HOME

Crypto Glossary

Last updated: Aug 08, 2025

18 Min Read

AI Generated Summary

Summary

Table of Contents

Learn crypto in minutes. This glossary explains Bitcoin, Ethereum, DeFi, NFTs, wallets, and trading terms in plain English. Click a letter below or open a card to see a short definition and links to deeper guides.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Address (wallet address)

A wallet address is a unique code you share to receive crypto. It works like a digital PO box for money. Learn more about crypto wallet addresses

Airdrop (free crypto drop)

An airdrop is when a project sends free tokens to your wallet to reward users or promote itself.

Altcoin (alternative cryptocurrency)

An altcoin is any coin that isn’t Bitcoin, like Ethereum or Solana. Learn more about altcoins

ASIC (application-specific integrated circuit)

An ASIC is a chip built to mine one type of coin very fast and efficiently. Learn more about ASIC mining

Atomic Swap (direct coin swap)

An atomic swap lets you trade one crypto for another from your wallet without an exchange. Learn more about cross-chain atomic swaps

B

Bitcoin (BTC)

Bitcoin is the first and best-known cryptocurrency. It works like digital cash you can send directly without a bank. Launched in 2009, it started peer-to-peer money worldwide. Learn more about what is Bitcoin

Blockchain

A blockchain is a public digital ledger that stores cryptocurrency transactions across many computers. Once data is added, it can’t be erased. Think of a diary everyone can read but no one can rewrite. Learn more about what is blockchain technology

Block

A block is like a page in the blockchain’s ledger. It stores a group of transactions and then gets added to the chain.

Block Height

Block height is the count of blocks in the chain. Like a page number—the higher it is, the longer the chain.

Block Reward

A block reward is new cryptocurrency given to miners for adding a valid block. It brings new coins into the system and helps secure the network.

Bull Market

A bull market is when crypto prices rise and confidence is high.

Bear Market

A bear market is when prices fall and investors turn cautious.

Bag Holder

A bag holder keeps a coin after it drops a lot, hoping it recovers.

C

Cold Storage

Cold storage keeps your crypto completely offline. It’s much harder for hackers to reach.

Cold Wallet

A cold wallet stores crypto offline, like a hardware device or paper wallet. It’s great for long-term security.

Consensus

Consensus is how a blockchain agrees on the same record of transactions without a central authority. Common methods are Proof of Work and Proof of Stake.

Cryptocurrency

Cryptocurrency is digital money secured with cryptography. It’s usually decentralized and runs on a blockchain. You can send value online without banks. Check out our Crypto Beginners Guide

Centralized Exchange (CEX)

A centralized exchange is a company-run platform that holds your funds and does trades for you. It’s easy to use but less private. Learn more about centralized vs decentralized exchanges

Coinbase

Coinbase is a popular U.S. exchange for buying, selling, and storing crypto. It’s beginner-friendly. Read our Coinbase review

Cross-chain

Cross-chain tech lets different blockchains talk to each other. It helps move assets and data between networks like Ethereum and BNB Chain. Learn more about cross-chain bridges

D

DeFi (Decentralized Finance)

DeFi rebuilds services like lending, trading, and saving on public blockchains with smart contracts—no banks or middlemen. Learn more about what is DeFi

DAO (Decentralized Autonomous Organization)

A DAO runs with code and community votes. Token holders decide what happens instead of a single leader. Learn more about DAOs

DApp (Decentralized Application)

A DApp is an app on a blockchain that runs without a central server. It’s transparent and hard to shut down. Learn more about DApps

DEX (Decentralized Exchange)

A DEX lets you trade crypto directly from your wallet with smart contracts—no sign-ups, no middlemen.

Double Spending

Double spending is trying to use the same crypto in two transactions. Blockchains prevent it by having many computers verify each transaction.

Digital Wallet

A digital wallet stores the keys that let you access your crypto. It can be online (hot) for quick use or offline (cold) for safety.

Diamond Hands

Diamond hands means holding your crypto through big ups and downs because you believe long term.

E

Ethereum

Ethereum is a blockchain for apps and smart contracts. Launched in 2015, it powers many DeFi apps, NFTs, and games. Developers can build programs that run automatically. Learn more about Ethereum

ERC‑20

ERC‑20 is a common rule set for tokens on Ethereum. It standardizes transfers and balances so wallets and exchanges can support tokens easily.

Exchange

An exchange is a marketplace to buy, sell, or trade crypto. A CEX handles trades for you. A DEX lets you swap from your wallet without a middleman.

Encryption

Encryption scrambles data so only someone with the right key can read it. It protects wallets, passwords, and transactions.

