Common Crypto, DeFi & Networking Terms
The lingo, explained in plain English. Search the words and acronyms you hear in crypto, DeFi, investing and network marketing.
A Few Concepts at a Glance
Some terms make more sense when you can see the idea.
The Glossary
Short definitions. Plain English. No unnecessary jargon.
Active
Meeting the activity or qualification requirements needed to receive certain benefits, commissions or rank credit.
AML β Anti-Money Laundering
Rules and procedures designed to detect and prevent money laundering and other illegal financial activity.
APR β Annual Percentage Rate
An annualized rate of return or cost that normally does not include the effect of compounding.
APY β Annual Percentage Yield
An annualized yield that includes the effect of compounding.
ATH β All-Time High
The highest recorded market price an asset has reached.
ATL β All-Time Low
The lowest recorded market price an asset has reached.
Bag / Bag Holder
A βbagβ means someone's holdings. A bag holder often refers to someone left holding an asset after its value has fallen dramatically.
Bear / Bearish
Expecting an asset or market to decline in price. A prolonged falling market is commonly called a bear market.
Blockchain
A digital ledger that records transactions across a network of computers according to the rules of that blockchain.
Bonus
Additional compensation earned after meeting specific requirements established by a compensation plan.
Bridge
A service or protocol used to move or represent assets and data between different blockchain networks.
Builder
A member actively developing and supporting a network organization rather than participating only as a customer or user.
Bull / Bullish
Expecting an asset or market to rise in price. A prolonged rising market is commonly called a bull market.
Capital / Principal
The original amount of money committed, deposited or invested before gains or losses.
CeFi β Centralized Finance
Crypto-related financial services operated by a centralized company or organization rather than solely through decentralized protocols.
CEX β Centralized Exchange
A cryptocurrency exchange operated by a company that holds or processes user assets and trades.
Circulating Supply
The amount of a cryptocurrency or token currently considered available in the market.
Closing
Helping a prospect reach a decision after receiving the information needed to evaluate an opportunity. It should not mean pressuring someone to join.
Cold Wallet
A wallet designed to keep private keys offline or isolated from internet-connected devices, usually for greater security.
Coin
A cryptocurrency native to its own blockchain, such as ETH on Ethereum.
Commission
Compensation earned according to the rules of a company's compensation plan.
Compounding
Leaving earnings in an account so future gains can potentially be earned on both the original capital and previous earnings.
Cryptocurrency / Crypto
A digital asset that uses blockchain or related cryptographic technology to record ownership and transactions.
Custodial Wallet
A wallet where another company or service controls the private keys on the user's behalf.
DAO β Decentralized Autonomous Organization
An organization or community that uses blockchain-based rules and governance mechanisms to coordinate decisions.
dApp β Decentralized Application
An application that interacts with blockchain networks or smart contracts.
DeFi β Decentralized Finance
Blockchain-based financial applications and services that can operate through smart contracts instead of relying entirely on traditional financial intermediaries.
Degen
Crypto slang for someone who participates in highly speculative or unusually risky trades and projects.
DEX β Decentralized Exchange
A blockchain-based exchange where trades generally occur through smart contracts rather than a centralized exchange operator.
Diamond Hands π
Slang for someone who continues holding an asset despite major volatility or market pressure.
Direct / Personally Sponsored
A member or customer personally introduced or enrolled by you.
Downline
The members located beneath you within a network marketing organization.
Dump
A rapid sell-off of an asset that can cause its market price to fall sharply.
DYOR β Do Your Own Research
Independently verify claims and understand an opportunity rather than relying only on a sponsor, influencer, friend or promoter.
ERC-20
A widely used token standard on the Ethereum network.
Exit Scam
A fraud where project operators collect money or assets and then disappear, shut down operations or prevent users from accessing their funds.
FOMO β Fear of Missing Out
The urge to buy, join or invest mainly because other people appear to be benefiting and you are afraid of missing the opportunity.
FUD β Fear, Uncertainty & Doubt
Information or rumors that create fear or uncertainty around a project or market. Legitimate questions, documented facts and due diligence should not automatically be dismissed as FUD.
Gas / Gas Fee
A fee paid to process a blockchain transaction or execute activity on a blockchain network.
Governance Token
A token that may give holders voting or participation rights in decisions involving a blockchain project or protocol.
