50 Web3 terms everyone must know
We curated 50 Web3 terms that will eliminate the language and jargon barrier for a Web3 novice.
Web3 is the third iteration of the World Wide Web that focuses on shifting power from big tech companies to individual users. It incorporates technologies such as IoT (Internet of things), artificial intelligence/machine learning, data science and blockchain, and 5G telecom capabilities.
The next web evolution will bring with it new tools and strategies beyond what is currently known. This goes beyond chatting platforms, search engines or websites.
Web3 will give us a permissionless, decentralised, peer-to-peer network and other society-changing technologies. Rather than giving unfettered access to big tech companies users will be able to own their data.
The early adopters who are able to understand the underlying technology driving Web3 will position themselves as leaders in their industries.
The next evolution of the internet, Web3, is a concept that is often discussed in the circles of technology and media. But in between those conversations, there are terms, abbreviations and odd spelling of words that might look confusing for beginners and even veterans.
The Web3 terms
Here are 50 web3 terms that will introduce you to the world of Web3 and prevent the language and jargon from being an entry barrier.
An addy is simply a cryptocurrency wallet address. It usually consists of a long string of numbers and letters.
Use case: "Send my 10 BUSD to my addy"
Airdrop is when a blockchain project or company distributes free tokens or coins to the community. This is usually done to promote their project and increase awareness.
Use case: "Retweet, comment, and share this tweet to win 100USDT Airdrops"
Altcoin is used to describe any cryptocurrency that isn't Bitcoin. The term "altcoin" may be used for thousands of different cryptocurrencies in the market today.
Use case: "Which Altcoin should I buy this October?"
"Ape" is a term used to describe taking a large position in an asset relative to one's portfolio size. So, if someone says they "aped into Solana," a person put a large amount of money into Solana compared to the rest of their holdings.
Use case: "Richard aped into the new cryptocurrency"
ATH is an abbreviation for All-Time High which means the highest price an asset or cryptocurrency has ever hit in history.
Use case: "Bitcoin hit its ATH on November 10th 2021"
ATL is an abbreviation for All Time Low which means the lowest price an asset or cryptocurrency has ever hit in history.
Use case: "Bitcoin hit an ATL in June 2022"
7. Bag Holder
This term is used to describe someone who holds a large amount of cryptocurrency that has lost value. For example, if you bought Bitcoin at $19,000 and it dropped to $3,000, you would be considered a bag holder.
Use case: "Charles is a bag holder"
8. Bear and Bull markets
A bear market is when the price of an asset (like crypto) declines. When you hear someone say, "the market is bearish," they're saying that they think prices will continue to fall. The opposite of a bear market is a bull market, where prices rise.
Use case: "The financial market is either bullish or bearish"
9. Bitcoin Maximalist
A Bitcoin Maximalist believes that Bitcoin is the only true cryptocurrency and that all other altcoins are worthless.
Use case: "Steve is an avid Bitcoin Maximalist"
BTD is short for "Buy the Dip." This term is used to describe the act of buying a currency when it is experiencing a temporary price drop.
Use case: "My financial investor screamed over the phone, buy the dip!"
CT meaning in crypto is Crypto Twitter. For those who have not been on Twitter for a long time, Crypto Twitter (CT) has evolved into a huge information pool for the crypto community.
The latest drops and breaking news are made available on Twitter first, making it an essential tool for those looking to stay up-to-date on the latest developments in cryptocurrencies and their community.
Use case: "CT these days is just full of hype"
This is the use of secure communication in the presence of third parties. Cryptography is used in various applications, including email, file sharing, and online banking.
Use case: "Cryptocurrencies are built on cryptography"
Cryptojacking occurs when your computer is used to mine cryptocurrency without your consent. This can happen if you visit a website with embedded mining code, or if you have malware on your computer that is secretly mining for the hacker. Cryptojacking can reduce your device’s speed and hike up your electricity bill, so it's important to be aware of it.
Use case: "Her device was cryptojacked by internet fraudsters"
14. Crypto Loan
A crypto loan is a type of secured loan, similar to an auto or student loan, in which you commit to an asset as collateral in order to secure financing.
Use case: "Emeka asked for a crypto loan"
dApp is a decentralised application built on top of a blockchain network. These applications are often open-source and allow anyone to contribute to their development. Professionals mostly use this term, but members of the community understand what it means.
Use case: "Ethereum dApps use smart contracts for their logic"
Decentralisation refers to power distribution or decision-making away from a central authority. In cryptocurrency, decentralization often refers to the distributed ledger technology that underpins most cryptocurrencies. This allows peer-to-peer (P2P) transactions without needing a central intermediary.
