Welcome to our simple and easy crypto glossary — a newbie’s go-to guide for understanding the weird and wonderful world of cryptocurrency! This isn’t just your average breakdown of technical terms, either. We’ll actually give proper insider information into the slang language used too, so you’ll never be left scratching your head in a Telegram group again.
So, whether you’re dipping your financial toes into the crypto waters or looking to sharpen your “degen” knowledge, we’ve got you covered. Remember to bookmark this evergreen article, as we’ll continue adding more terms over time, keeping you in the loop with new (and likely confusing) words as the crypto space continues to evolve. Let’s dive in!
Alpha (Alfa)
Alpha (AKA Alfa, because ya’ know, crypto is edgy), is that inside scoop, that early call, that golden ticket to financial glory … in theory. It refers to information about a token rumored to explode before anyone else knows about it. Those who learn about true alpha are given the chance to become early adopters and make a bunch of money before the masses get involved.
But here’s the kicker — while a potential ticket to big money — true alpha is often morally grey. If someone truly has alpha (and they’re not full of it), they’re either well-connected or privy to information the public doesn’t have. If that knowledge was obtained unethically — say, through leaks from an insider — it could be considered insider trading, which is a big Neddy no, no. That said, unlike stocks, crypto is still relatively unregulated (though some jurisdictions are starting to crack down on insider trading in the space). As such, alpha leaks can indeed make people fortunes — or fuel pump-and-dump schemes.
Of course, not all alpha is unethical. Sometimes, it’s just sharp analysis or knowing which devs actually deliver (we know, rare, but sometimes possible). Just remember, if someone you don’t trust implicitly is screaming “alpha” in your ears, ask yourself why. They probably want you to pump their investment.
Altcoin (Alts)
If Bitcoin is the grandfather royalty of crypto, then altcoins are its descendants. Some are proud and noble in their own right, and others should probably be left in the basement.
There are thousands of altcoins out there, ranging from serious Bitcoin and Ethereum competitors to fleeting meme coins created as a joke or scam, with an average lifespan of a mayfly. Some altcoins, like Solana and Avalanche, offer real technology, thriving chains, and ecosystems behind them, while others exist solely for speculation, hype, and the occasional rug-pull.
Altcoins are known for extreme volatility, with wild swings that can make or break fortunes overnight. They also have their own rallying growth periods known as alt season. Unlike Bitcoin, which has a fixed supply and a well-established place in the market, altcoins are more unpredictable, with many rising and falling based on trends, influencer shilling, or pure market sentiment.
Still, catch the right one early enough, and it’s Mai Tais on the beach until the end of time.
Blockchain
Probably the most commonly used word in crypto outside of “bro,” blockchain is a decentralized, digital ledger designed to transparently record all transactions that take place via a series of interlinked computers known as networks. The data is neatly lined up into blocks, which are then all linked in chronological order on a chain using unique identifying numbers known as cryptographic hashes. Once data is added to the blockchain, it can’t be deleted or changed, which is known as immutability — and is often how those “up to no good” actors get found out. (Naughty, naughty).
Most people are familiar with popular public networks like the OG Bitcoin and its younger brother, Ethereum. These types of blockchain networks are public, meaning anyone can get involved and transact through direct peer-to-peer transactions, which reduces costs and enhances security.
A big misconception is that all blockchains are public, which isn’t the case. Many companies use private blockchains to organize and store valuable data. These blockchains are viewable among those within the organizations, but not accessible to the general public. So, no peeking.
Coins
Coins are the sweet, sweet nectar that helps the crypto world go round. The most popular of these digital assets fall under the umbrella term, cryptocurrency. Despite being well known, coins are often confused with tokens (see below); however, they’re unique in that they represent the official currency of their native blockchain. For example, Ethereum (ETH) is the cryptocurrency coin for the Ethereum network, while Solana (SOL) lives on the Solana network.
Coins are used for a bunch of things, such as transactions, fees, staking, and purchasing. In essence, they act like digital cash but with decentralization baked in, meaning no meddling intermediaries (cough, cough, banks). Coins can either be purchased from exchanges or wallets, digitally mined in a process called “Proof of Work,” or earned via staking in an alternative process known as “Proof of Stake.” Some cryptocurrency coins fluctuate along with the market, while others — referred to as stablecoins — are pegged to real-world assets, (such as fiat currency or gold), to maintain a stable price.
