Crypto Glossary: 100+ Beginner Terms (A-Z)
How to use this glossary
- Terms are grouped A to Z. Use the letter jump-links in the sidebar (or the row below) to skip straight to a letter.
- Every entry is written in plain English — one or two sentences, no assumed knowledge.
- Where a term has its own full guide, the term links to it so you can go deeper.
- This is a neutral, educational reference. Nothing here is financial advice.
Crypto has its own vocabulary, and it can feel like a wall of jargon when you're starting out. This glossary collects the 100+ terms beginners meet most often and explains each one in simple language — from everyday words like wallet and exchange to trickier ones like consensus, tokenomics, and proof of stake.
You don't need to read it top to bottom. Bookmark it, and jump back whenever a new word trips you up. Definitions here are kept deliberately short; where you'll want more, we link to a full guide.
A
Address
A string of letters and numbers that works like an account number for crypto. You share it so others can send you coins, and it's safe to make public.
Airdrop
A free distribution of tokens to lots of wallets, often to reward early users or promote a new project. Some "airdrops" are actually scams, so be careful.
Altcoin
Any cryptocurrency that isn't Bitcoin. The name is short for "alternative coin" and covers thousands of projects.
AML (Anti-Money Laundering)
A set of laws and checks that stop criminals from disguising illegal money. Crypto exchanges follow AML rules, often alongside identity checks.
AMM (Automated Market Maker)
The technology behind many decentralized exchanges. Instead of matching buyers and sellers, it uses pools of coins and a formula to set prices automatically.
APY / APR
Ways of showing yearly returns. APR (annual percentage rate) is simple interest; APY (annual percentage yield) includes compounding, so it looks a little higher.
B
Bear market
A long stretch when prices are falling and mood is negative. The opposite of a bull market.
Bitcoin (BTC)
The first and best-known cryptocurrency, launched in 2009. It runs on its own blockchain and is often called "digital gold."
Block
A batch of transactions bundled together and added to the blockchain. Each block is linked to the one before it, forming a chain.
Blockchain
A shared digital record of transactions, copied across many computers so no single party controls it. Learn more in our guide to blockchain.
BTC
The ticker symbol for Bitcoin, the way you'll see it listed on exchanges and price charts.
Bull market
A long stretch when prices are rising and confidence is high. The opposite of a bear market.
Burn
Permanently removing tokens from circulation by sending them to an address no one can access. Projects burn tokens to reduce supply.
C
CEX (Centralized Exchange)
A company-run platform where you buy, sell, and trade crypto, such as a mainstream exchange app. It holds your coins for you until you withdraw.
Cold wallet
A wallet kept offline, such as a hardware device, so hackers can't reach it over the internet. Best for storing larger amounts long term.
Consensus
The method a blockchain uses to get all its computers to agree on which transactions are valid. Proof of work and proof of stake are two examples.
Custodial
Describes a service that holds your private keys for you, like an exchange account. Convenient, but you're trusting the company — "not your keys, not your coins."
D
DAO (Decentralized Autonomous Organization)
A group run by rules written in code and by member votes, rather than by a traditional boss or company structure.
DApp (Decentralized Application)
An app that runs on a blockchain instead of one company's servers, using smart contracts to work.
DCA (Dollar-Cost Averaging)
Buying a fixed amount at regular times (say weekly) instead of all at once, to smooth out the effect of price swings.
DeFi (Decentralized Finance)
Financial services — lending, borrowing, trading — built on blockchains without banks in the middle. See our intro to DeFi.
DEX (Decentralized Exchange)
An exchange that runs on smart contracts and lets you trade directly from your own wallet, with no company holding your coins.
Diamond hands
Slang for holding an asset through big price drops instead of selling in a panic. The opposite is "paper hands."
E
ETH
The ticker symbol for Ether, the coin used to pay for transactions on the Ethereum network.
Ethereum
A major blockchain designed to run smart contracts and apps, not just payments. Its coin is called Ether (ETH).
