Crypto Glossary

A

Address

A crypto address is a unique string used to send or receive digital assets, similar to a bank account number.

Airdrop

Free distribution of crypto tokens to promote a project or reward users.

Algorithmic Stablecoin

A digital coin that uses algorithms to keep its price stable without using reserves.

Altcoin

Any cryptocurrency other than Bitcoin.

Annual Percentage Rate (APR)

The yearly interest rate you earn on crypto investments without compounding.

Annual Percentage Yield (APY)

The yearly return including compounding interest.

Anonymous

Describes crypto transactions that hide the user's identity but are visible on the blockchain.

Anti-Money Laundering (AML)

Laws that prevent using crypto to hide or move illegal money.

Apeing

Buying into a new project quickly without much research, often due to hype.

API

A tool that lets software systems talk to each other, like connecting trading bots to exchanges.

ASIC

A computer chip made specifically to mine cryptocurrencies efficiently.

B

Bear Market

A long period when crypto prices drop and investors are pessimistic.

Binance

One of the largest global cryptocurrency exchanges.

Bitcoin

The first cryptocurrency, created in 2009 by Satoshi Nakamoto.

Bitcoin Halving

An event that reduces Bitcoin’s mining rewards by half, usually every four years.

Block

A digital record of confirmed transactions on a blockchain.

Blockchain

A decentralized ledger that records transactions securely and transparently.

Blockchain Certificate of Deposit

A crypto-based version of a fixed deposit that locks assets for rewards.

Blockchain Explorer

A website that lets users search for blockchain transactions and wallet activity.

Block Reward

The reward miners or validators receive for creating a new block.

BNB

Binance’s native token used for trading and transaction fees.

Bots

Automated programs that execute crypto trades or manage strategies.

BRC-20

A token standard for the Bitcoin blockchain, similar to Ethereum’s ERC-20.

Bridges

Tools that allow cryptocurrencies to move between different blockchains.

Bug Bounty

Rewards for finding security issues in blockchain systems.

Bull

An investor who expects crypto prices to rise.

Bull Market

A time when prices are rising and confidence is high.

Burn/Burned

When crypto tokens are permanently destroyed to reduce supply.

The Barbell Strategy

A portfolio mix of very safe and very risky assets, skipping the middle ground.

C

Cardano

A proof-of-stake blockchain focused on scalability and sustainability.

Central Bank Digital Currency

Government-issued digital currency, like a digital version of cash.

Centralized Exchange

A crypto exchange managed by a company that controls user funds.

Chainlink (LINK)

A blockchain network providing real-world data to smart contracts.

Changpeng Zhao (CZ)

Founder and former CEO of Binance, known for shaping the crypto exchange industry.

Circle

A company behind USDC, a popular stablecoin backed by real assets.

Circulating Supply

The total number of coins currently available to the public.

Coinbase

A major US-based cryptocurrency exchange platform.

Cold Storage

Storing crypto offline to protect it from hacking.

Cold Wallet

A device or paper wallet used for secure offline crypto storage.

Collateralization

Using crypto assets as collateral for loans or trading positions.

Cross-Chain

The ability to move tokens or data between different blockchains.

Cryptoasset

Any asset that exists on a blockchain, such as tokens or coins.

Cryptocurrency

Digital money that uses encryption and operates on decentralized systems.

CryptoPunks

A collection of 10,000 unique NFT characters on the Ethereum blockchain.

CSV

Comma-Separated Values — a file format for exporting or importing crypto transaction data.

Custodial

When a third party (like an exchange) holds your crypto for you.

Custodian

A trusted entity that manages and safeguards crypto on behalf of users.

Custody

The safekeeping of digital assets by individuals or institutions.

D

DAO

A Decentralized Autonomous Organization run by smart contracts and member votes.

Decentralized

A system not controlled by a single authority or organization.

Decentralized Applications (dApps)

Apps that run on blockchain networks rather than centralized servers.

Decentralized Exchange (DEX)

A peer-to-peer platform for trading crypto without intermediaries.

DeFi

Decentralized Finance — blockchain-based financial services like lending or staking.

