Crypto Glossary

Address

A string of letters and numbers that works like an email address for crypto — you share it so people can send you coins.

Airdrop

Free crypto sent to your wallet, usually to promote a new project or reward existing holders.

Altcoin

Any cryptocurrency that isn't Bitcoin.

ATH

All-Time High — the highest price a cryptocurrency has ever reached.

Bear Market

A period when prices are falling and investor mood is gloomy. Opposite of a bull market.

Bitcoin

The first and most well-known cryptocurrency, created in 2009 by the mysterious Satoshi Nakamoto.

Block

A batch of transactions that gets added to the blockchain all at once — like a page in a ledger.

Blockchain

A shared digital record of transactions maintained by thousands of computers — no single person controls it.

Bridge

A tool that moves crypto from one blockchain to another — like a currency exchange between different networks.

Bull Market

A period when prices are rising and people are optimistic. Opposite of a bear market.

Burn

Permanently destroying tokens by sending them to an address nobody can access — reducing total supply.

CEX

Centralised Exchange — a company-run platform where you can buy, sell, and trade crypto. Examples: Coinbase, Kraken.

Coin

A cryptocurrency that has its own blockchain — like Bitcoin (BTC) or Ethereum (ETH).

Cold Wallet

A crypto wallet that is kept offline — much harder for hackers to reach.

Confirmation

Each new block added after your transaction makes it more secure. More confirmations = more permanent.

Consensus

The way all the computers in a network agree on which transactions are valid — without needing a boss.

Custodial

When someone else (like an exchange) holds your crypto keys on your behalf.

DAO

Decentralised Autonomous Organisation — a group that makes decisions by token vote, not a CEO.

DApp

A decentralised app — like a normal app, but it runs on a blockchain and no company controls it.

DeFi

Decentralised Finance — financial services like lending and trading that run on blockchain code instead of banks.

DEX

Decentralised Exchange — a place to trade crypto directly from your wallet, no account needed.

DYOR

Do Your Own Research — a reminder to check the facts yourself before investing in anything.

Ethereum

The second-largest cryptocurrency, and the platform most decentralised apps are built on.

Exchange

A platform where you can buy, sell, and trade cryptocurrencies.

Fiat

Government-issued money like dollars, euros, or pounds — not cryptocurrency.

FOMO

Fear of Missing Out — the urge to buy something just because the price is going up and everyone's talking about it.

Fork

When a blockchain splits — either for an upgrade or because the community disagreed on the rules.

FUD

Fear, Uncertainty, and Doubt — negative news or rumours spread to push prices down.

Gas

The fee you pay to process a transaction on the Ethereum network.

Genesis Block

The very first block ever mined on a blockchain — block number zero.

Governance Token

A token that gives you voting rights in a crypto project — like a shareholder vote.

Gwei

A tiny unit of Ethereum used to measure gas fees. One Gwei is 0.000000001 ETH.

Halving

An event that cuts Bitcoin's mining reward in half — happens every four years and reduces new supply.

Hardware Wallet

A physical device (like a USB stick) that stores your crypto keys offline — very secure.

Hash

A unique fingerprint produced by running data through a mathematical function — used to secure the blockchain.

HODL

Crypto slang for holding onto your coins instead of selling — no matter what the price does.

Hot Wallet

A crypto wallet connected to the internet — convenient but more vulnerable than cold storage.

ICO

Initial Coin Offering — when a crypto project raises money by selling new tokens, similar to a stock IPO.

Immutable

Data that cannot be changed once recorded. Blockchain records are immutable.

KYC

Know Your Customer — the identity checks exchanges must do before you can use their services.

Layer 1

The main blockchain itself — like Bitcoin or Ethereum. Everything else is built on top.

Layer 2

A faster, cheaper network built on top of a Layer 1 blockchain to handle more transactions.

Ledger

A record of all transactions — the blockchain is essentially a public ledger.

Liquidity

How easily you can buy or sell an asset without moving the price much. High liquidity = easy trading.

Market Cap

Total value of a cryptocurrency — price multiplied by the number of coins in circulation.

Memecoin

A cryptocurrency based on a joke or internet meme — like Dogecoin. Usually highly speculative.

Mining

The process of using computers to solve puzzles that add new blocks to the blockchain and earn crypto rewards.

Minting

Creating new tokens or NFTs on a blockchain.

Moon

Crypto slang for a price going up dramatically. "When moon?" means "When will the price explode?"

NFT

Non-Fungible Token — a unique digital asset on the blockchain. No two are identical.

Node

A computer that helps run a blockchain network by keeping a copy of all the transactions.

Non-Custodial

When you control your own crypto keys — no third party holds your coins for you.

P2P

Peer-to-Peer — direct transactions between two people, no middleman required.

Private Key

A secret code that proves you own your crypto and lets you send it. Never share this.

Proof of Stake

A way of securing a blockchain where validators lock up their own crypto as a guarantee of honest behaviour.

Proof of Work

The original way Bitcoin secures itself — computers do hard math to earn the right to add new blocks.

Public Key

The shareable half of your wallet's key pair — used to generate your address.

Rug Pull

A scam where developers hype a project, raise money, then disappear with all the funds.

Satoshi

The smallest unit of Bitcoin — 1 Bitcoin = 100 million Satoshis.

Satoshi Nakamoto

The anonymous creator of Bitcoin — nobody knows if it's one person or a group.

Seed Phrase

A list of 12 or 24 words that is the master backup for your crypto wallet. Guard it with your life.

Shitcoin

Slang for a cryptocurrency with no real value or purpose — usually a scam or joke.

Smart Contract

A program on the blockchain that automatically executes when certain conditions are met — no middleman needed.

Stablecoin

A cryptocurrency designed to maintain a steady price — usually pegged to the US dollar.

Staking

Locking up your crypto to help run a Proof of Stake network — in return you earn rewards.

Token

A digital asset that lives on someone else's blockchain, rather than having its own.

Tokenomics

The economic design of a cryptocurrency — how many exist, how they're distributed, and what they're for.

Transaction Fee

A small amount paid to miners or validators for processing your transaction.

Validator

A computer that checks transactions and adds blocks in a Proof of Stake blockchain.

Volatility

How much a price swings up and down. Crypto is known for very high volatility.

Wallet

Software or hardware that stores your crypto keys and lets you manage your coins.

Web3

The idea of a next-generation internet built on blockchain technology — more open, more user-owned.

Whale

A person or entity holding a very large amount of cryptocurrency — enough to move the market.

Whitepaper

A document published by a crypto project explaining what it does and how it works.

Yield

The return you earn on crypto you've deposited in a DeFi protocol or staking service.

Yield Farming

Moving crypto around between DeFi protocols to earn the highest possible returns.