20 cryptocurrency and NFT terms you need to know

AhwJ...v7DG
25 May 2022
29

If you're inexperienced with NFTS, some terms may be confusing.

I'm a full-time YouTuber focused on demystifying all things Web3, but when I was first learning about the Web3 space, it seemed like people were speaking a different language.

Sharding? Rugpull? WAGMI? The jargon was a lot to absorb.

So after scouring the internet for hours looking for answers, I pulled together a list of Web3 definitions so that even the most tech-averse folks can understand.

Here are 20 terms you should know 👉

1. Airdrop: To send someone free crypto things such as NFTs or tokens. This has nothing to do with Apple's airdrop feature. Sometimes airdropping gives NFT holders something special. But usually airdropping is for giveaways or a sketchy marketing tactic.

2. Bearish: The belief that a project is going to lose value over time.

3. Bullish: The belief that a project is going to gain value over time.

4. Blockchain: A type of database. Information is stored in groups (blocks) that can't be changed after they're created. The entire group of groups (chain of blocks = blockchain) is copied across many different computers so the data is public and safe.

5. Crypto wallet: A place (app or physical item) where you can keep your crypto holdings (NFTs, Ethereum, etc.) A wallet is necessary to buy things (NFTs) with crypto. Some popular wallets are Coinbase Wallet and MetaMask.

6. Crypto wallet address: A public address you can give people so they can send crypto/NFTs to you. Usually it's a long alphanumeric string, but you can also purchase a shorter domain name if you want. For example, mine is aprilynne.eth.

7. Decentralized: Power is spread across many people instead of a through a single person.

8. DAO: Short for "decentralized autonomous organization." This group's members votes are automatically tallied and used to decide on things. Sometimes actions are automatically taken. The code for all automatic actions are publicly available so everyone can make sure things are run correctly.

9. DAPP: Short for "decentralized application," it's an app built on the blockchain. Instead of data being collected/manipulated/sold by Big Brother (*cough, cough, Meta*), all data is stored publicly on the blockchain.

10. DEFI: Short for "decentralized finance." It basically means banking but without the fees/approvals for transactions and loans. You can lend, trade, and borrow crypto through public code that automatically stores/verifies transactions.

11. Floor price: The lowest market price for NFTs within a collection. Often used as a rule-of-thumb measure of the value of an NFT project.

12. Floor sweep: When someone buys all of the NFTs of a collection at the floor price. Buyers can do this because they believe in the project. Sellers can do this to artificially inflate the floor price of the NFT collection.

13. FOMO: Short for "fear of missing out." It's an emotional factor that drives someone to irrationally buy into a project.

14. FUD: Short for "fear, uncertainty, doubt" and is used to express concerns about the legitimacy/value of an NFT project. For example, someone can come into an NFT Discord server and spread FUD.

15. Gas fee: Basically a transaction fee for crypto (Ethereum) transactions. The busier the Ethereum network, the more expensive the gas fee. This is one of the most complained-about feature of the Ethereum network.

16. Marketplace: A platform for buying and selling NFTs. Popular NFT marketplaces include OpenSea, Rarible, and Magic Eden.

17. Metaverse: A virtual world where you have an avatar and you can buy things, play games, and even build businesses. Many different companies (*cough, cough, Meta*) are trying to make a metaverse that "wins" and will become mainstream.

18. Smart contract: Public code attached to an NFT that runs by itself. Usually how the utility of an NFT is enforced. Useful because you don't have to trust the individual behind a project — you just need to trust the code that you can see and verify yourself.

19. Staking: A way to earn passive income by locking up your NFTs on the blockchain for a period of time. You can earn rewards for this in the form of crypto.

20. Utility: Underlying value of an NFT. Utility is the perks, products, services, benefits, or rights associated with owning an NFT. For example, some NFTS come with 30% off of future products, membership to a private fund, access to an online course, access to private events, or copyright rights to a brand.



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2 Comments

B
Napes
It is great to have this glossary of key terms. Thank you
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