Crypto Terminology

Common terms and acronyms

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Airdrop

Distribution of NFT's for free, which will go right into someone’s wallet. A giveaway.

AMA

‘Ask me anything’. Some projects offer AMA sessions to the community, where once a week they might discuss the project updates and take questions.

Bearish

Someone who is looking at the market situation in a loss position.

Bear market

The condition of a market where there are prolonged price declines, prompting people to sell their assets/positions.

Bullish

Someone who is looking at the market situation in a winning position.

Bull market

The condition of a market in which prices are rising or are expected to rise, prompting many people to buy or join the market.

Bluechip
Denomination for NFT projects that are market leaders, well established and are considered a solid investment. They are known to weather downturns and are very adaptive. E.g. CryptoPunks, BAYC, XCOPY.

Blockchain 

A digital ledger of transactions that is duplicated and distributed across an entire decentralised network of computer systems. It makes use of cryptographic technology as a security mechanism.

Burn NFT
To remove an NFT from the blockchain, making the overall supply even more limited. 

Cold wallet / Hardware wallet / “Offline wallet”
A cryptocurrency wallet that cannot be compromised because it is not connected to the Internet. It is a physical device that stores the user's address and private key offline, which gives access to the assets on the blockchain.

Derivative
Projects that are inspired by other famous, established collections. The idea is that they are models that have worked before. E.g. HAPEBEAST, Ape Gang (inspired by BAYC).‍

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Dev 
Skilled professional that has the ability to understand the NFT market and can build projects using blockchain and smart contracts technology.

Diamond hands

A long-term holder. A retail investor that is holding onto an NFT/coin no matter how the market situation is looking like. 

Flip / Flipping

Used for NFTs. To buy one at a lower price and then sell it fairly quickly for a higher profit margin.

Floor / Floor price

A term that originates from commodity trading and refers to the lowest price, rather than the average price, at which an NFT can be bought.

Floor sweep

When a ‘whale’ purchases all the NFTs from a collection listed at the lowest price.

FUD

Fear uncertainty and doubt. Sometimes used as a tactic to make people hesitate and create suspicions about a project.

Fungible

A property of items or assets that are equal in commercial value, have identical properties and are interchangeable. (e.g. - dollar bills, cryptocurrencies, common shares)

Gas / Gas fee

Refers to the amount of energy used in a network to process a transaction. It is charged as a transaction fee, and the cost varies depending on the network’s availability.