Just don’t look up Terra USD.
DApp (Decentralized Application)
Although it sounds like a terrible dance move performed by teenagers, a DApp actually stands for decentralized application, referring to an app built on the blockchain rather than traditional centralized systems. Unlike standard apps, which are typically controlled by a single company, DApps run on smart contracts, making them trustless, permissionless, and resistant to censorship. (Side note: trustless here means not requiring third-party intermediaries, not that they’re dodgy … usually).
Like regular apps, DApps can be used for essentially anything you like, from dating and gaming to social media platforms. However, they are often used to help drive DeFi and NFT marketplaces. The appeal of DApps is that they remove middlemen, which can reduce costs, increase security, and help facilitate the adoption of Web3 technology. However, DApps can be tough to build. Plus, many DApps are poorly thought out and suffer from clunky user interfaces, slow transaction speeds, and vulnerabilities in smart contracts that hackers trip over themselves to get at.
Still, there’s little denying that DApps are the future of applications — just as soon as someone figures out how to make building one not feel like assembling IKEA furniture on a boat during a storm.
DCA (Dollar-Cost Averaging)
Dollar-cost averaging — or DCA-ing — has two slightly different meanings, but both terms refer to a design that helps ease the volatility of the whiplash ride that is crypto. The first term, DCA, means avoiding going all-in on a major asset, and instead, buying smaller, fixed amounts at regular intervals, regardless of the price. It’s not the fastest or most fun way to make money, but it’s a solid long-term strategy for assets with strong fundamentals, like the chief of them all, Bitcoin.
The second version, DCA-ing, is similar in principle but relates to micro-cap token communities (also known as the “trenches”). DCA-ing refers to (usually sarcastically) those unlucky few who bought the top of a token only to watch their investment nosedive like a lead dart. The idea is that if you keep buying as the price drops, you’ll lower your average entry price. In theory, this makes perfect sense, but in reality, it often just means digging a far deeper hole (Not every token recovers because, well…, crypto).
On a side note, DCA is just the most widely known version of the term, but the term can be swapped out for any relative currency the individual uses to buy tokens. Think pound-cost averaging (PCA), or euro-cost averaging (ECA). Not the most interesting side note, but at least now you know.
DeFi (Decentralized Finance)
Decentralized finance (DeFi) is the black sheep of the finance family, which refuses to play by the traditional rules. It essentially sidesteps the banking system and allows everything to happen in a peer-to-peer (p2p) environment, including loans, savings, and trading. When you hear of people operating in the “crypto trenches” (i.e., not buying on a centralized exchange), they are likely interacting with the DeFi sector, whether they’re holding, selling, trading, or transacting with crypto. There are a wide range of other ways to interact and earn, too — like yield farming, liquidity pools, and staking — all with the potential to make (or break) your fortune.
Plus, because everything is powered by automated smart contracts rather than a walking ego in a pinstripe suit, there are no credit checks, suitability scores, or gatekeeping, regardless of who you are and where you’re based. DeFi lets you engage instantly with zero paperwork and often very low fees. For example, if you want a crypto loan, you just have to repay it by a specified time with adequate collateral for leverage.
The catch? DeFi is still the financial equivalent of the Wild West. It’s dangerous, full of scammers and grifters, and a very easy environment to lose everything in. On the positive side, unlike the Wild West, there are no guns … we assume.
Deflationary
In contrast to the idea of endlessly printing money (cough cough, central banks), deflationary cryptocurrencies offer something different — scarcity. In essence, a deflationary asset has a limited or ever-reducing supply, meaning that — in theory — an asset should become more valuable over time.
But not all deflationary cryptos work the same way. OG Bitcoin is naturally deflationary because it has a hard cap of 21 million coins. Once they’re all mined, that’s it. This built-in scarcity makes Bitcoin resistant to inflation, much like gold.