Exchange
A marketplace for buying, selling, and trading crypto. Can be centralized (company-run) or decentralized (smart-contract-run).
F
Fiat
Government-issued money like the US dollar, euro, or yen. In crypto, "fiat" is the traditional cash you swap in and out of.
FOMO (Fear Of Missing Out)
The urge to buy something just because its price is rising fast and you don't want to miss the gains. It often leads to buying at the top.
Fork
A change to a blockchain's rules. A "soft fork" is backward-compatible; a "hard fork" splits the chain, sometimes creating a new coin.
G
Gas fee
The fee you pay to have a transaction processed on a blockchain like Ethereum. Fees rise when the network is busy.
Genesis block
The very first block of a blockchain — the starting point everything else is built on.
H
Halving
A scheduled event where the reward for mining new Bitcoin is cut in half, roughly every four years. It slows the creation of new coins.
Hardware wallet
A small physical device that stores your private keys offline, keeping them away from internet threats. A type of cold wallet.
Hash
A unique fixed-length code produced from data by a math function. Blockchains use hashes to link blocks and secure records.
HODL
Slang for holding your crypto for the long term instead of trading it. It began as a typo of "hold."
Hot wallet
A wallet connected to the internet, like a phone or browser app. Handy for everyday use but more exposed than a cold wallet.
I
ICO (Initial Coin Offering)
An early fundraising method where a project sells new tokens to raise money. Many early ICOs turned out to be risky or fraudulent.
Immutable
Unable to be changed. Once a transaction is confirmed on a blockchain, it generally can't be altered or deleted.
K
KYC (Know Your Customer)
The identity checks exchanges run to confirm who you are, usually with an ID and a photo. See our guide to KYC.
L
Layer 1
A base blockchain like Bitcoin or Ethereum that settles its own transactions. Other tools build on top of it.
Layer 2
A network built on top of a Layer 1 to make transactions faster and cheaper, while still relying on the base chain for security.
Ledger
A record of transactions. A blockchain is a shared, public ledger. ("Ledger" is also a well-known hardware wallet brand.)
Leverage
Borrowing to trade a bigger position than your own money allows. It magnifies both gains and losses. See our guide to leverage.
Liquidation
When a leveraged trade is force-closed because losses ate through your deposit. See our guide to liquidation.
Liquidity
How easily an asset can be bought or sold without moving its price much. High liquidity means lots of active buyers and sellers.
M
Mainnet
The live, real-money version of a blockchain where actual transactions happen. The opposite of a testnet.
Market cap
The total value of a coin: its price multiplied by how many coins are in circulation. It's a rough size measure.
Meme coin
A cryptocurrency based on a joke, trend, or internet meme. Prices are often driven by hype and can be extremely volatile.
Mining
Using computer power to validate transactions and add blocks on proof-of-work chains, earning new coins as a reward.
Mnemonic / seed phrase
A list of 12 or 24 words that backs up a wallet and can restore your keys. See our guide to seed phrases.
N
NFT (Non-Fungible Token)
A one-of-a-kind digital token that proves ownership of a specific item, such as art, collectibles, or in-game gear.
Node
A computer that runs a blockchain's software, keeping a copy of the ledger and helping check transactions.
Non-custodial
Describes a wallet where you hold your own private keys. Full control, but full responsibility — lose the keys and no one can recover them.
Nonce
A "number used once" that miners change while searching for a valid block. It also helps order transactions in some wallets.
O
Order book
A live list of buy and sell orders for an asset on an exchange. It shows the prices people are willing to trade at.
P
P2P (Peer-to-Peer)
Trading or sending crypto directly between two people, without a company in the middle handling the deal.
Paper wallet
Keys or a seed phrase written or printed on paper and kept offline. A basic form of cold storage that can be lost or damaged.
Passphrase
An extra secret word you can add on top of a seed phrase for more security. Forgetting it can lock you out permanently.
Peg
A fixed target value an asset aims to hold, such as a stablecoin pegged to $1. Losing the peg means the price drifts away from that target.
