Crypto glossary
Short, plain explanations of the words you meet in crypto.
A
- Address
- A public identifier you share to receive coins.
B
- Block
- A batch of transactions added to a blockchain at once.
- Blockchain
- A shared record of transactions kept in sync by many computers.
C
- Circulating supply
- How many coins are currently available on the market.
- Coin
- The native currency of its own blockchain, such as BTC or ETH.
- Confirmation
- Each new block added after your transaction. More confirmations mean it is harder to reverse.
- Consensus
- The rules nodes use to agree on the next block, for example proof of work or proof of stake.
- Custodial wallet
- A wallet where a company holds the keys for you, as on exchanges.
D
- DEX
- A decentralized exchange where trades happen through smart contracts.
F
- Faucet
- A site that gives small crypto rewards for simple actions, funded by ads.
G
- Gas
- The fee for running a transaction on networks like Ethereum, paid in the native coin.
H
- Hardware wallet
- A small device that keeps keys offline and signs transactions.
- Honeypot
- A token contract that lets people buy but not sell.
L
M
- Market cap
- Price multiplied by circulating supply. It is not money held by the project.
- Memo / tag
- An extra code some exchanges need to match a deposit to your account.
- Mining
- Using computers to add blocks in a proof-of-work network and earn new coins and fees.
N
- Network fee
- What you pay the network to process a transfer. It goes to miners or validators.
- Node
- A computer that stores a copy of a blockchain and checks new blocks.
O
- Offerwall
- A list of tasks from advertisers, such as surveys or app trials, with rewards.
P
- Phishing
- A fake site or message that tricks you into giving secrets or signing transactions.
- Ponzi scheme
- A fraud that pays old users with new users' money and collapses when inflows stop.
- Private key
- A secret number that allows spending coins from an address.
- Proof of stake
- Consensus where validators lock coins as a deposit to add blocks. Used by Ethereum.
- Proof of work
- Consensus where miners spend computing power to add blocks. Used by Bitcoin.
R
- Rug pull
- When a token team suddenly dumps or removes liquidity and the price collapses.
S
- Seed phrase
- 12 or 24 words that can restore every key of a wallet. Never share it.
- Self-custody
- Holding your own keys. Full control, and full responsibility for backups.
- Smart contract
- A program stored on a blockchain that runs automatically when called.
- Stablecoin
- A token designed to keep a steady price, usually 1 US dollar. It still depends on its issuer.
- Staking
- Locking coins to help run a proof-of-stake network in exchange for rewards. It carries risks, including price drops and lock-up periods.
T
- Token
- An asset created by a smart contract on an existing blockchain, such as USDT on Ethereum.
- Two-factor sign-in (2FA)
- A second check, such as a code from an app, needed to sign in.
V
- Volatility
- How much and how fast a price moves. Crypto is highly volatile.
W
- Wallet
- An app or device that holds your keys and lets you send and receive coins.