On the other hand, deflationary tokens, like the original fan-favorite SafeMoon, take a more creative (and often questionable) approach. Instead of a fixed supply, they reduce circulating supply through transaction taxes, token burns, and buybacks. SafeMoon, for a specific example, imposed a sell tax, where a portion of every transaction was burned and another portion was redistributed to holders, hoping to encourage long-term holding. The difference is that coins like Bitcoin rely on natural scarcity, while deflationary tokens often rely on engineered scarcity. In SafeMoon’s tokenomics case, it collapsed faster than you can say rug-pull, and then they found that their own assets were also deflationary … when the government took them all.
Diamond Hands
Everyone likes to refer to themselves as diamond hands, but the hard truth is very few have the conviction to have them (and for good reason too, as most diamond hands end up holding worthless tokens). In essence, if you have diamond hands, you refuse to sell, no matter how bad the token you’re holding gets. A project could crash 90% overnight, but diamond handers will still clutch their bag like an old lady on the subway. The idea behind that is the firm belief that their bags will recover and go to the moon (eventually).
This term originated from penny stock trading and got meme-ified in crypto, where volatility is part of the game. Sometimes, diamond hands pay off (as all early Bitcoin holders know), but other times, it just means watching your portfolio turn to dust and a cautionary tale you never learn from. Whether it’s nerves of steel — or just pure delusion — all depends on the market cap.
DYOR/DD
Ignoring these two acronyms can be the difference between making good money and sleeping under a bridge. Due diligence, or DD, and Do Your Own Research, or DYOR, is all about accountability and realizing that you are responsible for your own investments. Granted, scams shouldn’t exist in crypto, but for now, they do. Beyond that, there are also just bad investments, so you have to protect yourself. On that note, you should never rely on others to run DD for you. It’s lazy and places the accountability on someone else. That’s where DYOR comes in, with your as the operative word in the phrase.
In essence, DD means thoroughly researching a project before buying in. This involves checking out the team, roadmap, whitepaper, tokenomics, and liquidity. You should also get token sniffers to check smart contract security.
While not always the case (as some developers are just super talented at being criminal scumbags), you can usually detect red flags with some hearty DYOR. If the developers are all anonymous, the roadmap is full of vague promises, or the contract is full of more holes than a hobo’s sock, then avoid it like the plague.
Or that hobo’s sock could end up being yours.
FOMO (Fear of Missing Out)
FOMO is a pretty well-known expression, and everyone reading has probably felt it more than once in their life. However, in the crypto world, FOMO can be costly. It’s that dangerous FOMO feeling that makes people buy tops, ignore logic, and chase green candles. FOMO is what happens when a token is pumping, and you convince yourself that “this time, it’s different” and that it won’t crash like all the others before it.
Then it crashes.
Of course, FOMO can work from time to time and has been known to fuel legendary crypto rallies (think Dogecoin in 2021), but more often, FOMO leads to colossal wrecks, as people buy in at absurd prices just in time for the dump. The problem? By the time you’re feeling FOMO, you’re usually walking exit liquidity; you just don’t know it yet.
The golden rule: If everyone starts talking about it, the insiders are about to dump it.
FUD (Fear, Uncertainty, and Doubt)
Probably the most annoying thing to happen to crypto investors, besides Sam Bankman-Fried, is FUD, the age-old tactic of spreading misinformation to manipulate markets. In crypto, it typically takes the form of negative news, exaggerated concerns, or outright lies designed to cause panic selling and price drops.
Sometimes, so-called FUD is just a harsh reality — like an exchange collapsing or a project being exposed as a scam. In those cases, it’s not fear-mongering, just bad news people don’t want to hear. Other times, FUD can be misguided and based on incorrect assumptions, such as mistakenly thinking a liquidity pool for an exchange is actually a top holder.
But most of the time, FUD is used to cause chaos. While sowing negativity might seem wild and out of pocket, it can actually be very strategic. Whales, influencers, and rival projects will push FUD to shake weak hands out of their positions, making it easier to buy in cheap before the inevitable rebound.
While the cream always rises to the top, some people will do anything to be sprinkles on that cream.
Gas
Not to be confused with what comes out of many industry KOL’s mouths, gas fees are the price you pay to make things happen on a blockchain — whether it’s sending tokens, minting NFTs, or interacting with smart contracts. If blockchain transactions were a road trip, gas would be the fuel cost.
