Crypto Glossary
🧠 General Crypto & Blockchain Terms
Bitcoin (BTC)
The first and most well-known cryptocurrency.
Altcoin
Any cryptocurrency other than Bitcoin.
Blockchain
A decentralized digital ledger technology.
Decentralization
The process of removing central authority control.
Peer-to-Peer (P2P)
Direct transactions between users without intermediaries.
Public Ledger
A record of all blockchain transactions.
Private Key
A secret key that grants access to a crypto wallet.
Public Key
A wallet address used to receive cryptocurrencies.
Seed Phrase
A set of words used to recover a crypto wallet.
Smart Contract
Self-executing code that runs on a blockchain.
🪙 Trading & Investing Terms
Exchange
A platform for buying, selling, and trading cryptocurrencies.
Liquidity
The ability to buy or sell an asset without affecting price.
Market Cap
Total value of a cryptocurrency (Price × Circulating Supply).
Bull Market
A period where prices are rising.
Bear Market
A period where prices are falling.
Pump and Dump
An artificial price increase followed by a rapid sell-off.
Whale
A large investor who can influence market prices.
FOMO
The fear of missing a big investment opportunity.
FUD
Negative information meant to lower confidence.
ATH (All-Time High)
The highest price a cryptocurrency has reached.
🛡️ Security & Wallet Terms
Hot Wallet
A crypto wallet connected to the internet.
Cold Wallet
An offline wallet for enhanced security.
Multi-Signature (Multisig)
A security feature requiring multiple approvals for transactions.
Phishing Attack
A scam to steal private keys and wallet access.
Rug Pull
A scam where developers abandon a project after taking investors’ money.
KYC (Know Your Customer)
Identity verification required by exchanges.
AML (Anti-Money Laundering)
Regulations to prevent illicit transactions.
Two-Factor Authentication (2FA)
An extra layer of security for crypto accounts.
Hardware Wallet
A physical device for storing crypto securely.
Custodial Wallet
A wallet managed by a third party (e.g., an exchange).
💸 DeFi (Decentralized Finance) Terms
Decentralized Exchange (DEX)
A platform that allows trading without a central authority.
Liquidity Pool
A pool of funds used for decentralized trading.
Yield Farming
Earning rewards by providing liquidity to DeFi platforms.
Staking
Locking up crypto to help secure a network and earn rewards.
Governance Token
A token that allows holders to vote on protocol changes.
Flash Loan
A DeFi loan that must be repaid within a single transaction.
Impermanent Loss
A risk of providing liquidity to DeFi pools.
Total Value Locked (TVL)
The total assets locked in a DeFi protocol.
Oracle
A service that brings off-chain data to blockchain applications.
Wrapped Token
A tokenized version of another cryptocurrency.
🎮 NFT & Metaverse Terms
NFT (Non-Fungible Token)
A unique digital asset stored on the blockchain.
Minting
The process of creating a new NFT.
Floor Price
The lowest price for an NFT in a collection.
Gas Fees
Transaction fees required to process operations on a blockchain.
Metaverse
A virtual world powered by blockchain and digital assets.
Play-to-Earn (P2E)
A gaming model where players earn crypto rewards.
Web3
The next evolution of the internet, powered by blockchain.
Smart Contract Royalties
Automatic payments to NFT creators when resold.
DAO (Decentralized Autonomous Organization)
A community-led organization governed by smart contracts.
Tokenization
Converting real-world assets into digital tokens.
⚙️ Blockchain Infrastructure & Technology Terms
Layer 1
The base blockchain network (e.g., Bitcoin, Ethereum, NEAR).
Layer 2
A scaling solution built on top of a Layer 1 blockchain.
Sharding
A method of scaling blockchain networks by splitting data.
Sidechain
A separate blockchain that connects to a main blockchain.
Gas Limit
The maximum fee a user is willing to pay for a transaction.
Hash Rate
The processing power of a blockchain network.
Validator
A participant who confirms transactions in a Proof of Stake system.
Node
A computer that stores and maintains a blockchain.
51% Attack
When a single entity controls over half of a blockchain’s mining power.
Consensus Mechanism
The method used to validate transactions (e.g., PoW, PoS).
⛏️ Mining & Staking Terms
Proof of Work (PoW)
A consensus mechanism requiring computational power (used by Bitcoin).
Proof of Stake (PoS)
A consensus mechanism where users stake coins to validate transactions.
Mining
The process of verifying transactions and adding them to the blockchain.
Mining Pool
A group of miners who combine resources to increase rewards.
Block Reward
The reward given to miners for validating a block.
Halving
A reduction in mining rewards, occurring every few years in Bitcoin.
Staking Rewards
Incentives earned for locking up crypto in a staking protocol.
Delegated Proof of Stake (DPoS)
A variation of PoS where users vote for validators.
Liquidity Mining
Providing liquidity to a DeFi platform in exchange for rewards.
MEV (Maximal Extractable Value)
Profits extracted from transaction ordering on blockchains.
😂 Meme & Slang Terms
HODL
A misspelled “hold,” meaning to keep crypto long-term.
Diamond Hands
Holding an asset despite market fluctuations.
Paper Hands
Selling an asset quickly due to fear.
WAGMI (We’re All Gonna Make It)
A phrase expressing optimism in crypto investments.
REKT
Losing money due to bad trades or market crashes.
Bagholder
Someone who holds onto a cryptocurrency even after its price crashes.
Mooning
When a cryptocurrency’s price rises significantly.
Airdrop
Free tokens distributed to users as a promotion.
Dusting Attack
Sending small amounts of crypto to track wallets.
Token Burn
Permanently removing tokens from circulation.
🕵️ Privacy & Security Terms
Privacy Coin
A cryptocurrency designed to enhance anonymity (e.g., Monero).
Zero-Knowledge Proof (ZKP)
A method for verifying transactions without revealing details.
Ring Signatures
A privacy-enhancing cryptographic technique.
Mixing Service
A service that obscures transaction trails.
Tor Network
A tool for anonymous online activity.
Sybil Attack
When a network is overwhelmed with fake identities.
Dusting Attack
Sending tiny amounts of crypto to compromise privacy.
Tornado Cash
A popular crypto mixer for enhancing anonymity.
Ledger
A record of financial transactions.
Cold Storage
Storing crypto offline for security.
🚀 Bonus Terms (Advanced Concepts)
EVM (Ethereum Virtual Machine)
The runtime environment for smart contracts on Ethereum-compatible blockchains.
Hard Fork
A major network upgrade that creates a permanent split in a blockchain.
Soft Fork
A backward-compatible blockchain upgrade that tightens existing rules.
Atomic Swap
A smart contract-enabled trade between two cryptocurrencies across blockchains.
Cross-Chain Bridge
A tool that transfers assets between different blockchain networks.
Rollups
A Layer 2 scaling solution that bundles many transactions into one.
Sidechain
An independent blockchain connected to a main chain for added functionality.
Multi-Chain
A project or platform that operates across multiple blockchains.
SocialFi
A fusion of social media and decentralized finance (DeFi).
AI Coins
Cryptocurrencies powering blockchain-based artificial intelligence projects.