FAQs and Crypto lexicon

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An NFT, which stands for non-fungible token, is a unique unit of data employing technology that allows digital content—from videos to songs to images—to become logged and authenticated on cryptocurrency blockchains, primarily Ethereum. Once content is logged onto the blockchain, every transaction from transfers to sales is recorded on-chain, creating an easily accessible ledger of provenance and price history. The main impact of NFTs is making it easy to own and sell digital content. Previously, for example, digital artists could build up large followings on social media, attract freelance commercial work, and maybe sell prints and other merch with their designs, but they had trouble monetizing digital art directly, as consumers asked, Why should I buy what I can screenshot for free? -- artnews.com

Merriam Webster defines FOMO as fear of missing out : fear of not being included in something (such as an interesting or enjoyable activity) that others are experiencing.

Web3 (also known as Web 3.0 and sometimes stylized as web3) is an idea for a new iteration of the World Wide Web based on blockchain technology, which incorporates concepts including decentralization and token-based economics. Some technologists and journalists have contrasted it with Web 2.0, wherein they say data and content are centralized in a small group of companies, sometimes referred to as "Big Tech." The term was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms. - Wikipedia

A cryptocurrency wallet is an app that allows cryptocurrency users to store and retrieve their digital assets such as NFTs, POAPs etc. As with conventional currency, you don’t need a wallet to spend your cash, but it certainly helps to keep it all in one place. When a user acquires cryptocurrency, such as bitcoins, they can store it in a cryptocurrency wallet and from there use it to make transactions.



A marketing technique in which crypto projects send their native tokens directly to the wallets of their users in an effort to increase awareness and adoption.


Altcoin (or alternative coin) is a term used to describe any cryptocurrency aside from Bitcoin (the most established cryptocurrency with the largest market capitalization). There are currently more than 14,000 altcoins in existence, with Ethereum being one of the most popular.


Valuable or insider information, usually regarding the value of digital assets like cryptocurrencies and NFTs; a measure of the return on an investment over and above the return offered by the market or other benchmark.


Someone who invests heavily into a cryptocurrency or stock, or the act of doing so. This is sometimes a reaction to hype and FOMO, or done without much knowledge of the asset. It should be noted, though, that this is generally a self-assigned term and does not carry a negative connotation. Is it a Planet of the Apes reference? Maybe a reference to the sheer physical strength of apes? The origins are a bit blurry, but one thing is certain — apes together strong.

Base Fee

The base fee is an algorithmically determined fee that users on the Ethereum blockchain must pay to complete a transaction. The base fee is designed to help smooth transaction fees and prevent sudden spikes by targeting 50% full blocks.

Bear Market

A prolonged period of decline in a financial market.


Similar to a bear market, this refers to holding a pessimistic view of a market or asset’s value. If you are bearish on a certain cryptocurrency, you believe its value will decrease over time. Those who are bearish may be referred to as bears, sometimes purposely misspelled as "beras."


Bitcoin is a cryptocurrency, meaning that it is a decentralized digital currency built on blockchain that users can buy, sell, or exchange without an intermediary (e.g., banks). It was launched in 2009 by the pseudonymous Satoshi Nakamoto to develop a peer-to-peer electronic cash system based on cryptographic proof rather than trust.


A block on the blockchain is a permanent data store of valid transaction records that have taken place on the blockchain network. Each block can be thought of as a page of the ledger, and it contains vital components such cryptographically verifiable information, timestamp, and transaction data.


A Blockchain is a technological system that serves as a distributed database for recording digital information in a secure, transparent, and immutable way within computer code.

It acts as a digital ledger of transactions shared across the computer nodes (aka blocks) in the entire computer network distributed around the world. Each block stores a set of transactions that each network member has independently verified.

Bull Market

A period where market prices are rising.


A period where market prices are rising. Similar to a bull market, this refers to holding an optimistic view that a market or asset will rise in price. If you are bullish on Bitcoin, you believe that its value will continue to rise over time. 


