From HODL to ZK-proofs, the crypto ecosystem has developed specialized terminology that can be genuinely confusing for newcomers. This glossary gives you quick, clear definitions for the terms you'll encounter across blockchain technology, DeFi, trading, and crypto investing.
Core Blockchain Terms
Core Blockchain Terms
Blockchain Basics
**Blockchain**: A distributed digital ledger maintaining an immutable record of all transactions across a peer-to-peer network. **Block**: A batch of transactions grouped together and added to the chain. **Hash**: A cryptographic fingerprint — any input produces a unique, fixed-length output. Changing any input changes the hash entirely. **Node**: Any computer running the blockchain software and maintaining a full/partial copy of the ledger.
Consensus Mechanisms
**Proof of Work (PoW)**: Consensus mechanism requiring computational work to add blocks (Bitcoin). Energy intensive, extremely secure. **Proof of Stake (PoS)**: Validators stake coins as collateral to gain block production rights (Ethereum). Energy efficient, economically secured. **DPoS**: Delegated PoS — token holders vote for validators (XRP XRPL uses a unique consensus protocol with validators).
DeFi and Finance Terms
DeFi and Finance Terms
- ✓APY: Annual Percentage Yield — includes compound interest. Higher than APR for same rate.
- ✓TVL: Total Value Locked — measures deposits in DeFi protocols. Higher = more usage.
- ✓LP (Liquidity Provider): User who deposits paired assets to enable AMM trading, earning fees.
- ✓Slippage: Price difference between expected and actual trade execution in AMMs.
- ✓Smart Contract: Self-executing code on blockchain that runs when predefined conditions are met.
- ✓Gas: Transaction fee paid to network validators (Ethereum uses ETH for gas).
Community and Market Slang
Community and Market Slang
Trading Psychology Terms
**HODL**: Hold long-term despite volatility (from famous typo). **FOMO**: Fear Of Missing Out — buying due to fear of missing gains, typically near tops. **FUD**: Fear, Uncertainty, Doubt — negative sentiment, can be genuine or manipulated. **Bag holder**: Investor holding coins that have significantly declined in value. **Diamond hands**: Holding through extreme volatility without selling. **Paper hands**: Selling at the first sign of downward pressure.
Price Action Slang
**Moon/Mooning**: Price rising dramatically and fast. **Rekt**: Suffering significant losses. **Dump**: Sharp price decline. **Pump**: Sharp price rise (often artificial). **ATH**: All-Time High — record highest price. **Capitulation**: Mass panic selling near a market bottom. **Dead cat bounce**: Temporary recovery during a broader downtrend before resuming lower.
Glossary FAQs
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