The ultimate glossary of NFT terms

Rarespot
9 min readJan 3, 2023

A list of the most commonly used terms and expressions in the NFT space.

With the multitude of expressions and acronyms that comes with NFT trading, navigating this space can be complex sometimes. For this reason, we collected the most used words and slangs to help you out. Want to see more in this list? Get in touch with us.

1:1 NFT

An NFT with a single token issued for the unique asset, making it one of a kind.

Airdrop

The distribution of a cryptocurrency or NFT to a large number of individuals, for free or at a discounted price.

Bagholder

An individual who holds a large amount of a particular cryptocurrency or NFT that has decreased in value.

Bluechip NFT

A project that is expected to be stable in terms of value and profitability in the long term. Visit our latest article to learn more about bluechip NFTs.

Bounty program

A program that rewards individuals for completing certain tasks or achieving certain goals, often in the form of tokens or cryptocurrency.

Burn NFT

A method used to effectively destroy a token by sending it to an address that nobody possesses.

Buy the dip

Buying an asset when it has declined in price, and then profiting once the price value increases to its previous level or higher

Cold wallet

A digital wallet that is stored on a platform not connected to the internet. This type of wallets are more secure since these are not dependent from online connections, but on the other hand performing operations or exchanges is less efficient.

Collectible

Digital collectible files are readily available for anyone through NFTs, and they can be collected, traded, invested in, and even find other utilities in the context of video games or the metaverse. NFTs work as unique identifiers of digital files that can be used to trace their history and proof ownership.

Creator

An individual or an entity that created an NFT, such as an artist or designer.

Cryptography

The practice of secure communication, which includes techniques such as encryption and decryption.

DAO

Acronym for Decentralized Autonomous Organization, is a decentralized organization run through smart contracts on the blockchain, allowing for automated decision-making and self-governance.

DAO governance

The process of making and enforcing rules or policies within a DAO.

DAO token

A token that represents ownership and voting rights in a DAO.

Decryption

The process of converting an encrypted message back into its original plain text form.

DeFi

Short for Decentralized Finance, refers to a financial system that uses blockchain technology and smart contracts to enable peer-to-peer transactions and financial services without the need for intermediaries.

Degen

Short for ‘degenerate’, refers to those that buys a specific asset without performing due diligence — believing that other will buy in — taking high risks.

Delist NFTs

The act of removing social tokens, digital items, and crypto art assets from the marketplaces on the web. By doing so the NFT will not be available for purchase, making it delisted.

Diamond hands

It’s a terminology that refers to traders who do not sell a particular asset they’re holding, regardless of the volatile market conditions.

Digital art

Artwork that exists in digital form, such as a digital painting or a 3D model.

Digital asset

A digital representation of value, such as a cryptocurrency or an NFT.

Digital scarcity

The limited availability of an NFT, which can affect its value.

Digital signature

A unique code that verifies the authenticity of a digital document or message.

Digital wallet

A software program that stores and manages digital assets.

Discord

An online platform where users can discuss crypto-related news, transactions, and plans in various servers. Visit the official webpage to get to know more.

Dutch auction

A price discovery process in which the auctioneer starts with the highest asking price and lowers it until it reaches a price level where the bids received will cover the entire offer quantity.

DYOR

Short for “Do Your Own Research”. Used to warn people about potential frauds or encouraging them to learn about a project before they invest and be aware of the risks.

Encryption

The process of converting plain text into a coded message that can only be decrypted with a key.

ERC-721

A data standard for creating non fungible tokens, meaning each token is unique and cannot be divided or directly exchanged for another ERC-721 token.

Ethereum

A decentralized, open-source blockchain platform that runs smart contracts. Ethereum is one of the most popular crypto networks and has the second largest market volume, right after Bitcoin.

Fixed-price listing

A method of selling an NFT at a pre-determined price, without the need for a bidding process.

Flipping NFTs

The process of purchasing an object at a cheaper price, retaining it for a period of time, and then selling it for a profit.

Floor price

The lowest price among all the NFTs within a collection.

Floor sweep

When someone purchases all of the NFTs of a project at the floor price.

FOMO

Short for “Fear of missing out”, refers to the feeling of urgency to invest in a project before it becomes unavailable or its value increases.

Fractional ownership

An investment approach that allows the cost of an asset to be split between individual shareholders. Visit our guide to discover more about fractional NFTs.

Free minting

The case of a minting process where the NFT buyer covers the fees to mint instead of the creator.

FUD

Short for “Fear, Uncertainity, and Doubt”. Used when the future prices are uncertain and there are pessimistic expectations from the market.

Fungibility

The property of a good or asset that can be exchanged for another good or asset of equal value.

Gas fee

A fee paid to miners for processing transactions on the Ethereum blockchain.

Gas war

An auction for priority inclusion in an upcoming block of transactions to be validated on a blockchain. When demand is high, the price of a priority position can rocket. So, it occurs when the demand for an asset is higher than its supply.

Generative art

A digital art style in which artists use algorithms as a tool. In general, it is created by an algorithm in a program that randomly selects and combines predesigned art layers.

GM

Short for “Good Morning”. Commonly used among NFT investors and enthusiasts in community chats while starting their day.

GN

Short for “Good Night”. Commonly used among NFT investors and enthusiasts in community chats while starting their day.

