Just getting into crypto and Web3?It can feel like learning a new language.
Let’s decode the essential crypto terms you NEED to understand before diving in!
1️⃣ Blockchain
A digital ledger that records all transactions across a network.
Think of it like a transparent spreadsheet that no one can edit without consensus.
It’s the foundation of all things crypto.
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2️⃣ Wallet
Your crypto "bank account."
It stores your private keys and lets you send, receive, or hold digital assets.
Types include:
Hot wallets (online, e.g., MetaMask)
Cold wallets (offline, e.g., Ledger)
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3️⃣ Private Key & Seed Phrase
Your private key is the secret that proves ownership of your crypto.
Your seed phrase is a human-readable backup of that key (usually 12–24 words).
Lose it = lose your funds.
NEVER share it. EVER.
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4️⃣ Decentralization
No central authority. No middleman.
In decentralized systems, users control the network together.
That’s what makes crypto powerful—no single party is in charge.
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5️⃣ Smart Contract
Code that runs on the blockchain and executes automatically when conditions are met.
Use cases?
DeFi, NFTs, token swaps, DAOs, and more.
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6️⃣ Gas Fees
The cost of making transactions on a blockchain.
On Ethereum, gas fees go to miners/validators for processing your transaction.
Sometimes cheap. Sometimes painful. 😅
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7️⃣ DeFi (Decentralized Finance)
Banking without banks.
DeFi apps let you:
Lend & borrow
Earn interest
Swap tokens
Stake assets
All without asking anyone for permission.
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8️⃣ HODL
A legendary typo turned mantra: “Hold On for Dear Life.”
It means buying crypto and holding long-term—no matter the market dips.
(HODLers are known for diamond hands 💎🙌)
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9️⃣ Altcoins
Any cryptocurrency that isn’t Bitcoin.
Examples?
Ethereum (ETH), Solana (SOL), Chainlink (LINK), XRP, etc.
Each has its own use case, network, and ecosystem.
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🔟 NFT (Non-Fungible Token)
A digital item with unique ownership—stored on the blockchain.
Can be art, music, game items, or even real estate deeds.
Fungible = interchangeable
Non-fungible = 1 of 1
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1️⃣1️⃣ DAO (Decentralized Autonomous Organization)
An online community with a shared treasury and no CEO.
Members vote on proposals using tokens.
DAOs run on smart contracts and are built for collective decision-making.
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1️⃣2️⃣ Stablecoin
A crypto asset pegged to a stable currency (usually USD).
Examples: USDT, USDC, DAI.
Used for payments, remittances, and hedging against volatility.
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1️⃣3️⃣ Rug Pull
When developers launch a fake project, collect users’ money, and vanish.
Always DYOR before investing.
(We already covered this in a full thread—scroll up to revisit.)
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1️⃣4️⃣ DApp (Decentralized Application)
Apps that run on a blockchain, not a private server.
Examples include:
Uniswap (DEX)
Aave (Lending)
OpenSea (NFT marketplace)
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1️⃣5️⃣ DYOR (Do Your Own Research)
Your #1 survival rule in crypto.
Before investing, always research:
The team
The product
The tokenomics
The community
Don’t just follow hype—understand what you’re buying.
Crypto doesn’t have to be confusing.
Master the language, and the rest gets easier.
Know the terms → Make better decisions → Stay ahead of the game.