The more gas you pay, the more prioritized your transaction is on the blockchain via validators because you’re earning them more money. Ethereum — the most widely used smart contract platform — infamously has some of the highest gas fees, especially during network congestion. At peak times, simple transactions can cost more than the value of what is being sent (yes, really). Other blockchains, like Solana, Binance Smart Chain, and Avalanche, offer significantly cheaper fees, which is why they’ve gained significant popularity for DeFi and NFT trading. Regardless, Ethereum remains popular for whale traders, as gas fees are colloquially said to keep those with low affordability (and therefore more likely to “jeet”) away.
Ethereum has made strides to reduce costs via Layer 2 solutions like Arbitrum and Optimism, which handle transactions off the main chain before settling them on Ethereum. However, until Ethereum fully transitions to a more efficient system, gas fees remain comparable to the average mortgage.
Gwei
Gwei is Ethereum’s version of pocket change, used to measure gas fees for transactions. One Gwei equals 0.000000001 ETH (one-billionth of an ETH), making it the smallest unit of Ethereum’s currency. To break it down, when you make a transaction on Ethereum, you’re not just sending funds. You’re actually elbowing for block space, and the gas is the price you pay for that space. The higher the Gwei you set, the faster your transaction gets processed.
During congestion, fees can skyrocket to eye-watering levels. This is when those famous yet baffling moments occur, such as traders paying more in fees than the actual transaction amount. It’s these Gwei cost inefficiencies mixed with slow speeds that have some doomsayers wearing sandwich boards, clanging the death-knell bell, and lamenting that other chains are more efficient and Ethereum is on its deathbed.
That remains to be seen, but for now, many traders will still say that Gwei is the way.
HODL
The term HODL is the battle cry of crypto enthusiasts everywhere (especially if a project is getting dumped rapidly). Originally, HODL was a drunken post on Bitcoin Forum, where in 2013, a drunk poster misspelled that he was “holding” Bitcoin, instead writing: “I AM HODLING.”
Now the term has become a key example of a backronym — where an existing word is retrospectively given an acronymic meaning. HODL now means “hold on for Dear Life,” essentially encapsulating the white-knuckle rollercoaster ride that crypto investing can be and encouraging people to not give up and sell at a loss.
Moon or dust, baby.
Honeypot
Oh, dirty, dirty honeypots. One of the most devious and cruel of investment-based crypto scams, a honeypot raises a firm middle finger at the investor, draining their investment while ensuring there is precisely zero they can do about it.
In a nutshell, a honeypot uses a malicious smart contract to allow investors to buy a token but prevents them from selling it. Once enough liquidity is trapped, the developers drain the pool and vanish like Houdini, leaving holders stuck with worthless tokens. Often, the nefarious developer of said honeypot will whitelist a handful of wallets, meaning they can buy and sell freely, giving the illusion of a normal functioning project. However, in reality, it’s just bots or (we like to imagine) the dev’s own sweaty friends sitting in a room together, drinking and smelling of old socks.
Token sniffer sites are pretty good at finding honeypots, so you would think that honeypots would be a thing of the past.
Sadly, they’re not.
The warning signs of a honeypot are always there: anonymous developers, no sell function in the contract, and vague or recycled marketing language. Yet, time and time again, traders fall for the same tricks — believing they’ve found the next 100x gem — when in reality, they’ve just helped fund someone’s Lambo.
Jeet
So, this is a problematic one, as it’s no secret that some within the crypto world can be quite regressive and offensive in their language to describe others. As a general term, a jeet is what frustrated traders and investors will call someone who emotionally dumps their token holdings (typically in one go, known as a “full clip”). Dumping has the annoying effect of either slowing upward trends in a chart or halting/reversing them completely.
While today, jeet is often interpreted as yet another backronym meaning “Just Exit Early Trader,” the term’s origins are rooted in a far less innocent context. Originally, jeet is believed to have stemmed from the term “Pajeet,” an offensive online stereotype used to target Indian traders, with the incorrect suggestion that they frequently panic-sell their assets. This derogatory and completely unfounded stereotype gained traction in early online trading communities, perpetuating harmful attitudes. However, as the crypto space evolved and further expanded globally, many within the community sought to redefine the term, rebranding it with a more neutral and descriptive meaning of someone who just sells early. Still, antiquated and misguided attitudes can be stubborn to shift.