Ecosystem

An ecosystem is the set of wallets, apps, tools, and exchanges around a blockchain. Strong ecosystems offer more choices and better support.

F

Fiat Currency (Fiat)

Fiat is government money like USD or EUR. People use it to buy crypto and cash out profits.

Fork

A fork is a change in a blockchain’s rules. A hard fork creates a new chain; a soft fork keeps compatibility. Forks help upgrade networks.

FOMO (Fear of Missing Out)

FOMO is the urge to buy because prices are rising. It can lead to rushed, risky choices.

FUD (Fear, Uncertainty, Doubt)

FUD is negative talk that spreads worry. Always double‑check facts before reacting.

Full Node

A full node stores and checks every block and transaction. It boosts security and removes the need to trust others.

Futures

Futures are contracts to buy or sell later at a set price. Traders use them to hedge or to bet on moves. They can be risky with leverage.

G

Gas

Gas is the fee you pay to run transactions or smart contracts, mainly on Ethereum. Complex actions cost more gas. Learn more about crypto network fees

Genesis Block

The genesis block is the first block on a blockchain. It’s the starting point of the ledger.

Governance Token

A governance token lets holders vote on changes and funding. It gives users a say in the project’s future.

Gwei

Gwei is a small unit of ETH used for gas prices. 1 Gwei equals 0.000000001 ETH.

H

Hash

A hash is a unique fingerprint made from data. If the input changes, the hash changes too. It helps keep data honest.

Hash Rate

Hash rate is how fast miners process hashes. Higher hash rate means stronger security and better chances to find blocks.

HODL

HODL means holding your crypto through ups and downs. It’s about long‑term belief, not short‑term fear. Learn more about HODL

Hot Wallet

A hot wallet is online and quick to use. It’s great for spending, but more exposed to hacks than offline wallets.

Halving

Halving cuts Bitcoin’s mining reward in half about every four years. It slows new supply and often draws attention to BTC. Learn more about Bitcoin halving

Hard Fork

A hard fork is a rule change that makes new blocks incompatible with old ones. It can create a separate chain. Learn more about hard vs soft forks

I

ICO (Initial Coin Offering)

An ICO sells new tokens to raise funds. Some became big projects; others were scams. Always research first.

Immutable

Immutable means unchangeable. Once data goes on a blockchain, it stays there.

Inflation

Inflation is when money loses buying power over time. Some cryptos try to limit supply to reduce inflation.

Interoperability

Interoperability lets different blockchains work together. It helps move data and assets across networks.

J

JOMO (Joy of Missing Out)

JOMO is feeling good about skipping hype. In crypto, it means staying calm and sticking to your plan.

K

KYC (Know Your Customer)

KYC is the identity check exchanges use. It helps stop fraud and money laundering. Learn more about KYC and AML

Key Pair (Public and Private Key)

A key pair has a public key you can share and a private key you must keep secret. Together they let you receive and spend crypto.

L

Ledger

A ledger is the full record of transactions on a blockchain. Anyone can verify entries on public chains.

Lightning Network

The Lightning Network is a second layer for Bitcoin. It makes small payments fast and cheap by moving them off‑chain.

Liquidity

Liquidity shows how easy it is to trade without moving price a lot. High liquidity means smoother trades.

Liquidity Pool

A liquidity pool locks tokens in a smart contract so a DEX can make trades. Providers earn a share of fees.

Long

Going long means buying because you think price will rise. You plan to sell later for a profit.

M

Market Cap

Market cap is the coin price times the number of coins in circulation. It’s a quick way to compare project size. Learn more about crypto market cap

Mining

Mining uses computers to secure the network and add blocks. Miners earn new coins and fees. Learn more about Bitcoin mining

Miner

A miner is the person or machine doing the mining work. They run hardware and software to find valid blocks.

Mempool

The mempool is where unconfirmed transactions wait. Miners pick from this pool when making a new block.

Multisig (Multi‑Signature Wallet)

Multisig needs more than one private key to approve a transaction. It adds extra security and shared control.

Moon

“To the moon” is slang for a huge price jump. People say it when they expect big gains.

N

Node

A node is a computer that connects to a blockchain network. It helps relay and verify transactions.

NFT (Non‑Fungible Token)

An NFT is a unique digital item on a blockchain, like art or collectibles. Each token is one of a kind. Learn more about NFTs

Nonce

A nonce is a number miners change while trying to find a valid hash. It’s like guessing until the lock opens.

Network Effect

The network effect means a blockchain gets more useful as more people join. Big networks often beat small ones.

O

On‑chain

On‑chain transactions are recorded directly on the blockchain. Anyone can verify them.

Off‑chain

Off‑chain transactions happen outside the main chain to save fees or time. They can be settled on‑chain later.

