Cryptocurrency Glossary

A distribution of free tokens to users, often used to reward early adopters or bootstrap networks.

Any cryptocurrency other than Bitcoin, often built to explore new features or niches.

APR is a simple yearly rate, while APY includes compounding effects on returns.

The first decentralized cryptocurrency, launched in 2009, that uses proof-of-work to secure a peer-to-peer payments network.

A distributed ledger that records transactions in linked blocks secured by cryptography, creating an auditable and tamper-resistant history.

A protocol that moves assets between blockchains, enabling cross-chain activity.

The security and operational risks involved in moving assets across blockchains.

Storing crypto keys offline to reduce exposure to online attacks.

The percentage of collateral backing a loan or stablecoin, used to measure safety margins.

A wallet where a third party (like an exchange) holds the private keys on your behalf.

Who controls private keys for crypto assets—either the user (self custody) or a third party.

A decentralized autonomous organization governed by token holders via on-chain votes.

An application that runs on a blockchain or decentralized network rather than a centralized server.

Financial services built on blockchains that operate without traditional intermediaries like banks.

A crypto exchange that allows users to trade directly from wallets without a central intermediary.

A programmable blockchain that supports smart contracts and decentralized applications, with ETH as its native token.

A platform where users can buy, sell, or trade cryptocurrencies.

The point at which a transaction is considered irreversible on a blockchain.

Fear of Missing Out, the urge to buy quickly to avoid missing a potential rally.

Fear, uncertainty, and doubt, often spread to influence market sentiment.

A periodic payment between long and short traders in perpetual futures to keep prices aligned with spot.

A transaction fee paid to validators for processing and securing blockchain operations.

The maximum amount of computational work a transaction is allowed to use.

A scheduled reduction in block rewards on certain chains, notably Bitcoin, which slows new supply.

A community term meaning to hold crypto long term despite volatility.

A crypto wallet connected to the internet, offering convenience but higher exposure to attacks.

A fundraising method where projects sell tokens to early supporters in exchange for capital.

The opportunity cost liquidity providers may face when asset prices move in an AMM pool.

Know Your Customer and Anti-Money Laundering checks used by regulated platforms to verify users.

A scaling system built on top of a base blockchain to improve speed and reduce costs.

An order to buy or sell at a specified price or better.

The forced closing of a position when collateral value falls below required thresholds.

How easily an asset can be bought or sold without significantly moving its price.

A pool of tokens locked in a smart contract that enables trading and yields for liquidity providers.

The total value of a cryptocurrency, calculated as price multiplied by circulating supply.

An order that executes immediately at the best available price.

The additional value validators or searchers can extract by reordering or inserting transactions.

The process of validating transactions and securing a proof-of-work blockchain in exchange for rewards.

A unique digital asset that represents ownership of an item or piece of content on a blockchain.

A wallet where you control the private keys, giving you full ownership of your crypto.

A service that brings external data on-chain, enabling smart contracts to react to real-world events.

A list of buy and sell orders for an asset, showing liquidity and price depth.

A secret cryptographic key that grants control over crypto assets and must be kept secure.

A consensus mechanism where validators lock up tokens to propose and validate new blocks.

A consensus mechanism where miners compete to solve computational puzzles to secure the network.

A cryptographic key derived from a private key that can be shared to receive funds.

A Layer 2 system that batches transactions off-chain and posts proofs to a Layer 1 blockchain.

A scam where project insiders drain liquidity or abandon a token, leaving holders with losses.

A list of words that backs up a wallet and can restore access to funds if a device is lost.

Managing your own private keys, giving you full control and responsibility over crypto funds.

A separate blockchain connected to a main chain via a bridge, with its own security model.

The difference between the expected price of a trade and the actual execution price.

The maximum price impact a trader is willing to accept when executing a trade.

Self-executing code on a blockchain that runs when predefined conditions are met.

A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar.

The mechanism that keeps a stablecoin's value aligned to its target, such as $1.

Assets backing a stablecoin’s peg, such as cash, short-term treasuries, or crypto collateral.

Locking tokens to help secure a network and earn rewards, common in proof-of-stake systems.

A digital asset issued on an existing blockchain, often representing utility, access, or governance.

The economic design of a token, including supply, distribution, incentives, and utility.

The value of assets deposited in a DeFi protocol, often used as a rough measure of usage.

A network participant that proposes or validates blocks, typically in proof-of-stake systems.

Software or hardware that stores the keys used to manage and transact with cryptocurrencies.

An individual or entity that holds a large amount of crypto and can influence market prices.

A DeFi strategy where users deploy assets across protocols to maximize rewards.