Glossary
Terms and definitions for some of the vocabulary native to the NFT / Crypto space.
Alpha - Alpha is information on an investment opportunity which outperforms the rest of the market's movement as a whole. Finding alpha is the key to making the most lucrative returns in the crypto and NFT market.
Altcoin - An altcoin is any cryptocurrency which is not Bitcoin. Some individuals do not consider Ethereum to be an altcoin, so by their definition an altcoin is any cryptocurrency which is not Bitcoin or Ethereum.
Cold wallet/Cold storage/Hardware wallet - This is a method to store your crypto and NFT assets completely offline, usually aided by a physical device which looks like a USB drive. This is the most secure method to protect your assets from hacking and theft.
DeFi - DeFi (Decentralized Finance) is the ability to make financial transactions without the need for an intermediary such as a bank, government, or other financial institution.
Decentralization - In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network.
Decentralized Exchange (DEX)/Centralized Exchange (CEX) - A cryptocurrency exchange is a marketplace where users can buy and sell cryptocurrency. A CEX is a centralized exchange, a DEX is a decentralized exchange.
Farming (Yield Farming) - Yield farming is staking or lending cryptocurrency to receive interest. Most commonly, yield farmers provide liquidity to a Decentralized Exchange (DEX). This liquidity allows users to transact on the DEX. The DEX charges a transaction fee for all trades, a percentage of which goes to the yield farmer as a reward for providing liquidity to the liquidity pool.
Gas fees - All transactions on the Ethereum blockchain require a gas fee to execute. These gas fees pay the miners for the computational power necessary to process the transaction. Gas fees are not fixed, they are dependent on the type of transaction being executed, and on both the price of Ether and the activity load of the Ethereum network.
Hot wallet - This is a software based method to storing crypto and NFT assets online. While more convenient, this method of storing assets is at much higher risk of being hacked or stolen.
Market Capitalization (Market Cap) - Market cap refers to the total value of all coins combined for a protocol. You can determine a coin's market cap by multiplying the circulating supply of coins by the current price of a coin. Generally speaking, high market cap coins are less volatile-with coins becoming increasingly more volatile the lower the market cap.
Mint: Minting an NFT refers to the process of creating a new NFT on the blockchain. Minting an NFT project means you are getting in as early as possible, which can be profitable should the project gain momentum and value over time.
NFT - An NFT (non-fungible token) is a non-interchangeable unit of data stored on a blockchain. Because each token is uniquely identifiable, NFTs differ from cryptocurrencies, such as Bitcoin. NFTs can be represented as any sort of digital information, including photo, video, and audio. Because NFTs can be traded in an open market, some have accrued significant monetary value. These trading opportunities have provided an avenue for savvy traders to capture significant profit.
Presale/Whitelist/Allow-list - Many NFT projects require you to be on the "presale list" in order to have access to minting an NFT, either early or even at all. If you are not on the presale list, you likely need to purchase the NFT once it hits the open market, likely at a higher price than the mint price.
Private Key - A private key approves transactions and proves ownership of a crypto wallet. If you lose your private key, you will be unable to recover your wallet. If you share (intentionally or not) your private key with anybody else, they will have full access to your funds.
Public Key/Wallet Address - Your public key, or "wallet address", is a unique string of characters used to identity your specific address. This address is necessary to know where to send or withdraw funds from. This can be freely shared with others so they can send you assets.
Reflections - Reflecting is the mechanism ACYC uses to distribute profit to $ACYC holders. Reflections are received by holders in the form of $ACYC tokens, and are automatically received without the need for holders to stake $ACYC or claim the reflections.
Staking - Staking is a process that involves pledging cryptocurrency to help a Proof of Stake blockchain confirm transactions. The blockchain rewards stakers for this process, making for an opportunity for stakers to earn passive income.
Tokenomics - This refers to a number of economic factors within a token's ecosystem. Market capitalization, token supply, token demand, and token distribution are all factors that make up the "tokenomics" of a coin. Poorly designed tokenomics can suppress the value and success of a cryptocurrency, whereas well-designed tokenomics are pivotal to the long term success of a coin.
Last modified 1yr ago