Just entered the circle, are you confused by various PoW, DeFi, and cold wallets?
Don't panic, this article is the most practical crypto dictionary you can understand - from beginner to advanced, understand the core logic of Web3 in one read.
Master these 45 terms, and you'll be able to understand tweets, judge projects, and avoid 90% of the pitfalls.

1. Foundation Section: 8 essential terms to understand for beginners
1. Blockchain: A collective ledger where no one can alter it.
2. Bitcoin: The first cryptocurrency, digital gold.
3. Ethereum: An operating system that can run smart contracts.
4. Smart Contract: A programmatic agreement that executes automatically.
5. Token: A digital certificate on the chain that can represent assets or rights.
6. DApp: Decentralized applications that won't be taken down.
7. DeFi: Decentralized finance; manage finances without banks.
8. Wallet: It's not for storing money, but a tool for managing private keys.

First understand 'what it is and what it's for', don't rush to learn the principles.

2. Underlying Chapter: How does blockchain run?
9. Public Key / Private Key: A combination of account and password; if lost, it's gone.
10. Address: Your 'bank card number' on the chain.
11. PoW (Proof of Work): Competes for bookkeeping rights based on computing power, secure but energy-consuming.
12. PoS (Proof of Stake): Pledge tokens to keep accounts, more energy-efficient.
13. Fork: The chain splits into two paths, with different versions.
14. Soft Fork / Hard Fork: Compatible vs incompatible updates.
15. Node: The maintainer of the chain; more nodes mean more security.
16. Computing Power (Hash Rate): An indicator of blockchain security.

3. Market Chapter: Understand the rules before entering.
17. ICO: Early financing model, high returns and high risks.
18. IEO: Exchange-sponsored ICO, relatively safer.
19. Airdrop: Projects give tokens to attract new users, don't transfer money.
20. Token Standards: ERC-20 (fungible tokens) and ERC-721 (NFTs).
21. DAO: Organization without a boss, community governance.
22. Stablecoin: Cryptocurrency pegged to the US dollar.
23. NFT: Unique digital collectibles.
24. Liquidity Mining: Deposit coins to earn interest, high returns and high risks.
25. Cross-chain: The bridge between different blockchains.
26. Rating: Project health report; refer to it without being superstitious.

4. Trading Chapter: Choosing the right platform to survive longer.
27. Exchange: The crypto version of a 'stock market'.
28. CEX (Centralized Exchange): Convenient but requires trust in the platform.
DEX (Decentralized Exchange): Trade directly from wallet, more freedom.
29. Slippage: The difference between the order price and the execution price, easily exploited when liquidity is low.

5. Security Chapter: Wallets are your lifeline.
30. Cold Wallet / Hot Wallet: Offline safe vs online wallet.
31. Mnemonic Phrase: The unique key to your assets; write it down, don't screenshot.
32. Smart Contract Wallet: Can set limits, transfer funds, and be managed by multiple parties.
33. Multi-signature: Requires multiple confirmations to transfer funds, preventing mistakes.
34. Liquidation: Warning for contract liquidation; stop-loss is your survival line.

6. Mining Chapter: Mining is essentially bookkeeping.
35. Mining: Computing power exchanged for rewards.
36. Mining Rig: Computers specifically for mining.
37. Mining Pool: Team up for mining and share rewards.
38. Faucet: A small tool for receiving test coins.
39. Staking: Deposit coins to help the network keep accounts, earning interest or rewards.

7. Advanced Chapter: Keys to improving speed and scalability.
40. Derivatives: Contracts, options, and other derivative financial products.
41. White Paper: Project documentation; check this first to understand the project.
42. Gas Fee: Transaction fee on the blockchain.
43. Sharding: Parallel processing of transactions to make blockchain faster.
44. Layer 2: Acceleration channels above the main chain, represented by projects like Arbitrum.
45. Decentralized Storage: Data distributed across the network, not relying on any company.

Key Points for Beginners:
1. First remember 'private key, mnemonic phrase, cold wallet' - these three determine the safety of your assets.
2. Airdrops are free; check qualifications for ICOs, and avoid scams like 'transfer money to receive tokens'.
3. No need to memorize technical principles; just know PoW is energy-consuming, PoS is energy-efficient, and sharding speeds things up.$BTC $ETH #美联储降息 #加密市场反弹 #美联储FOMC会议