Web3 Glossary

Master the Language

From "Blockchain" to "WAGMI", learn the vocabulary of the future one word at a time.

Tier 1: Survival Mode (Must Know)

If you only learn 10 words, learn these. They keep you safe.

Blockchain

A digital record book (ledger) that is shared by thousands of computers.

Analogy: A Google Doc that everyone can read, but no one can delete.

Seed Phrase

A list of 12-24 random words generated when you create a wallet. It is your Master Key.

Analogy: Your life raft. Lose it, and your money is gone forever.

Private Key

A long string of code that proves you own the funds in a specific address.

Analogy: Your Password.

Public Address

A code (like 0x123...) that identifies your wallet on the network.

Analogy: Your Email Address. Safe to share.

Wallet (Hot vs Cold)

Hot = Online (Convenient). Cold = Offline (Secure).

Analogy: Hot is your pocket wallet. Cold is a bank vault.

Fiat

Government-issued currency like USD, Euro, or NZD.

Analogy: Traditional money.

Exchange (CEX)

A company (like Coinbase) where you buy crypto.

Analogy: Currency Exchange Booth at the airport.

Gas Fees

Transaction fee paid to the network to process your transfer.

Analogy: Shipping cost.

Stablecoin

A cryptocurrency designed to stay equal to $1.00 (e.g., USDC, USDT).

Analogy: Digital Dollar.

Tier 2: The Trader's Toolkit

Words you'll see when you start moving assets around.

Altcoin

Any cryptocurrency that is NOT Bitcoin.

Analogy: Alternative coins.

Market Cap

Total value of a crypto (Price × Total Coins).

Analogy: The true size of the project.

Liquidity

How easy it is to sell a coin without crashing the price.

Analogy: Cash availability.

Slippage

Difference between expected price and execution price.

Analogy: Price change while you were paying.

Smart Contract

Digital agreement that executes automatically.

Analogy: A Vending Machine.

DeFi

Banking services run by code instead of banks.

Analogy: Open finance.

NFT

Unique digital asset that cannot be replicated.

Analogy: Digital deed or certificate of authenticity.

Mining / Staking

Helping run the network (Proof of Work vs Proof of Stake).

Analogy: Getting paid to do the network's accounting.

Tier 3: The Culture (Slang)

Don't look like a 'Noob' on Twitter.

HODL

Hold On for Dear Life. Refusing to sell even when prices drop.

Analogy: Long-term conviction.

FUD

Fear, Uncertainty, Doubt. Negative rumors.

Analogy: Scare tactics.

FOMO

Fear Of Missing Out. Panic buying.

Analogy: Chasing the hype.

Rekt

Wrecked. Losing a lot of money quickly.

Analogy: Total loss.

Whale

Someone with a massive amount of crypto.

Analogy: Market mover.

Diamond Hands 💎🙌

Someone who HODLs through a massive crash without selling.

Analogy: Unshakeable belief.

Paper Hands 🧻🙌

Someone who panics and sells at the first sign of a price drop.

Analogy: Easily scared.

Bear Market 🐻

Prices are going down, and everyone is sad.

Analogy: Hibernation.

Bull Market 🐂

Prices are going up, and everyone is a genius.

Analogy: Optimism.

WAGMI

We're All Gonna Make It.

Analogy: Community cheer.