GV β Group Volume
Qualifying business volume generated by a member's organization. Some plans use terms such as Team Volume or TV instead.
HODL
Crypto slang for holding an asset rather than selling during market fluctuations. The misspelling of βholdβ became part of crypto culture.
Hot Wallet
A cryptocurrency wallet connected to the internet, making transactions convenient but potentially exposing it to more online security risks.
Impermanent Loss
A potential loss of value experienced by liquidity providers when the prices of assets inside a liquidity pool change relative to each other.
Jurisdiction
The country, state or legal territory whose laws and regulations apply to a company, transaction or financial service.
KYC β Know Your Customer
An identity-verification process commonly used by financial institutions, exchanges and other regulated services.
Layer 1 β L1
A base blockchain network such as Ethereum, Solana or other independent blockchain systems.
Layer 2 β L2
A system built on or alongside a base blockchain to improve speed, cost or scalability while relying on the underlying network in some way.
Leg / Line
A separate branch of a network marketing organization growing beneath a member.
License
Formal authorization from a regulator or government authority to conduct specific activities. The important question is what activities the license actually covers.
Liquidity
How easily an asset can be bought or sold without causing a significant change in its market price.
Liquidity Pool
Crypto assets deposited into a smart contract so users can trade, borrow or perform other DeFi activities.
Lockup / Lock-In Period
A period during which funds, tokens or other assets cannot be freely sold, transferred or withdrawn.
LTV β Loan-to-Value
A ratio comparing the amount borrowed with the value of the collateral securing the loan.
Market Cap
The approximate market value of a cryptocurrency, generally calculated by multiplying its price by circulating supply.
Matching Bonus
A compensation-plan bonus commonly calculated using qualifying commissions or production generated by other members in an organization.
Mining
A process used by certain blockchains where computing resources help validate transactions and secure the network in exchange for possible rewards.
Moon / βTo the Moonβ π
Slang expressing an expectation or hope that the price of an asset will rise dramatically.
Multisig β Multi-Signature
A wallet or account setup requiring more than one authorized signature to approve certain transactions.
Network
The blockchain used for a transaction, such as Ethereum, TRON, Solana or BNB Chain. Sending assets on the wrong network can result in loss of access.
NFA β Not Financial Advice
A common disclaimer used when discussing investments. Writing βNFAβ does not make false, misleading or irresponsible claims acceptable.
NFT β Non-Fungible Token
A blockchain-based token designed to represent a distinct digital item, right or record rather than interchangeable units of the same asset.
NGMI β Not Gonna Make It
Crypto-community slang suggesting someone is making a poor decision or missing an opportunity.
Node
A computer or device participating in a blockchain network by storing, validating or relaying network information, depending on the blockchain.
Non-Custodial Wallet
A wallet where the user controls the private keys and therefore has direct responsibility for protecting access to the assets.
Offshore
A company, account, broker, fund or financial service established or operated in a jurisdiction outside the country where a customer lives. Offshore does not automatically mean illegal or fraudulent, but regulations, protections, taxes and recovery options may differ.
Onboarding
The process of helping a new member understand the product, service, tools, procedures and next steps after joining.
Paper Hands
Slang for someone who sells quickly when an asset falls in price or uncertainty increases.
Passive Income
Income requiring relatively little ongoing activity after setup. Passive does not mean guaranteed, risk-free or permanent.
Placement
Where a new member is positioned inside a network marketing organization's structure.
Ponzi Scheme
A fraudulent arrangement where money from newer participants is used substantially to pay earlier participants while being presented as legitimate investment profits.
Private Key
A secret cryptographic credential used to control assets in a blockchain wallet. Anyone who obtains it may be able to control the wallet.
Profit / Gain
The amount earned above the original cost or capital, before or after expenses depending on how the calculation is presented.
Prospect
Someone who is learning about a product, service or opportunity but has not yet made a decision to participate.
Public Address / Wallet Address
A blockchain address used to receive cryptocurrency. It can generally be shared, unlike a private key or seed phrase.
Pump
A rapid increase in the price of an asset, sometimes caused by legitimate demand and sometimes by speculation or coordinated promotion.
Pump & Dump
A scheme where promoters hype or manipulate an asset upward and then sell their holdings into the increased demand, often leaving later buyers with losses.
