The most important terms in cryptospace.

A security mechanism that requires two different verification steps to log in to an account, providing extra protection especially for online services.

An attack on a blockchain network where a single person or group controls more than half the computing power, allowing them to influence or manipulate transactions.

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

A specially developed computer chip optimised for efficient cryptocurrency mining, as opposed to general-purpose computer hardware.

A unique digital identifier that serves as the 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 measure or to promote a blockchain. These tokens are distributed either to existing holders of a specific cryptocurrency or to participants who complete certain tasks (e.g. subscribing to a newsletter, sharing on social media). The goal is to generate attention, strengthen the community and spread the token.

A digital currency whose value is regulated by an automated system so that it tracks a specific currency like the US dollar, without relying on traditional collateral.

The highest price ever reached by an asset, whether a cryptocurrency, stock or index.

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

A period in which alternative cryptocurrencies gain particularly strongly in value and outperform Bitcoin in terms of growth.

All digital currencies that are not Bitcoin. They were developed to offer new features or improvements compared to Bitcoin.

Exploiting price differences on different markets by buying an asset cheaply and simultaneously selling it at a higher price elsewhere.

A technology enabling the direct exchange of cryptocurrencies between two parties without requiring an exchange or third party.

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

The use of algorithms that automatically make buy and sell decisions based on predefined rules and market analysis.

A term for a large amount of cryptocurrency held by an investor, particularly when its value has dropped significantly.

An investor who holds on to a cryptocurrency or stock despite sharply falling prices, hoping for a recovery – this often leads to further losses.

A phase in which prices on financial markets fall over an extended period, accompanied by a pessimistic sentiment among investors.

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

A metric showing Bitcoin's share of the total market capitalisation of all cryptocurrencies, used to assess Bitcoin's market power relative to altcoins.

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

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.

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

A decentralised digital ledger in which transactions are stored chronologically and immutably to ensure security and transparency.

A decentralised digital ledger in which transactions are stored chronologically and immutably to ensure security and transparency.

The challenge of simultaneously achieving scalability, security and decentralisation in a blockchain – often discussed because trade-offs are necessary.

A technical analysis tool that uses a moving average to form two price boundaries, helping identify overbought or oversold market phases.

A method of storing cryptocurrencies by memorising a private key or passphrase instead of storing it physically or digitally – however, with a high risk of loss.

A chart analysis term describing a sudden price movement 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 are rising, often accompanied by optimism and a positive sentiment among investors.

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

A centralised trading platform for cryptocurrencies operated by an organisation, as opposed to decentralised exchanges (DEX) where users trade directly.

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

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

The process by which a cryptocurrency transaction is included in the blockchain and recognised as valid by other participants.

The mechanism by which all participants of a decentralised network agree on and update the current state of the blockchain.

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

A prolonged phase of falling or stagnant crypto prices, often accompanied by waning public interest.

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

An organisation based on blockchain technology, governed by smart contracts without centralised leadership.

Applications that run on a blockchain and are organised in a decentralised manner, so no central authority has control over them.

A crypto trading platform that operates without central management, allowing users to trade directly with each other.

The process of extracting relevant information from large datasets – not to be confused with crypto mining, which creates new blocks.

The transfer of power and control away from a central authority to a distributed network – a core principle behind Bitcoin and other cryptocurrencies.

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

A term for investors who hold on to their investments despite high market volatility, willing to ride out losses in the hope of long-term gains.

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

An online identity used by a person, organisation or device 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 to improve the Ethereum network, reviewed by the community and potentially implemented. These proposals can suggest technical improvements, new features or changes to the protocol.

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

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

An arrangement where a third party holds assets until certain conditions are met – frequently used to secure transactions.

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

The rate at which one currency can be exchanged for another, relevant for fiat-to-crypto or crypto-to-crypto trades.

A fraud where developers of a crypto project disappear with investor funds without delivering the promised product.

FOMO – Fear of Missing Out. Describes the fear of missing a profitable investment, which often leads to hasty purchases.

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

A website or app that gives away small amounts of cryptocurrency, often to help new users get started.

Traditional currencies such as US dollars or euros, issued by governments and not backed by physical goods like gold.

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

An uncollateralised loan in the DeFi world that is taken out and repaid within a single blockchain block.

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

A banking system where only a fraction of deposits are held as reserves while the rest is lent out.

An unethical practice where someone uses advance information to execute transactions before other market participants to profit from price changes.

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

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

A contract that stipulates the purchase or sale of an asset at a fixed price at a later date – often used for speculation.

The mining of cryptocurrencies using graphics cards (GPUs) instead of specialised ASIC miners.

The financial return from an investment in cryptocurrencies.

A token that gives its holder voting rights in a decentralised project or DAO.

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

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

A term from the crypto community that originally arose from a typo of "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 – well 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-backwards-compatible version.

A physical device for securely storing crypto private keys, offline and therefore resistant to hacking.

A process that converts data into a fixed-length string – essential for blockchain security.

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

A base-16 numbering system used in cryptography and computing to represent binary data.

A cryptocurrency wallet connected to the internet, used for everyday transactions. It is more convenient but also more vulnerable to hacking than a cold wallet.

An ICO is a crowdfunding model where 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, providing additional security and credibility.

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

The property of blockchain data that means 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 deposited assets change.

A rise in the general price level, causing the purchasing power of money to decline over time.

The part of a blockchain transaction that specifies from which address and in what amount cryptocurrency is being sent.

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

An identification process where users must verify their identity with financial service providers – used to combat money laundering and fraud.

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

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

Solutions built on top of Layer 1 to increase scalability without overloading the main network – e.g. off-chain transactions.

The use of borrowed capital to increase investments – can amplify both gains and losses.

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

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

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