Discover the Cryptocurrency Dictionary

Packed with essential terms and definitions to help you expand your knowledge and better understand the world of digital currencies.

Are you new to the world of cryptocurrencies and struggling to understand some of the words or what they refer to? Below we have compiled a list of commonly used and uncommon financial terms in the cryptocurrency industry.

Common Crypto Jargon:

Altcoin: Any cryptocurrency or token other than Bitcoin. Examples: Ethereum, Litecoin, and Suriname Reserve Digital Currency.*
ATH (All-Time High): The highest price ever reached by a cryptocurrency.
Bear Market: A market condition in which prices are falling or expected to fall.
Bull Market: A market condition in which prices are rising or expected to rise.
Blockchain Technology: A decentralized digital ledger that processes and records transactions on many computers.
Cold Wallet/Cold Storage: A cryptocurrency wallet that is not connected to the internet. It works like a USB stick and is used for secure storage.
DeFi (Decentralized Finance): Financial services that use smart contracts on blockchains, eliminating traditional intermediaries.
DApp (Decentralized Application): An application that runs on a blockchain network using smart contracts. Examples: MetaMask and UniSwap
Exchange (CEX: centralized / DEX: decentralized): A platform to buy, sell, and trade cryptocurrencies.
Fiat: Traditional government-issued and controlled currency, such as USD, EUR, or SRD.
Fork: A change in a blockchain protocol that can split a blockchain in two.
Gas: The fee required to execute a transaction or smart contract on the Ethereum blockchain.
HODL: A misspelling of "Hold", meaning that you keep your cryptocurrency instead of selling it. ICO (Initial Coin Offering): A way for projects to raise funds by offering a new cryptocurrency or token.
KYC (Know Your Customer): A process used by crypto exchanges to verify the identity of their customers.
Liquidity: The ease with which a cryptocurrency can be bought or sold without affecting its price.
Market Cap: The total value of a cryptocurrency, calculated by multiplying its current price by its total supply.
Mining: The process of creating cryptocurrencies and verifying and adding transactions to the blockchain.
Node: A computer connected to the blockchain network that validates and relays transactions.
Private Key: A secret number and/or code that allows you to access and manage your cryptocurrency.
Public Key: A cryptographic code or address that allows you to receive cryptocurrency transactions.
Pump and Dump: An act of artificially inflating the price of a cryptocurrency (pump) and then quickly selling it (dump).
Satoshi (-Nakamoto): The smallest unit of Bitcoin, equal to 0.00000001 BTC. (-The founder of Bitcoin)
Smart Contract: Self-executing smart contracts where the terms of the agreement are written directly into the programming code and cannot be changed without consensus.
Stablecoin: A cryptocurrency tied to a stable asset such as a fiat currency to minimize price volatility. Example: USDT and USDC.
Token: A type of cryptocurrency that represents an asset, utility, or service on a blockchain.
Wallet: A software program or hardware device used to store, send, and receive cryptocurrencies.
Whale: An individual or entity that owns a large amount of cryptocurrency.
Whitepaper: A detailed document describing the purpose, technology, and roadmap of a cryptocurrency project.
Yield Farming: The practice of staking or lending crypto assets to generate high returns or rewards.


Unusual Crypto Jargon:

Airdrop: Distribution of free cryptocurrency tokens to a large number of wallet addresses.
BEP-20: A token standard on the Binance Smart Chain (BSC).
Burning: Permanently removing tokens from circulation.
Consensus Mechanism: Process used by blockchain networks to reach agreement on the status of the distributed ledger.
Cross-chain: Technology that enables interaction between different blockchain networks.
DAO (Decentralized Autonomous Organization): An organization represented by rules coded as a computer program.
dApp Browser or Web3.0: A web browser that allows users to interact with decentralized applications (dApps).
Dusting Attack: A cyberattack in which small amounts of cryptocurrency are sent to wallets to reveal their owners. ERC-20: A token standard on the Ethereum blockchain for "smart contracts".
ERC-721: A token standard on the Ethereum blockchain for non-fungible tokens (NFTs).
Escrow: A third-party service that holds and regulates funds.
Gas Cap: The maximum amount of gas (fee) a user is willing to spend on a transaction on the Ethereum network.
Genesis Block: The first block of a blockchain.
Hard Cap: The maximum amount of money a project is willing to raise during an ICO or token sale.
Interoperability: The ability of different blockchain networks to communicate with each other and exchange data.
Layer 2: A secondary framework built on top of an existing blockchain to improve scalability. Liquidity Pool: A pool of funds locked in a smart contract, used to facilitate trading on decentralized exchanges (DEXs).
Multisig (Multisignature): A digital signature that requires multiple keys to authorize a transaction.
Nonce: A number used once in a cryptographic communication, often in mining.
Oracle: A third-party service that provides external data to smart contracts.
Paper Wallet: A physical document containing private and public keys for offline storage.
Rekt: A designation for "destroyed", describing a significant financial loss.
Sidechain: A separate blockchain that runs parallel to the main blockchain for the transfer of assets.
Soft Cap: The minimum amount of funds a project is willing to raise.
Soft Fork: A backwards compatible update to a blockchain.
Testnet: A separate blockchain for testing new features without risking real money. Token Burn: The intentional sending of tokens to an unspendable address in order to remove them from circulation.
TPS (Transactions Per Second): A measure of the number of transactions a blockchain can process per second.

The above lists are frequently updated with new terms applicable to the dynamic crypto industry

Stay informed, as knowing the jargon is only the first step.
Stay vigilant and always do your research before investing or making transactions.

Stay tuned to Mercury Iconex and consult our knowledge base for more insights and tips on navigating the crypto world.

Updated on: 14/12/2024