Crypto Glossary

The language of crypto, explained in plain English. 302 definitions covering blockchain, trading, DeFi, NFTs, and the slang — no hype, just what each term actually means.

302 terms

A

Account AbstractionInfrastructure

A change that lets crypto wallets behave like programmable smart contracts, removing the rigid rules of traditional key-based accounts.

Accredited InvestorRegulation

A person or entity that meets income or wealth tests, letting them buy investments barred to the public.

AddressSecurity

A short string of letters and numbers that identifies where crypto can be sent on a blockchain.

Address PoisoningSecurity

A scam that seeds your history with a look-alike address, hoping you copy the wrong one later.

AirdropInfrastructure

A free distribution of tokens to wallets, often to reward early users or bootstrap a new community.

Algorithmic StablecoinTokens

A stablecoin that holds its peg through code and market incentives rather than holding cash reserves — a fragile design.

All-Time High (ATH)Trading

The highest price an asset has ever reached, a closely watched marker of a market's peak.

All-Time Low (ATL)Trading

The lowest price an asset has ever traded at since it began trading on the market.

AlphaCulture

Information or an edge expected to produce returns ahead of the crowd, like an early tip.

AltcoinTokens

Any cryptocurrency other than Bitcoin, a catch-all that spans serious networks and short-lived speculative tokens alike.

AML (Anti-Money Laundering)Security

The laws and procedures meant to stop criminals from disguising illicit money as legitimate funds.

Ape InCulture

To buy a token impulsively and in size, usually without research and often near a hype peak.

Application-Specific Integrated Circuit (ASIC)Blockchain

A chip built for one job, like mining a specific coin far faster than general hardware.

ArbitrageTrading

Profiting from the same asset trading at different prices in two places by buying low and selling high.

ASIC ResistantBlockchain

A mining algorithm designed to deny specialized chips a big edge over everyday hardware.

Ask PriceTrading

The lowest price a seller is currently willing to accept for an asset on the order book.

Atomic SwapInfrastructure

A trustless exchange of two different coins across chains that either completes fully for both sides or not at all.

Automated Market Maker (AMM)DeFi

A pricing algorithm that lets a token pool quote and settle trades automatically, replacing the traditional order book of buyers and sellers.

B

Bag HolderCulture

An investor stuck holding a token that has collapsed in value, with little hope of recovery.

Bear MarketTrading

A prolonged stretch of falling prices and weak sentiment, usually marked by a drop of 20% or more.

Bear TrapTrading

A false downside breakdown that tricks sellers into shorting, then snaps back up against them.

BearishTrading

Describes an expectation that a price will fall, or a position set up to gain when it does.

Bid PriceTrading

The highest price a buyer is currently willing to pay for an asset on the order book.

Bitcoin DominanceTrading

Bitcoin's share of the total crypto market capitalization, used to gauge where money is rotating.

Bitcoin ETFTokens

A fund tracking bitcoin's price that trades on stock exchanges, letting investors gain exposure without holding the coin.

Bitcoin PizzaCulture

The first known real-world Bitcoin purchase: 10,000 BTC for two pizzas on May 22, 2010.

BlockBlockchain

A batch of transactions bundled together, time-stamped, and cryptographically linked to the block before it.

Block ExplorerBlockchain

A website that lets anyone search a blockchain's transactions, addresses, and blocks in readable form.

Block HeightBlockchain

The number of blocks between a given block and the very first one, used to pinpoint its position.

Block RewardBlockchain

New coins plus fees paid to whoever adds the next valid block, the main incentive securing the chain.

BlockchainBlockchain

A shared digital ledger that records transactions in linked batches, copied across many computers and hard to alter.

Bollinger BandsTrading

Three lines that wrap price action, widening when volatility rises and pinching tight when markets go quiet.

Bonding CurveDeFi

A formula that sets a token's price from its supply, so each new mint costs more than the last.

BRC-20Infrastructure

An experimental token standard that issues fungible tokens on Bitcoin by embedding text data inside individual satoshis.