The process of removing tokens from a cryptocurrency’s circulating supply, usually done by sending them to an inaccessible wallet address. Other digital assets, such as NFTs, can also be burned via the same process. 

CEX- Centralized Exchange

a cryptocurrency exchange managed by a centralized business or entity.

i.e. Coinbase, Gemini, Kraken


A cryptocurrency built on its own native blockchain, intended to be used as a store of value and medium of exchange within that ecosystem.

i.e. BTC, ETH

Cold Wallet

An offline device used to store cryptocurrencies. Cold wallets can be hardware devices or simply sheets of paper containing a user’s private keys. Because cold wallets are not connected to the internet, they are generally a safer method of storing cryptocurrencies.


Cryptocurrency (or crypto) is a form of currency that is virtual, decentralized, and encrypted (i.e., secured with cryptography). It is a type of digital asset built on blockchain technology. The records of transactions and currency ownership are verified and securely stored in a digital ledger on a distributed computer network without the control of a central authority.


Cryptography is the study and practice of exchanging secure, encrypted messages between two or more parties using mathematical and computational techniques in the encoding and decoding of information.

The encryption techniques from cryptography are a vital component of blockchain protocols, allowing cryptocurrency and digital assets to be transacted, verified, and generated in a secure and trustless manner.


Decentralization is the shift of control, planning, and decision-making from a central, authoritative entity (e.g., individual, group) to a distributed network. In the blockchain context, decentralization allows for the peer-to-peer transaction of digital assets, coupled with irreversible tracking of the information and history of transactions and ownership of these assets. This process creates advantages such as redundancy (i.e., avoiding a single point of failure), transparency, and guarantees of data fidelity by spreading the records across the many nodes in the distributed computer network.

DAO- Decentralized Autonomous Organization

An organization based on open-source code and governed by its users. DAOs typically focus on a specific project or mission and trade the traditional hierarchical systems of legacy corporations for guidelines written on the blockchain. 


A decentralized application (dApp) is a digital application built on a decentralized, peer-to-peer blockchain network (most commonly on the Ethereum platform). It combines the properties of a smart contract with that of a front-end user interface.

Although the backend structure is different, dApps have interfaces like the traditional apps we are familiar with.

Decentralized Finance (DeFi)

Decentralized finance (DeFi) is a form of a financial ecosystem with products and services built on top of public blockchain systems (predominantly on the Ethereum blockchain). Unlike traditional finance, which depends on central financial intermediaries, DeFi aims to disintermediate the conventional centralized model so that peer-to-peer transactions and payments can occur without a central authority.


DEX is an abbreviation for Decentralized Exchange. This type of crypto exchange enables users to transact in a direct peer-to-peer manner without any intermediary. The biggest DEX on Binance Smart Chain is Pancakeswap, which traders can monitor using Blocknative.

DD- Due Diligence 

The process of conducting your own research on a cryptocurrency, stock, or other asset before investing. Doing your own DD is essential, as opposed to making an investment based on what someone else says or does. 

“This is just based on my own research, so do your DD before investing yourself.”


Initially, short for “degenerate gambler.” While this still refers to individuals involved with risky bets, degen may also refer more broadly to anyone involved in crypto and financial spaces. Like with “ape,” this is generally a self-assigned term and does not carry a negative connotation. Degens are a proud people who enjoy ridiculous call options on GME, buying the dip before paying their rent, and occasionally aping into shitcoins. 

“Which one of you degens just bought $50K of XRP at its ATH?!”

Diamond Hands

A term implying that you are extremely bullish on a certain asset, and have no plans to sell regardless of market volatility, FUD, or extreme drops in price. Someone who holds onto a cryptocurrency or stock as it drops 40% in a day is said to have diamond hands. 

See also: paper hands (antonym) 

DYOR- Do Your Own Research

Similar to DD, this phrase is used to remind people to conduct their own investigation into an asset before investing in it. 

“I’m very bullish on this, but obviously DYOR.”