So yeah, sadly, you’ll probably hear it in its old context a fair bit in the crypto space — and it’s not cool. Be better, people.
LARPing
In crypto, Larping — which stands for Live Action Role-Playing — is typically stylized as LARP — a term that refers to those who pretend to be an expert, an insider, or a wealthy investor, when in reality, they have zero credentials or actual funds. It’s the “fake it till you make it strategy” but with far more Lambo photos and X arguments.
It’s not just individuals either, as entire projects can LARP too. Many claim to be the next big innovation while having nothing but an overhyped roadmap, a sleek website, and a few paid influencers shilling them. They tease game-changing partnerships, promise life-changing gains, and somehow, despite their “success,” still need your money to reach the next phase.
You’ll know a LARP when you see one: endless “big things coming” tweets followed by “sorry we had to delay” posts, recycled buzzwords, and a community full of bots. Some LARPers do eventually stumble into legitimacy, but most vanish into the blockchain void, taking their grand promises — and your money — with them.
Meta
No, not the creepy VR thing Zuckerberg wanted you to endure in the future of workspaces … thankfully. In this context, meta is crypto slang for the next big trend.
Simply put, the crypto industry moves lightning fast, and when one or a handful of genre-specific projects break out and hit large market caps, the result is typically the entire market sentiment shifting to focus in that direction. For example, GameFi, AI, DeSci, and PolitiFi are all metas that became popular at different points in time, seeing a number of highly successful projects follow in the path set by the meta “unicorns.”
Metas are even more pronounced when it comes to memes, with any largely successful token seeing a slew of popular — and dead in the water — copycats trying to emulate initial success. (Think Babydoge). It’s important to note that not every breakout success of a specific project will signal a change that ushers in a new meta, and it can often be hard to spot them before it’s too late. It’s this unpredictability that means that very few are shrewd enough to spot emerging metas first and make life-changing money. Typically, everyone else arrives late enough to become exit liquidity.
Still, catching an emerging meta project early enough can be a good, good time.
Mining
Mining is the old-school way of securing a blockchain, where powerful computers solve cryptographic puzzles to validate transactions. This system — known as Proof of Work (PoW) — was pioneered by Bitcoin and later used by Ethereum before its transition to Proof of Stake.
Simply put, miners compete with computers to solve complex mathematical problems, and the first to do so gets to add the next block to the blockchain and earn rewards. In Bitcoin’s case, that reward started at 50 BTC per block in 2009 (can you imagine if you held that?) and halves roughly every four years in an event called the halving — a key factor in Bitcoin’s scarcity.
In the early days, mining was easy, a fact that haunts many to this day. People did it on their laptops on Sunday mornings while playing Modern Warfare 2. Today, mining has evolved into an industrial-level arms race, requiring god-tier-cost ASIC (Application-Specific Integrated Circuit) miners, insane amounts of electricity, and access to cheap energy.
Basically, you need to be Tony Stark to win.
While mining is still crucial for Bitcoin, many blockchains have moved to Proof of Stake, which is way more energy-efficient. It’s even entirely possible that mining will become a thing of the past. However, make no mistake. Regardless of how much time passes, everyone will still love that original gangster, Bitcoin.
NFTs (Non-Fungible Tokens)
No, they’re not just over-hyped JPEGs of pixel punks and bored apes — although there are enough of those to go around to fill a leased Lambo. NFTs, or Non-Fungible Tokens, are unique digital assets that live on the blockchain, proving true ownership of things like art, music, virtual real estate, or in-game items. Although they can easily be copied, there is only ever one true original. Anyone can print the Mona Lisa, but owning the OG would make you an instant multi-millionaire … and criminal.
Unlike regular cryptocurrencies, which are interchangeable, each NFT is one of a kind (hence the term “non-fungible,” which is just a fancy way of saying literally not interchangeable).
So why the hype? Well, NFTs give creators a new way to monetize their work and collectors a chance to own a piece of digital history. Some NFTs come with exclusive perks, too — like better point earning in blockchain-based games — while others are purely speculative investments (read very expensive mistakes).
