Common Crypto Terms

We have compiled a list of common crypto terms that you might run into on a daily basis.

Address

An address is an alphanumeric string (letters and numbers) that is unique to a wallet. Think of it as your bank account number. It is what is used to route crypto assets across the network to a particular destination. Each crypto coins usually have a unique address format specific for their platform.

Airdrop

An Airdrop is when new tokens are given out to a particular community. Example: xyz.exchange creates a new reward token for their exchange platform and distributes the tokens to users of their platform.

Algorithm/Algo

Algorithms solve mathematical problems using calculations and data processing. Most software depends on functioning algorithms.

Altcoin

Cryptocurrencies that came after Bitcoin are referred to as altcoins.

ASIC Miner

ASIC is the abbreviation for “application-specific integrated circuit.” They are created specifically to mine a single style of Algo.

Bitcoin

The first internationally renowned digital payment network and protocol. It is not to be confused with “bitcoin” with a lowercase “b”.

bitcoin

The first internationally renowned digital asset. It is not to be confused with “Bitcoin” with an uppercase “B”.

BEP-20

BEP-20 is a token standard on Binance Smart Chain that extends ERC-20, the most common Ethereum token standard.

BTD

Acronym for “Buy The Dip“. It’s spoken between traders to suggest buying a specific cryptocurrency during a price dip.

BTFD

Acronym for “Buy The Fucking Dip“. It’s spoken between Degen Traders to suggest apeing into cryptocurrency during a price dip.

Block

A block is a file where transaction data is recorded in the blockchain.

Block explorer

Block explorers display transactions on the blockchain. Some common block explorers include:

Block height

The block height is the number of blocks separating the current block and the genesis block.

Blockchain

The ledger tracks digital asset transactions in sequential order.

Block reward

New digital assets rewarded to a miner for participating in the mining process.

Cold storage

Cold storage is any kind of crypto storage that is not online at all times. There are two types of wallets that may be considered cold storage:

  • Hardware Wallets – A physical device that is only online when it is hooked up to a secondary device such as a laptop or desktop.
    TREZOR
    LEDGER
  • Cold Storage Cards – A physical piece of paper that is a physical representation of owned crypto.
    WHOPPER
  • Paper Wallets – A physical piece of paper that is a physical representation of owned crypto.

Coin

In terms of cryptocurrencies, a coin is a digital token.

Confirmation

Confirmations are necessary for a successful transaction. The number of confirmations is based on the number of times that the network has accepted the transaction. The more confirmations, the more likely the transaction is to be legitimate. If there are only a few confirmations, the likelihood of coins being double-spent increases.

Contract address

A contract address is an address that utilizes a smart contract. This is specific to Ethereum and ERC-20 tokens, Binance, and BEP-20 tokens.

DAO

“DAO” stands for “Decentralized Autonomous Organization”. These organizations are utilized through smart contracts.

Decentralize

To move power away from a specific authoritative body.

Decentralized Exchange/DEX

A Decentralized Exchange supports the trading of decentralized currencies, aka digital assets.

DeFi

Short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.

Denarius

The first cryptocurrency to have Hybrid Masternodes (PoW/PoS), IFPS Integration, and .bitcoin domain names.

Deposit Address

A deposit address is where someone deposits their digital assets.

Destination Tag

Destination tags are a short numeric string specific to Ripple (XRP). Most Ripple wallets will require a destination tag for the funds to be routed to the correct recipient.

Elliptic Curve

Public-key cryptography sometimes uses data storage based on the algebra behind elliptic curves. This is because this type of data storage detects common corruption issues.

ERC-20 Token

An ERC-20 token piggybacks off of the Ethereum network, but for an ERC-20 token to be accepted, the token must meet a certain set of rules. “ERC” itself stands for “Ethereum Request for Comments”, and it is meant to improve the Ethereum network.

Ethereum

The Ethereum network supports Ethereum, a crypto that hopes to fully decentralize transactions.

Exchange

An exchange is any service that allows someone to trade one digital asset for another.

Exchange Rate

The rate that a digital asset is exchanged for another, or in some cases, fiat.

Fiat

Fiat currencies are centralized currencies, such as the U.S. Dollar or the Euro.

FPGA

A field-programmable gate array is an integrated circuit designed to be configured by a customer or a designer after manufacturing – hence the term “field-programmable”.

Fork

A fork is when a digital asset splits into two different cryptocurrencies. Examples include:

  • BTC and BCH
  • ETC and ETH

Gainz/Gains

Crypto traders sometimes use the term “gainz” or “gains”. This refers to how much their investment has earned them since they originally invested.

Gas

Gas is what is used to send Ethereum and ERC-20 tokens across the network. A small amount of Ethereum is necessary for a transaction to process, and this is referred to as “gas”. If a transaction does not have enough gas, it may not confirm.

