ABI
Application Binary Interface. A JSON specification that describes how to interact with a smart contract — its functions, inputs, and outputs. Wallets and dApps use the ABI to encode and decode calls to on-chain contracts.
62+ essential cryptocurrency terms explained in plain language. From blockchain basics and DeFi concepts to trading jargon and security terms — everything you need to navigate crypto with confidence.
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62 terms
Application Binary Interface. A JSON specification that describes how to interact with a smart contract — its functions, inputs, and outputs. Wallets and dApps use the ABI to encode and decode calls to on-chain contracts.
A distribution of free tokens sent to wallet addresses, often used to reward early adopters, incentivize community participation, or promote a new project. Always verify airdrop legitimacy before connecting your wallet.
Automated Market Maker. A decentralized exchange mechanism that uses mathematical formulas and liquidity pools to determine token prices instead of a traditional order book. Examples include Uniswap and PancakeSwap.
All-Time High. The highest price a cryptocurrency has ever reached since its launch. ATH is a key metric for gauging a token's historical performance and market sentiment.
All-Time Low. The lowest price a cryptocurrency has ever recorded. A token trading near its ATL may signal either a buying opportunity or fundamental weakness — always do your own research.
A professional review of a smart contract's source code to identify security vulnerabilities, bugs, and potential exploits before deployment. Reputable projects publish audit reports from firms like CertiK, Hacken, or Trail of Bits.
A prolonged period of declining prices across the cryptocurrency market, typically defined as a 20%+ drop from recent highs. Bear markets test investor conviction and often last months or years.
A token standard on the BNB Chain (formerly Binance Smart Chain) that defines rules for creating and transferring tokens. BEP-20 is functionally similar to Ethereum's ERC-20 standard.
A batch of transactions permanently recorded on a blockchain. Each block contains a cryptographic hash linking it to the previous block, forming an immutable chain. Block size and time vary by network.
A distributed, immutable digital ledger that records transactions across a decentralized network of computers. Each block is cryptographically linked to the previous one, making tampering virtually impossible.
A protocol that enables transferring tokens and data between different blockchain networks. Bridges solve interoperability but have historically been targets for large exploits — always verify bridge security before use.
A sustained period of rising prices and positive market sentiment in cryptocurrency. Bull markets attract new investors and often see explosive growth in altcoins and new token launches.
Centralized Exchange. A platform operated by a company where users trade crypto through the exchange's order book. Examples include Binance, Coinbase, and Kraken. CEXs offer convenience but require trusting a third party with your funds.
The mechanism by which a decentralized network agrees on the current state of the blockchain. Common consensus algorithms include Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
A unique address on a blockchain where a smart contract is deployed. Every token has a contract address that serves as its on-chain identifier — always verify the correct contract address before interacting with a token.
A digital or virtual currency secured by cryptography that operates on a decentralized blockchain network. Bitcoin and Ethereum are the most widely known cryptocurrencies, but thousands of others exist across many chains.
Decentralized Autonomous Organization. A community-governed entity where decisions are made through token-holder voting via smart contracts, removing the need for a central authority.
Decentralized Application. A software application that runs on a blockchain network using smart contracts for its backend logic, offering censorship resistance and trustless operation.
Decentralized Exchange. A peer-to-peer marketplace that lets users trade tokens directly from their wallets without a central intermediary. DEXs use smart contracts and liquidity pools to facilitate trades.
A surveillance technique where tiny amounts of crypto (dust) are sent to many wallets to track transaction activity and de-anonymize wallet owners. Avoid interacting with unknown dust tokens in your wallet.
Do Your Own Research. A core principle in crypto reminding investors to independently verify claims about projects, teams, and tokenomics before investing — never rely solely on social media hype.
The most widely used token standard on Ethereum, defining a common set of rules for fungible tokens including transfer, approval, and balance functions. Most DeFi tokens follow the ERC-20 standard.
Fully Diluted Valuation. The theoretical market cap if all tokens in the maximum supply were in circulation at the current price. FDV helps assess the long-term dilution risk of a token.
An uncollateralized loan that must be borrowed and repaid within a single blockchain transaction. Flash loans enable arbitrage and liquidation strategies but have also been exploited in DeFi attacks.
Fear Of Missing Out. The anxiety-driven urge to buy a rapidly rising token without proper research. FOMO is one of the leading causes of losses in crypto — always analyze before you ape in.
A change to a blockchain's protocol. A soft fork is backward-compatible, while a hard fork creates a permanent divergence in the chain (e.g., Ethereum Classic was created from an Ethereum hard fork).
Fear, Uncertainty, and Doubt. Negative information or rumors spread to manipulate market sentiment and drive prices down. Always verify claims from official sources before reacting to FUD.
A unit measuring the computational effort required to execute operations on a blockchain like Ethereum. Every transaction, smart contract call, and token transfer consumes gas.
The cost paid to validators or miners for processing a blockchain transaction, calculated as gas units multiplied by the current gas price. Gas fees fluctuate based on network congestion.
A token that grants holders voting rights in a protocol's decision-making process. Governance token holders can propose and vote on changes to protocol parameters, fee structures, and treasury allocations.