Oracle

An oracle brings real‑world data to smart contracts, like prices or weather. Without oracles, blockchains would be closed systems. Learn more about blockchain oracles

Over‑the‑Counter (OTC)

OTC trades happen directly between parties, not on a public order book. Large trades use OTC to avoid big price swings.

P

Private Key

Your private key is the secret that lets you spend your crypto. Keep it offline and never share it.

Public Key

Your public key is safe to share. It’s used to receive crypto and is linked to your private key.

Proof of Work (PoW)

Proof of Work uses mining to secure the network. Miners solve puzzles to add blocks and earn rewards. Learn more about Proof of Work vs Proof of Stake

Proof of Stake (PoS)

Proof of Stake picks validators based on the crypto they lock up. It uses less energy than PoW and can handle more transactions.

Pump and Dump

A pump and dump hypes a coin to raise the price, then insiders sell fast. Late buyers take the loss.

Paper Hands

Paper hands sell quickly at the first sign of a drop. It’s the opposite of holding strong.

Q

QR Code

A QR code is an image you can scan to fill in a wallet address or payment info. It saves time and avoids typos.

R

Rug Pull

A rug pull is when project owners run away with investor money. It’s a major scam risk in DeFi and new tokens.

Rekt

Rekt means taking heavy losses. People say it when trades go very wrong.

Resistance

Resistance is a price level where sellers often step in. It can slow or stop a move up.

ROI (Return on Investment)

ROI shows your profit or loss compared to what you put in. It’s a quick performance check.

S

Satoshi

A Satoshi is the smallest unit of Bitcoin: 0.00000001 BTC.

Satoshi Nakamoto

Satoshi Nakamoto created Bitcoin. No one knows who they are for sure.

Smart Contract

A smart contract is code that runs on a blockchain and does tasks automatically when rules are met.

Staking

Staking locks up your crypto to help run the network. In return, you earn rewards.

Stablecoin

A stablecoin aims to keep a steady price, often tracking USD or gold. It’s useful for payments and saving. Learn more about stablecoins

Seed Phrase

A seed phrase is a list of words that can recover your wallet. Keep it offline and private.

Shitcoin

A shitcoin is a token with little value or purpose, mostly hype. These often crash hard.

Shill

To shill is to push a coin to others, sometimes to dump later. Be careful with hype.

Short

Shorting means betting price will fall. You profit if it drops and lose if it rises. Learn more about shorting crypto

Slippage

Slippage is when your trade fills at a different price than you expected. It happens in fast or thin markets. Learn more about slippage

T

Token

A token is a digital asset built on another chain, like Ethereum. It can represent access, votes, or game items.

Tokenomics

Tokenomics is the design of a token’s economy. It includes supply, distribution, and incentives.

Transaction Fee

This is what you pay to get your transaction processed. It goes to miners or validators.

Total Supply

Total supply is the most tokens that can ever exist for a project.

TVL (Total Value Locked)

TVL is how much value sits inside DeFi protocols. It shows activity and trust.

Two‑Factor Authentication (2FA)

2FA adds a second login step, like a phone code. It makes accounts safer.

U

Unconfirmed Transaction

A transaction that is sent but not yet in a block. It’s pending until confirmed.

Utility Token

A utility token gives access to a product or service. It’s like a pass for features or discounts.

V

Validator

In PoS systems, validators check transactions and add blocks. They lock up coins and earn rewards.

Volatility

Volatility is how fast and how far prices move. Crypto can swing a lot in short time periods.

Volume

Volume is how much crypto is traded in a time period. High volume means active markets.

Vesting

Vesting releases tokens over time. It keeps teams aligned and reduces sudden selling.

W

Wallet

A wallet stores your keys and lets you send or receive crypto. Cold wallets are offline; hot wallets are online.

Whale

A whale holds a lot of crypto. Their trades can move prices.

Whitepaper

A whitepaper explains a project’s tech, plans, and goals. It’s the main document for understanding a crypto project.

Wrapped Token

A wrapped token is a tokenized version of a coin from another chain, like WBTC on Ethereum. It lets assets move across ecosystems. Learn more about wrapped Bitcoin (WBTC)

X

XRP

XRP is a coin made for fast, low‑cost payments across borders. It isn’t mined; the full supply was created at the start. Learn more about XRP

Y

Yield Farming

Yield farming means locking crypto in DeFi to earn rewards or fees. It can pay well but carries risks like hacks or price swings. Learn more about yield farming

Yield

Yield is your actual return, like interest or rewards. It shows how well your holdings are performing.

Z

Zero‑Knowledge Proof

A zero‑knowledge proof lets you prove something is true without showing the details. It keeps data private while still proving facts.