Crypto Glossary

150 Essential Crypto & Trading Terms

If you’re new to the world of cryptocurrencies and trading, understanding the language is the first step to success. This SEO-optimized glossary will help beginners build a solid knowledge foundation. Below are 150 of the most commonly used terms—with clear, simple definitions—so you can navigate crypto with confidence.

A–D

Address: A unique string of letters and numbers for sending or receiving cryptocurrencies, like an account number for crypto.
Airdrop: Free distribution of tokens to crypto wallets, typically as a promotion or reward.
Algorithm: A set of instructions computers follow; in crypto, used for things like mining and verifying transactions.
All-Time High (ATH): The highest price a cryptocurrency has ever reached.
All-Time Low (ATL): The lowest price a cryptocurrency has ever reached.
Altcoin: Any cryptocurrency that isn’t Bitcoin.
AML (Anti-Money Laundering): Laws and regulations to stop illegal money laundering using crypto.
Ask Price: The lowest price a seller is willing to accept for a cryptocurrency.
Atomic Swap: Technology that lets users exchange one cryptocurrency for another without a trusted third party.
Bear Market: When prices are falling and the outlook is negative.
Bid Price: The highest price a buyer is willing to pay for a coin.
Bitcoin: The very first cryptocurrency, launched in 2009.
Block: A package of transactions recorded together on a blockchain.
Block Explorer: A tool for viewing blockchain transactions and addresses.
Block Reward: New coins given to miners for adding a new block.
Blockchain: A digital ledger that records transactions securely across a network.
Bounty: Reward for performing certain tasks for a crypto project, like testing or promoting.
Bull Market: When prices are rising and the mood is optimistic.
Burn: The process of permanently removing tokens from circulation.
Buy Wall: Large buy orders on an exchange creating support at a specific price level.
Candlestick Chart: A chart type showing price movements with “candles” representing open, high, low, and close prices.
Centralized Exchange (CEX): A company-run platform for buying, selling, or trading cryptocurrencies.
Circulating Supply: The number of coins currently available to trade.
Cold Wallet/Storage: A wallet not connected to the internet, making it harder to hack.
Consensus: Agreement among network participants on valid transactions.
Cryptocurrency: Digital money using cryptography for security.
Cryptography: The use of codes to secure information; essential for blockchain safety.
DApp (Decentralized Application): An app that runs on a blockchain, not controlled by a single company.
DAO (Decentralized Autonomous Organization): Organization governed by smart contracts and code, not people.
Day Trading: Buying and selling crypto on the same day to profit from price changes.
Decentralization: Distribution of control and decision-making across many people or computers.
DeFi (Decentralized Finance): Financial services run on blockchains with no bank or broker.
Derivative: A contract whose value depends on the price of something else, like Bitcoin futures.
DEX (Decentralized Exchange): A trading platform managed by software, not a company.
Difficulty: How hard it is to find a new block in mining.
Do Your Own Research (DYOR): Advice encouraging investors to research before making decisions.
Dust: Very small amounts of cryptocurrency.

E–L

Ethereum: A major blockchain that lets users build decentralized applications with smart contracts.
Fiat Currency: Government-issued money, like dollars or euros.
FOMO (Fear of Missing Out): Worry that others are making money and you’re not, causing impulsive buying.
Fork: A change to a blockchain protocol that can create a new currency, like Bitcoin Cash.
FUD (Fear, Uncertainty, Doubt): Negative information spread to create panic.
Full Node: A computer that stores all blockchain transactions for its network.
Fundamental Analysis: Analyzing project details to estimate a cryptocurrency’s value.
Gas: The fee for using the Ethereum blockchain.
Genesis Block: The first block ever of a blockchain.
HODL: Slang for “hold,” meaning to keep coins instead of selling, even if prices drop.
Halving: An event where mining rewards are cut in half, controlling supply.
Hard Cap: The maximum a project will accept in funding.
Hard Fork: A blockchain split that creates two separate networks.
Hash: An encrypted outcome from a mathematical function, essential for blockchain integrity.
Hash Rate: The speed a computer can process blockchain puzzles.
Hot Wallet: A crypto wallet connected to the internet—more convenient but less secure than cold wallets.
ICO (Initial Coin Offering): Crowdsale to fund a new crypto project by selling tokens.
Impermanent Loss: The temporary loss liquidity providers experience on decentralized exchanges due to price changes.
KYC (Know Your Customer): The process of verifying users’ identities.
Layer 1: The underlying main blockchain.
Layer 2: “Add-ons” to a blockchain that help it process more transactions.
Ledger: A record of all transactions.
Leverage: Using borrowed funds to increase trading power.
Liquidity: How easily you can buy or sell without moving the price much.
Liquidity Pool: Tokens locked in a DEX for users to trade against.