Private key
The secret code that controls a wallet's funds and signs transactions. Never share it — whoever has it controls the coins.
Proof of Reserves
A way for an exchange to show it actually holds enough assets to cover customer balances, using cryptographic evidence.
Proof of Stake (PoS)
A consensus method where validators lock up coins to earn the right to confirm transactions, using far less energy than mining.
Proof of Work (PoW)
A consensus method where computers compete to solve hard math puzzles to add blocks. It secures Bitcoin but uses lots of energy.
Public key
A key derived from your private key that helps create your address. It's safe to share and lets others verify your transactions.
Pump and dump
A scheme where people hype a coin to push its price up, then sell fast and leave later buyers with losses.
R
Rug pull
A scam where a project's creators take investors' money and disappear, leaving a worthless token. See our guide to rug pulls.
S
Satoshi
The smallest unit of Bitcoin, equal to 0.00000001 BTC. It's named after Bitcoin's creator, Satoshi Nakamoto.
Seed phrase
The 12 or 24 words that back up and restore a wallet. Guard it like the master key it is — see our seed phrase guide.
Shitcoin
Blunt slang for a coin seen as having little or no real value or use. Often used for low-quality or hype-only projects.
Smart contract
Code on a blockchain that runs automatically when set conditions are met, like a self-executing agreement with no middleman.
Spot trading
Buying or selling crypto for immediate delivery at the current price, using your own money — no borrowing or leverage.
Stablecoin
A crypto designed to hold a steady value, usually pegged to a currency like the US dollar. See our guide to stablecoins.
Staking
Locking up coins to help secure a proof-of-stake network and earn rewards in return. See our guide to staking.
Stop-loss
An order that automatically sells an asset if its price falls to a set level, to limit how much you can lose.
T
Testnet
A practice version of a blockchain used to test apps and transactions with fake coins, before going live on the mainnet.
Ticker
The short symbol used to identify a coin, like BTC for Bitcoin or ETH for Ether.
Token
A digital asset created on an existing blockchain, often to represent value, access, or voting rights within a project.
Tokenomics
The economics of a token: how many exist, how they're released, and what gives them value. Useful for judging a project.
Transaction fee
A small charge paid to process and confirm a transaction on a blockchain. On some networks it's called a gas fee.
U
USDC
A popular US-dollar stablecoin issued by regulated companies, designed to stay worth about $1.
USDT (Tether)
The largest US-dollar stablecoin by volume, widely used for trading and moving value between exchanges.
V
Volatility
How sharply and quickly a price moves up and down. Crypto is known for high volatility, meaning big swings in short periods.
W
Wallet
A tool that stores the keys controlling your crypto and lets you send and receive it. See our guide to crypto wallets.
Web3
A vision of an internet built on blockchains, where users own their data and assets instead of big platforms controlling them.
Whale
A person or group holding a very large amount of a coin. Their big trades can move the market.
Whitepaper
A document a project publishes to explain its idea, technology, and plans. It's a starting point for researching any crypto.
Safety reminder: No legitimate exchange, wallet, or support agent will ever ask for your seed phrase or private key. Anyone who does is a scammer — stop and walk away.
Jump to a letter
- A – Address, Airdrop, Altcoin, AMM, APY
- B – Bitcoin, Block, Blockchain, Burn
- C – CEX, Cold wallet, Consensus
- D – DAO, DeFi, DEX, DCA
- E – ETH, Ethereum, Exchange
- F – Fiat, FOMO, Fork
- G – Gas fee, Genesis block
- H – Halving, Hash, HODL, Hot wallet
- I – ICO, Immutable
- K – KYC
- L – Layer 1/2, Leverage, Liquidity
- M – Mainnet, Market cap, Mining
- N – NFT, Node, Non-custodial, Nonce
- O – Order book
- P – PoS, PoW, Private key, Peg
- R – Rug pull
- S – Satoshi, Stablecoin, Staking
- T – Testnet, Token, Tokenomics
- U – USDC, USDT
- V – Volatility
- W – Wallet, Web3, Whale, Whitepaper
