Crypto Glossary: 100+ Key Terms Explained

The crypto market is full of unique terms and jargon, so it’s important to understand the most commonly used ones to better navigate information. To make browsing easier, you can use the Ctrl + F shortcut to quickly search for specific terms within this glossary. 

Account Abstraction 

Account Abstraction is a blockchain design concept that allows users to interact with smart contracts as if they were regular accounts.

Address  

An address is a unique string of characters that identifies a cryptocurrency wallet. It is used to send and receive digital assets securely on a blockchain. Similar to a bank account number, but with cryptographic protections, addresses are public while private keys remain secret.

AI Agents 

An AI agent is a system or program capable of perceiving its environment, making decisions, and taking actions to achieve goals independently. In crypto, AI agents are often used in trading bots, fraud detection, or automated portfolio management. 

Airdrop

An airdrop is the free distribution of cryptocurrency tokens to users, often as a promotion or reward. Projects use airdrops to increase awareness, reward loyal holders, or bootstrap a community. While they can drive hype, users are advised to research carefully as some airdrops are linked to scams.

Algorithm

An algorithm is a structured set of rules or processes designed to solve a problem or perform a task. In crypto, algorithms are used in consensus mechanisms, mining operations, and cryptographic security. 

Altcoin

Any cryptocurrency other than Bitcoin, e.g., Ethereum, Litecoin. Today, Altcoins are known as Utility Tokens, representing projects and having various use cases in the ecosystem of those projects. 

AMA (Ask me anything) 

An online event to answer questions from the community. AMAs can be conducted as live streams or group calls on platforms like X, Discord…Projects are widely used AMA for building trust and transparency between crypto projects and their audiences.

AML (Anti-Money Laundering)

A set of international laws to prevent illegal financial activities in crypto. In crypto, AML compliance requires exchanges and custodians to verify users’ identities and monitor suspicious transactions. Strong AML practices are critical for mainstream adoption of cryptocurrencies.

ASIC (Application-Specific Integrated Circuit)

An ASIC is a piece of specialized hardware built to perform a single function with maximum efficiency. In crypto, ASICs are widely used in mining Bitcoin and other proof-of-work coins. Their power often makes traditional CPU or GPU mining unprofitable.

ATH (All-Time High) 

ATH stands for the highest price that a cryptocurrency has ever reached in its trading history. Investors often track ATHs to measure growth potential or identify market cycles. Hitting a new ATH usually attracts attention and can trigger strong market sentiment.

ATL (All-Time Low) 

ATL represents the lowest price ever recorded for a cryptocurrency. It is often used by traders to evaluate historical support levels. Buying near ATL is risky but sometimes seen as an opportunity if the project has strong fundamentals.

Atomic Swap 

An atomic swap is a peer-to-peer exchange of different cryptocurrencies across separate blockchains without the need for a trusted third party.

Bag Holder 

A bag holder is an investor who continues holding a cryptocurrency despite steep price declines. It reflects the emotional side of investing in volatile markets. 

Bear Market 

A bear market is a prolonged period of declining asset prices, typically marked by drops of 20% or more. In crypto, bear markets are often accompanied by pessimism, reduced trading volumes, and slower innovation. 

BTC (Bitcoin) 

Bitcoin is the first decentralized cryptocurrency, created by the pseudonymous Satoshi Nakamoto in 2009. It operates on a peer-to-peer network and uses proof-of-work to secure transactions. Often called “digital gold,” Bitcoin remains the most valuable and widely recognized cryptocurrency.

Block 

A block is a batch of validated transactions that is permanently recorded on a blockchain. Each block contains transaction data, a timestamp, and a cryptographic hash of the previous block.

Block Reward 

A block reward is the incentive given to miners or validators for successfully adding a block to the blockchain. In Bitcoin, this reward halves approximately every four years in an event known as the “halving.” Block rewards motivate participants to secure the network.

Blockchain 

A blockchain is a decentralized and immutable ledger that records transactions across a distributed network of computers. Each block is linked to the previous one, ensuring transparency and security.

BTD (Buy The Dip) 

“Buy The Dip” is an investment strategy where traders purchase cryptocurrency during temporary price declines. 