BreakoutTrading

Price pushing decisively through a level it had been stuck below or above, often on rising volume.

BridgeInfrastructure

A protocol that moves tokens or data between two separate blockchains that cannot otherwise talk to each other.

BTFDCulture

An acronym for 'buy the dip' (with an expletive), urging purchases when prices fall sharply.

Bull MarketTrading

A sustained period of rising prices, when buyers dominate and optimism pushes valuations higher across the market.

Bull TrapTrading

A false upside breakout that lures buyers in, then reverses and leaves them holding losses.

BullishTrading

Describes an expectation that a price will rise, or a trader positioned to profit from gains.

BurnTokens

Permanently removing tokens from circulation by sending them to an address no one can spend from, shrinking supply.

Byzantine Fault Tolerance (BFT)Blockchain

A system's ability to keep agreeing on the truth even when some participants fail or actively lie.

C

CandlestickTrading

A chart symbol showing an asset's open, close, high, and low for a given time period.

CeFi (Centralized Finance)DeFi

Crypto services run by companies that hold your funds and keys, much like a bank or traditional broker.

Central Bank Digital Currency (CBDC)Tokens

A digital form of a country's official currency, issued and controlled directly by its central bank.

Centralized Exchange (CEX)Trading

A company that runs an order book, holds your funds, and matches buyers with sellers for a fee.

Circulating SupplyTokens

The number of coins actually available and trading in the market, excluding locked, reserved, or unreleased tokens.

CoinTokens

The native asset of its own blockchain, used to pay fees and secure the network, unlike a token built on top.

Cold StorageSecurity

Keeping crypto keys completely offline for long-term safekeeping, out of reach of malware and remote attackers.

Cold WalletSecurity

A wallet whose keys are generated and stored offline, cutting off the remote attacks that target connected devices.

CollateralDeFi

An asset locked to back a loan or leveraged position, sold off automatically if its value drops too far.

CollateralizationDeFi

Backing a loan or minted stablecoin with deposited assets, usually worth more than the debt to absorb price swings.

Commodity Futures Trading Commission (CFTC)Regulation

The US regulator for commodity derivatives markets, which treats Bitcoin and Ether as commodities rather than securities.

ComposabilityDeFi

The way DeFi protocols snap together like building blocks, so the output of one can plug straight into another.

ConfirmationTokens

Each new block added on top of the one holding your transaction, deepening it and making reversal far harder.

Consensus MechanismBlockchain

The rules a decentralized network follows to agree on one valid history without trusting any central party.

Cross-ChainInfrastructure

Describes activity that spans two or more separate blockchains, such as moving assets or messages between them.

CryptocurrencyBlockchain

A digital asset secured by cryptography and recorded on a blockchain, free of any central issuer.

CryptographySecurity

The math of scrambling and verifying information so only intended parties can read or trust it.

Cup and HandleTrading

A rounded bottom followed by a small dip that, on a breakout, often points to higher prices.

Custodial WalletSecurity

An account where a third party holds your private keys for you, like a bank holding deposits.

CustodyRegulation

The safekeeping of crypto assets and the private keys that control them, often handled by a regulated third party.

CypherpunkCulture

A member of the 1990s movement that championed cryptography and privacy as tools against state and corporate control.

D

DAO (Decentralized Autonomous Organization)DeFi

An organization governed by token holders voting on-chain, where rules and treasury live in smart contracts instead of a boardroom.

DApp (Decentralized Application)DeFi

An application whose backend logic runs on a blockchain through smart contracts rather than a company's private servers.

Data AvailabilityInfrastructure

The guarantee that the data behind a block or batch is published and retrievable, so anyone can verify or rebuild state.

Dead Cat BounceTrading

A short-lived rally inside a larger downtrend that fades fast and gives way to more selling.

Death CrossTrading

A bearish chart pattern that prints when a faster moving average drops below a slower one.

DecentralizationBlockchain

Spreading control and data across many independent participants so no single party can dictate or shut things down.