Ethereum is a blockchain platform that creates a secure peer-to-peer network to execute and verify smart contracts and decentralized applications (dApps). It also serves as a digital currency via its native cryptocurrency, Ether.

Although Ethereum is the second most popular cryptocurrency behind Bitcoin, it was developed to be more than just a digital currency. Ethereum’s difference is that it focuses on facilitating and deploying immutable smart contracts and dApps.

Ethereum Request for Comment (ERC)

Ethereum Request for Comment (ERC) is a standard protocol used to issue tokens on Ethereum.

This standard provides a list of rules that govern the implementation, usage, and distribution of digital tokens on the Ethereum platform to remain interoperable and compatible.

Ether (ETH)

Ether (ETH) is the native cryptocurrency of the Ethereum platform.


The Ethereum token standard, providing a standardized smart contract structure for fungible tokens. 


An Ethereum token standard that allows for the formation of unique tokens, otherwise known as NFTs, or non-fungible tokens. Unlike the ERC-20 standard, ERC-721 tokens have specific properties that allow each to be uniquely identified and valued independently of one another.


An Ethereum token standard which allows for fungible, non-fungible, and semi-fungible tokens to be managed by a single smart contract simultaneously. These are commonly used in gaming and collectible trading to reduce the number of necessary transactions.

Extended Reality (XR)

Extended reality (XR) is an umbrella term that refers to the set of immersive technologies which combine the experiences and environments of the real and virtual worlds.

These technologies include augmented reality (AR), virtual reality (VR), and mixed reality (MR).


A currency established as legal tender, often backed and regulated by a government, such as the US Dollar. 


A reference to the possible event of Ethereum becoming more valuable than Bitcoin, in terms of market cap. DISCLAIMER: Please do not mention the flippening to Bitcoin maxis. They will not think it is funny, and they will proceed to explain why Ethereum is a shitcoin.


A change to a blockchain’s protocol. When these changes are minor, this results in a soft fork. When the changes are more fundamental, this may result in a hard fork, leading to the formation of a separate chain with different rules.

See also: hard-fork, soft-fork


The process of locking an NFT into a smart contract, and then dividing it into smaller parts which are issued as fungible tokens. This lowers the price of ownership and allows artwork and other digital assets to be owned by a community.

FUD- Fear, Uncertainty, and Doubt

News around an asset that seems negative, but turns out to be false or blown out of proportion.


GameFi is a term blended from ‘gaming’ and ‘DeFi’, and is defined as the intersection of blockchain-based video gaming and decentralized financial elements.

The blockchain system enables video game players to attain verifiable digital ownership of in-game items and assets without a central administrator.


In the context of the Ethereum platform, gas refers to the fee necessary to perform a transaction or execute a smart contract on the blockchain network.


Simply meaning “good morning,” gm is a common greeting used in crypto circles.


Gwei is the smallest denomination of ETH that is equivalent to 1/1,000,000,000 of 1 ETH (1 ETH = 1,000,000,000 Gwei).


Short for “gonna make it.” This term is frequently thrown around on Twitter to voice support for a project or person.

See also: NGMI (antonym)

Hard Fork

A hard fork refers to a radical software change to the protocols of a blockchain network, where the blockchain splits into two separate parallel blockchains: the original version and a new version that follows a new set of rules.

These significant code changes make the new blockchain version no longer backward-compatible (aka invalid) with earlier blocks built on the older protocol.


An expression meaning “hold” and frequently taken to be an acronym for Hold On for Dear Life. This term actually began its life as a typo on an old forum, Bitcointalk.org, where user GameKyuuby explained that he was “HODLING” his bitcoin as the price dropped. The misspelling quickly caught on and is still used today.

Holding the bag

This is the unfortunate position you find yourself in when an asset you own quickly drops in value but you do not sell. You are thus left holding a bag of worthless coins or stocks. Those who end up in this position are referred to, unsurprisingly, as bagholders.