However, here’s the kicker about NFTs that many miss — a lot of the value in NFTs isn’t just in the pretty pictures, and it’s only now that this fact is starting to be fully appreciated. The real power of an NFT lies in the data on the back end. NFTs can be used to protect intellectual property, grant access to exclusive content, and enable a range of decentralized initiatives, such as healthcare record management, supply chain tracking, and agnostic information gathering across multiple sectors. From identity verification to ticketing systems, NFTs are proving they have vast utility beyond art speculation.
But, of course, some NFTs are just pure rubbish, given undeserved value and recognition. (Just like in the real world of art).
On-Ramp/Off-Ramp
On-ramps get you into crypto; off-ramps get you out. Simple in theory, but in practice, it’s often about as easy as doing a handstand with two broken wrists. Users have to wrestle with regulations, banking restrictions, and the reliability of random services they trust to touch their money.
Crypto on-ramps are services that allow you to buy cryptocurrencies using those traditional fiat currencies we all know and hate: USD, GBP, or EUR. These can take many forms and flavors, such as centralized exchanges (Coinbase and Binance), ATMs (yes, really), brokers, and even DApps that let you swap cash for crypto (some legit and some blatant scams). Payment methods vary, but credit cards, bank transfers, and even Apple/Android Pay are typically accepted. The benefit is that it makes it easy for both individuals and companies alike to get involved quickly and, when it works, easily.
An off-ramp is the complete reverse. It’s how users convert crypto back into fiat and withdraw it to banks. This is usually handled by centralized exchanges. The issue here is that many banks aren’t hip to crypto (yet?).
The exchanges themselves can also red-flag a withdrawal for an investigation that can range from days to months. As such, many traders hedge by off-ramping into stablecoins instead of cash, avoiding direct interaction with the banking system. Here’s the big takeaway. Ramps are fantastic when they work, but like a Chinese finger trap, getting in is always easier than getting out. So, if you find a system that functions, by all that is holy, stick with it.
Paper Hands
The opposite of diamond hands, paper hands fold like wet A4 the moment the weight of a token becomes too much. Also known as panic sellers, paper hands are traders who sell at the first instance of red, often locking in unrealized losses instead of waiting for a potential recovery.
Paper hands are frequently mocked in crypto communities, as they’re seen as weak-handed traders who FOMO to buy at the top and panic sell at the bottom, losing money in the process. But, sometimes, paper hands actually make the smart move, avoiding catastrophic crashes before they become fully realized. (Bet everyone wishes they paper-handed Luna).
So, while diamond hands get all the glory, paper hands at least get a good night’s sleep — unless, of course, the token they sold does a 100x after.
Pegging
(Friendly note, please ensure you don’t search this on an unfiltered Google Search without adding the word crypto after it).
Ahem, pegging in cryptocurrency terms refers to the practice of tying the value of a digital asset (such as a coin or token) to the value of another asset or group of assets. The purpose of pegging is to provide stability to the cryptocurrency’s value by anchoring it to a more established and less volatile reference point. Pegging is wildly popular because it provides a reliable store of value — similar to traditional currency — without crypto’s volatility.
Typically, pegged stablecoins, such as USDT (Tether) or USDC (USD Coin), are backed 1:1 by reserves like fiat currency or commodities such as gold. Some, however, use algorithms and smart contracts to maintain their peg by automatically adjusting supply and demand.
Maintaining a peg is crucial because, without it, the asset could lose trust and collapse into a downward spiral. (Although we told you not to previously, check out Terra USD. Once touted as a stable, algorithmic dollar-pegged coin, it famously lost its peg and crashed more spectacularly than the Hindenburg, wiping out billions in value).
The Terra USD example proves that while pegging is generally a reliable way to store assets in a non-fluctuating manner, it’s not totally foolproof. A poorly managed peg can fold like origami under market pressure, regulatory scrutiny, or sheer panic, proving that not everything is as “stable” as it seems, especially in the crypto world.
Printing
In traditional finance, “printing” refers to central banks cranking up the money supply like Monopoly cash. (Oh hey, America). In crypto, the term printing is not too dissimilar. A project generates silly amounts of money for its investors, seemingly out of thin air. The only difference is that it’s an individual rather than an institution or country making the money, and they’ll likely have to give up a large portion in taxes. (Dubai is looking really good right now).
