A to Z of NFT Glossary for Beginners
If you are a newcomer in the crypto space, especially NFT, you may need to learn some of its terminologies so it won’t sound gibberish when the experts are talking.
Before diving into the glossary of words, let’s get a simple definition of NFTs, this three letters acronym means Non-Fungible Tokens. These are digital assets uniquely stored on the blockchain, and as the name shows, non-fungible means they can not be altered. It could be in any form of digital art such as image, music, or video.
Below are some of the common terms that you should know;
1:1 Art
This is pronounced as ‘one of one’, this means the NFT is just a unique single edition NFT, unlike the multi-edition collection.
10k Project
This refers to a collection of approximately 10, 000 NFTs.
Airdrop
This has to do with sending free NFTs or NFTs to people’s wallets. This is usually done either to promote an NFT or reward participants in a contest.
It can also be used to attract people to scam projects that will rug pool.
Alpha
When someone shares information not available to the public about a project with an outsider and it brings a huge return on investment.
Ape-in
This means investing in a new project out of fear of missing out.
Asset
Another name for collectible tokens
Avatar Project
This refers to the collection of avatar NFTs usually depicted through images of cartoons from neck or shoulders up.
Bearish
When you believe that an asset value is heading downward.
Bridge
A connection that authorizes the transfer of tokens from one chain to the other for a fee.
Bullish
The exact opposite of bearish. This word is used when investors, traders, and community members expect an increase in the value of assets or tokens in the future.
Burn
Burning an NFT means destroying it but it’s technically still on the blockchain. They are removed from circulation by sending them to inaccessible wallets.
DAO
This means a Decentralized Autonomous Organization. It has no central body leading it, is encoded on the blockchain, and is transparent.
Degen
Short for “degenerate”, refers to those who make risky bets. In crypto, it usually refers to people who invest in digital assets like NFTs by “ape-ing” in, without carrying out thorough research.
Delist
Removing of an NFT from an exchange.
Devs
Short for “developers.”
Diamond Hands
People who hold on to assets irrespective of negative news, price volatility poor market sentiment and FUD
Discord
An instant messaging app for discussing NFT and getting fresh updates.
Floor Price
The lowest of all prices in an NFT collection.
Floor Sweep
To buy all the cheapest NFTs in a collection.
FUD
It stands for Fear, Uncertainty, and Doubt. Expresses negative news and untrue information concerning a project/token.
Flip
When you flip something, be it an NFT or token, you buy and sell it fast to make an immediate profit.
GM
This simply means ‘Good Morning’ in the NFT space.
GMI/WAGMI
Meaning ‘Going to Make it and ‘We All Going to Make It’ respectively
Holders
people who own NFT
ICO
Acronym for Initial Coin Offering. It is an unregulated funding strategy, where the dev team for a new cryptocurrency project sells digital assets to those who adopt early.
IDO
Initial Dex Offering. In IDOs, new NFTs or tokens are launched via a decentralized liquidity exchange as a way to raise funds for upcoming crypto or NFT projects.
LFG
This means ‘Let’s F*cking Go’ in the NFT ecosystem.
Liquidity
How easily an asset can be converted to another asset without effect on the price. An NFT with high liquidity will sell easily.
Metadata
The collection of data helps distinguish the ownership of one NFT from another. This could be on-chain or off-chain.
Metamask
An Ethereum wallet is used to access NFT apps like Rarity, Opensea, and the like.
Metaverse
A virtual world in 3D where people can interact.
Minting
The process involves bringing an NFT to the blockchain.
Noob
A person who knows just a little about NFT
paper Hands
Those who sell too early due to the low value of their asset or because the market is risky.
Proof of Stake(PoS)
One way crypto projects use to confirm transactions. In PoS, you’re rewarded with tokens as you hold on to them for a specific duration. Like mining, this process needs computing power and electricity usage.
Rarity
This is a way to measure the value of an NFT, the value is determined by calculating the scarcity of each trait through averaging.
Roadmap
The document contains the goals and next actions of an NFT project. This gives room for the community to know what’s coming.
Rugpull
This is the abandonment of a project by its developers and their disappearance with investors’ money.
Shilling
The promotion, marketing, or advertising of an NFT.
Ser
This simply means ‘sir’
Utility
NFTs can have the possibility of being used, and not just holding them.
Wallet
This refers to a crypto bank account where your assets are stored.
When Moon
This phrase means ‘When will the price or value go up
Whale
Someone who has a large number of NFTs or other crypto coins.