“I’m not holding the bag. I’m HODLING. The bull market isn’t over.” 

ICO- Initial Coin Offering

The selling of tokens to the public in order to raise capital for a crypto-based project . ICOs are a crowdfunding approach, similar to a traditional company’s IPO. 

IEO- Initial Exchange Offering

Similar to an initial coin offering, or ICO, an initial exchange offering is a method of selling tokens to raise capital, but with increased regulation. Unlike an ICO, which sells new tokens directly to the public, an IEO is managed by an existing cryptocurrency exchange. By working with a known and trusted exchange, IEOs seek to make the ICO process more secure.

L1- Layer 1

This is the blockchain platform itself, also referred to as the base layer, mainchain, or mainnet.

i.e. Bitcoin, Ethereum, Cardano, Litecoin, Solana, Polkadot

L2- Layer 2

Protocols, also referred to as solutions, built on top of a layer 1 blockchain and commonly used to improve scalability, privacy, and add cross-chain communication. Unlike sidechains, which use their own consensus mechanisms, layer 2 solutions are secured by their underlying mainchain.

i.e. Lightning Network, Optimism, Arbitrum 


Liquidity is how quickly and easily an asset can be converted into cash or another asset. Decentralized exchanges like Uniswap have multiple liquidity pools where asset holders can deposit their assets where traders can buy and sell them in a decentralized way in exchange for rewards. Blocknative's mempool monitoring tools help traders track wallet activity, and track trading pairs and liquidity pools on Uniswap among other DEXs.

Liquidity Pool

A collection of user-provided funds locked into a smart contract to facilitate trading on a DeFi platform. On decentralized exchanges and lending protocols, liquidity must be provided by the users, as there is no central bank or figure to do so. 


Short for main network, this is a main layer 1 blockchain, as opposed to a testnet or layer 2 solution.

See also: L1, testnet (antonym)

Market Cap

The total value of an asset based on its current market price. A cryptocurrency’s market cap is found by multiplying the price of a single coin by its circulating supply.


Meta is the new company brand of Facebook, with the rebranding introduced in October 2021.

It signals the company’s new ambitions on bringing the metaverse to life and helping people connect, find communities, and grow businesses in new-age virtual spaces.


MetaMask is a software that serves as a cryptocurrency wallet on the Ethereum network while also acting as a gateway for users to securely connect to and interact with blockchain-based Ethereum applications (aka dApps).


A metaverse is a digital realm that combines the components of mobile devices, social media, virtual and augmented realities, online gaming, blockchain, and cryptocurrencies to create an immersive and interactive online virtual experience.

Its goal is to create a shared virtual-reality space with digitally persistent environments where users can inhabit and interact, as avatars, with different people from different physical locations.

Mixed Reality (MR)

Mixed reality is an immersive experience that blends the real and virtual worlds such that users can interact with and manipulate physical and virtual objects in real-time.

Mixed reality can contain both Augmented Reality (AR) and Virtual Reality (VR) elements.


The process of validating information, such as domain ownership, and registering that onto the blockchain.

Moon / To the moon!

This phrase implies that the value of an asset will go so high that it will reach the literal moon. This is used by shills, bulls, and during a bull market, essentially everyone. Another form of this is “wen moon?” This is used to express one’s impatience with an asset which is not increasing in value as quickly as they had hoped.

NFT- Non-fungible token

A digital certificate of authenticity used to assign and verify ownership of a unique digital or physical asset. Unlike fungible tokens, NFTs are not interchangeable with one another.

NFT Domains

Domain names minted on the blockchain, which allow people to govern their own data, set their Web3 username, take control of their digital worlds, and harness the power of the internet.


Short for “not gonna make it.” This is used to imply that a certain project or asset has a low chance of becoming valuable. This can also be directed at an individual, usually someone who had made a poor trade or investment.

“Everyone who sold their ETH during that dip ngmi.”


Unstoppable Domains, Kenneth Leung(Medium), Blocknative

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