Some of the biggest printers in crypto history have been meme coins, low-cap gems, and NFT projects that went from seemingly worthless to generational wealth-level gems almost overnight (only to often crash just as fast). Printing is, of course, the ultimate aim of pretty much every investor, but it’s typically not sustainable. As the saying goes, “What goes up must come down,” and gains can turn into losses very fast. Also remember, for people to be printing at the top, others must be sitting at the bottom as exit liquidity.
Pump and Dump
The good ol’ pump and dump — probably the most veteran of all the tricks in the scummy crypto-developer playbook. So, how do they work? Typically, a group of insiders, influencers, or whales artificially inflate the price of a token through hype, misleading claims, and coordinated buying (often with associated marketing to lure in unsuspecting sheep with a bunch of FOMO). Then, they unceremoniously dump their holdings at the peak, leaving normal investors confused, sad, and holding a weak bag that would struggle to buy a box of McNuggets.
At this point, those same people who hyped the project suddenly go silent and move on to their next target. You would be forgiven for thinking that something could be done legally as recourse, but since crypto (at the moment) lacks the same regulations as traditional finance, pump-and-dump schemes are more common in the space than microwave dinners for one.
This makes due diligence so important. If the hype claims seem too good to be true, then you need to exit faster than a fighter jet pilot with a nervous twitch.
Round-Tripping
Round-tripping is crypto’s version of a roller-coaster but with a ton more financial trauma. It’s basically when a trader rides a token all the way up during a meteoric rise, jam-packing their wallet with glorious gains, only to hold it back down as the chart inevitably crashes.
As the industry saying goes: “Round-trippers take screenshots, not profits.” This is because they convince themselves that every dip is just a temporary correction (until it isn’t) and that the token will continue to go up. They might have been sitting on life-changing money for a brief moment, only to end up right back where they started — or worse. Round-tripping is never fun, and far more costly than the price of theme park entry.
Unless it’s Disney World.
Smart Contract
If tokens and coins are the beating heart of crypto, then smart contracts are the brains that allow them to actually do anything. In essence, smart contracts are self-executing agreements stored on the blockchain that automatically carry out actions when specific conditions are met. No middlemen, no paperwork, and no excuses.
Smart contracts handle almost everything on the blockchain: facilitating transactions, executing trades, managing ownership rights, automating payments, enforcing agreements, and even powering decentralized apps (dApps) — all without the need for intermediaries. Basically, if it’s happening on the blockchain, chances are a smart contract is running the show.
Smart contracts follow a straightforward “if-this-then-that” logic; if specific conditions are met, the contract executes, and when done well, they are remarkably efficient. But therein lies the major catch: smart contracts are only as good as the code they’re written with and the person writing it. Once deployed, smart contracts are often immutable, meaning any bugs or loopholes are there forever, especially if the developer renounces ownership. So if, for example, a hacker finds a flaw or the code doesn’t let token investors sell, there’s no “undo” button, just a super expensive lesson in the importance of thorough testing.
Despite the obvious risks, smart contracts are genuinely transforming the way business is done, offering automation, security, and trustless interactions, so make sure the person writing the code is as smart as the contract.
Token
As mentioned briefly, a token is not the same thing as a cryptocurrency coin, although, to the untrained eye, it might as well be. Whereas a coin represents the native currency for a specific network, a token is a digital asset built to represent a project built on an already existing network. Think Baby Doge, Pepe, Uniswap, and Aave. All of these were built on a combination of Binance Smart Chain, Ethereum Network, and the Solana Network.
Tokens follow specific standards that define their functionality within a blockchain network, ensuring compatibility across apps and wallets. Popular standards include ERC-20 for Ethereum, BEP-20 for Binance Smart Chain, and SPL for Solana, each with unique features and use cases.
There are literally millions of tokens out there, with thousands being made every single day for a variety of reasons. Unlike coins, tokens are easy and typically cheap to create and can serve all sorts of purposes, from utility and governance to speculation and, well… scams. Choose wisely.
Trenches
Just as risky (financially speaking) as real war trenches, crypto trenches refer to the high-risk, high-reward world of micro-cap tokens, low-liquidity plays, and degenerate gambling on unproven projects, usually with communities that exist solely on Telegram or Discord. This is the deep Wild West underworld of the industry, where fortunes are made overnight — and lost even faster. Unlike major player coins like Bitcoin and Ethereum, the trenches are full of tokens that are unregulated, unforgiving, and full of traps.
