NFT Glossary You must know about

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Since it has become so obvious what NFTs are, we made a glossary of the relative multitude of terms you should acquaint yourself inside the crypto/NFT space. Below is NFT Glossary You must know about.

Presently you will not need to look dumbfounded next time somebody asks you what the “floor cost” signifies!

Airdrop – a marketing technique in which crypto projects send their native tokens directly to the wallets of their users in an effort to increase awareness and adoption. 

Alpha  – valuable or insider information, usually regarding the value of digital assets like cryptocurrencies and NFTs; a measure of the return on an investment over and above the return offered by the market or other benchmark.

Ape  – someone who invests heavily into a cryptocurrency or stock, or the act of doing so. This is sometimes a reaction to hype and FOMO, or done without much knowledge of the asset. It should be noted, though, that this is generally a self-assigned term and does not carry a negative connotation. 

Bitcoin – is a digital currency which operates free of any central control or the oversight of banks or governments. 

Blockchain – blockchain is a distributed digital ledger that stores data of any kind. A blockchain can record information about cryptocurrency transactions, NFT ownership or DeFi smart contracts.  Think of it as an open spreadsheet that everyone in the crypto world has access to, and it records any changes or transactions. 

Bullish – Similar to a bull market, this refers to holding an optimistic view that a market or asset will rise in price. If you are bullish on Bitcoin, you believe that its value will continue to rise over time.

Cardano – a decentralized, open-source, public blockchain that leverages proof of stake as consensus. The platform facilitates transactions, using Ada, the network’s native cryptocurrency. 

Cold Wallet – an offline device used to store cryptocurrencies. Cold wallets can be hardware devices or simply sheets of paper containing a user’s private keys. Because cold wallets are not connected to the internet, they are generally a safer method of storing cryptocurrencies.

Cryptocurrency – a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.

DAO– Decentralized Autonomous Organization – an organization based on open-source code and governed by its users. DAOs typically focus on a specific project or mission and trade the traditional hierarchical systems of legacy corporations for guidelines written on the blockchain.

Decentralized – a system that operates without the control of a central figure or authority, and replaces it with a distributed peer-to-peer network.

DYOR– Do Your Own Research – Similar to DD, this phrase is used to remind people to conduct their own investigation into an asset before investing in it. “I’m very bullish on this, but obviously DYOR.”

DeFi –  acronym for decentralized finance.

Diamond Hands – a term implying that you are extremely bullish on a certain asset, and have no plans to sell regardless of market volatility, FUD, or extreme drops in price. Someone who holds onto a cryptocurrency or stock as it drops 40% in a day is said to have diamond hands.

Discord – An instant messaging platform and the go-to place for discussing NFTs. 

ETH – Ethereum is a decentralized blockchain network powered by the Ether token that enables users to make transactions, earn interest on their holdings through staking, use and store nonfungible tokens (NFTs),  and trade cryptocurrencies.

Floor price – The lowest NFT price in any given category of NFTs. To “buy the floor” is to buy the cheapest NFT in a project / collection. 

FOMO– Fear Of Missing Out  – a feeling of anxiety, stemming from missing out on an opportunity. In investing, this usually coincides with investors buying an asset after it has already seen a considerable increase in price, hoping to get in and out before a pullback occurs. This is known as “FOMOing in” or “aping in.”

FUD – ‘FUD’ stands for Fear, Uncertainty, and Doubt. The term is used in crypto and NFTs alike to describe negative news stories, tweets, Discord messages, etc.  That is either inaccurate or completely false. 

Fungible Tokens (FT) – These are interchangeable, tradable tokens, such as ETH and BTC.

Gas – An amount required to perform cryptocurrency transactions on the blockchain. Every time you buy an asset, send ETH, or set up a smart contract, then gas has to be paid in order to run the transaction.

Gas War –  A phenomenon that drives Etherum gas prices higher, especially when thousands of collector’s flock to the minting page at the same time to buy NFTs.