M–R

Mainnet: The fully operational blockchain protocol.
Margin Trading: Borrowing money to trade larger amounts.
Market Cap (Market Capitalization): Coin price multiplied by the number in circulation.
Market Order: A trade to buy/sell immediately at the current price.
Max Supply: The total amount of coins that will ever exist for a cryptocurrency.
Mempool: Where unconfirmed blockchain transactions wait to be added.
Metamask: A popular crypto wallet for interacting with Ethereum and other blockchains.
Mining: Using computers to add new transactions to a blockchain and earn rewards.
Mining Pool: A group of miners combining resources to share rewards.
NFT (Non-Fungible Token): A unique digital item, like art or collectibles, with its own proof of ownership.
Node: A computer connected to a blockchain network.
Order Book: A list of current buy/sell orders on an exchange.
Oracles: Services that send real-world data to smart contracts.
OTC (Over-the-Counter): Large, private trades that don’t happen on public exchanges.
P2P (Peer-to-Peer): Transactions between people directly, not through a business.
Paper Wallet: Physical printout of private/public keys for offline storage.
Peer: Any other participant in a blockchain network.
Portfolio: The complete collection of digital assets you own.
Private Key: A secret code that lets you spend your cryptocurrencies.
Proof of Stake (PoS): A way to add new blocks using ownership of coins instead of computers.
Proof of Work (PoW): A system where computers solve puzzles to add new blocks.
Protocol: A set of rules that define how a blockchain operates.
Public Key: Can be shared with others so they can send you crypto.
Pump: A fast rise in price.
Pump and Dump: Coordinated effort to drive a coin’s price up, then sell for profit, causing it to crash.
Put Option: Contract giving the right to sell at a set price.
Ramp: Making it easy to enter or leave the crypto market, such as by connecting bank transfers to exchanges.
Rug Pull: When project developers drain pooled funds and disappear.

S–Z

Satoshi: The smallest fraction of a Bitcoin (0.00000001 BTC).
Satoshi Nakamoto: The anonymous creator of Bitcoin.
Scam: A fraud designed to steal your crypto or money.
Seed Phrase: A set of words that can restore your crypto wallet.
Shilling: Promoting a coin in a misleading way.
Shorting: Betting that the price will go down.
Slippage: The difference between the expected and the actual price of a trade.
Smart Contract: Self-operating agreement on a blockchain that triggers automatically.
Soft Cap: The minimum amount a project aims to raise in an ICO.
Soft Fork: Updates to a blockchain that are compatible with old versions.
Stablecoin: Cryptocurrency whose value is tied to another asset, like dollars.
Staking: Locking your crypto to earn rewards or support a blockchain.
Stop Loss: An order to sell if the price drops to a certain level.
Swap: Exchanging one cryptocurrency for another.
Support: A price level where buying pressure keeps prices from falling lower.
TA (Technical Analysis): Using charts and patterns to predict price moves.
Take Profit: An order to sell when a certain profit is reached.
Token: A digital asset created on top of an existing blockchain.
Tokenomics: Study of how a cryptocurrency is designed to work and its economics.
Trading Pair: Two currencies that can be traded for each other, like ETH/BTC.
Transaction Fee: The fee paid to process a blockchain transaction.
Validator: Someone who checks and verifies blockchain transactions, often in PoS systems.
Volatility: How much the price of an asset goes up or down.
Wallet: A tool for holding crypto—can be software, hardware, or even paper.
Weak Hands: Traders who sell quickly out of fear.
Web3: A vision of the internet where users control their own data and assets.
Whale: Someone holding a lot of a specific cryptocurrency.
Whitepaper: An in-depth document explaining a crypto project’s goals and technology.
Yield: The return earned on an investment, often shown as a percentage.
Yield Farming: Earning additional coins by lending or staking crypto.
Zero-Knowledge Proof: A method to prove something without revealing the data itself.

This glossary covers the core terms and definitions an absolute beginner might encounter while exploring cryptocurrencies and crypto trading. Bookmark this guide as your go-to resource while learning, trading, or investing in crypto.