THE BASICS/ESSENTIAL GLOSSARY
Essential glossary
A list of essential terms for understanding the crypto market.
- Altcoin
- Any cryptocurrency other than Bitcoin, often bringing innovation (e.g. Ethereum, Solana).
- HODL
- A strategy of holding crypto over the long term, despite market volatility.
- NFT (Non-Fungible Token)
- A unique digital asset certified by the blockchain, used for art, gaming and collectibles.
- Market cap
- The total value of a cryptocurrency in circulation, a key indicator of its size and liquidity.
- DeFi (Decentralised Finance)
- A financial system without intermediaries enabling loans, exchanges and investments on the blockchain (e.g. Aave, Uniswap).
- Gas fees
- Fees paid to execute transactions on a blockchain, varying with network congestion.
- Halving
- A periodic cut to miner rewards (e.g. Bitcoin every 4 years), limiting supply and reinforcing scarcity.
- Stablecoin
- A crypto pegged to a fiat currency (e.g. USDT, USDC) to reduce volatility and ease transactions.
- Rug pull
- A scam where developers withdraw investors’ funds, leaving a token worthless.
- Proof of Stake (PoS)
- A validation mechanism based on holding tokens, more energy-efficient than Proof of Work.