Crypto Glossary

Free tokens distributed to wallet addresses, usually as a marketing or reward mechanism.

Any cryptocurrency other than Bitcoin.

The first cryptocurrency, created in 2009 by the pseudonymous Satoshi Nakamoto as a peer-to-peer digital cash system.

A digital currency secured by cryptography that operates on a blockchain network.

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

A service that lets you buy cryptocurrency using traditional money like USD, EUR, or GBP.

A scheduled event that cuts the Bitcoin mining reward in half, occurring roughly every four years.

Identity verification required by regulated crypto exchanges before you can trade.

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

A cryptocurrency created as a joke or based on internet culture, often with no fundamental utility.

A cryptocurrency designed to maintain a stable value, usually pegged to the US dollar.

Software or hardware that stores your private keys and lets you send and receive cryptocurrency.

A physical device that stores your private keys offline for maximum security.

A crypto wallet connected to the internet, offering convenience but less security than cold storage.

Fraudulent attempts to steal your crypto credentials through fake websites, emails, or messages.

A secret cryptographic code that gives you control over your cryptocurrency.

A scam where project creators abandon a crypto project and steal investor funds.

A set of 12 or 24 words that can restore access to your crypto wallet.

Holding your own private keys rather than trusting an exchange or service to hold your crypto.

Granting a smart contract permission to spend tokens from your wallet.

A cryptocurrency exchange operated by a company that acts as intermediary for trades.

A cryptocurrency exchange that operates through smart contracts rather than a central authority.

Borrowing funds to trade with a larger position than your own capital would allow.

Forced closure of a leveraged position when collateral falls below the required level.

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

Exchange fee structure where makers (limit orders) pay less than takers (market orders).

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

The degree to which the price of a crypto asset fluctuates over time.

An entity holding a very large amount of cryptocurrency — enough to influence market prices.

The annualized rate of return on an investment, including compound interest.

An investment strategy where you buy a fixed dollar amount of crypto at regular intervals.

Investing all available capital at once, rather than spreading purchases over time.

Periodically adjusting your crypto holdings to maintain your target allocation percentages.

Locking up cryptocurrency to help secure a blockchain network and earn rewards.

A distributed digital ledger that records transactions across a network of computers.

A protocol that transfers tokens or data between different blockchain networks.

The method a blockchain uses to agree on which transactions are valid and add new blocks.

The cost you pay to execute a transaction on a blockchain network.

The maximum amount of gas you're willing to spend on a blockchain transaction.

A secondary network built on top of a blockchain to improve speed and reduce fees.

A unique digital token that represents ownership of a specific item like art, music, or a collectible.

A consensus mechanism where validators stake cryptocurrency to participate in transaction validation.

A consensus mechanism where miners solve complex puzzles to validate transactions and earn rewards.

Self-executing code on a blockchain that automatically enforces the terms of an agreement.

A crypto asset that runs on another blockchain rather than its own.

A node that verifies transactions and creates new blocks on a proof-of-stake blockchain.

Financial services built on blockchain that operate without traditional intermediaries.

The temporary loss liquidity providers experience when the price ratio of pooled tokens changes.

Staking crypto while receiving a tradeable token that represents your staked position.

A smart contract holding paired tokens that enables trading on decentralized exchanges.

Earning rewards by providing liquidity or staking tokens in DeFi protocols.

The profit made from selling cryptocurrency for more than you paid for it.

The original purchase price of a crypto asset, used to calculate capital gains or losses for taxes.

Selling investments at a loss to offset capital gains and reduce your tax bill.

A crypto transaction that creates a tax obligation, such as selling, trading, or earning rewards.