Welcome to the Crypto Glossary, your comprehensive guide to understanding the terminology and jargon of the cryptocurrency world. Whether you’re a seasoned investor or a curious newcomer, navigating the complex and often confusing language of blockchain, tokens, and decentralized finance can be daunting. This glossary aims to demystify the key terms and concepts you’ll encounter in the crypto space, providing clear and concise definitions to help you stay informed and make better decisions. From basic definitions to advanced concepts, our Crypto Glossary is designed to be a valuable resource on your journey through the ever-evolving landscape of digital currencies.

Learn all of the most important blockchain and cryptocurrency terms here. We add new words and descriptions every week.

A – B –C – D – E – F – K – P –R– S – W

-A-

Airdrop

An airdrop is a token distribution method in which assets are directly transmitted to user wallets for free. Airdrop recipients do not pay for tokens received. Typically used as a marketing tactic to create awareness around a project, airdrops can also result after a chain fork, token upgrade, or as part of a fundraising mechanism.

Affiliate Marketing

Affiliate marketing is when you receive a commission for promoting goods or services of another business online. Affiliates essentially carry out online marketing on behalf of a retailer with the ultimate objective of generating traffic and conversions for the retailer’s website. The merchant pays the affiliate for each click or conversion made. You can find more information here

AI Coins

AI Coins, also known as artificial intelligence coin, power projects at the intersection of AI and blockchain technology. They are designed to streamline AI-related transactions and interactions, all while upholding transparency and security through blockchain technology.

Airdrop

A marketing campaign that distributes a specific cryptocurrency or token to an audience.

Check out our post to learn everything about crypto Airdrops

-B-

Blockchain

A distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies.

Buy the Dip

An investing strategy involves buying an asset when its price has fallen to reap the benefits when its price rises again.

-C-

Capitulation

Capitulation refers to a market phenomenon where investors lose faith in a particular asset (crypto, stocks, commodities etc.), giving up their positions in the market, leading to massive sell orders. As a result, there is a continuous decline in the asset price until a bottom is reached.

Cold wallet

A physical storage device such as a flash drive, hard drive or “solid state” drive used to store cryptocurrency offline.

-D-

DCA

In crypto trading, DCA means consistently buying a set amount of a cryptocurrency at regular intervals, regardless of its fluctuating price.

Decentralized Applications (DApps)

A type of application that runs on a decentralized network, avoiding a single point of failure. DApps are any computer applications whose operation is maintained by a distributed network of computer nodes, as opposed to a single server.

-E-

EMA 50 trading indicator

The 50 EMA is often used as a trend indicator. If the current price of an asset is above the 50 EMA, it is considered a bullish signal, suggesting an uptrend. – Conversely, if the price is below the 50 EMA, it is considered a bearish signal, indicating a potential downtrend.

EMA

The exponential moving average or EMA gives higher weightage to more recent data points. As compared to a simple moving average, an exponential moving average reacts more significantly to recent prices changes. The most popular short-term averages are the 12-day and 26-day EMA. For the long-term trends, the 50-day and 200-day EMAs are used. If at any point the stock price inches past the 200-day EMA or makes a cross sign, it is an indication of a reversal that has occurred. The more extended period taken for the EMA, the lower is the relative weighting for recent trading.

-F-

FOMO

“FOMO” stands for “Fear of Missing Out” in the Crypto community. It refers to the anxiety or apprehension that individuals feel when they perceive that others are making profitable investments or taking advantage of significant opportunities in the Cryptocurrency market, and they might miss out on potential gains.

Froth

Froth refers to a market condition where an asset’s price begins to increase beyond its intrinsic value. A frothy market is characterized by overconfident investors that ignore market fundamentals and bid up an asset’s price beyond the asset’s quantitative worth.

-K-

Killzones

The Killzones are periods of intense market activity where the price action is at its most volatile. This volatility can lead to significant price movements.Read all about Killzones in our post here

-P-

Pips

Pips are the units used to measure movement in the price of a cryptocurrency, and refer to a one-digit movement in the price at a specific level. Generally, valuable cryptocurrencies are traded at the ‘dollar´ level, so a move from a price of $190. 00 to $191.

-R-

RSI

The Relative Strength Index (RSI) is a popular momentum oscillator used in technical analysis, including in cryptocurrency trading. It measures the speed and change of price movements to identify overbought or oversold conditions in the market.

Don’t forget to take a look at my latest post discussing crucial trading indicators such as RSI!

-S-

Scam

A scheme that is designed to dupe people out of cash or crypto.

Sculp Trading

Scalp trading in crypto refers to a short-term trading strategy where traders aim to make numerous small profits by capitalizing on minor price movements within a short timeframe. It involves executing multiple trades throughout the day, aiming to exploit temporary fluctuations in the market.

Seed Funding

Seed funding is a type of funding that provides capital to startups in exchange for equity in the company.

Shiba Inu Token (SHIB)

The Shiba Inu token (SHIB), is a decentralized memecoin based on the Ethereum network.

Shitcoin

A coin with no obvious potential value or usage.

Stablecoin

A cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency.

-W-

Web 3.0

Web3 refers to the use of blockchain technology to decentralize and improve the current internet infrastructure. It envisions a more open and secure internet that lets users control their own data and eliminates the need for a central authority.

Check our our blog post about Web 3.0

Whales

“Whales” are individuals or entities that hold significant amounts of cryptocurrency. Tracking their activity can reveal how they influence market movements, and may help you anticipate potential price fluctuations based on their buy and sell patterns.