Decentralized Exchange (DEX)DeFi

An on-chain venue where smart contracts let users swap tokens directly from their wallets, with no custodian.

DeFi (Decentralized Finance)DeFi

Financial services run by code on public blockchains, letting people trade or borrow without a bank.

DegenCulture

Short for degenerate gambler, a trader who chases high-risk bets with little regard for fundamentals.

Delegated Proof of Stake (DPoS)Blockchain

A variant where coin holders vote for a small set of delegates who produce blocks on their behalf.

DepegDeFi

When an asset meant to track a fixed value, like a stablecoin's $1, slips away and won't snap back.

DerivativesTrading

Financial contracts whose value comes from an underlying asset rather than from holding the asset itself.

DEX AggregatorDeFi

A tool that splits an order across multiple decentralized exchanges to find the best swap price.

Diamond HandsCulture

Slang for holding a position through heavy volatility and steep drawdowns without selling.

Digital SignatureSecurity

A cryptographic proof that a specific keyholder authorized a message, and that it hasn't been altered since.

DipTrading

A short-term drop in price, often viewed by buyers as a discount within a larger uptrend.

Directed Acyclic Graph (DAG)Blockchain

A ledger structure that links transactions in a branching web rather than a single chain of blocks.

Distributed Ledger Technology (DLT)Blockchain

The broad category of systems that keep a synchronized record across many sites with no central master copy.

Dollar-Cost Averaging (DCA)Trading

Investing a fixed amount on a regular schedule, regardless of price, to smooth out volatile entries over time.

Double SpendSecurity

Spending the same crypto twice by getting two conflicting transactions accepted, the core problem blockchains were built to stop.

DumpTrading

A rapid, heavy sell-off that drives price sharply lower, sometimes coordinated to catch other traders.

Dusting AttackSecurity

Sending tiny amounts of crypto to many addresses to track and unmask who controls them.

DYOR (Do Your Own Research)Culture

A standard disclaimer urging you to investigate a project yourself before risking any money on it.

E

F

FaucetTokens

A service that hands out tiny amounts of crypto for free, mainly to fund testing on test networks.

Fear & Greed IndexTrading

A sentiment gauge that scores the market's mood from extreme fear at zero to extreme greed at 100.

FiatTokens

Government-issued money like the US dollar or euro, backed by state authority rather than gold or any commodity.

Fibonacci RetracementTrading

Horizontal levels drawn from a prior swing that mark where a pullback might pause before the trend resumes.

FinalityBlockchain

The point at which a confirmed transaction can no longer be reversed or pushed off the chain.

Financial Action Task Force (FATF)Regulation

An intergovernmental body that sets global anti-money-laundering standards, including the crypto Travel Rule, for countries to adopt.

Flash LoanDeFi

An uncollateralized loan that must be borrowed and repaid within a single blockchain transaction, or it never happens at all.

Flash Loan AttackSecurity

An exploit using an uncollateralized loan repaid in one transaction to manipulate prices and drain a protocol.

Floor PriceInfrastructure

The lowest price at which any item in an NFT collection is currently listed for sale.

FOMO (Fear of Missing Out)Culture

The urge to buy an asset because its price is climbing fast and you dread missing the gains.

ForkBlockchain

A split in a blockchain's history or rules, whether a brief accident or a deliberate protocol change.

Fraud ProofInfrastructure

A challenge that lets anyone prove a rollup posted an invalid state update, triggering a rollback on the base chain.

Front-RunningSecurity

Profiting by seeing a pending transaction and pushing your own ahead of it for guaranteed gain.

FUD (Fear, Uncertainty, and Doubt)Culture

Negative or alarming information spread about a coin or project, sometimes accurate, often deployed to shake out holders.

Fully Diluted Valuation (FDV)Trading

A token's price multiplied by its maximum supply, valuing every coin that will ever exist.

FungibleTokens

Describes assets whose units are identical and interchangeable, so one unit holds exactly the same value as another.

