NFT Terms to Know Before You Invest

Here is a quick guide to nft terms. We define technical terms, slang, acronyms, and other jargon related to NFTs.



  • ASSETS

    Just an industry term for a digital collectible – it could be a model, piece of art, music, a tweet or anything else you can buy as an NFT.

  • BEEPLE

    Pseudonym for Mike Winkelmann, perhaps the most well known digital artist. Beeple’s Everyday's: the First 5000 Days sold for $69,400,000.

  • BINANCE SMART CHAIN

    A block chain compatible with buying and selling NFTs.

  • BLOCKCHAIN

    Block chain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.

  • BURNING

    Burning means permanently deleting or eliminating a specific amount of a cryptocurrency. It’s done for a number of reasons; it can be used as part of the block chain authentication process (via something called Proof-of-Burning), or it can be used to moderate the value of a cryptocurrency (if there are fewer in circulation, the value goes up).

  • CRYPTOPUNK

    A unique collectible avatar stored on Ethereum.

  • DIGITAL COLLECTABLE'S

    Digital collectibles use block chain technology to create non-fungible tokens that allow for distribution and transfers in ownership.

  • DISCORD

    An instant messaging platform and the go-to place for discussing NFTs.

  • ERC-721

    A token standard that allows for the creation of unique, non-fungible tokens.

  • ETHEREUM

    A block chain with smart contract functionality. Ethereum is currently the main platform for NFT projects.

  • FLOOR PRICE

    The lowest NFT price in any given category of NFTs. To “buy the floor” is to buy the cheapest NFT in a project / collection.

  • FLOW

    A block chain created by Dapper Labs that’s custom-made for games and collectibles.

  • FRACTIONAL OWNERSHIP

    Partial ownership rights over an NFT. Sellers can sell percentages of a work and buyers can buy what they can afford.

  • FUNGIBLE

    Replace ability. Dollars are fungible because a dollar owed can be paid using any dollar in existence. Something that is non-fungible, like a painting, is one-of-a-kind.

  • GAS FEES

    Fees that block chain users pay to compensate for the computational resources used to execute transactions. Gas fees, which are largely specific to Ethereum, ensure that transactions will be genuine and discourages bad actors from spamming the network with a high volume of transactions.

  • HASH MASK

    A kind of artwork, normally created by multiple artists in collaboration. The special part of hash masks is that when you buy one, you can actually choose the name yourself, which is unusual for an NFT, so adds additional value to the item.

  • METAMASK

    A wallet used as a gateway to NFT apps like OpenSea, Rarible, and Axie Infinity.

  • METAVERSE

    A virtual 3D world where people can interact. Popular block chain-based environments that comprise the Metaverse include Decentraland and The Sandbox, virtual gaming worlds where users can buy and sell land as NFTs.

  • MINTED

    This is the process of validating information and adding that to the block chain. This is a core part of NFTs, and what makes them so valuable, because once an item or asset is minted, this is proof that it’s authentic, and keeps track of how many there are

  • NBA TOPSHOT

    A marketplace run on the Flow block chain for exchanging one of the most unique forms of NFT: virtual basketball “moments.”

  • NFT

    Shorthand for Non-fungible token. What this means is that it cannot be replaced by an identical item.

  • NIFTY GATEWAY

    A popular NFT marketplace owned by Gemini, a cryptocurrency exchange. A “Nifty” is simply an NFT.

  • OFF-CHAIN METADATA

    Metadata that is stored outside the block chain.

  • ON-CHAIN METADATA

    Metadata that is directly incorporated in a smart contract.

  • OPEASEA

    Launched in 2018, OpenSea is the first and largest NFT marketplace, boasting four million assets and 135+ DApps.

  • POLYGON

    An Ethereum-compatible protocol that provides cheaper, faster, and more secure payment transactions. Polygon is an attractive platform for NFTs because of cheap minting costs and low gas fees.

  • RARITIES

    As the term implies this is all about how rare an NFT is.

  • ROYALITIES

    Money earned by an NFT creator through the token’s resale. Some NFTs automatically pay royalties each time an NFT is sold.

  • SMART CONTRACT

    A self-executing digital contract. NFTs are composed of code written in smart contract programming language like Solidity.

  • UTILITY-FOCUSED NFT

    NFTs with real-world use cases. For example, NFTs can be used to improve event ticketing. Digital art can also have utility coded into it. E.g., ownership of a Bored Ape grants members-only benefits like access to a collaborative graffiti board.