massive discounts â hoping to cash in big when a project launches or pumps. While VC backing can signal
credibility, it can also mean early sell-offs when lock-ups end. Always check whoâs backing a project... and what their exit plan might be.
Verification:
Making sure crypto transactions are legit and not trying to pull a fast one. Verification in the context of cryptocurrency refers to the process of confirming the validity, authenticity, and accuracy of transactions conducted on a blockchain network. It involves cryptographic techniques, consensus mechanisms, and network protocols to ensure the integrity and security of transactions.
W
Wallet:
Your digital piggy bank for storing crypto. It's like having a magic pocket that holds your digital
cash. A cryptocurrency wallet is a software application, hardware device, or service that allows users to securely store, send, and receive digital assets such as Bitcoin, Ethereum, and other
cryptocurrencies. It manages the user's public and private keys and facilitates transactions on the
blockchain network.
Web3:
The next version of the internet â powered by blockchain, crypto, and decentralisation. Instead of
platforms owning your data, you do. Web3 is where users become owners, creators get paid directly, and middlemen get the boot.
Wei / Gwei:
Ethereum can be broken down into teeny-tiny pieces â you donât need to buy a whole ETH! The
smallest unit is called a Wei (like cents to a dollar, but even smaller). There are
1,000,000,000,000,000,000 Wei in 1 ETH â yep, thatâs 18 zeroes.
Now, because Wei is so small, most people use Gwei instead when talking about transaction fees
(called gas fees).
1 Gwei = 1 billion Wei.
So, if someone says âItâll cost 30 Gwei,â theyâre telling you how much youâll need to pay in gas
fees to send a transaction or interact with a smart contract. Itâs like paying for postage to send a
digital letter on the Ethereum network.
Whale:
In crypto, a âwhaleâ is someone who holds a huge amount of a particular cryptocurrency â enough
to make waves in the market. When a whale buys or sells, it can cause big price shifts simply
because of the size of their transaction. Youâll often hear people tracking whale activity to try and predict major market moves. In short: big wallet, big influence.
Whitepaper:
A whitepaper is a detailed document created by a cryptocurrency project to explain what it is, how it
works, and what problem itâs trying to solve. Think of it as a business plan meets a tech manual. It
outlines the projectâs goals, technology, use cases, token details, and roadmap. The most famous whitepaper is Bitcoinâs, written by Satoshi Nakamoto, which laid the foundation for the entire
crypto industry. If you're checking out a new crypto project, reading the whitepaper is like peeking under the bonnet before buying the car.
X
X-to-Earn:
A catch-all term for crypto-based earning models that reward users for specific actions. These include Play-to-Earn (P2E) for gaming, Move-to-Earn (M2E) for physical activity, Watch-to-Earn (W2E) for viewing content, Wellness-to-Earn (W2E) for healthy habits, Stake-to-Earn (S2E) for locking up crypto, Create-to-Earn (C2E) for producing content, Learn-to-Earn (L2E) for gaining knowledge, and Exchange-to-Earn (X2E) for trading or using crypto platforms.
Z
ZK-Rollup:
A Layer 2 scaling solution that bundles up a bunch of transactions, proves theyâre legit using zero-knowledge magic, and then submits a single summary to the main chain. Faster, cheaper, and more private â the triple threat of Ethereum upgrades.
Zero knowledge proof:
A way to prove something without revealing all your secrets. It's like playing poker with your cards face down. Zero-knowledge proof is a cryptographic technique that allows one party (the prover) to prove to another party (the verifier) that a statement is true without revealing any additional information beyond the validity of the statement itself. It enables privacy-preserving transactions and authentication mechanisms in blockchain networks.

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