Crypto Glossary | The A–Z of Essential Crypto Terms

From Bitcoin and blockchain to DeFi, spot ETFs and memecoins, here's every crypto term explained simply, in one place.

A

Aave
A DeFi platform that lets users borrow and lend cryptocurrencies via an open source, non-custodial liquidity protocol.

Airdrop
The distribution of tokens or coins to a large number of wallet addresses, often for free or as a reward for completing certain tasks or for holding a particular cryptocurrency. Airdrops are usually part of a marketing strategy.

Algorand (ALGO)
A proof-of-stake blockchain and smart contract platform founded by MIT professor and Turing award-winner Silvio Micali. ALGO is the native token of the Algorand blockchain.

Algorithmic stablecoin
A type of cryptocurrency designed to maintain a stable value without relying on traditional collateral. Instead, algorithmic stablecoins use automated supply adjustments and market incentives to stabilise their price. Examples include Ampleforth and the now-defunct TerraUSD. The model lost significant credibility following TerraUSD’s collapse in 2022.

All-time high (ATH)
The highest price a cryptocurrency has ever reached. ATH is frequently referenced during bull markets when assets break previous price records.

All-time low (ATL)
The lowest price a cryptocurrency has ever reached. Often referenced during periods of prolonged market decline.

Altcoin
Any cryptocurrency that is not Bitcoin, i.e. 'alternative to Bitcoin'. Altcoins can be based on the same technology as Bitcoin, but they typically have different features, algorithms, or goals. Major altcoins include Ethereum, Cardano, Doge, Ripple, and XRP.

Avalanche (AVAX)
A proof-of-stake blockchain and smart contract platform known for its fast time-to-finality. AVAX is the native currency of the Avalanche blockchain.

B

Beacon chain
Ethereum's proof-of-stake (PoS) layer where consensus is reached. The Beacon Chain served as the foundation for Ethereum's upgrade to proof-of-stake, which was completed in September 2022.

Bear market
A prolonged period where market prices decrease and investor sentiment is largely pessimistic. In a bear market, selling pressure typically outweighs buying activity, causing the value of many cryptocurrencies to decline over time.

Binance
The largest cryptocurrency exchange by total trading volume.

Bitcoin (BTC)
The first and most valuable cryptocurrency. The Bitcoin blockchain was founded by pseudonymous developer[s] Satoshi Nakamoto.

Black swan event
An unforeseen market event that typically has catastrophic consequences, such as the collapse of FTX.

Blockchain
A decentralised digital ledger that records transactions across a distributed network of nodes, creating a transparent and tamper-proof record.

Bollinger band
A technical analysis tool used by traders to measure market volatility and to identify potential buy and sell signals, developed by John Bollinger in the 1980s.

Bull market
A period of time where the overall trend is positive, with prices increasing over an extended period of time. In a bull market, there is generally more buying pressure than selling pressure, and investors tend to be optimistic about the future prospects of the market.

C

Candlestick
A type of price chart used in technical analysis to represent the movement of an asset's price over a specific period of time. Candlestick charts can be used to identify patterns in price movements, such as bullish or bearish trends, and to identify potential support and resistance levels.

Cardano
A proof-of-stake blockchain with smart contract functionality founded by Ethereum co-founder Charles Hoskinson. ADA is the native currency of Cardano.

Centralised
An organisational structure whereby power and control is centralised to one authority. In crypto, this typically means one node or a small number of nodes are in control of the entire network.

Cipher
A method (usually an algorithm) that encrypts and decrypts information.

Circulating supply
An approximation of the number of publicly available tokens in circulation.

Cold wallet/cold storage
A cold wallet is one that isn't connected to the internet, such as Ledger or Trezor. Cold storage refers to storing digital assets offline in a cold wallet (USB, hard drive), or even a paper wallet.

