2FA (2 Factor Authentication)
2FA is a double-layer security measure commonly used by crypto exchanges. To log in, users must enter both a password and a time-sensitive code (e.g., from Google Authenticator).
51% Attack
A 51% attack occurs when a group of miners controls over 50% of a blockchain’s hash rate, enabling them to manipulate transactions—such as double-spending or blocking confirmations.
Abstract
An abstract is a concise summary of a technical document, often found at the beginning of a whitepaper.
Account
An account consists of a username and password for accessing websites or systems. In crypto, a private key often suffices for wallet access.
Address
A crypto address is a unique alphanumeric string (similar to a bank account number) used to send/receive transactions on a blockchain.
Airdrop
An airdrop distributes free coins to users, usually in exchange for minor tasks (e.g., social media engagement). Beware of scams—research before participating.
Altcoin
Any cryptocurrency launched after Bitcoin (e.g., Ethereum, Litecoin).
AMA (Ask Me Anything)
A live or written Q&A session where crypto teams address community questions.
APY (Annual Percentage Yield)
The total return on an interest-bearing asset, accounting for compounding. For example, 5% APY turns $100 into $105 after one year.
Bear Market
A prolonged period of declining prices (opposite of bull market).
Blockchain
A decentralized digital ledger recording transactions across a network of computers. Learn more: Blockchain Explained.
DeFi (Decentralized Finance)
Financial tools (e.g., lending, trading) built on blockchains, eliminating intermediaries like banks.
FOMO (Fear of Missing Out)
The anxiety-driven urge to invest in a rapidly rising asset, often leading to impulsive decisions.
Gas Fee
The cost to execute transactions on blockchains like Ethereum, paid in native tokens (e.g., ETH).
HODL
A misspelling of "hold," symbolizing long-term investment despite market volatility.
ICO (Initial Coin Offering)
A fundraising method where new tokens are sold to early investors. High risk—research thoroughly!
NFT (Non-Fungible Token)
Unique digital assets representing ownership of art, collectibles, or real-world items.
PoS (Proof of Stake)
A consensus mechanism where validators stake coins to secure the network, reducing energy use vs. PoW.
Stablecoin
A cryptocurrency pegged to a stable asset (e.g., USD) to minimize volatility. Examples: USDT, USDC.
Whitepaper
A technical document outlining a crypto project’s purpose, technology, and roadmap.
Yield Farming
Earning passive income by lending or staking crypto in DeFi protocols.
FAQ
Q: What’s the difference between a coin and a token?
A: Coins (e.g., Bitcoin) operate on their own blockchains, while tokens (e.g., ERC-20) rely on existing networks like Ethereum.
Q: How do I store crypto safely?
A: Use hardware wallets (e.g., Ledger) or cold storage for long-term holdings.
Q: What’s a soft fork vs. a hard fork?
A: Soft forks are backward-compatible upgrades; hard forks create irreversible splits (e.g., Bitcoin Cash).
This dictionary covers 250+ terms—bookmark it for quick reference! 🚀