A fixed-length alphanumeric string produced by a cryptographic function from input data of any size. Hashes are used to verify block integrity, secure transactions, and uniquely identify data on-chain.
A misspelling of "hold" that became crypto slang for holding onto your tokens long-term regardless of market volatility. The term originated from a 2013 Bitcoin Talk forum post.
A type of crypto scam where a token's smart contract allows buying but blocks selling, trapping investors' funds. Honeypot detection is critical before purchasing any new token.
The temporary loss of value that liquidity providers experience when the price ratio of their deposited tokens changes compared to simply holding them. The loss becomes permanent only when liquidity is withdrawn.
Know Your Customer. Identity verification processes required by regulated exchanges and financial platforms. In DeFi, KYC of project teams can signal legitimacy — anonymous teams carry higher risk.
The base blockchain network that processes and finalizes transactions on its own. Ethereum, Solana, and BNB Chain are Layer 1 blockchains. L1s provide the fundamental security and consensus layer.
A scaling solution built on top of a Layer 1 blockchain that processes transactions off-chain before settling them on the main chain. Examples include Arbitrum, Optimism, and Base on Ethereum.
A smart contract holding a pair of tokens that enables decentralized trading on a DEX. Users deposit tokens to the pool and earn trading fees in return. Pool size and depth directly affect price stability.
A user who deposits tokens into a liquidity pool on a DEX to facilitate trading. LPs earn a share of trading fees proportional to their contribution but face impermanent loss risk.
The primary, live blockchain network where real transactions with actual value take place, as opposed to a testnet used for development. A project launching on mainnet signals production readiness.
The total value of a cryptocurrency calculated by multiplying the current price by the circulating supply. Market cap is a primary metric for comparing the relative size of different tokens.
The process of using computational power to validate transactions and create new blocks on a Proof of Work blockchain. Miners compete to solve cryptographic puzzles and are rewarded with newly minted tokens.
Non-Fungible Token. A unique digital asset on a blockchain representing ownership of a specific item such as art, music, in-game items, or collectibles. Unlike fungible tokens, each NFT is one-of-a-kind.
A service that feeds real-world data (prices, weather, sports scores) to smart contracts on the blockchain. Chainlink is the most widely used oracle network. Oracle reliability is critical for DeFi protocol security.
A social engineering attack where scammers impersonate legitimate projects, exchanges, or individuals to trick victims into revealing private keys, seed phrases, or approving malicious transactions.
A market manipulation scheme where insiders artificially inflate a token's price through coordinated buying and hype, then sell their holdings at the peak — crashing the price and leaving other buyers with losses.
A crypto scam where developers abandon a project and run away with investors' funds, typically by draining the liquidity pool. Rug pulls are one of the most common scams in DeFi.
A fraudulent token created with the intent to steal investors' money through honeypot mechanics, rug pulls, or misleading information. Always verify contract code and liquidity before buying any new token.
The difference between the expected price of a trade and the actual executed price. Slippage increases with low liquidity and large trade sizes. Setting a slippage tolerance protects against unexpected price changes.
A self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met. Smart contracts power DeFi, NFTs, DAOs, and most on-chain applications.
The token standard on the Solana blockchain, equivalent to ERC-20 on Ethereum. SPL tokens benefit from Solana's high throughput and low transaction fees.
Locking up cryptocurrency in a blockchain network to support operations like transaction validation and earn rewards. Staking is the core mechanism of Proof of Stake consensus systems.
The act of exchanging one cryptocurrency for another, typically on a DEX. Swaps execute instantly via smart contracts and liquidity pools without needing a counterparty.
A separate blockchain network used by developers to test smart contracts and applications using valueless tokens before deploying to the mainnet. Popular testnets include Sepolia (Ethereum) and Devnet (Solana).
A digital asset created on an existing blockchain using a token standard (e.g., ERC-20, BEP-20). Unlike coins that have their own blockchain, tokens are built on platforms like Ethereum or Solana.
The permanent removal of tokens from circulation by sending them to an inaccessible wallet address. Burns reduce total supply and can increase scarcity, but are sometimes used deceptively to appear deflationary.
Total Value Locked. The total amount of cryptocurrency deposited in a DeFi protocol's smart contracts. TVL is a key indicator of a protocol's adoption, trust, and overall health.
A node operator in a Proof of Stake network who stakes tokens and is responsible for verifying transactions and proposing new blocks. Validators earn staking rewards but risk slashing penalties for malicious behavior.
The total amount of a cryptocurrency traded within a specific time period, usually 24 hours. Volume indicates market activity and liquidity — sudden volume spikes can signal manipulation or genuine interest.
A software or hardware application that stores your private keys and lets you send, receive, and manage cryptocurrency. Wallets can be custodial (exchange-managed) or non-custodial (you control the keys).
An individual or entity holding a very large amount of cryptocurrency, capable of moving markets with a single trade. Tracking whale wallets can provide early signals of significant price movements.
A DeFi strategy where users provide liquidity or stake tokens across multiple protocols to maximize returns. Yield farming can be highly profitable but carries risks including impermanent loss, smart contract exploits, and rug pulls.
Now that you know the terms, use Coinibi's free tools to analyze tokens, detect scams, and track smart money in real time.