Derivative

A financial contract whose value depends on another asset.

Diamond Hands

A term for holding onto investments despite volatility.

Digital Currency

Any currency that exists only in digital form.

Discord

An online community platform popular among crypto and NFT groups.

Distributed Ledger Technology

Technology that records and shares transaction data across multiple computers.

Dogecoin

A meme cryptocurrency originally created as a joke, now widely used and traded.

E

ERC-1155

A token standard that supports multiple types of tokens in one smart contract.

ERC-20

A common Ethereum token standard for fungible tokens.

ERC-721

The Ethereum standard for non-fungible tokens (NFTs).

ETH/BTC

A trading pair showing Ethereum’s price in Bitcoin.

Ethereum

A blockchain platform that enables smart contracts and decentralized apps.

Ethereum Virtual Machine (EVM)

The engine that executes smart contracts on Ethereum.

Exchange

A marketplace for buying, selling, or trading cryptocurrencies.

F

51% Attack

When one entity controls most of a blockchain’s power, potentially altering transactions.

52-Week High/Low

The highest and lowest crypto prices over the past year.

First In First Out (FIFO)

A method of accounting where the first bought assets are the first sold.

Flippening

A hypothetical event where another cryptocurrency overtakes Bitcoin in market cap.

Fork (Blockchain)

A change or split in a blockchain network’s code or direction.

Fully Diluted Value (FDV)

A project’s market cap if all tokens were in circulation.

FINTRAC

Canada’s regulator overseeing financial transactions, including crypto.

G

GameFi

Games that use blockchain technology to reward players with tokens.

Gas

A fee paid for transactions or operations on blockchain networks like Ethereum.

H

Hard Cap

The maximum amount a crypto project aims to raise during a sale.

Hardware Wallet

A physical device for storing crypto securely offline.

HODL

A slang term meaning to hold crypto long-term despite market swings.

I

Impermanent Loss

Temporary loss in value when providing liquidity due to price changes.

Initial Coin Offering (ICO)

A fundraising event where new tokens are sold to investors.

Isolated Margin

A trading setup that limits risk to one specific position.

K

KYC

Know Your Customer — identity checks required by exchanges and banks.

L

Layer 0

The foundational protocol that connects multiple blockchains.

Layer 1 Blockchain

Base-level blockchains like Bitcoin or Ethereum.

Layer 2

Solutions built on top of Layer 1 to improve speed and scalability.

Ledger

A physical or digital book of recorded transactions.

Lightning Network

A Bitcoin upgrade allowing faster, cheaper transactions.

Litecoin

A cryptocurrency created for faster transactions and lower fees than Bitcoin.

M

Market Capitalization (MCAP)

The total value of all coins in circulation, calculated as price × supply.

Maximal Extractable Value (MEV)

The profit miners or validators can gain by reordering transactions.

Max Supply

The maximum number of coins that will ever exist for a cryptocurrency.

Memecoin

A token inspired by internet memes, often community-driven.

Merkle Tree

A data structure used to verify large sets of transactions.

MetaMask

A crypto wallet browser extension for Ethereum and compatible chains.

Metaverse

A virtual digital world powered by blockchain and 3D technology.

Mnemonic Phrase

A list of words used to recover your crypto wallet.

Mobile Wallet

A crypto wallet app that stores and manages assets on your phone.

N

Network

A group of computers that share data to maintain a blockchain.

NFT

Non-Fungible Token — a unique digital asset stored on a blockchain.

Node

A computer that validates and records blockchain transactions.

Non-Custodial

A wallet or exchange where users have full control of their private keys.

O

On-Chain

Transactions or data recorded directly on the blockchain.

Opensea

A leading marketplace for buying and selling NFTs.

Open Source

Software whose code is publicly available for anyone to use or modify.

Optimistic Rollup

A Layer 2 scaling method that assumes transactions are valid by default.

Oracles

Services that feed real-world data to smart contracts.

Over-the-Counter (OTC)

Private crypto trades made directly between buyers and sellers.

