Whitepaper
A detailed technical document published by a cryptocurrency project that outlines its purpose, technology, architecture, tokenomics, team, roadmap, and the problem it aims to solve. Whitepapers serve as the foundational reference for evaluating a project's legitimacy and vision. Bitcoin's original whitepaper by Satoshi Nakamoto ('Bitcoin: A Peer-to-Peer Electronic Cash System') pioneered the format.
“Before investing in a new protocol, reading the whitepaper helps you understand the technical approach, token economics, and whether the project is solving a real problem. Red flags include vague whitepapers with no technical substance.”
DYOR (Do Your Own Research)
The practice of thoroughly investigating a cryptocurrency project before investing, including analyzing its team, technology, tokenomics, competitive landscape, community, and potential risks. DYOR is both a personal responsibility mantra in crypto and a disclaimer often used by influencers to absolve themselves of liability for their recommendations.
Tokenomics
The economic model and design of a cryptocurrency token, encompassing its supply schedule, distribution plan, utility within the ecosystem, value accrual mechanisms, inflation/deflation dynamics, and incentive structures. Well-designed tokenomics align incentives between all stakeholders and sustain long-term value. Poorly designed tokenomics can lead to unsustainable inflation or wealth concentration.
Bitcoin (BTC)
The first and largest cryptocurrency by market capitalization, created in 2009 by the pseudonymous Satoshi Nakamoto. Bitcoin is designed as a decentralized digital currency with a hard-capped supply of 21 million coins, enforced through a halving mechanism that reduces new coin issuance approximately every four years. It uses Proof of Work consensus and is often referred to as 'digital gold.'