HODL – an expression meaning “hold” and frequently taken to be an acronym for Hold On for Dear Life. This term actually began its life as a typo on an old forum, Bitcointalk.org, where user GameKyuuby explained that he was “HODLING” his bitcoin as the price dropped. The misspelling quickly caught on and is still used today. 

Liquidity – a measure of how easily an asset can be bought, sold, or traded in a given market or on an exchange.

Metaverse – a theoretical or emergent networked online space with digitally persistent environments that people inhabit, as avatars, for synchronous interactions and experiences, accessing the shared virtual space through virtual reality, augmented reality, game consoles, mobile devices, or conventional computers.

Minting – When you’re buying a completely new NFT from the creator, you’re ‘minting’ it. It’s basically the process of creating that NFT on the blockchain.

Moon / To the moon! – this phrase implies that the value of an asset will go so high that it will reach the literal moon. This is used by shills, bulls, and during a bull market, essentially everyone. Another form of this is “wen moon?” This is used to express one’s impatience with an asset which is not increasing in value as quickly as they had hoped.

NFT – NFT stands for non-fungible token. An NFT transforms a digital file into a digital asset. An NFT token is created and stored on a blockchain (usually Ethereum), serving as proof of ownership and provenance of a specific item. It works like a digital certificate of authenticity that can be easily verified by anyone anywhere in the world on a blockchain.

NGMI – short for “not gonna make it.” This is used to imply that a certain project or asset has a low chance of becoming valuable. This can also be directed at an individual, usually someone who had made a poor trade or investment.

OpenSea –Launched in 2018, OpenSea is the first and largest NFT marketplace, boasting four million assets. 

Offers – Interested buyers of a specific edition of a collectible are able to make offers to the owner in hopes of purchasing the NFT at their desired price.

Paper Hands – a term used to describe someone who sold a cryptocurrency or stock as its price was falling, usually for a loss. Someone with paper hands is said to be weak and unable to stomach market volatility.

P2P– Peer-to-Peer – a distributed network of two or more computers which interact directly without a central server or entity.

PFP – profile picture, usually referring to one of an NFT 

Private Key – an alphanumeric passcode required to withdraw assets from a blockchain wallet and authorize digital transactions. Because these private keys are long and difficult to memorize, wallets will generally associate them with a seed or recovery phrase that is easier to remember.

Public Key – uses to point to your wallet address, this is an alphanumeric code that serves as the address for a blockchain wallet, similar to a bank account number. Other users can send digital assets to your wallet via your public key, but only you can access your wallet’s contents by using the corresponding private key. 

Rarity – NFT rarity decides how rare an NFT is and in turn, how valuable it is. Rare NFTs are most highly sought after by collectors, which pushes their price up.

Rugpull – The term “rug pull” refers to unknowing investors “having the rug pulled from underneath them” by the creators or developers of a cryptocurrency. This can take a number of forms, but the most common type of rug pull is the liquidity scam, which most commonly takes place on decentralized exchanges

​​Secondary Market– Secondary market refers to the buying and selling that happen after a primary sale.

Seed Phrase – a string of words used as a master password to access a crypto wallet. Because a single wallet can contain multiple accounts, all with their own private keys, a seed phrase makes it easy to access them all with the same password.

Shill – the act of heavily promoting a cryptocurrency, stock, or other asset in an effort to increase adoption and, in turn, raise its price. This is usually done via spamming on social media, and generally carries a negative connotation. A person who performs the act of shilling may also be referred to as a shill.

Smart Contract – self-executing code deployed on a blockchain. Smart contracts allow transactions to be made without an intermediary figure and without the parties involved having to trust one another.

Trait – A distinguishing quality or characteristic in the art of your NFT. A unique trait can increase the value of it. 

WAGMI – “We’re All Gonna Make It,” a common saying in crypto and trading circles signaling camaraderie and a positive outlook.

Whitelist:  a list of people who get early and guaranteed access to mint at a specific date and window of time. A whitelist is similar to a VIP list, or a guest list for an event. If you’re on it, you get perks. Sometimes it’s early access. It could also mean you get to buy an NFT at a lower price.