Governance token

A type of cryptocurrency that gives the holder voting rights or other decision-making power within a particular ecosystem.

Hard fork

A permanent split in the blockchain, resulting in the creation of two separate networks with different protocols.

Hash function

A mathematical function that converts data into a fixed-size string of characters, also known as a “hash.”

HODL

Short for “Hold on for Dear Life”, refers to holding an asset for a long time. The origin of this anagram comes from a misspelling and it is jokingly used for believing in future profits of an asset and holding it with this belief.

Hot wallet

A cryptocurrency wallet that is always connected to the internet and cryptocurrency network.

Leverage

The use of borrowed capital, such as margin, to increase the potential return on an investment.

Liquidity

The ability to easily buy and sell an NFT.

Market capitalization

The total value of a cryptocurrency or NFT market.

MetaMask

A software cryptocurrency wallet used to interact with the Ethereum blockchain. Visit the official webpage to create your wallet.

Metaverse

A virtual world, accessed through the internet, where users can interact with each other and virtual objects, often thanks to digital avatars.

Miner

An individual or entity that participates in the process of mining.

Mining

The process of verifying and adding transactions to the blockchain, typically performed by computers solving complex mathematical problems.

Mint

The process of creating new assets through verification of data, creation of new blocks, and documentation of the verified information on a blockchain network through Proof of Stake consensus.

NFA

Short for “Not Financial Advice”. Influencers in the web3 space tend to use this word to encourage followers to do their own research and — doing so — avoid any responsibility for their financial decisions.

NFT

A unique digital asset that represents ownership of a one-of-a-kind item, such as a piece of artwork or a collectible. To learn more about NFTs, visit our article.

NFT auction

A process of selling an NFT through a public bidding process, with the winning bidder paying the highest price.

NFT marketplace

A platform where NFTs can be bought and sold, often through auctions or fixed-price listings.

NFT rarity

The rarity of an NFT, which can affect its value.

NFT royalty

A payment made to the creator or owner of an NFT for the use of their work.

NGMI

Short for “Not Gonna Make It”. A pessimistic approach used in web3 communities to emphasize that the hope is lost towards certain projects or assets.

Non-fungibility

The property of a good or asset that is unique and cannot be exchanged for another good or asset of equal value.

Noob

Commonly replaced by “Newb” or “Newbie”, is a term that means “new blood” referring to newcomers in a community.

Off-chain

A transaction or activity that is not recorded on the blockchain, typically used for privacy or speed purposes.

On-chain

A transaction or activity that is recorded on the blockchain, providing a permanent record.

Opensea

A NFT marketplace that offers users the ability to buy, sell, create, and trade NFTs.

P2E

Short for “Play to Earn”, this usually refers to video games and virtual worlds where gamers play for crypto token rewards.

Paper hands

A slang phrase to describe traders who sell too early, usually because they don’t want to take risks.

PFP

Acronym for “profile picture”, refers to having NFTs as a profile photo on a social media. This trend started with the rising popularity of CryptoPunks in 2021.

Private key

A secret code that allows access to a cryptocurrency wallet.

PoS

Short for “Proof of Stake”, is a system that requires individuals to “stake” their own cryptocurrency in order to validate transactions and add them to the blockchain.

PoW

Short for “Proof of Work”, is a system that requires miners to perform a certain amount of work in order to validate transactions and add them to the blockchain.

Public key

A unique code that represents a cryptocurrency wallet and is used to receive transactions.

Pump and dump

A scheme in which a group of individuals artificially inflate the price of a cryptocurrency or NFT through coordinated buying, and then sell it off quickly for a profit.

Reveal

The date that an NFT collection will be displayed to the public. In other words, the “Show off” day.

Roadmap

A plan or timeline for the development and implementation of a cryptocurrency or NFT project.

Rug pull

A malicious maneuver in the NFT space where artists/developers abandon a project and run away with investors’ funds.

Shilling

An individual who promotes a particular cryptocurrency or NFT in an attempt to artificially inflate its price.

Smart contract

A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.

Soft fork

A temporary split in the blockchain, in which the new chain is still compatible with the old chain.

Souldbound tokens

A publicly verifiable and non-transferable NFT that represents an individual’s credentials, affiliations and commitments. You can check our latest article to learn more about soulbound tokens.

Staking

The process of locking up crypto holdings in order to obtain rewards or earn interest. Visit our article to learn more about staking.

To ape in

To buy a token shortly after the token project launch without conducting thorough research, mainly due to FOMO.

Token sale

The sale of a cryptocurrency or NFT to the public, often used to raise funds for development.

Utility token

A type of cryptocurrency that represents a certain amount of access or use of a product or service.

Volatility

The fluctuation in price of an NFT.

WAGMI

Short for “We are all gonna make it”. Used to foster optimism in a community of investors regarding a specific project.

Whale

An individual or entity that holds a large amount of a particular cryptocurrency or NFT.

Whitelist

A list of approved individuals or entities that are allowed to participate in a limited NFT sale or event.

Whitepaper

A detailed document that outlines the features and specifications of a cryptocurrency or NFT, often used to attract investors or users.

Yeld farming

The practice of holding and staking a cryptocurrency or NFT in order to earn additional tokens through interest or rewards.

Visit rarespot.io for more insights on the NFT market.

--

--