Interesting facts about the world of cryptocurrencies.
Imagine being able to send money to anyone, anywhere, anytime – without banks, fees, or bureaucracy. It sounds like fantasy, but that’s exactly the opportunity cryptocurrencies offer. As of 2025, cryptocurrency market capitalization exceeds $1 trillion, and the number of users is growing daily.
What is cryptocurrency?
Cryptocurrency is digital money protected by cryptography. They exist exclusively on the internet and are based on blockchain technology. The most famous name among cryptocurrencies is bitcoin. But there are other popular currencies such as Ethereum, Litecoin, Ripple and many others.
How do cryptocurrencies work?
Cryptocurrencies are based on blockchain technology – a chain of blocks, each containing transaction information. This information is encrypted and distributed among many computers around the world. This makes it impossible for anyone to tamper with the data or change the transaction history.
Basic terms of the cryptocurrency world
To better understand the topic, let’s understand the cryptocurrency slang and basic terms. Familiarizing yourself with the list of terms will make it easier for you to understand and interact with the cryptocurrency community. We recommend that you bookmark this page so that you can return to this useful glossary as needed.
Allocation/Allocation
The amount of money that a project allocates for the purchase of assets by participants, usually at a favorable price in the early stages of the project’s development.
Altcoin
Any cryptocurrencies other than Bitcoin. All other digital coins are considered alternatives to Bitcoin, hence the name “altcoin”.
Bluechip
The most well-known, stable and reliable crypto assets on the market. Etherium is an example.
Bull Market
A period when the value of most cryptocurrencies is rising, characterized by an overall positive mood and confidence in the future development of the market.
Gem
A project or asset that has high potential and could generate significant profits in the future.
Degen
Investors who make impulsive decisions without proper analysis and deep understanding of the market situation.
DeFi/DEX
Decentralized financial technologies that allow you to manage your assets without intermediaries such as banks or government agencies.
DYOR
An abbreviation meaning “do your own research”. A call to research projects independently and think critically about the information obtained.
Whale
Large players in the market with sufficient resources to influence the rates of cryptocurrencies.
Cutlet
A large amount of money, often used to describe large investments (“bought the whole kitty”).
Cryptan
A person involved in cryptocurrencies and active in the crypto world.
CryptoWinter
A prolonged stage of a bear market characterized by a prolonged decline in cryptocurrency prices.
KYC
An identity verification process that involves providing personal information and documents such as a passport.
Bear market
The stage when prices in most markets are declining or stagnant.
Minions/Workers
People who perform routine tasks for a fee, often hired to do monotonous work.
NFA
An acronym that emphasizes the importance of independent decision-making and taking advice critically (“non-financial advice”).
Rug Pull
A type of fraud in which project organizers collect investors’ funds and disappear, leaving them with nothing.
Roadmap
A project development plan that includes goals and objectives for a specific time period.
Rekt
The loss of a significant amount of money due to unfavorable circumstances, such as fraud or a sharp drop in rates.
Stable
Cryptocurrencies whose value is tied to traditional currencies, such as the U.S. dollar (1 Stable = $1).
Fiat
Traditional money issued by government banks, such as rubles, dollars, or euros.
Flip
Short-term speculation involving the rapid purchase and subsequent sale of an asset for profit.
Floor
The lowest possible selling price of a commodity or asset.
Fomo
Fear of missing out on profits, leading to rash market action, often caused by an observed rise in asset values.
Hodl
A term derived from the word “hold”, symbolizing the long-term holding of assets despite fluctuations in their value.
Hamster
A novice or inexperienced market participant prone to making hasty and emotional decisions.
Shill
To actively promote or recommend a project or asset, sometimes without proper justification.
Citcoin
A derogatory name for cryptocurrencies that are considered useless or empty projects with no real value.
Blockchain
It is a decentralized database consisting of a chain of blocks. Each block contains transaction information that is verified and added to the network. Blockchain makes cryptocurrencies transparent and fraud-proof.
Mining
The process of creating new units of cryptocurrency by solving complex mathematical problems. Miners use the processing power of their computers to verify transactions and add new units to the blockchain. They are rewarded for their work in the form of new cryptocurrency.
Wallet
A software or device that allows you to store, receive and send cryptocurrencies. Wallets are hot (online) and cold (offline).
Address
A unique string of characters used to send and receive cryptocurrencies. Think of it like a bank account number, only much longer and more complex.
Transaction
The transfer of cryptocurrency from one address to another. All transactions are recorded in the blockchain and become part of public history.
Smart Contract
A computer program that automatically fulfills the terms of a contract between parties. For example, smart contracts are used to automatically pay money when certain conditions are met.
Tokens
Digital assets issued on existing platforms such as Ethereum. Tokens can represent shares in a company, rights to goods or services, virtual items, and more.
Decentralization
Absence of a central governing body. In the case of cryptocurrencies, this means that no government or company controls the system. All participants in the network are equal.
NFT (Non-Fungible Token)
A non-replaceable token that represents a unique digital asset. NFTs can be used to prove ownership of artwork, music, collectibles, and even real estate.
What is the difference between bitcoin and altcoins
Bitcoin is the first and most famous cryptocurrency. The other cryptocurrencies are called altcoins. Altcoins often offer new features or improvements over bitcoin. For example, Ethereum allows you to create smart contracts and Ripple is used for fast international transfers.
Categories of Cryptocurrencies
Here’s a breakdown of the major types:
| Type | Example | Purpose |
|---|---|---|
| Payment | Bitcoin, Litecoin | Everyday transactions |
| Platform | Ethereum, Cardano | Developing applications and smart contracts |
| Stablecoin | Tether, USDC | Pegged to fiat currencies like the U.S. dollar |
| Utility Token | BNB, UNI | Providing ecosystem-specific utilities |
Getting Started With Crypto
- Pick a Wallet: Options include online services, smartphone apps, and physical devices.
- Purchase Crypto: Use exchanges, ATMs, or peer-to-peer platforms.
- Stay Safe: Always protect your wallet credentials.
Risks & Rewards of Cryptocurrency
Benefits:
- Instant global transfers.
- No middlemen.
- Complete transparency.
Risks:
- Volatile prices.
- Hacking threats.
- Losing access to your wallet.
Final Thoughts
Now you know the basics of the cryptocurrency world! This is just the tip of the iceberg, but now you’re ready to continue your journey into the world of digital assets. Remember, it’s important to stay on top of the news and keep up with technology, because the crypto market is constantly changing.