Bull Market 

A bull market is a sustained period of rising asset prices, fueled by optimism and increased investor confidence. In crypto, bull markets often coincide with new innovations, rising adoption, and strong media coverage. 

BUIDL 

BUIDL is a crypto slang term encouraging people to actively build and innovate in the industry rather than just hold assets. It emphasizes creating long-term value through development, adoption, and utility. The term reflects the ethos of the crypto community to focus on progress.

Burn 

Burning refers to the deliberate destruction of coins or tokens to reduce circulating supply. This is often done by sending tokens to an irretrievable “burn address”.

Block Explorer

A block explorer is an online tool that lets users view blockchain data in real time. It allows you to check transactions, wallet addresses, block confirmations, and network statistics. Popular explorers include Etherscan for Ethereum and Blockchain.com for Bitcoin.

CEX (Centralized Exchange)

A centralized exchange is a crypto trading platform operated by a central company, such as Binance or Coinbase. These exchanges provide liquidity, fiat on-ramps, and user-friendly interfaces. However, they also require users to trust the exchange to hold their funds securely.

CeFi (Centralized Finance)

CeFi refers to financial services in crypto that rely on centralized institutions. Examples include lending, borrowing, or trading through custodial platforms. Unlike DeFi, CeFi providers often follow regulatory compliance and manage custody of user assets.

CBDC (Central Bank Digital Currency)

A CBDC is a digital currency issued by a country’s central bank. It is backed by the government and functions as legal tender, similar to fiat money. CBDCs aim to combine blockchain-inspired efficiency with regulatory oversight.

Chain Reorganization

A chain reorganization happens when the blockchain replaces a shorter chain with a longer, valid one. This process can occur naturally in smaller networks due to block competition. However, frequent reorganizations may raise concerns about stability and security.

Circulating Supply

Circulating supply is the number of coins or tokens currently available and actively traded in the market. It differs from total or max supply because it excludes locked or reserved tokens. Market capitalization is calculated using circulating supply multiplied by price.

Cold Wallet

A cold wallet is an offline storage method for cryptocurrencies, often using hardware or paper wallets. Since it is not connected to the internet, it provides strong protection against hacks. Cold wallets are recommended for storing large amounts of crypto securely.

Coin

A coin is a cryptocurrency that operates on its own native blockchain, such as Bitcoin or Ethereum. Coins are typically used as digital money or to pay for transaction fees within their ecosystems. They differ from tokens, which are built on existing blockchains.

Consensus Mechanism

A consensus mechanism is the process by which blockchain participants agree on the validity of transactions. Examples include Proof-of-Work (PoW) and Proof-of-Stake (PoS). Consensus ensures security, prevents double-spending, and maintains decentralization.

Cross-Chain

Cross-chain technology enables the transfer of assets or data between different blockchains. This interoperability allows users to move tokens, use DeFi applications, or access multiple ecosystems seamlessly. It is an important step toward a more connected blockchain industry.

Cryptocurrency

A cryptocurrency is a digital currency secured by cryptography and typically built on a blockchain. It allows for peer-to-peer transactions without banks or intermediaries. Well-known examples include Bitcoin, Ethereum, and stablecoins like USDT.

Cryptography

Cryptography is the science of securing information using mathematical techniques like encryption and hashing. In crypto, it protects wallets, ensures transaction integrity, and maintains blockchain security. Without cryptography, decentralized systems could not function safely.

Custodial Wallet

A custodial wallet is a type of wallet where a third party, such as an exchange, controls the private keys. This makes it easier for beginners since the provider manages security and recovery. However, users sacrifice full control and rely on the custodian’s trustworthiness.

DAO (Decentralized Autonomous Organization)

A DAO is a blockchain-based organization governed by smart contracts and token holders. Decisions are made through voting mechanisms instead of centralized leadership. DAOs are commonly used for managing funds, protocols, or communities in a transparent way.

dApp (Decentralized Application)

A dApp is an application that runs on a blockchain rather than centralized servers. They operate using smart contracts and are censorship-resistant. Examples include decentralized exchanges, NFT marketplaces, and blockchain games.