Use case: Bitcoin was the world's first taste of decentralisation"
Also read: Decentralised applications (dApps)
A decentralised exchange (DEX) is a cryptocurrency exchange that takes place without the need for a central authority to match orders or hold funds. DEXes are often built on decentralized protocols, such as 0x or Ethereum, and use smart contracts to execute trades.
Use case: "Uniswap has the largest DEX platform"
The term degen is extracted from the word ‘degenerate.’ In the crypto community, a degen is someone who confidently believes in the success of crypto projects without giving much regard to their consequences. These individuals continue to purchase the currency, hoping to double the value of their assets.
Use case: "Funmi referred to the guy as a degen"
19. Diamond Hands
This term describes investors who hold onto their cryptocurrency investments even when the market crashes. Diamond Hands is a show of faith in the long-term success of the asset.
Use case: "Let my diamond hands guide you to crypto greatness"
20. Double Spend
Double spend is a potential flaw in a digital currency system that allows the same digital token to be spent twice. This can occur when an individual creates two separate transactions using the same digital token and sends them to different addresses.
Use case: "Double Spending remains a major risk"
21. Exit Scam
An exit scam is when a project suddenly shuts down and disappears, taking all the money raised with it. This is often done by fraudulent ICOs that simply vanish after raising money from investors.
Use case: "The Exit scam occurred after the cryptocurrency was launched"
FIAT is a government-issued currency that is not backed by a physical commodity, such as gold or silver. Its value is derived from the faith and credit of the issuing government. In cryptocurrency, "fiat" typically refers to government-issued currencies, such as the US dollar or Euro.
Use case: "Nigeria's FIAT currency is the naira"
The Flippening is the event where Ethereum becomes more valuable than Bitcoin. This could happen if Ethereum is used more than Bitcoin or if the price of Ethereum rises faster than the price of Bitcoin.
Use case: "I haven't seen any flippening tweets since the merge"
Fear Of Missing Out. This acronym is used to describe the feeling of anxiety that comes from thinking that you might miss out on a good opportunity. In the context of crypto, FOMO often leads investors to make hasty decisions about buying or selling tokens.
Use case: "He bought the wrong coin out of sheer FOMO"
Fear, Uncertainty, and Doubt. This acronym describes the negative sentiment that spreads like wildfire in the crypto community. FUD can cause investors to sell their holdings out of fear, leading to price drops.
Use case: "They disseminated FUD about Bitcoin"
Gas is the native cryptocurrency of the NEO blockchain. It's used to pay transaction fees on the network. When you make a transaction on NEO, you have to pay a small amount of GAS to cover the cost of running that transaction.
Use case: "We gave them a few gas after closing the NEO transaction"
So, what does GM mean in crypto? Good morning! It's a simple phrase, but it's one that brings people together from all corners of the globe. In the crypto world, saying "GM" breaks cultural boundaries and builds a sense of community through a mutually-understood greeting.
Twitter is often abuzz with GM greetings in the morning, and it's always nice to see the replies come flooding in from all over the world.
Use case: "GM CT"
28. GMI / WAGMI
GMI or WAGMI meaning is "Gonna Make It" / "We All Gonna Make It." It shows a high conviction and optimistic state about the future. For example, you might hear someone exclaim, "Just bought a punk, GMI!" The term expresses optimism about the future.
Use case: "Things are looking tough right now, but I'm GMI"
Similarly, when community members take a break or sign off for the night, they will say "GN." This stands for "Good Night." This friendly greeting is one way crypto enthusiasts stay connected and build relationships
Use case: "GN friends"
Also read: Startups powering Web 3 technology in Africa
Hold On for Dear Life. This term originated in a 2013 Bitcoin forum post where someone mistakenly typed "hold" instead of "hold on."
The misspelling caught on. "hodl" is used to describe the act of holding onto your crypto investments for the long term.
Use case: "If Bitcoin stays between $15,000 - $30,000 then for how many years are you willing to HODL?"
JEET describes a person who sells anything and everything in the crypto community.
Use case: "That punk is a Jeet"
This term is derived from the luxury car brand Lamborghini. In the cryptosphere, "Lambo" is shorthand for when someone makes a lot of money from their investments and can afford to buy an expensive car, like a Lamborghini.
Use case: "Usman is no mere crypto trader, he's a Lambo"
Mooning describes the situation when a cryptocurrency's price spikes sharply upwards. This term is often used as "to the moon," which refers to the idea that prices will continue to rise to astronomical levels.
Use case: "Monero has kept on Mooning since January"
34. No Coiners
A no-coiner doesn't believe in cryptocurrencies or the technology behind them. They often dismiss the entire industry and may not even understand how cryptocurrencies work.
