Crypto Glossary
All the crypto terminology you need to know, explained in plain English.
A
Airdrop
Free tokens distributed to wallet addresses, often as a marketing strategy or reward for early users.
Altcoin
Any cryptocurrency other than Bitcoin. Includes Ethereum, Solana, Cardano, and thousands of others.
APY (Annual Percentage Yield)
The real rate of return on an investment, accounting for compound interest. Higher than APR due to compounding.
B
Blockchain
A distributed digital ledger that records transactions across many computers. The foundation of cryptocurrencies.
Bridge
A protocol that allows transferring assets between different blockchain networks.
C
Cold Wallet
A cryptocurrency wallet not connected to the internet. Hardware wallets and paper wallets are cold storage.
CEX (Centralized Exchange)
A traditional crypto exchange like Coinbase or Binance where the company holds your funds.
D
DeFi (Decentralized Finance)
Financial services built on blockchain without traditional intermediaries like banks.
DEX (Decentralized Exchange)
A crypto exchange that operates without a central authority. Users trade directly from their wallets.
DYOR (Do Your Own Research)
Common advice in crypto - investigate any project before investing. Don't trust, verify.
F-G
FOMO (Fear of Missing Out)
The anxiety that others are profiting while you're not. Often leads to poor investment decisions.
Gas
The fee required to execute transactions on blockchain networks like Ethereum.
H
HODL
Originally a typo for "hold" - now means holding crypto long-term regardless of price volatility.
Hot Wallet
A wallet connected to the internet. Convenient but less secure than cold storage.
L-M
Liquidity
How easily an asset can be bought or sold without affecting its price.
Market Cap
Total value of a cryptocurrency: current price multiplied by circulating supply.
N-P
NFT (Non-Fungible Token)
A unique digital asset on a blockchain. Used for digital art, collectibles, and more.
Private Key
A secret code that gives you access to your crypto. Never share it with anyone.
R-S
Rug Pull
A scam where developers abandon a project and run away with investors' funds.
Seed Phrase
A 12-24 word phrase that can recover your entire wallet. Guard it with your life.
Staking
Locking up crypto to support network operations in exchange for rewards.
W
Whale
An individual or entity holding large amounts of cryptocurrency, capable of moving markets.
Web3
The vision of a decentralized internet built on blockchain technology.