DeFi (Decentralized Finance)

DeFi refers to financial services built on blockchain that eliminate traditional intermediaries. It includes lending, borrowing, trading, and yield farming through smart contracts. DeFi empowers users with more control but also comes with risks such as hacks and protocol failures.

DEX (Decentralized Exchange)

A DEX is a peer-to-peer trading platform that allows users to swap crypto without relying on a central authority. Trades are executed through smart contracts and liquidity pools. Popular examples include Uniswap, SushiSwap, and PancakeSwap.

Difficulty

Difficulty represents how hard it is to mine a block on a blockchain network. It adjusts regularly to ensure stable block times despite changes in mining power. A higher difficulty means more computational power is needed to mine new blocks.

Digital Signature

A digital signature is a cryptographic mechanism used to verify the authenticity and integrity of a transaction. It ensures that only the wallet owner can authorize spending. Digital signatures are essential for maintaining trust and security in blockchains.

Double Spending

Double spending is the fraudulent act of using the same cryptocurrency twice. Blockchain consensus mechanisms like Proof-of-Work prevent this by verifying transactions and securing the ledger. Solving the double-spending problem is one of Bitcoin’s greatest innovations.

DYOR (Do Your Own Research)

DYOR is a common advice in the crypto community. It encourages investors to thoroughly investigate a project before investing. This helps avoid scams, misinformation, and emotional trading decisions.

EVM (Ethereum Virtual Machine)

The EVM is the decentralized computing environment that executes smart contracts on Ethereum. It ensures all nodes in the network process transactions consistently. Many other blockchains also support EVM compatibility to leverage Ethereum’s ecosystem.

ERC-20

ERC-20 is a widely used token standard on Ethereum for creating fungible tokens. It defines rules for transfer, approval, and supply, making tokens interoperable. Popular ERC-20 tokens include USDT, LINK, and UNI.

Ethereum

Ethereum is a blockchain platform designed for smart contracts and decentralized applications. Launched in 2015 by Vitalik Buterin and others, it expanded blockchain use cases beyond digital money. Ethereum is also home to NFTs, DeFi, and thousands of dApps.

Exchange

An exchange is a platform where users can buy, sell, or trade cryptocurrencies. Exchanges may be centralized (CEX) or decentralized (DEX). They are key entry points for investors to access the crypto market.

FDV (Fully Diluted Valuation)

FDV measures the market capitalization of a cryptocurrency if all possible tokens were in circulation. It is calculated by multiplying the total supply by the current token price. FDV helps investors assess potential future valuations and risks.

Fiat Currency

Fiat currency is government-issued money such as USD, EUR, or VND. It has value because it is backed by governments and central banks, not by physical assets. In crypto, fiat is often used as the base currency for trading.

Fiat On-Ramp

A fiat on-ramp is a service that allows users to convert traditional money into cryptocurrencies. Exchanges like Binance or Coinbase often provide these services via credit card, bank transfer, or mobile payments. On-ramps make crypto accessible to mainstream users.

Flash Loan

A flash loan is a unique DeFi feature where users borrow funds without collateral, as long as the loan is repaid within one blockchain transaction. They are often used for arbitrage, liquidations, or complex strategies. While innovative, flash loans have also been exploited in high-profile hacks.

FOMO (Fear of Missing Out)

FOMO describes the anxiety investors feel when they see others profiting from a rising asset. In crypto, FOMO often leads people to buy at inflated prices during hype cycles. It can drive rapid market rallies but also increases risks of sudden corrections.

Fork

A fork occurs when a blockchain splits into two separate versions due to changes in rules or software. A hard fork introduces non-compatible changes, sometimes creating a new coin, while a soft fork remains backward-compatible. Forks can happen for upgrades, disputes, or new project directions.

FUD (Fear, Uncertainty, Doubt)

FUD refers to negative rumors or misleading information spread to create panic and drive prices down. It is often used as a manipulation tactic in markets. Experienced investors try to separate genuine risks from baseless FUD.

Gas

Gas is the unit of computational cost required to perform transactions or smart contract operations on Ethereum. Each action on the blockchain consumes gas, paid in ETH. Gas ensures fair resource usage across the network.

