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Glossary of Crypto Terms Flashcards

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1
Q

What does the shorthand ‘4’ refer to in crypto?

A

It refers to ignoring FUD, fake news, and attacks, popularized by Binance CEO Changpeng ‘CZ’ Zhao.

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2
Q

What is a 51% attack in blockchain?

A

An attack where a single person or group gains control of over 50% of a blockchain’s hashing power, allowing them to block transactions and alter the blockchain.

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3
Q

How do addresses function in cryptocurrency?

A

Addresses are strings of characters used to identify cryptocurrency wallets, such as the 42-character strings in Ethereum.

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4
Q

What is address poisoning or address spoofing?

A

An attack where scammers create a similar-looking wallet address to trick users into sending funds to the wrong address.

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5
Q

What is an airdrop in crypto?

A

A distribution of cryptocurrency tokens or assets, usually for free, to promote a larger user-base.

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6
Q

How do algorithmic stablecoins maintain their value?

A

They use market incentives and mint/burn techniques instead of backing with reserve assets.

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7
Q

What is an allowlist or whitelist in the NFT space?

A

A list that guarantees a person the opportunity to mint a specific NFT to prevent bot intervention.

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8
Q

What is the meaning of the term altcoin?

A

It refers to cryptocurrencies other than Bitcoin.

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9
Q

What is APR in cryptocurrency?

A

The annual percentage rate, which is the rate of return on an investment, not including compound interest.

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10
Q

What does APY stand for?

A

Annual percentage yield, the rate of return on an investment, including compound interest.

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11
Q

What does the term ‘apes’ refer to?

A

Slang for NFTs, especially those associated with the Bored Apes Yacht Club project.

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12
Q

What is a blockchain?

A

A decentralized distributed database where entries can be added but not easily changed or erased.

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13
Q

What is a bridge in blockchain technology?

A

A method allowing different blockchains to interoperate and use tokens from one blockchain on another.

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14
Q

What is meant by the term ‘burning’ in crypto?

A

The process of permanently removing tokens from circulation by sending them to an unusable address.

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15
Q

What is a cold wallet?

A

A cryptocurrency wallet not connected to the internet, enhancing security.

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16
Q

What is a DAO?

A

A decentralized autonomous organization represented by rules encoded as a computer program.

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17
Q

What is a dApp?

A

A decentralized application running on a blockchain network.

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18
Q

What is a decentralized exchange (DEX)?

A

A peer-to-peer crypto exchange without a centralized intermediary.

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19
Q

What is DeFi?

A

Decentralized finance, which offers financial services without relying on intermediaries like banks.

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20
Q

What is a deployer in crypto?

A

The wallet address responsible for creating and deploying a smart contract.

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21
Q

What is double-spending in cryptocurrency?

A

The potential flaw where the same token is spent more than once.

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22
Q

What does DYOR stand for?

A

Do Your Own Research, a common phrase in crypto communities to encourage personal verification of information.

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23
Q

What is an ETF in crypto?

A

Exchange-traded fund, offering exposure to cryptocurrencies without direct trading.

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24
Q

What is fiat currency?

A

Government-issued legal tender, such as the U.S. dollar.

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25
Q

What is a flash loan?

A

An unsecured loan that doesn’t require collateral and is repaid within a single transaction.

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26
Q

What is FOMO in crypto?

A

Fear of Missing Out, the fear that one might regret not buying into a project.

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27
Q

What is a fork in blockchain?

A

Creating a new version of a blockchain based on an existing one, often to add features or fix bugs.

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28
Q

What is FUD?

A

Fear, Uncertainty, and Doubt, used to describe negative or dubious information about a project.

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29
Q

What are gas fees?

A

Transaction fees required to perform any transaction on the Ethereum blockchain.

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30
Q

What is a governance token?

A

A token that grants its holder voting powers in the governance of a blockchain project.

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31
Q

What is a hot wallet?

A

A cryptocurrency wallet connected to the internet for easy access to assets.

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32
Q

What is an ICO?

A

Initial Coin Offering, where a quantity of cryptocurrency is sold to investors in exchange for other cryptocurrencies or fiat.

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33
Q

What is KYC in cryptocurrency?

A

Know Your Customer, procedures to verify the identity of a person behind a crypto wallet.

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34
Q

What is a layer 2 solution?

A

A protocol built on top of a blockchain to improve transaction speeds and scalability.

