Crypto glossary
Short, plain-English definitions of the terms you will see most often in crypto news.
- Altcoin
- Any cryptocurrency other than Bitcoin.
- Airdrop
- Free tokens sent to wallet holders, usually to reward early users or promote a project.
- ATH
- All-time high: the highest price an asset has ever traded at.
- Blockchain
- A shared ledger of transactions recorded in linked blocks and copied across many computers.
- Cold wallet
- A wallet whose keys are kept offline, such as a hardware device.
- DeFi
- Financial services such as lending and trading built on smart contracts, without banks.
- DEX
- Decentralized exchange: trading directly from your wallet through smart contracts.
- ETF
- Exchange-traded fund: a stock-market product that tracks an asset such as Bitcoin.
- Gas
- The fee paid to process a transaction on Ethereum and similar networks.
- Halving
- The event that cuts Bitcoin's block reward in half, roughly every four years.
- Hashrate
- Total computing power securing a proof-of-work network.
- Layer 2
- A network built on top of a blockchain to make transactions faster and cheaper.
- Liquidation
- The forced closing of a leveraged position when losses exceed the margin.
- Market cap
- Price multiplied by circulating supply.
- Memecoin
- A token driven mainly by internet culture and community rather than utility.
- NFT
- Non-fungible token: a unique token that proves ownership of a digital item.
- Private key
- The secret that controls a wallet. Anyone with it can move the funds.
- Proof of stake
- A consensus method where validators lock up coins to secure the network.
- Proof of work
- A consensus method where miners spend computing power to secure the network.
- Seed phrase
- A list of 12 or 24 words that can restore a wallet. Never share it.
- Smart contract
- Code on a blockchain that runs automatically when its conditions are met.
- Stablecoin
- A token designed to hold a fixed value, usually one US dollar.
- Staking
- Locking coins to help run a proof-of-stake network in exchange for rewards.
- TVL
- Total value locked: the value of assets deposited in DeFi protocols.
- Wallet
- Software or hardware that stores the keys to your crypto.
- Whale
- A holder with a very large amount of a cryptocurrency.