Gas Fee

A gas fee is the actual cost users pay in ETH to cover gas when executing blockchain transactions. Fees fluctuate depending on network demand and complexity of the action. During congestion, gas fees can rise sharply, affecting user experience.

Genesis Block

The Genesis Block is the very first block of a blockchain. In Bitcoin, it was mined by Satoshi Nakamoto in January 2009 and included the famous message referencing a UK bank bailout. It serves as the foundation for all subsequent blocks.

GM (Good Morning)

GM is a cultural greeting widely used in the crypto community, especially on social media. It reflects positivity, encouragement, and camaraderie among traders and builders.

Governance Token

A governance token grants holders voting rights in decentralized projects or DAOs. Holders can propose or decide on protocol upgrades, treasury spending, or key policies. Governance tokens promote community-driven decision-making in blockchain ecosystems.

Halving

Halving is a Bitcoin event that reduces the block reward for miners by 50%, occurring roughly every four years. This mechanism controls supply and mimics scarcity, similar to precious metals. Halvings often influence Bitcoin’s price cycles and investor sentiment.

Hard Fork

A hard fork introduces rule changes that make the new blockchain version incompatible with the old one. It can result in a permanent split, producing a new coin. Famous examples include Bitcoin Cash (from Bitcoin) and Ethereum Classic (from Ethereum).

Hash

A hash is a cryptographic function that converts data into a fixed-length string of characters. It is used to secure transactions, create block identifiers, and ensure immutability. Even small input changes produce completely different hash outputs.

Hash Rate

Hash rate measures the total computational power securing a blockchain through mining. Higher hash rates indicate stronger security and resistance to attacks. For Bitcoin, it is often expressed in terahashes per second (TH/s).

HODL

HODL is a slang term meaning “hold on for dear life,” originating from a typo on a Bitcoin forum. It represents the strategy of keeping crypto long-term despite volatility. HODLing is a mindset adopted by believers in crypto’s future growth.

Hot Wallet

A hot wallet is a cryptocurrency wallet connected to the internet, such as mobile or web wallets. It provides convenience for frequent transactions but is more vulnerable to hacks. Hot wallets are best used for small amounts, while large holdings are kept in cold storage.

ICO (Initial Coin Offering)

An ICO is a fundraising method where projects sell newly created tokens to raise capital. It was especially popular during 2017–2018, allowing startups to bypass traditional venture funding. While ICOs can provide early access to projects, they also carry high risks due to scams and lack of regulation.

Immutability

Immutability means that once data is recorded on a blockchain, it cannot be changed without consensus. This ensures the integrity and trustworthiness of the system. It is one of the core features that makes blockchains resistant to fraud and tampering.

KYC (Know Your Customer)

KYC is the process of verifying a user’s identity to comply with regulations. In crypto, exchanges and custodial services often require users to provide documents like ID cards or passports. KYC helps prevent money laundering but can reduce privacy for users.

Layer 1

Layer 1 refers to the base blockchain network, such as Bitcoin, Ethereum, or Solana. These chains handle transactions directly and establish the core rules of consensus and security. Layer 1 performance is critical for scalability and adoption.

Layer 2

Layer 2 solutions are built on top of Layer 1 blockchains to improve speed and scalability. Examples include the Lightning Network for Bitcoin and rollups for Ethereum. They help reduce congestion and lower fees while relying on the security of the base layer.

Liquidity

Liquidity measures how easily an asset can be bought or sold without affecting its price significantly. High liquidity means tighter spreads, faster trades, and more stable markets. Low liquidity can lead to volatility and slippage in transactions.

Liquidity Pool

A liquidity pool is a collection of tokens locked in a smart contract, enabling decentralized trading. Users, called liquidity providers, deposit assets into the pool and earn fees or rewards. Liquidity pools are the backbone of automated market makers like Uniswap and Curve.

Mainnet

A mainnet is the primary, fully operational version of a blockchain network. Unlike testnets, it uses real assets and carries actual financial value. Launching a mainnet is a milestone for any crypto project, marking readiness for real-world use.

