MOMMA'S GLOSSARY
A snapshot of all important terms you’ll need to know along your crypto journey. How many of these terms did you already know?
Altcoin
Any cryptocurrency other than Bitcoin. The term “altcoin” is short for “alternative coin”.
Liquidity: The degree to which a particular asset can be quickly bought or sold without affecting the general stability of its price.
Bitcoin
The first decentralized cryptocurrency, and the largest by market capitalization. Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto.
Blockchain
A decentralized and distributed digital ledger that records transactions across many computers so that any involved record cannot be altered retroactively, without the alteration of all subsequent blocks.
Cryptocurrency
A digital or virtual form of currency that uses cryptography for security. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability.
Crypto Exchange
A platform that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies.
Gas Fees: Fees that are paid to the miners who validate transactions on a blockchain network. In the Ethereum network, gas fees are paid in Ether (ETH).
Crypto Wallet
A digital wallet that allows users to store and manage their cryptocurrencies. Wallets can be hardware-based or software-based.
Decentralized Finance
A blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments.
Ethereum
An open-source, blockchain-based platform used to create and share business, personal, and governmental services. It is also the blockchain network that most NFTs are built on.
Minting
The process of creating a new digital asset on the blockchain. In the context of NFTs, minting involves creating a new, unique digital asset and validating its existence on the blockchain.
Market Cap
The total value held in a cryptocurrency. It is calculated by multiplying the total supply of coins by the current price of an individual unit.
NFT (Non-Fungible Token)
A type of digital asset that represents ownership of a unique item or piece of content, using blockchain technology.
Proof of Work (PoW)
A consensus algorithm used in blockchain networks where miners solve complex mathematical problems to validate transactions and create new blocks.
Proof of Stake (PoS)
A consensus algorithm where the creator of a new block is chosen based on their stake or ownership of tokens in a cryptocurrency.
Smart Contract
A self-executing contract with the terms of the agreement directly written into code. They allow trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.
