NFT Dictionary: A cheat-sheet for NFT terminology
Updated: Feb 14, 2022
New to the NFT world? Confused about the terms that are used? You're not alone! We put together a list of 10 common NFT terms and what they mean so that you can jumpstart your NFT creation with ease!
Airdrop (n.): a marketing strategy to send funds or assets to a wallet address to raise awareness or promote a crypto asset. This can be in the form of coins or NFTs. Many NFT collections will airdrop ETH or SOL to their holders, or give away NFTs to those that complete a promotion challenge (such as sharing on social media).
Diamond Hands (n.): refers to someone who invests in an asset for the long-term and holds an asset despite any price fluctuations.
Gas (n.): transaction fees that crypto users pay to miners on a blockchain protocol to ensure their transaction is verified on the blockchain. Higher demand for verification in a limited time frame means higher gas fees.
Mint (v.): turning a digital file into a cryptocurrency collectible or digital asset on a blockchain. The benefit of the blockchain is that it is a decentralized database that verifies originality, origin and ownership.
Paper Hands (n.): this refers to someone who sells their NFTs too early because they cave under pressure (their hands fold like paper). Early sales can drive down the price of NFTs by flippers and bots, so this is also used as a derogatory term in the NFT business.
Presale (n.): an opportunity to purchase NFTs before the general public, with permission given to certain VIPs related to a collection. Presale rights are ‘approved’ through a whitelist of exclusive wallet addresses.
Private/Secure Key (n.): Usually a 12-word passcode, this is the key that can unlock your virtual wallet and everything inside of it. Do not give out your secret phrase to anyone because they can remove all of your money and assets from your wallet.
Wallet (n.): a place to store your cryptocurrency.
Cold Wallet (n.): a place to store crypto away from the internet, in a paper wallet or a hardware wallet that is only connected to the internet for brief moments when making a transaction. Cold wallets are the most secure place to protect your crypto from hackers, but are susceptible to physically losing the wallet storage (usually the size of a USB).
Hot Wallet (n.): a place to store crypto on the internet using a secure key, usually a 12 word phrase. Hot wallets help you to access sites on Web 3.0, but can be susceptible to hacking.
Whale (n.): these are NFT traders with massive amounts of the currency being traded or NFTs owned. They can sell/buy in quantities large enough to manipulate the market price in the short term for their financial gain, and they can bring massive attention to NFT collections when they make their moves. These are the real deal NFT traders!
Whitelist (n.): a list of "cleared" addresses that are allowed exclusive access to NFT collections and can mint an NFT before the general public (presale).
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At createurnft, we are on a journey to create, mint, sell and buy NFTs and are sharing what we learn along the way. This is not financial advice, please take the time to verify our information before making any financial decisions.