Crypto Glossary
Altcoins
Any cryptocurrency other than Bitcoin (e.g., Ethereum, Solana, Cardano).
Address
A unique string of characters representing a crypto wallet destination for sending and receiving funds.
ATH (All-Time High)
The highest price an asset has ever reached.
ATL (All-Time Low)
The lowest price an asset has ever reached.
Airdrop
Free distribution of tokens to users, often for marketing or community rewards.
AMM (Automated Market Maker)
A decentralised trading system that uses liquidity pools and algorithms instead of order books.
Algorithmic Stablecoin
A stablecoin that attempts to maintain a price peg using supply-adjustment mechanisms (many proved unstable in practice).
ASIC (Application-Specific Integrated Circuit)
Specialised hardware built for high-efficiency crypto mining.
Bitcoin
The first decentralised digital currency operating on a peer-to-peer blockchain.
Blockchain
A distributed ledger that records transactions in cryptographically linked blocks.
Block
A data unit that contains transactions added to the blockchain.
Block Reward
Crypto given to miners or validators for creating new blocks.
Block Explorer
A tool for viewing transactions, blocks, and wallet activity on a blockchain.
Bitcoin Halving
An event reducing Bitcoin mining rewards by 50% roughly every four years.
Bridge
A protocol allowing assets to move between different blockchains.
Coin
A native cryptocurrency of a blockchain (e.g., Bitcoin, Ether).
Cold Wallet
Offline crypto storage offering high security.
Cryptocurrency
A digital asset secured by cryptography and operated on decentralised networks.
Consensus Mechanism
The method used by blockchains to validate transactions (PoW, PoS, etc.).
CEX (Centralised Exchange)
A crypto exchange operated by a company using order books.
Circulating Supply
Coins currently available in the market.
Cross-Chain
Technology enabling interaction between blockchains.
DeFi (Decentralised Finance)
Financial services built on blockchain without intermediaries.
DEX (Decentralised Exchange)
A peer-to-peer crypto exchange powered by smart contracts.
DApp
A decentralised application running on blockchain.
DCA (Dollar-Cost Averaging)
Investing fixed amounts regularly to reduce volatility impact.
DAO
A blockchain-based organisation governed by smart contracts and community voting.
Ethereum
A blockchain platform enabling smart contracts and decentralised apps.
Ether (ETH)
Ethereum’s native cryptocurrency.
ERC-20
Ethereum standard for fungible tokens.
ERC-721
Ethereum standard for non-fungible tokens (NFTs).
EVM (Ethereum Virtual Machine)
The engine executing smart contracts on Ethereum.
Fiat Currency
Government-issued money like USD or EUR.
Fork
A change or upgrade to a blockchain protocol.
FOMO
Fear of Missing Out — emotional trading driven by hype.
FUD
Fear, Uncertainty, Doubt — negative or misleading information.
Full Node
A computer maintaining and validating the entire blockchain.
Gas Fee
Cost paid to process transactions on blockchains like Ethereum.
Genesis Block
The first block in a blockchain.
Governance Token
A token granting voting rights in a crypto project.
Gwei
A unit of Ether commonly used to measure gas fees (1 Gwei = 1 billion wei).
Hash
A cryptographic function converting data into fixed-length code.
Hash Rate
Total computing power securing a blockchain network.
Hard Fork
A major blockchain upgrade that creates a new chain.
Hardware Wallet
Physical device for secure private key storage.
Hot Wallet
Online wallet connected to the internet.
HODL
Long-term holding strategy despite volatility.
ICO (Initial Coin Offering)
Early fundraising by selling new crypto tokens.
IEO
Token sale conducted through an exchange.
IDO
Token launch via decentralised exchange.
Impermanent Loss
Temporary loss from providing liquidity when asset prices change.
Interoperability
Blockchains’ ability to share data and assets.
Layer 2 (L2)
Scaling solutions built on top of blockchains to reduce fees and congestion.
Leverage
Borrowed funds used to increase trade size.
Liquidation
Forced position closure when margin falls below required level.
Liquidity Pool
Locked crypto used to facilitate decentralised trading.
Liquidity Provider
User supplying funds to liquidity pools.
Long / Short
Trading positions betting on price rise (long) or fall (short).
Market Capitalisation
Total value of a cryptocurrency (price × supply).
Margin
Funds required to open leveraged trades.
Mining
Process of validating transactions and earning crypto.
Minting
Creating new tokens or NFTs.
Memecoin
Crypto originating from internet memes (e.g., Dogecoin).
Node
A computer participating in blockchain network operations.
NFT (Non-Fungible Token)
A unique digital asset representing ownership.
On-Chain
Transactions recorded on the blockchain.
Off-Chain
Transactions processed outside the blockchain.
Oracle
Service supplying real-world data to smart contracts.
Order Book
List of buy and sell orders on exchanges.
Private Key
Secret code controlling access to crypto funds.
Public Key / Address
Identifier for receiving crypto.
PoS (Proof of Stake)
Consensus where validators stake coins.
PoW (Proof of Work)
Consensus based on computational mining.
Pump and Dump
Price manipulation scheme.
Perpetual Contracts
Derivatives with no expiry date.
Rollups
Layer 2 solutions bundling transactions to reduce fees.
Rug Pull
Developers abandoning a project and stealing liquidity.
ROI
Return on Investment.
Smart Contract
Self-executing blockchain program.
Stablecoin
Crypto pegged to stable assets (USD, gold, etc.).
Seed Phrase
Backup words for wallet recovery.
Slippage
Difference between expected and executed trade price.
Spread
Difference between buy and sell prices.
Staking
Locking crypto to earn network rewards.
Spot Trading
Immediate crypto buying and selling.
Token
Digital asset built on a blockchain.
Tokenomics
Supply, distribution, and economic design of a token.
TVL (Total Value Locked)
Assets deposited in DeFi protocols.
TPS (Transactions Per Second)
Network processing capacity.
Utility Token
Token providing access to platform services.
USDT / USDC
Popular fiat-backed stablecoins.
UTXO
Unspent transaction output used in Bitcoin transactions.
Validator
Node verifying transactions in PoS networks.
Volatility
Degree of price movement over time.
Wallet
Tool for storing and managing crypto.
Whale
Large holder capable of moving markets.
White Paper
Technical document explaining a crypto project.
Web3
Decentralised internet built on blockchain technology.