Use case: "His dad is a No-coiner"
A node is a computer or device connected to other computers or devices that hold a copy of a blockchain. The main purpose of a node is to verify each transaction before it's permanently stored as a block.
Use case: "Access to nodes is essential for every application that uses blockchain technology"
Nonce, in crypto, means a random or semi-random number that is generated for a specific use. It is related to cryptographic communication and information technology (IT). The term refers to a "number used once" or "number one" and is commonly used in cryptography.
Nonces are values that vary over time to ensure that specific values aren't reused. Nonces are timestamps, visit counters on websites or special markers intended to prevent unauthorized replay or reproduction of files.
Use case: "Bitcoin miners must try and guess the right nonce when they try multiple attempts for calculating a block hash complying with specific requirements"
37. Non-fungible token (NFT)
A non-fungible token is a digital asset that is not interchangeable with other assets of the same type. Each NFT is unique and can be used to represent ownership of digital or physical assets. PFPs (Profile Picture NFTs) has become one of the most in-demand NFTs.
Use case: "The most electric NFT is here"
Normies are people who are not involved in the Web 3/cryptocurrency world. They may be interested in Bitcoin or other digital assets but don't comprehensively understand the technology or the ecosystem.
Normies are also referred to as Noobs or Newbies, as they are new to the community and lack the experience of crypto experts.
Use case: "Segun and his friend are Normies"
In short, NGMI means "Not Gonna Make It." It is typically used when disagreeing with a certain action or as a sign of regret over a bad decision.
For example, someone might say, "Just sold my punk for 1 Dogecoin, NGMI," if they believe they made a poor choice in selling their cryptocurrency for such a low price.
You can also use the term to make a funny comment or point out a problem. NGMI will surely add some colour to your conversations.
Use case: "Selling these coins tonight, NGMI"
40. Paper Hands
This is a term used to describe someone who sold a cryptocurrency or stock as its price was falling, usually for a loss. A person with paper hands is said to be weak and unable to stomach market volatility.
Use case: "HODL! Don't be a paper hand"
Pleb refers to an individual stacking SAT (satoshis), the smallest unit of Bitcoin.
Use case: "My brother is a Pleb"
42. Probably Nothing
In cryptocurrency, the phrase "probably nothing" often suggests that there is more going on than meets the eye.
Using "probably nothing" is a way to be polite while suggesting that something is going on, and it often leads to lively discussion and debate.
Use case: "Microsoft just bought a punk. Probably nothing"
43. Pump and Dump
This happens when a group of investors artificially inflates the price of a token by buying it in large quantities, then "dumps" it on the market once prices have risen, pocketing the profits.
This type of behaviour is considered to be manipulative and is often frowned upon by the crypto community.
Use case: "The two influential investors pumped and dumped the coin"
Rekt is gotten from the English word ‘wrecked.” The term refers to an individual who suffers an extreme loss from a bad trade or investment and, therefore, is wrecked financially.
Use case: "So much fighting because REKT plebs forgot or never understood crypto."
45. Seed Phrase
A seed phrase (sometimes known as a recovery phrase) is a series of words generated by the cryptocurrency wallet that gives you access to your crypto account. Think of a wallet as being similar to a password manager for crypto, and the seed phrase as being like the master password.
Use case: "My seed phrase helped me retrieve my cryptocurrency wallet"
Staking happens when individuals lock their crypto assets for a specific period as a way to support blockchain operations. Staking the crypto allows these individuals to acquire more cryptocurrency.
Use case: "Staking for $TXS is confirmed to be released today!"
What does shill mean in NFT? Well, Shill is a person that promotes crypto and NFTs in different communities with an ulterior motive. The individual may “shill a currency to normies” (normal people) because they have a large investment.
Use case: "Ignore him, he's only a shill looking for a normie to exploit"
TLD known as Top Level Domain is the last segment of a domain name or the part that follows immediately after the "dot" symbol. For example, in the domain name 'google.com', '.com', crypto, .nft.
Use case: "You're starting a new project and the .com isn't available. What do you choose as your TLD?"
In the crypto world, vaults are storage spaces for crypto assets that provide a heightened level of security. The vaults increase the safety of your asset by ensuring withdrawal delays and approval procedures. This equips users with the ease of cancelling their transaction during the lengthy delay and approval period.
Use case: "Which vault are you trading with this week?"
Big investors who hold large amounts of cryptocurrency are called Whales by the community. These individuals wield much power in the crypto markets, as their trades can cause prices to rise or fall significantly.
Use case: "Elon Musk is a Whale in the crypto community"