Consensus mechanism
A system used by blockchain networks to agree on which transactions are valid and what the current state of the ledger should be. Because blockchains operate without a central authority, consensus mechanisms allow thousands of independent computers to stay in sync and maintain the same shared record of transactions. Common examples include proof-of-work (used by Bitcoin) and proof-of-stake (used by Ethereum).

Crypto winter
A prolonged period of falling prices and reduced activity across the crypto market, but more severe and drawn-out than a typical bear market. The term gained widespread use after the market downturn of 2022, which followed the collapse of TerraUSD and FTX.

D

DApps (decentralised application)
An application that operates on a decentralised network such as a blockchain. Popular dApps include OpenSea, Uniswap, MetaMask and many more.

Dead coin
A coin or token that is no longer in use.

Decentralisation/distributed network
A structure whereby power and control is distributed across a network, avoiding a single point of failure. In crypto, this means a network is maintained across thousands of nodes or computers to achieve the same goal.

DeFi (decentralised finance)
Decentralised finance (DeFi) is a financial technology that enables individuals, institutions and businesses to access capital and financial services through public blockchains rather than centralised banks.

DeFi aggregator
A platform that enables users to access multiple decentralised finance (DeFi) protocols and services through a single interface. Zapper, 1inch and Instadapp are popular aggregators.

Delegated proof-of-stake (DPoS)
A variation of the classic proof-of-stake (PoS) consensus mechanism that allows users of the network to vote and elect delegates to validate the next block.

Delisting
The process of removing a token or coin from an exchange.

DogeCoin
A major cryptocurrency that was the first 'meme coin', based on the Shiba Inu meme. It was created in 2013 as a joke mocking the extreme speculation in the market at the time.

Dolphin
Someone with a moderate amount of cryptocurrency/digital assets in holding.

Dump/dumping
A sudden sell-off of any particular crypto asset.

DYOR
'Do your own research' encouraging investors to undertake due diligence before making any purchase.

E

ERC-20
The technical standard used for Ethereum-based tokens.

ERC-721
The technical standard for Ethereum non-fungible tokens (NFTs).

Ethereum
A proof-of-stake blockchain with smart contract functionality founded by Vitalik Buterin (et al.). Ether (ETH), the native currency of Ethereum, is the second largest cryptocurrency by market cap.

Ethereum Virtual Machine (EVM)
Software that executes smart contracts on the Ethereum network. It sits on top of Ethereum's hardware and node network layer.

Exchange
A marketplace or business that enables individuals to buy and sell cryptocurrencies with fiat or cryptocurrency.

F

Fiat currency
Government-issued money that isn't backed by a physical standard such as gold or silver. GBP, USD and the Euro are examples of fiat currency.

First-mover advantage (FMA)
The benefit of being the first project/business within a market to launch in its early days, such as Bitcoin and Ethereum.

Flipping
Purchasing a digital asset and selling it within a short period of time to turn over a profit.

FOMO
'Fear of missing out'. A popular market sentiment that encourages users to buy something out of fear of missing a potential opportunity.

Fish
Someone who makes a small cryptocurrency investment. ('Dolphin' is used for a moderate investor; 'whale' for someone with substantial holdings).

FUD
'Fear, uncertainty, doubt'. A commonly used acronym to describe negative, false or misleading information that influences the market.

G

Gas
The fee paid in ETH when executing a transaction on Ethereum.

Genesis block
The first block to be processed and validated on a blockchain.

GitHub
A code hosting platform that enables collaboration between coders, as well as version control.

Governance
The structure in which people who make decisions within a project are organised.

Governance token
A token that bestows voting rights upon its holder to participate in the project decision-making process.

H

Halving
A scheduled event in the Bitcoin network that cuts the rewards for block mining in half, taking place every four years. Bitcoin's most recent halving took place in April 2024, reducing the block reward from 6.25 to 3.125 BTC. The next is expected around 2028.

Hard fork
When the network splits into two separate chains, usually to improve the network. Notable hard forks include Ethereum's split into Ethereum (ETH) and Ethereum Classic (ETC), and Bitcoin's split into Bitcoin (BTC) and Bitcoin Cash (BCH).

