Web3
The next generation of the internet, touted as not letting big companies control your data, everything is decentralized; crypto enthusiasts love to use this as a slogan.
Fiat Currency
Fiat currency issued by national governments, such as the RMB, USD, or Euro. Compared to digital currencies, it has the backing of national credit.
Airdrop
Project parties give tokens to users for free, usually to promote or attract more participants. Like a shopping mall giving out coupons during its opening, which may not be useful immediately but could be valuable later.
ICO (Initial Coin Offering)
Initial Coin Offering (ICO), where project parties raise funds by selling tokens, somewhat similar to an IPO in the stock market, but with higher risks, as many are 'scams' that run away with the money.
Price drop below the initial offering price
When the price drops below the issuing price after a new token is released. For example, if you buy a token for 1 dollar and it drops to 50 cents after listing, it's called a price drop.
HODL
A misspelling of the English word 'Hold', which later became a term in the cryptocurrency community, meaning to hold onto tokens and not sell, even if the price drops significantly.
AI (Artificial Intelligence)
It's the kind of 'high-tech' stuff happening in the crypto world, mixing artificial intelligence with blockchain. For example, using AI to predict which token will rise or creating a smarter trading robot.
DeFi (Decentralized Finance)
Simply put, it's 'finance without banks'. You can borrow money, deposit money, exchange tokens, etc., without intermediaries, all handled by the code on the blockchain, very free.
GameFi (Game Finance)
Gaming plus making money; playing games can also earn you some tokens. For example, raising a little monster to fight and earning some tokens while playing, it's a feeling of making money while having fun.
NFT (Non-Fungible Token)
These are unique digital collectibles. For example, a painting, a song, or a sword in a game that is on the blockchain, once bought, the buyer truly 'owns' it.
DAO (Decentralized Autonomous Organization)
A company without a boss, where everyone votes with tokens, all run by code. For example, creating a DAO to manage funds, where those with tokens have a say.
DEX (Decentralized Exchange)
A decentralized 'token marketplace' without major platforms, where you directly exchange tokens using your wallet, governed by code, not fearing scams.
CEX (Centralized Exchange)
Traditional exchanges, like a big supermarket, where you deposit money, and they help you buy and sell, convenient but you need to guard against hackers.
Metaverse
A virtual world that has everything: houses, land, games, all bought with tokens, like a 'Second Life' on the blockchain.