Market Cap

Market capitalization in crypto is calculated by multiplying a token’s price by its circulating supply. It is used to measure the relative size and importance of a cryptocurrency. Market cap helps investors compare projects but does not reflect liquidity or risks.

Merkle Tree

A Merkle tree is a cryptographic data structure that allows efficient and secure verification of large datasets. It breaks data into smaller pieces, hashed and linked together in a tree format. Merkle trees are widely used in blockchains to verify transactions quickly and reliably.

Mining

Mining is the process of validating transactions and adding new blocks to a blockchain using computational power. Miners compete to solve cryptographic puzzles, earning block rewards and transaction fees. Mining secures proof-of-work blockchains like Bitcoin.

Miner

A miner is an individual or entity that contributes computing power to validate transactions and create new blocks. Miners are rewarded with newly minted coins and fees. Their participation ensures the security and decentralization of the network.

Mint

Minting refers to the creation of new tokens or coins, either through mining, staking, or smart contracts. NFTs, for example, are minted on blockchains like Ethereum or Solana. Minting is how projects introduce new digital assets into circulation.

Node

A node is a computer that participates in a blockchain network by storing, verifying, and broadcasting data. Full nodes maintain the entire blockchain history, while light nodes rely on others for data. Nodes are critical for keeping the network decentralized and secure.

Nonce

A nonce is a random number used in mining to generate a valid block hash. Miners repeatedly change the nonce until they find a hash that meets the network’s difficulty requirement. It is essential to the proof-of-work process.

NFT (Non-Fungible Token)

An NFT is a unique digital asset representing ownership of items like art, music, or in-game items. Unlike fungible tokens, NFTs cannot be exchanged on a one-to-one basis. They are widely used for collectibles, gaming, and digital art markets.

Oracle

An oracle is a service that supplies real-world data to smart contracts. Since blockchains cannot access external information directly, oracles provide feeds such as asset prices, weather data, or sports results. They enable smart contracts to interact with real-world events.

P2P (Peer-to-Peer)

Peer-to-peer refers to the direct exchange of assets or data between users without intermediaries. In crypto, P2P networks allow participants to trade, share, and validate transactions independently. This decentralization reduces reliance on third parties and increases resilience.

Private Key

A private key is a secret cryptographic code that grants access to a crypto wallet. Whoever holds the private key controls the funds in the associated address. Protecting private keys is critical, as losing them usually means losing access to assets permanently.

Pre-Market

Pre-Market refers to peer-to-peer trading of token allocations before the official Token Generation Event (TGE). Today, Whales Market stands as the leading pre-market DEX platform with over $300M in trading volume.

Proof-of-Stake (PoS)

Proof-of-Stake is a consensus mechanism where validators secure the network by staking coins instead of mining. Validators are chosen based on the amount they stake, reducing energy consumption compared to Proof-of-Work. PoS is widely used in Ethereum and other modern blockchains.

Proof-of-Work (PoW)

Proof-of-Work is the original blockchain consensus mechanism, requiring miners to perform complex computations to validate transactions. It secures the network but consumes significant energy. Bitcoin remains the most notable blockchain using PoW.

Public Key

A public key is a cryptographic code derived from a private key and shared openly to receive funds. It functions like an account number in traditional banking. While the public key is visible to everyone, only the private key can authorize transactions.

Pump and Dump

Pump and dump is a market manipulation scheme where a group artificially inflates a token’s price through hype or false information. Once the price spikes, organizers sell their holdings, causing a sharp crash. It is a common scam in low-liquidity crypto markets.

Rekt

“Rekt” is crypto slang for being financially ruined due to bad trades or market crashes. It comes from the misspelling of “wrecked.” The term is often used humorously but highlights the risks of high volatility in crypto.

Rug Pull

A rug pull is a scam in which developers suddenly withdraw liquidity or abandon a project after raising funds. This leaves investors with worthless tokens. Rug pulls are especially common in DeFi and unverified projects.

Satoshi

A satoshi is the smallest unit of Bitcoin, equal to 0.00000001 BTC. It is named after Bitcoin’s creator, Satoshi Nakamoto. Using satoshis makes it easier to measure smaller transactions without dealing in whole Bitcoins.