PV β Personal Volume
Qualifying business volume generated personally by a member, according to a compensation plan.
Rank
A recognition or compensation-plan level achieved after meeting specific qualification requirements.
Rank Advancement / Promotion
Moving to a higher network marketing rank after satisfying the required qualifications.
Recovery Phrase
A sequence of words used to restore access to many cryptocurrency wallets. Anyone with the phrase may be able to control the wallet.
Referral Income
Compensation earned from qualifying personally referred business according to a compensation plan.
Registration
A company's formal filing or legal presence in a jurisdiction. Registration by itself does not necessarily mean the company is licensed to conduct every type of financial activity.
Reinvestment
Putting earnings or distributions back into an investment or strategy rather than withdrawing them.
Rekt
Crypto slang for suffering a major trading or investment loss.
Residual Income
Income that may continue from ongoing qualifying activity instead of being generated only by a single transaction.
ROI β Return on Investment
A measure comparing an investment's gain or loss with the amount originally invested.
Rug Pull
A crypto scam or project failure where insiders drain liquidity, abandon the project or otherwise leave participants holding assets that lose much or all of their value.
Seed Phrase
A set of recovery words capable of restoring access to many crypto wallets. Never send it to anyone asking for verification or technical support.
Shill / Shilling
Aggressively promoting a token, project or investment, especially when the promoter minimizes risks or has an undisclosed financial interest.
Slippage
The difference between the expected price of a trade and the price at which the transaction actually executes.
Smart Contract
Code deployed on a blockchain that automatically performs programmed actions when its conditions are met.
Sponsor
The person who personally introduced or enrolled another member into a network marketing organization.
Stablecoin
A cryptocurrency designed to maintain a relatively stable value, commonly by referencing a currency such as the U.S. dollar.
Staking
Committing tokens to support a blockchain or protocol and potentially receive rewards. Projects sometimes use the word more loosely, so always check how the specific program works.
Swap
Exchanging one cryptocurrency or token for another, commonly using an exchange or decentralized protocol.
Team Volume
Qualifying business volume generated by a member's organization. Exact calculations vary by compensation plan.
Token
A digital asset created using an existing blockchain or blockchain ecosystem.
Tokenomics
The economic structure of a token, including supply, distribution, utility, incentives, emissions, burns and vesting.
Total Supply
The total number of tokens currently created or existing under a project's supply rules, depending on how the project reports supply.
TRC-20
A token standard used on the TRON blockchain. USDT is commonly transferred using TRC-20.
TXID / Transaction Hash
A unique identifier used to locate and verify a blockchain transaction.
TVL β Total Value Locked
The estimated value of assets deposited in a DeFi protocol or collection of protocols.
Upline
The sponsors and organizational members positioned above you within a network marketing structure.
USDC
A U.S. dollar-referenced stablecoin commonly used for crypto payments, trading and transfers.
USDT β Tether
A widely used U.S. dollar-referenced stablecoin available on several blockchain networks.
Vesting
A schedule that gradually releases tokens, ownership rights, rewards or other benefits over time.
Volume
A measurement used by compensation plans to determine qualification, rank or commissions. It may differ from the actual dollar amount of a purchase or investment.
WAGMI β We're All Gonna Make It
Crypto-community slang expressing optimism about a project, community or market.
Wallet
A tool used to manage the cryptographic keys that control access to cryptocurrency and blockchain assets.
Whale π
A person, organization or wallet holding a very large amount of a particular cryptocurrency or asset.
Whitepaper
A document explaining a project's concept, technology, token structure or objectives. A professional-looking whitepaper is not proof that a project is legitimate.
Withdrawal
Moving money, cryptocurrency or other assets out of an account, wallet, platform or investment.
Withdrawal Fee
A fee charged when assets are removed from an account or platform.
Wrapped Token
A token designed to represent another asset in a format compatible with a particular blockchain or DeFi protocol.
Yield
The income or return generated by an asset, investment or financial strategy over a period of time.
Yield Farming
Using crypto assets in DeFi protocols to pursue yield, incentives or token rewards.
Try another word, acronym or category.
Knowing the terminology does not make an investment, platform or crypto project safe. Understand what the term means, verify how it applies to the specific opportunity, and do your own due diligence before making a financial decision.