FuturesTrading

Contracts to buy or sell an asset at a set price on a future date, often traded with leverage.

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Layer 1Blockchain

The base blockchain itself, where transactions settle and security lives, before any add-on networks built on top.

Layer 2Infrastructure

A separate network built on top of a base chain to process transactions faster and far more cheaply.

Layer-0Infrastructure

The base network layer that lets independent blockchains pass messages and spin up their own connected chains.

Lending ProtocolDeFi

A DeFi platform where users deposit crypto to earn interest and others borrow against collateral, all managed by smart contracts.

LeverageTrading

Borrowed money used to control a larger position than your own capital would allow, amplifying gains and losses.

LFGCulture

An acronym for 'let's go' (often saltier), shouted to celebrate momentum, launches, or a green candle.

Lightning NetworkInfrastructure

A Bitcoin payment layer that moves small transfers off-chain through bidirectional channels, settling on-chain only at close.

Limit OrderTrading

An order to buy or sell only at a chosen price or better, which may not fill at all.

Liquid StakingDeFi

Staking tokens while receiving a tradable receipt token, so your capital keeps earning rewards without being locked up.

LiquidationTrading

The forced closing of a leveraged position when losses drop its collateral below the required minimum.

LiquidityTrading

How easily an asset can be bought or sold near its current price without moving that price much.

Liquidity PoolDeFi

A pot of tokens locked in a smart contract that traders swap against, with prices set by a formula.

Liquidity ProviderDeFi

Someone who deposits token pairs into a pool, supplying the funds traders swap against in return for a share of fees.

LockupTokens

A fixed period during which tokens can't be sold or moved, common for team and investor allocations.

Long PositionTrading

A bet that an asset's price will rise, profiting as it climbs and losing as it falls.

M

MACD (Moving Average Convergence Divergence)Trading

Built from two moving averages, this indicator tracks the shifting gap between short- and long-term momentum.

MainnetBlockchain

The live blockchain where transactions carry real economic value and tokens trade for actual money.

Maker FeeTrading

The fee charged when your order adds liquidity to the book by resting until someone fills it.

Margin TradingTrading

Trading with borrowed funds, posting collateral to open positions larger than your account balance alone.

Market CapTrading

The total value of a coin's circulating supply, found by multiplying its price by the coins in circulation.

Market CorrectionTrading

A drop of roughly 10% or more from a recent high, short of a full bear market.

Market OrderTrading

An instruction to buy or sell immediately at the best price currently available in the market.

Markets in Crypto-Assets (MiCA)Regulation

The European Union's unified rulebook for crypto-assets, phased in across member states during 2024 and 2025.

Max SupplyTokens

The hard ceiling on how many units of a coin can ever exist, fixed by the protocol's rules.

Maximal Extractable Value (MEV)Infrastructure

Profit that block producers can capture by choosing how to order or insert transactions within the blocks they build.

MaximalistCulture

Someone who believes one chain, usually Bitcoin, will dominate and dismisses most other crypto assets.

Meme CoinTokens

A token built on a joke, trend, or mascot, with value driven almost entirely by hype rather than utility.

MempoolBlockchain

The waiting room where broadcast transactions sit before a miner or validator picks them for a block.

Merkle RootBlockchain

A single hash that fingerprints every transaction in a block, letting nodes verify data efficiently.

Merkle TreeBlockchain

A structure that hashes transactions in pairs up to a single root, letting you verify one without all.

MetaverseInfrastructure

A vision of persistent, shared 3D virtual worlds where users own digital assets and identity across platforms.

MinerBlockchain

A participant who spends computing power to solve proof-of-work puzzles and earn the right to add a block.

MiningBlockchain

The process of competing with computing power to add new blocks and mint fresh coins under proof of work.

Mining PoolBlockchain

A group of miners combining computing power to win block rewards and split them by contribution.

MintingInfrastructure

The act of creating a new token or NFT and writing it onto a blockchain for the first time.

