The Crypto Glossary: 40 Essential Terms Defined

Crypto has a language of its own. This glossary defines the terms you'll actually run into — clearly and concisely. Bookmark it and refer back whenever a new word trips you up.

Core concepts

Blockchain — A shared, append-only ledger of transactions maintained by a distributed network of computers. The foundational technology behind cryptocurrencies.

Decentralization — Distributing control across many participants instead of one authority, so no single party can censor, alter, or shut down the network.

Node — A computer that stores a copy of the blockchain and helps validate transactions.

Consensus mechanism — The method a network uses to agree on the valid state of the ledger. The two best known are proof-of-work and proof-of-stake.

Proof-of-Work (PoW) — Consensus secured by miners expending computing power to solve puzzles. Used by Bitcoin.

Proof-of-Stake (PoS) — Consensus secured by validators staking capital as collateral. Used by Ethereum since 2022.

Hash — A fixed-length fingerprint produced from data by a one-way function. Central to how blocks are linked and secured.

Money and tokens

Coin — A cryptocurrency that is native to its own blockchain (e.g., BTC on Bitcoin, ETH on Ethereum).

Token — A crypto asset built on top of an existing blockchain via smart contracts (e.g., most assets on Ethereum).

Stablecoin — A token pegged to a stable value, usually the US dollar. See our stablecoins guide.

Altcoin — Any cryptocurrency other than Bitcoin.

Market cap — Price multiplied by circulating supply; the standard measure of an asset's size. See market cap explained.

Circulating supply — The number of coins currently available and in public hands.

FDV (Fully Diluted Valuation) — Market cap calculated using the maximum possible supply.

Wallets and security

Wallet — Software or hardware that stores the keys controlling your crypto. See wallets explained.

Private key — The secret that authorizes spending. Whoever holds it controls the funds.

Seed phrase — A list of 12–24 words that can recreate your entire wallet. Guard it with your life; never share it.

Cold storage — Keeping keys completely offline (e.g., a hardware wallet) for maximum security.

Custodial — A third party holds your keys for you (e.g., an exchange). Not your keys, not your coins.

Self-custody — You hold your own keys and bear full responsibility for them.

Trading and markets

Volatility — How sharply and quickly a price moves. Crypto is famously volatile.

Liquidity — How easily an asset can be bought or sold without moving its price.

Support / Resistance — Price levels where buying or selling has repeatedly stepped in. See reading charts.

Bull / Bear market — A sustained uptrend (bull) or downtrend (bear).

ATH / ATL — All-Time High / All-Time Low price.

Slippage — The difference between an expected trade price and the price actually executed.

FOMO / FUD — Fear Of Missing Out (chasing pumps) / Fear, Uncertainty and Doubt (negative sentiment, sometimes spread deliberately).

DCA (Dollar-Cost Averaging) — Investing a fixed amount at regular intervals to smooth out volatility. Try our DCA planner.

Ethereum and DeFi

Smart contract — Self-executing code on a blockchain that runs exactly as written.

Gas — The fee paid to execute a transaction on Ethereum. Watch it on our gas tracker.

DeFi — Decentralized Finance: financial services run by smart contracts. See DeFi explained.

DEX — A decentralized exchange where you trade directly from your wallet.

Liquidity pool — A pool of two assets that powers trading on an automated market maker.

Yield farming — Strategies to earn returns by providing liquidity, lending, or staking.

Staking — Locking up crypto to help secure a proof-of-stake network in exchange for rewards.

Layer 2 (L2) — A network built on top of a base chain to make transactions faster and cheaper.

NFTs and culture

NFT — Non-Fungible Token: a unique, non-interchangeable token, often representing art or collectibles.

DAO — Decentralized Autonomous Organization: a group governed by code and token-holder votes.

Whale — An entity holding a very large amount of an asset, big enough to move markets.

HODL — A famous typo of "hold," now meaning to hold through volatility rather than sell.

Rug pull — A scam where creators abandon a project and run off with funds. See avoiding scams.

Airdrop — A free distribution of tokens to wallets, often to reward early users.

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Still seeing a term that isn't here? The fundamentals in our Learn library cover most of them in depth.

Educational content only — not financial advice.