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35
Q

What is a liquidity pool?

A

Funds locked in a smart contract to facilitate trading and lending in a decentralized exchange.

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36
Q

What does it mean to go long on a crypto asset?

A

Betting that the price of an asset will rise.

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37
Q

What is market capitalization in cryptocurrency?

A

The total value of all tokens in a given cryptocurrency.

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38
Q

What is a memecoin?

A

A cryptocurrency based on an internet meme or humorous theme, such as Dogecoin.

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39
Q

What is mining in cryptocurrency?

A

The process of validating blockchain transactions and receiving cryptocurrency as a reward.

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40
Q

What is minting in crypto?

A

The process of creating new tokens or NFTs on a blockchain.

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41
Q

What is a multi-signature wallet?

A

A wallet that requires multiple private keys to authorize certain transactions.

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42
Q

What is an NFT?

A

A non-fungible token, representing ownership of unique digital or physical assets stored on a blockchain.

43
Q

What is a smart contract?

A

A self-executing contract with terms directly written into code on a blockchain.

44
Q

What is staking in cryptocurrency?

A

Locking up cryptocurrency to support a blockchain network in exchange for rewards.

45
Q

What is a stablecoin?

A

A cryptocurrency designed to maintain a stable value by being pegged to another asset like a fiat currency.

46
Q

What is a Sybil attack?

A

An attack where one person creates many identities to gain disproportionate control over a system.

47
Q

What is a whale in crypto?

A

A person who holds a large proportion of assets in a particular project or cryptocurrency.

48
Q

What is a wrapped token?

A

A token pegged to the value of the original currency but able to be used on other blockchains.

49
Q

What is yield farming?

A

Lending or staking cryptocurrency in exchange for interest and other rewards.

50
Q

What is a wallet in cryptocurrency?

A

A place where the keys to access cryptocurrency and NFTs are stored, either on a physical device or software.

51
Q

What is a whitehat in crypto?

A

A security researcher who ethically identifies vulnerabilities and reports them to the project for protection.

52
Q

What is a rug pull?

A

When a development team abandons a project and takes all the investors’ money.

53
Q

What is a re-entrancy attack?

A

An attack that repeatedly withdraws funds from a smart contract until its funds are exhausted.

54
Q

What is the role of an oracle in blockchain?

A

A third-party service that provides external data to smart contracts on a blockchain.

55
Q

What is the orange pill metaphor in crypto?

A

A metaphor that represents accepting Bitcoin as the way of the future, derived from the orange Bitcoin logo.

56
Q

What is an impairment charge?

A

An accounting term describing a drastic reduction or loss in the recoverable value of an asset.

57
Q

What is the purpose of a Wells notice?

A

A letter sent by the SEC indicating plans to bring enforcement action, giving the recipient a chance to respond.

58
Q

What does TVL stand for?

A

Total value locked, representing the estimated value of assets locked in a DeFi protocol.

59
Q

What is a tumbler or mixer in cryptocurrency?

A

A service that mixes potentially identifiable or tainted cryptocurrency with others to obscure its origin.

60
Q

What is transaction slippage?

A

The difference between the price when a trade is entered and when the trade is executed.

61
Q

What is a sidechain?

A

A blockchain running alongside a main chain, often to improve scalability and transaction speeds.

62
Q

What is signing in cryptocurrency?

A

Verifying cryptographically that you are the operator of a cryptocurrency wallet sending a transaction.

63
Q

What is sats (Satoshis)?

A

The smallest unit of Bitcoin, equivalent to 0.00000001 BTC, named after Bitcoin’s creator Satoshi Nakamoto.

64
Q

What is a remote procedure call (RPC) gateway?

A

An interface allowing web clients to communicate with blockchain nodes.

65
Q

What is stacking sats?

A

Accumulating Bitcoin by buying small amounts.

66
Q

What is phishing in crypto?

A

A type of scam where an attacker sends a fraudulent message designed to trick a user into revealing sensitive information.

67
Q

What is permit phishing?

A

An attack in which the victim is tricked into signing malicious transactions that allow attackers to siphon funds from their wallet.

68
Q

What is pig butchering?

A

A scam where scammers build a fake relationship with a victim to convince them to invest in fraudulent schemes.

69
Q

What does P2E stand for in gaming?

A

Play-to-Earn, where players are rewarded with cryptocurrency or blockchain-based items.