HODL
Holding onto a crypto asset regardless of market prices. It was initially an accidental misspelling of 'hold', but many now use HODL as an acronym for 'hold on for dear life'.

Hot wallet
A crypto asset wallet that is connected to the internet, such as MetaMask.

I

ICO (initial coin offering)
When a company or project crowdfunds cryptocurrency to fund early-stage business ventures.

Immutable
Unable to be changed. Blockchain data is immutable in the sense that transactions cannot be edited or deleted.

Inflation
An economic term that refers to the overall increase in cost of goods and services, resulting in reduced purchasing power of a given fiat currency.

K

KYC (Know your customer)
When an exchange or other platform verifies the identity of its users in order to prevent money laundering.

L

Ledger
The digital record of all transactions on the blockchain. This cannot be edited, it can only be added to.

Layer-1 blockchain
A base blockchain that corresponds to the main chain of the network. Bitcoin, Ethereum, Cardano and Tezos are all examples of layer-1 blockchains.

Layer-2 blockchain network
A scaling solution built upon a layer-1 blockchain. Layer-2 networks typically improve the efficiency and scalability of the chain they're built on. Polygon is a notable example built on top of Ethereum.

Leverage
The use of borrowed capital to increase the potential returns of an investment, multiplying both gains and losses.

Liquidity
A term that describes how easily an asset can be sold for cash without negatively impacting its value.

Liquid staking
A variation of proof-of-stake that enables users to stake their tokens and simultaneously use them in the DeFi ecosystem.

M

Mainnet
A fully-operational blockchain running its own independent network, such as Ethereum and Bitcoin.

Market cap
The total value of a cryptocurrency, calculated by multiplying the current price of a token by its total circulating supply.

Memecoin
A cryptocurrency that derives its value primarily from internet culture, community hype, and social media momentum rather than underlying utility. Dogecoin was the original memecoin, but the category has since expanded significantly, with coins like Shiba Inu and Pepe among the most well-known examples.

Metaverse
A shared virtual environment where users interact with each other and digital spaces through avatars. Some platforms integrate blockchain technology to enable ownership and trading of digital assets and virtual land. Examples include Decentraland, The Sandbox and Somnium Space.

Mining
Using intensive computer power to validate transactions and add them to the blockchain. Mining is a feature of proof-of-work consensus mechanisms such as Bitcoin, and miners are rewarded with newly minted coins.

Mint
The process of generating new coins or tokens and putting them into circulation.

Moon/To the moon
An expression of enthusiasm for an upward market trend for a specific cryptocurrency or NFT project.

N

Node
A basic unit of blockchain infrastructure - usually a computer.

NFT (non-fungible token)
A unique, one-of-a-kind crypto asset that can be used to prove ownership of a range of physical and non-physical goods, from artwork to real estate.

O

Open Source
Source code that's accessible for the public to view and potentially suggest improvements to.

Ordinals
Digital assets similar to NFTs that can be minted on the Bitcoin blockchain.

P

Paper wallet
A physical document that records the key or seed phrase to a crypto wallet.

Peer-to-peer (P2P)
Direct transactions from one person to another in a decentralised network.

Phishing
A cyberattack that involves a bad actor impersonating another entity, website, or service provider in order to obtain sensitive information.

Polygon (MATIC)
A layer-2 blockchain platform built on top of the Ethereum blockchain. MATIC is its native token.

Private key
An alphanumeric code that functions like a password, giving users access to their wallet.

Proof-of-work
A consensus mechanism that uses computer power to validate transactions and add blocks to the chain.

Proof-of-stake
A consensus mechanism that involves users staking their crypto as collateral to validate transactions and add blocks to the chain.

Public key
An alphanumeric code that functions as an address for a crypto wallet to receive transactions.

Pump and dump
A common crypto fraud scheme where bad actors artificially inflate the price of a digital asset through misleading statements, only to sell up and exit before the price crashes.