Modular BlockchainInfrastructure

A design that splits a blockchain's core jobs across separate specialized layers instead of handling them all in one chain.

Moving Average (MA)Trading

A line that averages price over a set period, smoothing noise to reveal the underlying trend.

MultisigSecurity

A wallet setup that requires several private keys to approve a transaction instead of just one.

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Paper HandsCulture

A dismissive term for selling too early, dumping a position at the first sign of trouble.

Paper WalletSecurity

A private key printed or written on paper, kept fully offline so no hacker can reach it remotely.

ParachainInfrastructure

An independent blockchain that runs in parallel and leases security from the Polkadot relay chain through a connecting slot.

Permissioned BlockchainBlockchain

A closed blockchain where a known operator controls who may join and validate transactions.

PermissionlessBlockchain

A network anyone can join, use, or build on without asking a gatekeeper for approval.

Perpetual SwapTrading

A futures contract with no expiry date, kept aligned to spot price by recurring funding payments.

PhishingSecurity

A scam that tricks you into revealing keys or signing a malicious transaction by posing as something you trust.

Play-to-Earn (P2E)DeFi

A game model that pays players in tradeable tokens or NFTs, turning hours of play into real income.

PortfolioTrading

The full set of assets one person or fund holds, viewed together as a single position.

Price DiscoveryTrading

The market process by which buyers and sellers continuously settle on an asset's fair price.

Private KeySecurity

The secret number that proves ownership of crypto and authorizes spending it; whoever holds it controls the funds.

Proof of Authority (PoA)Blockchain

A consensus method where a few approved validators secure the chain based on their known identity.

Proof of History (PoH)Blockchain

Solana's method of stamping a verifiable time order onto events before they reach consensus.

Proof of ReservesRegulation

An audit method by which an exchange shows it holds enough assets to cover what customers are owed.

Proof of Stake (PoS)Blockchain

A consensus method where validators lock up coins as collateral instead of burning electricity to secure the chain.

Proof of Work (PoW)Blockchain

A consensus method where miners burn computing power to earn the right to add blocks and deter cheating.

Public KeySecurity

A key derived from your private key that others use to verify your signatures and that forms your address.

Public-Key CryptographySecurity

A system using a paired public and private key so anyone can verify a signature only the owner could make.

Pump and DumpCulture

A scheme that inflates a coin's price with coordinated hype, then sells into the buying for profit.

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SatoshiCulture

The smallest unit of bitcoin, equal to one hundred-millionth of a single coin.

Satoshi NakamotoCulture

The pseudonymous person or group who created Bitcoin and then disappeared, leaving the project to the community.

ScalabilityBlockchain

A network's capacity to handle more transactions and users without fees and delays spiking.

Scalability TrilemmaBlockchain

Vitalik Buterin's framing that blockchains trade off decentralization, security, and raw scale against each other.

Securities and Exchange Commission (SEC)Regulation

The US federal agency that oversees securities markets and has become crypto's most prominent enforcement regulator.

Security TokenTokens

A token representing a regulated investment — equity, debt, or a share of profits — and subject to securities law.

Seed PhraseSecurity

A list of 12 or 24 ordinary words that backs up a wallet and can restore all its keys.

Self-CustodySecurity

Holding your own private keys directly, so no exchange or company stands between you and your crypto.

SequencerInfrastructure

The rollup component that decides the order of incoming transactions and posts them as compressed batches to the base chain.

ShardingBlockchain

Splitting a blockchain into parallel partitions so they process transactions side by side instead of one at a time.

ShillingCulture

Aggressively promoting a coin to others, frequently for personal gain and often without disclosing the payment.

Short PositionTrading

A bet that an asset's price will fall, made by selling borrowed coins to buy back cheaper.

Short SellingTrading

Betting that a price will fall by selling an asset you don't own, then buying it back cheaper.

SidechainInfrastructure

An independent blockchain that runs alongside a main chain and connects to it through a two-way bridge.

SIM SwapSecurity

An attack that transfers your phone number to the attacker's SIM card to intercept calls and SMS codes.