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonymous creator of Bitcoin, whose identity remains unknown. In 2008, Satoshi published the Bitcoin whitepaper and launched the network in 2009. The mystery around their identity continues to intrigue the crypto community.

Scalability

Scalability refers to a blockchain’s ability to handle increasing transaction volumes efficiently. It is a major challenge, as networks must balance speed, cost, and decentralization. Solutions include Layer 2 rollups, sharding, and sidechains.

Seed Phrase

A seed phrase is a list of words that can recover access to a crypto wallet. It is generated when a wallet is created and must be stored securely. Anyone with the seed phrase can control the wallet’s funds.

Sidechain

A sidechain is a separate blockchain that runs parallel to a main blockchain, connected through a bridge. It allows experimentation, scalability, or specific applications without overloading the main chain. Sidechains improve flexibility while leveraging the security of the parent network.

Sharding

Sharding is a scalability solution that splits a blockchain into smaller partitions called “shards.” Each shard processes its own transactions and smart contracts, which increases overall throughput. Ethereum plans to implement sharding as part of its long-term scaling roadmap.

Smart Contract

A smart contract is self-executing code stored on a blockchain that automatically enforces rules and agreements. It removes the need for intermediaries, as the code executes once predefined conditions are met. Smart contracts power dApps, DeFi protocols, and NFTs.

Stablecoin

A stablecoin is a cryptocurrency pegged to a stable asset such as the US dollar or gold. It is designed to reduce volatility, making it suitable for payments, savings, and trading. Popular examples include USDT, USDC, and DAI.

Staking

Staking is the process of locking up coins in a Proof-of-Stake (PoS) network to support validation and earn rewards. Validators or delegators commit their tokens to help secure the blockchain. It is often seen as a way to earn passive income in crypto.

Testnet

A testnet is a blockchain environment used for experimentation and development. Unlike mainnets, testnets use tokens without real-world value. They allow developers to test new features safely before deployment.

Token

A token is a digital asset built on top of an existing blockchain, such as ERC-20 tokens on Ethereum. Tokens can serve various purposes, including governance, utility, or representing assets. They differ from coins, which run on their own blockchains.

Tokenomics

Tokenomics refers to the economic model and design of a cryptocurrency or token. It includes aspects like supply, distribution, incentives, and utility. Strong tokenomics can drive adoption and long-term value for a project.

Total Supply

Total supply is the maximum number of coins or tokens that currently exist, excluding those burned. It is an important metric for analyzing scarcity and potential valuation. However, it differs from circulating supply, which counts only available tokens in the market.

Transaction Fee

A transaction fee is a payment made to miners or validators for processing a blockchain transaction. Fees vary depending on network demand and the complexity of the action. They incentivize participants to maintain the network’s security and efficiency.

Validator

A validator is a participant in Proof-of-Stake (PoS) blockchains who verifies transactions and adds them to the ledger. Validators are selected based on the amount of tokens staked. In return, they earn rewards but risk losing their stake if acting dishonestly.

Volatility

Volatility measures how much the price of a cryptocurrency fluctuates over time. High volatility can present opportunities for traders but also increases risks for investors. Crypto markets are known for extreme volatility compared to traditional assets.

Wallet

Wallet is a tool for storing and managing cryptocurrency private & public keys. It can be software-based (hot wallets) or hardware-based (cold wallets).

Whale

A whale is an individual or entity holding a large amount of cryptocurrency. Their trades can significantly influence market prices due to sheer volume. Monitoring whale activity is common among traders looking for market signals.

Whitepaper

A whitepaper is a detailed document that explains the vision, technology, and tokenomics of a crypto project. It serves as a blueprint to attract investors, developers, and the community.

Yield Farming

Yield farming is a DeFi strategy where users provide liquidity or stake tokens in protocols to earn rewards. These rewards can come in the form of interest, governance tokens, or a share of transaction fees.

Conclusion

This glossary has highlighted and summarized the most essential terms in crypto and blockchain. By familiarizing yourself with these concepts, you can more easily follow market discussions, evaluate projects, and make informed decisions.