Genesis Block

A Genesis Block is the very first block on the blockchain.

GPU

GPU stands for “Graphics Processing Unit”, but they do not only process graphics. GPUs are also used to mine digital assets, as they can make computations as well.

Gwei

Gas typically is paid for using Gwei. A single Gwei amounts to 10^9 Wei or 10^-9 ETH.

HODL

HODL is a term used when someone is referring to holding a specific digital asset. It originated when someone mistyped the word “hold”. It is now often used to mean “Hold on for Dear Life”.

Hopium

Irrational or unwarranted optimism.

Hot Wallet

A hot wallet is a wallet meant to hold digital assets that are always online. Some common hot wallets are:

  • Exodus
  • Jaxx
  • Coinomi

Input

The input is where a transaction is being sent from, or where a transaction starts.

Key Pairs

A key pair is the pairing of a public and private key.

Legacy Address

A legacy address is an older address format. Example Bitcoin address that starts with “1” in terms of BTC.

Litecoin

Litecoin is the first fork of Bitcoin, offering cheap transactions.

Market cap

“Market cap” is short for “market capitalization”, or the value of an asset being traded on the market. In the crypto space, it is referring to coin market capitalization.

Mempool

The “memory pool” of unconfirmed transactions.

Mining

Mining is the act of confirming transactions on the blockchain using a series of advanced computations and hardware such as GPU/ASIC/FPGA miners.

Miner Fee

A miner fee is basically a tax that is provided to reward miners for enabling transactions to be sent across the network.

Multiple Output Transaction

Any transaction that has several outputs is a multiple output transaction.

Multisignature

Multisignature allows several users to digitally sign the same document for a valid transaction.

Node

Nodes are used to pass block data throughout the network. These nodes are able to validate transactions.

Out Of Gas

When an ETH transaction runs out of gas, it has done so because not enough gas was provided for a transaction to fully process on the blockchain. This error is common with smart contracts.

Output

This is where a digital asset transaction was sent.

Paper Wallet

An offline, paper representation of digital asset ownership.

Payment ID

A payment ID is an alphanumeric string that assures that a Monero (XMR) transaction reaches the correct recipient. Not all Monero wallets require this form of ID.

Phishing

An act of fraud that pretends to be a particular entity to receive assets or information from the victim.

Privacy Coin

A privacy coin strongly focuses on anonymity and lack of traceability. A few examples of privacy coins are:

  • Monero (XMR)
  • Dash (DASH)
  • ZCash (ZEC)

Private key

A private cryptographic key that should only be known to the user. This key can be used to decipher encrypted messages created by the public key.

Public Key

A cryptographic key that can be used by anyone to encrypt messages that are decipherable by the private key.

REKT

“wrecked”  “utterly destroyed” or “wasted.” This slang term is often used to refer to someone who has been rugpulled on.

Re-syncing

Re-syncing a wallet occurs the blockchain is rescanned within a wallet. The re-sync button is often represented by two arrows in the shape of a circle.

Refund Address

A refund address is the address provided by a user in case a return of the deposited digital asset is needed.

Replay Attack

A replay attack is when one blockchain forks into two and results in an equal amount of coins existing on both blockchains.

Rugpull

When Anon Dev decides to REKT the community and dumps on their hopes and dreams.

Satoshi

A satoshi is a small amount of bitcoin. One bitcoin is equal to 100,000,000 satoshis.

Satoshi Nakamoto

Satoshi Nakamoto is the screen-name of the founder of Bitcoin.

SegWit

SegWit stands for “Segregated Witness”, which is a newer form of address. It is forward compatible, meaning that no software updates need to take place for it to work.

SHA-256

SHA-256 is the cryptographic hash algorithm. It works by generating a 256-bit signature.

Smart Contract

A smart contract creates a certain set of conditions that a digital asset transaction must meet to be successful.

To the moon

The phrase “to the moon” refers to a coin’s value skyrocketing. Example: When Dogecoin (DOGE) had it’s value increase quickly. Traders will refer to this as “mooning”.

Transaction Fee

A transaction fee is a fee that allows an entity to profit each time that a transaction is made.

TXID/Hash

The TXID (transaction ID) or the hash is the alphanumeric string that labels each transaction within the coin’s blockchain.

UTXO

A UTXO stands for “unspent transaction output”. These occur to validate transactions via nodes on the network.

Wallet

A wallet is a digital wallet, either hot or cold, that stores digital assets.

Wen Moon/Wen Lambo

When a Rekt trader is looking for Hopium on their bags.

Whitepaper

A whitepaper is written by those that are launching a new digital coin. It explains everything about the coin that someone may want to know.

Withdrawal Address

A withdrawal address is an address that a user provides to receive digital assets from an exchange. It may also be referred to as a “destination address”.

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