Glossary
NFT
Non-Fungible Token — a unique token proving ownership of a specific digital asset.
An NFT is a token that is unique rather than interchangeable. It proves ownership of a specific item on-chain — an image, a membership, a game asset, a domain name.
Most speculative NFT value collapsed after 2021, but the underlying mechanism is being used for things that work: token-gated access, event tickets, and on-chain identity.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.