The most important terms in cryptospace.

A security mechanism that requires two different confirmation steps to log in to an account. This provides additional protection, especially for online services.

An attack on a blockchain network in which a single person or group controls more than half of the computing power. This would allow them to influence or manipulate transactions.

A technical tool that allows different programs to communicate with each other. In the crypto industry, it is often used to access market data or online services.

A specially designed computer chip optimized for the efficient mining of cryptocurrencies, as opposed to general computer hardware.

A unique digital identifier that serves as a destination for receiving cryptocurrencies – similar to an account number in banking.

An airdrop refers to the free distribution of tokens or coins to users, often as a marketing ploy or to promote a blockchain. These tokens are distributed either to existing holders of a particular cryptocurrency or to participants who complete specific tasks (e.g., subscribing to newsletters, sharing on social media). The goal is to generate awareness, strengthen the community, and increase the token's reach.

A digital currency whose value is regulated by an automated system so that it adjusts to a specific currency such as the US dollar without resorting to traditional hedging mechanisms.

The highest price ever achieved by an asset, be it a cryptocurrency, a stock, or an index.

The lowest price ever reached by an asset, be it a cryptocurrency, a stock, or an index.

A period in which alternative cryptocurrencies gain particularly strong value and outperform Bitcoin in price appreciation.

All digital currencies other than Bitcoin. They were developed to offer new features or improvements compared to Bitcoin.

Taking advantage of price differences in different markets by buying an asset cheaply and simultaneously selling it at a higher price elsewhere.

A technology that enables the direct exchange of cryptocurrencies between two parties without the need for an exchange or third party.

An independent audit of the code and security measures of a crypto project or smart contract to uncover potential vulnerabilities.

The use of algorithms that automatically make buying and selling decisions based on predefined rules and market analyses.

A term for a large amount of cryptocurrencies that an investor holds, especially when their value has dropped significantly.

An investor who holds onto a cryptocurrency or stock despite sharply fallen prices, hoping for an increase in value – this often leads to further losses.

The process by which a cryptocurrency transaction is added to the blockchain and recognized as valid by other participants.

The first and best-known cryptocurrency, developed in 2009 under the pseudonym Satoshi Nakamoto and based on blockchain technology.

A value that shows the share of Bitcoin in the total market capitalization of all cryptocurrencies, in order to assess Bitcoin's market power compared to altcoins.

An online tool that provides detailed information about transactions, addresses, and blocks within a blockchain and is used to monitor network activity.

The reward that miners receive for adding a new block to the blockchain, usually in the form of the network's native cryptocurrency.

A decentralized digital register in which transactions are stored chronologically and immutably to ensure security and transparency.

A decentralized digital register in which transactions are stored chronologically and immutably to ensure security and transparency.

The problem of simultaneously achieving scalability, security and decentralization in a blockchain – often discussed because there are compromises involved.

The number of blocks in a blockchain, counted from the first (genesis block) to the most recent block – an indicator of the length of the blockchain.

A technical analysis tool that uses a moving average and establishes two price limits to identify overbought or oversold market phases.

One method of storing cryptocurrencies is by remembering a private key or passphrase instead of storing them physically or digitally – however, this comes with a high risk of loss.

A term from chart analysis that describes a sudden movement of the price above a resistance or below a support level, often interpreted as the start of a new trend.

A technology or platform that enables the transfer of assets or data between different blockchains.

A market phase in which prices rise, often accompanied by optimism and a positive mood among investors.

The ability of a distributed network to continue functioning correctly despite faulty or malicious participants – a central concept for blockchain systems.

A phase in which prices on the financial markets fall over a longer period, accompanied by a pessimistic mood among investors.

A platform for buying, selling and trading cryptocurrencies, either centralized (CEX) or decentralized (DEX).

A centralized trading platform for cryptocurrencies, operated by an organization, as opposed to decentralized exchanges (DEXs) where users trade directly.

A method for securely storing cryptocurrencies offline to protect them from hacking and theft.

An asset that is held as security for a loan or financial obligation – often used in the crypto world for DeFi loans or staking.

The ability to transfer or share transactions or information between different blockchains is essential for interoperability in the crypto ecosystem.

A prolonged period of falling or stagnant crypto prices, often accompanied by declining public interest.

An organization based on blockchain technology and controlled by smart contracts, without a central leader.

Programs that run on a blockchain and are organized decentrally, so that no central authority has control over them.

A crypto trading platform that operates without a central administration and allows users to trade directly with each other.

The process of extracting relevant information from large amounts of data – not to be confused with crypto mining, where new blocks are created.

A decline in the general price level of goods and services, often caused by a reduction in the money supply or the volume of credit – the opposite of inflation.

The shift of power and control away from a central authority towards a distributed network – a central principle behind Bitcoin and other cryptocurrencies.