P

Peer-to-Peer (P2P)

Direct exchange of crypto between individuals without intermediaries.

Polkadot

A blockchain platform that connects multiple networks.

Polygon

An Ethereum Layer 2 scaling solution for faster, cheaper transactions.

Ponzi Scheme

A scam where profits are paid using money from new investors.

Privacy Coin

A coin like Monero designed to hide transaction details.

Private Key

A secret code that grants access to your crypto wallet.

Proof of Reserves

Verification showing exchanges hold enough assets to back user deposits.

Proof-of-Stake (PoS)

A consensus method where validators are chosen based on the crypto they stake.

Proof-of-Work (PoW)

A system where miners solve puzzles to confirm transactions.

Protocol

A set of blockchain rules that define how data is processed.

Pseudonymous

Using a fake name or identity on the blockchain instead of your real one.

Public Address

A wallet address shared with others to receive crypto.

Public Blockchain

An open blockchain anyone can access or verify.

Public Key

A cryptographic code used to receive transactions.

Public Sale

The stage when a new token is sold to the public.

Q

QR Code

A scannable image that contains wallet addresses or payment details.

R

Recovery Seed

A list of backup words used to restore a crypto wallet.

Rehypothecation

When custodians reuse assets deposited by clients.

Ripple

A payment network focused on fast international transfers.

S

Satoshi Nakamoto

The anonymous creator of Bitcoin.

Scam

A fraudulent scheme to steal crypto or personal data.

SEC

The US Securities and Exchange Commission, which regulates crypto securities.

Settlement

The completion of a crypto trade.

Shitcoin

A worthless or low-quality crypto project.

Smart Contract

Self-executing code that runs automatically on a blockchain.

Snapshot

A record of all wallet balances at a specific time.

Solana

A high-speed blockchain for scalable apps and NFTs.

Spreads

The difference between buy and sell prices on an exchange.

Stablecoin

A cryptocurrency pegged to a stable asset like the US dollar.

Staking

Locking crypto to support a network and earn rewards.

Sybil Attack

A blockchain attack where one user creates many fake identities.

Synthetic Asset

A token that mimics the value of another real-world asset.

T

Tether

A popular USD-backed stablecoin.

The Merge (Ethereum 2.0)

Ethereum’s upgrade from Proof-of-Work to Proof-of-Stake.

Throughput

The number of transactions processed per second.

Ticker

A short symbol that represents a cryptocurrency, like BTC for Bitcoin.

Token

A digital asset built on another blockchain.

Tokenize

Turning real-world assets into digital tokens.

Tokenomics

The economic model behind a token’s supply and demand.

Tor

Privacy software used for anonymous internet browsing.

Total Supply

The number of tokens currently existing, including locked ones.

Trading Bot

A program that automatically trades based on market signals.

Trading Pair

Two currencies traded against each other, like ETH/USDT.

Trading Volume

The total amount of a cryptocurrency traded in a given time.

Transaction Fee

The fee paid to process blockchain transactions.

Transaction ID (TXID)

A unique identifier for each blockchain transaction.

Transactions Per Second (TPS)

The number of transactions a blockchain can process each second.

Travel Rule

A law requiring crypto exchanges to share sender and receiver info for large transfers.

Two-Factor Authentication (2FA)

An extra security step requiring two verification methods to log in.

V

Validator

A participant who confirms transactions in Proof-of-Stake systems.

Vitalik Buterin

Co-founder of Ethereum and a leading blockchain innovator.

W

Wallet

A digital tool that stores and manages your cryptocurrencies.

Web 2.0

The current internet with centralized platforms like Google or Facebook.

Web 3.0

The next version of the internet powered by decentralized apps and blockchain.

Whitelist

A list of approved users allowed to participate in a token sale.

Whitepaper

A document explaining a crypto project’s goals, technology, and tokenomics.

Y

Yield Curve

A graph showing interest rates for bonds or assets over different time periods.

Z

0x Protocol

A decentralized exchange protocol for Ethereum tokens.

Zero Knowledge Proof

A cryptographic method to prove something is true without revealing details.