70
Q

What is pumping and dumping?

A

Artificially inflating the price of a token, allowing insiders to sell at a high price before the price crashes.

71
Q

What is a private key in cryptocurrency?

A

A passphrase that grants access to cryptocurrency or NFTs in a wallet, and its compromise allows theft of assets.

72
Q

What is proof of stake?

A

A consensus mechanism where validators are chosen in proportion to their holdings in the associated cryptocurrency.

73
Q

What is proof of work?

A

A consensus mechanism where miners prove they’ve expended computational effort to validate transactions.

74
Q

What is a Ponzi scheme?

A

A fraudulent investment scheme where returns to earlier investors are paid using funds from new investors.

75
Q

What is a privacy coin?

A

A cryptocurrency designed to obscure the flow of money across the network, making it difficult to trace transactions.

76
Q

What is meant by mining pool?

A

A group of miners who share their processing power over a network to split the reward equally.

77
Q

What is meant by token migration?

A

The process of moving from one token to a new one, often to restore a project after a hack.

78
Q

What is meant by market cap?

A

The total value of all tokens in a cryptocurrency, though it does not necessarily reflect realizable value.

79
Q

What is a Wells notice?

A

A letter from the SEC that indicates it may bring enforcement action against a person or firm.

80
Q

What is a yield aggregator?

A

A project that maximizes yield by pooling funds and allocating them across multiple yield farms.

81
Q

What is a seed phrase?

A

A series of words that serves as a password for accessing a cryptocurrency wallet.

82
Q

What does SAFU stand for?

A

A crypto meme meaning ‘safe’, often used to reassure that funds are secure.

83
Q

What is a wash trade?

A

A practice of selling an asset between wallets owned by the same person to inflate the asset’s price or create false transaction volume.

84
Q

What is Web3?

A

A vision of the next iteration of the web, focused on decentralization and blockchain-based economics.

85
Q

What does NGMI mean in crypto?

A

Not Going to Make It, slang indicating someone won’t be successful in crypto due to bad decisions.

86
Q

What is address poisoning?

A

An attack where a scammer creates a similar-looking wallet address to trick users into sending funds to the wrong address.

87
Q

What is a bug bounty in crypto?

A

Funds or rewards given to ethical hackers who disclose software bugs privately to the project.

88
Q

What is disgorgement?

A

The act of giving up profits gained illegally on demand or by legal compulsion.

89
Q

What is a double-your-money scam?

A

A scam where victims are promised that if they send money, they will receive twice as much in return.

90
Q

What is doxing in crypto?

A

The act of revealing the real identity of pseudonymous cryptocurrency traders or project leaders.

91
Q

What is a Dutch auction in NFTs?

A

An auction where the price starts high and decreases over time, allowing buyers to decide when to purchase.

92
Q

What is cascading liquidation?

A

A series of forced liquidations caused by one leveraged position triggering others, often in a rapid price drop.

93
Q

What is freezing in cryptocurrency?

A

When an exchange or platform prevents assets from being traded, often due to illicit activity.

94
Q

What is front-running in crypto?

A

Using information from pending transactions to strategically place one’s own trades ahead of others to profit.

95
Q

What is forced liquidation?

A

When a user’s leveraged position is forcibly closed because they can no longer meet the margin requirements.

96
Q

What is a hardware wallet?

A

A type of cold wallet where cryptocurrency is stored on a physical device that is not internet-connected.

97
Q

What is an oracle problem in blockchain?

A

The challenge of ensuring accurate and reliable data is entered into a blockchain system.

98
Q

What is oracle manipulation?

A

An attack where external data provided to a blockchain is manipulated to trigger unintended behavior in smart contracts.

99
Q

What is remittance?

A

The transfer of money from someone working abroad back to their home country, often to support family.

100
Q

What is right-clicker in the NFT space?

A

A pejorative term for those who mock NFTs by suggesting one could simply right-click and save digital artwork.

101
Q

What is a miner extractable value (MEV)?

A

Profits made by miners by reordering or excluding transactions when creating blocks.

102
Q

What is a liquidity pool in DeFi?

A

A collection of funds locked in a smart contract, enabling decentralized trading, lending, and other services.

103
Q

What is a whale in crypto?

A

An individual or entity holding a large proportion of a given cryptocurrency.

104
Q

What is KYC in crypto?

A

Know Your Customer, which involves verifying the identity of customers in a business relationship.

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