A term for investors who, despite high market volatility, stick to their investments and are willing to ride out losses in the hope of long-term profits.

An asset that exists only digitally and whose ownership or control is secured by technologies such as blockchain.

An online identity that a person, organization, or device uses in digital interactions or transactions.

A signature created with a private key that confirms the authenticity and integrity of a message or transaction – a key security feature in blockchain technology.

A short-term price decline in the market.

An EIP is a proposal for improving the Ethereum network, which is reviewed by the community and may be implemented. These proposals can suggest technical improvements, new features, or changes to the protocol.

An ERC-20 is a technical standard for Ethereum tokens used in smart contracts to facilitate the issuance of new tokens. This standard defines uniform rules for how tokens should function on the Ethereum blockchain.

An Ethereum token standard for non-interchangeable tokens (NFTs) that represent unique digital assets such as art or collectibles.

A scam in which developers of a crypto project disappear with investor funds without delivering the promised product.

FOMO – Fear of missing out. It describes the fear of missing out on a profitable investment, which often leads to hasty purchases.

FUD (Fear, Uncertainty, and Doubt) is a strategy or tactic in which false or misleading information is spread to create uncertainty or doubt.

A website or app that gives away small amounts of cryptocurrency, often to make it easier for new users to get started.

Traditional currencies such as the US dollar or euro, which are issued by governments and are not backed by physical assets such as gold.

A platform that enables the exchange of fiat currencies for cryptocurrencies.

An unsecured loan in the DeFi world that is borrowed and repaid within a single blockchain block.

A change to the blockchain protocol rules that leads to a new version – a hard fork is not backwards compatible, a soft fork is.

An unethical practice in which someone with prior information executes transactions before other market participants in order to profit from price changes.

A network node that stores a complete copy of the blockchain and helps in verifying transactions.

The property of a currency where each unit is interchangeable and has the same value – important for traditional currencies and many cryptocurrencies.

Mining cryptocurrencies using graphics cards (GPUs) instead of specialized ASIC miners.

The financial return from an investment in cryptocurrencies.

A token that gives its owner voting rights in a decentralized project or DAO.

A wallet that can generate and manage multiple keys using a single seed phrase.

A trading strategy in which algorithms execute extremely fast transactions to profit from small price movements.

A term from the crypto community, originally derived from a typo for "hold". It means holding cryptocurrencies long-term, regardless of market fluctuations.

A mechanism where the reward for mining new blocks is halved to reduce inflation – known from Bitcoin.

The period between two halvings often influences market trends.

A permanent change to a blockchain protocol that results in a new, non-backward compatible version.

A physical device for the secure storage of crypto private keys, offline and therefore resistant to hacker attacks.

A process that converts data into a fixed string of characters – essential for blockchain security.

A strategy to protect investments against potential losses, often through derivatives.

A base 16 number system used in cryptography and computers to represent binary data.

A cryptocurrency wallet that is connected to the internet and used for daily purposes. It is more convenient but also more vulnerable to hacking than a cold wallet.

An ICO is a crowdfunding model in which new crypto projects sell their own tokens to raise capital for development.

A variant of the ICO where the token sale is handled via a crypto exchange, which offers additional security and credibility.

A situation in which an asset cannot be sold quickly or easily due to a lack of buyers or sellers.

The property of blockchain data, that it cannot be altered or deleted, ensures security and trust.

A temporary loss in value for liquidity providers on DeFi platforms when the prices of the deposited assets change.

An increase in the general price level, which reduces the purchasing power of money over time.

The part of a blockchain transaction that specifies the address and amount of cryptocurrency being sent.

The ability of different blockchain networks to communicate with each other and exchange value or information.

An identification process, in which users must prove their identity to financial service providers, serves to combat money laundering and fraud.

The process of creating crypto keys (public and private) that are used for security and encryption in blockchains.

The process by which all participants in a decentralized network agree on and update the current state of the blockchain.

The science of encryption, which ensures that information can be securely stored and transmitted – an important component of blockchain systems.

The base layer of a blockchain, which includes the main protocol and network infrastructure.

Solutions that build on Layer 1 to increase scalability without overloading the main network – e.g., off-chain transactions.

Using borrowed capital to increase investments can amplify both profits and losses.

A Layer 2 protocol for Bitcoin that enables fast and cost-effective transactions through payment channels.

An instruction to buy or sell an asset only at a certain price or better.

The forced sale of an asset when a position is no longer adequately covered – often relevant in margin trading.

A method where users are rewarded for providing liquidity on DeFi platforms.

A smart contract-based pool into which users deposit cryptocurrencies to provide trading liquidity.

A user who deposits their cryptocurrencies into a liquidity pool and receives transaction fees or rewards in return.

The ability of a market to process large transactions without triggering strong price movements.