People in the trenches are constantly grinding — scouting new launches, jumping into stealth plays, and chasing low-cap gems before they explode. While some do find life-changing gains, most “get rekt” by rug pulls, honeypots, and tokens that never recover from dumps. It’s a war zone of scams, FOMO, and relentless speculation, where only the sharpest traders come out ahead, and usually only by the skin of their unbrushed teeth.
Some claim to love the chaos of the trenches, seeing it as the purest form of unfiltered, hardcore investing. Others take one look and stay a million miles away. Either way, one thing is certain. Whether you find glorious success, brutal failure, or a mix of both, nobody plays in the trenches forever.
Unicorn
Probably rarer than the actual creature, a unicorn in crypto is a project that typically comes out of precisely nowhere, defies the odds, skyrockets in value, and cements itself as a major player. Unlike most new tokens that crash and burn within weeks (or hours), unicorns actually deliver on their promises, sustain long-term growth, and survive multiple market cycles — a rarity in an industry where hype fades faster than a $1 firework.
The term originally comes from the startup world, where it refers to privately held companies valued at over $1 billion. In crypto, a unicorn can be a protocol, a token, or even an entire blockchain ecosystem that achieves massive adoption and dominates its niche. Although, in more recent bull runs, they have tended to be meme tokens that defy logic (fartcoin, anyone?)
Of course, for every real unicorn, there are literally thousands of ones destined to hit the dirt … hard. If a project calls itself a unicorn — apart from being painfully cringe — chances are it’s just another overhyped cash grab looking for exit liquidity, which is you.
Validators
Validators are the good ‘ole backbone of blockchain security. They ensure transactions are legit before they’re added to the public ledger. Unlike miners, who rely on computational power to validate transactions under Proof of Work (PoW) systems, validators in Proof of Stake (PoS) systems secure the network by staking their own crypto as collateral to verify and add new blocks. These heroes without capes essentially put their own money on the line to keep things swimming.
The more crypto a validator stakes, the higher their chance of being selected to confirm transactions and earn rewards. But so it can’t just become a whale-flexing contest; most PoS systems also use randomization or other mechanisms to keep things fair. Otherwise, rich validators would hoard all the rewards, and we’d basically be right back to traditional banking — minus the liquid lunches.
Fun validator fact: If a user wants their transaction to go through faster, paying higher gas fees will prioritize it. While this doesn’t directly grease validator palms, it does still ensure that those willing to pay more can jump the queue like it’s an 80s nightclub.
Wallet
Just like a real wallet — but with less leather and pictures of your kids — a crypto wallet is a digital asset storage location that’s designed to keep funds safe. There are many wallets out there and not all are created equal. Some wallets offer convenience, while others prioritize security above all else.
There are two main types. Hot wallets are connected to the internet, making them fast and convenient for trading (e.g., MetaMask and Trust Wallet). However, since they’re online, they’re also more vulnerable to hacks. Cold wallets are offline and immune to cyber threats (e.g., Ledger, Trezor), making them ideal for long-term storage but not all that convenient for everyday use.
Another important factor is self-custody wallets versus non-custodial wallets. If your crypto is sitting on a centralized exchange, it’s in a custodial wallet and technically you don’t own it. The exchange does. If that platform goes bust (hello, FTX), your funds go with it. A self-custody wallet ensures you have full control, but if you lose your key and recovery phrase, you might as well throw your holdings into a trash dump.
(Ironically, someone from the UK did exactly this and has spent the last decade trying to convince his local council to allow him to search the dump for $500 million worth of Bitcoin stored on an old hard drive).
So, there we have it, ladies and gentlemen, Our Newbie-Friendly Crypto Term Glossary! If you read it all (and if you did, you have too much time on your hands), then you probably now know more about the strange and beautiful world of crypto than you ever probably wanted or cared to know.
Still, if we can help newcomers and those exploring this space on a deeper level understand things better, then we have done our jobs. As we mentioned in the intro, make sure to bookmark this article. We will constantly add to the glossary as the industry grows and expands.
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