SlashingBlockchain

A penalty that destroys part of a validator's staked coins for misbehavior or downtime.

SlippageTrading

The difference between the price you expected on a trade and the price it actually executed at.

Smart ContractDeFi

Self-executing code on a blockchain that runs exactly as written when its conditions are met, with no party able to intervene.

Smart Contract AuditSecurity

A structured review of contract code that hunts for vulnerabilities before attackers find and exploit them.

Social EngineeringSecurity

Manipulating people rather than code, tricking them into handing over keys, codes, or access.

Soft ForkBlockchain

A backward-compatible rule tightening where upgraded nodes enforce stricter limits and old nodes still follow along.

SolidityInfrastructure

The dominant programming language for writing smart contracts that run on Ethereum and other compatible virtual machines.

Soulbound Token (SBT)Tokens

A non-transferable token bound permanently to one wallet, used to represent credentials or reputation on-chain.

SpreadTrading

The gap between the highest bid and the lowest ask, a basic measure of trading cost and liquidity.

StablecoinTokens

A crypto token designed to hold a steady value, almost always pegged one-to-one with the US dollar.

StakingDeFi

Locking up tokens to help secure a proof-of-stake network and earn rewards, similar to interest on a deposit.

State ChannelsInfrastructure

A scaling technique where participants transact off-chain through signed messages, posting only the opening and final balances on-chain.

Stop-Limit OrderTrading

A stop order that, once triggered, places a limit order instead of selling at market.

Stop-Loss OrderTrading

A standing instruction to sell once price falls to a set level, capping how much you lose.

Support and ResistanceTrading

Price levels where buying or selling has repeatedly stalled a move, marking floors and ceilings on a chart.

Sybil AttackSecurity

An attack where one actor spins up many fake identities to gain outsized influence over a network.

T

Take-Profit OrderTrading

A standing order to sell once price rises to a target, locking in gains automatically.

Taker FeeTrading

The fee charged when your order removes liquidity by filling immediately against the book.

TestnetBlockchain

A sandbox copy of a blockchain where developers trial code using tokens that hold no value.

The DAO HackCulture

A 2016 exploit that drained millions from a flagship Ethereum project and forced a contentious hard fork.

The FlippeningCulture

A hypothetical moment when Ethereum's market capitalization overtakes Bitcoin's, becoming the largest crypto asset.

TimestampBlockchain

A recorded time marker proving when a block or transaction entered the blockchain's history.

To the MoonCulture

An expression of hope or hype that a coin's price is about to rise dramatically.

TokenTokens

A digital asset issued on top of an existing blockchain, usually through a smart contract rather than its own network.

TokenomicsTokens

The economic design of a token — its supply, distribution, and incentives — that shapes whether it can hold value.

Total SupplyTokens

Every token that currently exists, including locked and reserved coins but excluding any that have been burned.

Total Value Locked (TVL)DeFi

The total worth of crypto deposited in a protocol or across DeFi, used as a rough gauge of size and trust.

TradFiCulture

Traditional finance, the established system of banks, exchanges, and regulators that crypto positions itself against.

Trading VolumeTrading

The total value of an asset bought and sold over a period, usually measured across 24 hours.

TransactionTokens

A signed instruction that moves value or data on a blockchain, recorded permanently once miners or validators confirm it.

Transaction FeeTokens

Paid to the network for processing a transfer, this charge rises and falls with how busy the chain is.

Transactions Per Second (TPS)Blockchain

A measure of how many transactions a blockchain can confirm each second under load.

Travel RuleRegulation

A FATF requirement that firms share sender and recipient details on crypto transfers above a set threshold.

TrendlineTrading

A straight line linking a series of highs or lows to map the direction price is traveling.

TrustlessBlockchain

A system where you rely on code and math instead of trusting a middleman.

Two-Factor Authentication (2FA)Security

A second login check beyond your password, usually a one-time code, that blocks attackers who steal credentials.

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