R

REKT
Slang for 'wrecked'. Refers to a bad loss on a trade.

Resistance
A technical analysis term referring to a price level at which selling pressure is strong enough to prevent further price increases.

Restaking
A mechanism that allows users who have already staked their crypto to stake it again within another protocol, earning additional rewards. Popularised by the EigenLayer on Ethereum, restaking increases capital efficiency but also introduces additional layers of risk.

Rug pull
A crypto scam that involves attracting funding for a project, then disappearing with the funds.

RWA (Real World Assets)
The tokenisation of physical or traditional financial assets (property, bonds, or commodities, etc) onto a blockchain. RWAs have become one of the fastest-growing areas of DeFi, allowing real-world value to be represented, traded, and used as collateral on-chain.

S

Satoshi Nakamoto
The pseudonymous developer or group of developers who created Bitcoin.

Seed phrase
A group of words randomly generated by a crypto wallet that function as an account recovery key (a 'master key' of sorts).

Sharding
The splitting of a blockchain into multiple parallel chains ('shards') that execute transactions and smart contracts simultaneously, making the network more efficient. Sharding is a core component of Ethereum's scalability roadmap.

Shilling
Overly enthusiastic promotion of a project or coin, typically on social media.

Shit coin
A coin with no real value or utility.

Sidechain
A blockchain network that runs parallel to a 'parent' blockchain such as Ethereum. Sidechains are similar to layer-2 solutions but rely on their own security rather than that of the main chain.

Smart contract
Self-executing code that automatically enforces the terms of an agreement between two or more parties. Smart contracts are built on a blockchain and are designed to be tamper-proof. Once written and executed, they cannot be altered or deleted.

Spot ETF
A financial product that tracks the real-time price of a cryptocurrency and trades on traditional stock exchanges. Unlike futures-based ETFs, a spot ETF holds the underlying asset directly. Spot Bitcoin ETFs launched in the US in January 2024, opening up crypto investment to a much broader pool of traditional investors.

Stablecoin
A type of cryptocurrency that's pegged to a certain asset to maintain a relatively stable value. Some stablecoins are tied to fiat currencies (such as USDT), while others are tied to commodities such as gold.

Staking
When users lock up their crypto as collateral to participate in consensus and earn a reward.

T

Tank
Strong negative performance of an asset; a sudden drop in value.

The Merge
The name for Ethereum's upgrade from proof-of-work to proof-of-stake, completed in September 2022 by merging the Beacon Chain with the Ethereum Mainnet.

Ticker symbol
The letters that refer to a coin on a marketplace, such as 'BTC' or 'ETH'.

Token
A digital asset issued on a blockchain that holds value.

Tokenomics
The economics of a given token or coin, including factors that influence its supply, demand, distribution, value, and utility.

Trustless
When transactions rely on cryptography and algorithms rather than trust between people, institutions, or other third parties.

U

Unbanked
Individuals who do not have access to the global financial system, such as bank accounts.

Utility token A token that has value or a function within a specified ecosystem, such as access to real-life memberships or community voting rights.

V

Validator
A node or participant on a blockchain network responsible for validating and verifying transactions in exchange for a reward.

Vitalik Buterin
Programmer and co-founder of Ethereum, the second largest cryptocurrency after Bitcoin.

Volatility
The rapid and unpredictable changes in the price of cryptocurrencies.

W

WAGMI
'We're all gonna make it', a phrase widely used in crypto communities to encourage confidence and optimism.

Wallet
An account used to store, send and receive funds. Hot wallets are connected to the internet, while cold wallets are not.

Web 1.0
The earliest version of the internet; static with linear information.

Web 2.0
The current version of the internet; read-write and funded primarily by the sale of data.

Web 3.0
An emerging iteration of the internet; decentralised and built on blockchain technology.

Whale
A wallet address that holds a crypto balance large enough to influence the market.

Whitelist
A selective group of trusted individuals eligible for certain benefits such as first access to a new token.