Crypto glossary

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• Wallets and security 2FA (two-factor authentication) 2FA (two-factor authentication) is a way to protect an account by requiring two different kinds of proof of identity, such as a password and a confirmation from your phone.
• Technology 51% attack A 51% attack is an attack on a blockchain in which someone controls the majority of the mining power and can reorganize recent transactions in an attempt to spend the same coins twice.

A

• Regulation and tax AADE and crypto AADE is Greece’s Independent Authority for Public Revenue. When it comes to cryptocurrency, its role covers collecting tax information, auditing transactions and enforcing tax law.
• Technology Account abstraction Account abstraction is an approach that makes blockchain accounts programmable, enabling features such as account recovery, transaction limits and fees paid by third parties.
• NFTs, tokens and Web3 Airdrop An airdrop is a distribution of tokens or NFTs to users without them having to buy them, usually to promote a project or reward participation. It may come with conditions and network fees.
• DeFi Algorithmic stablecoins Algorithmic stablecoins are cryptocurrencies that aim for a stable price through rules and financial incentives, rather than relying solely on reserves. Their stability isn’t guaranteed.
• Basics Altcoin An altcoin is any cryptocurrency other than Bitcoin. The term comes from “alternative coin” and covers coins and tokens with different uses, technologies and risks.
• Trading and markets Altcoin season Altcoin season is a period in which many cryptocurrencies other than Bitcoin post better percentage returns than it does. It is also called altseason.
• Regulation and tax AML (anti-money laundering) AML (anti-money laundering) is the set of rules and controls used to combat money laundering. In crypto it includes customer identification, transaction monitoring and reporting suspicious activity.
• DeFi AMM (automated market maker) An AMM (automated market maker) is a mechanism that enables crypto swaps through liquidity pools and algorithmic pricing rules, without an order book.
• DeFi APY and APR APY and APR express returns on an annual basis. APR doesn’t account for compounding, while APY factors in reinvesting the rewards so that they earn returns too.
• Trading and markets Arbitrage Arbitrage is exploiting price differences for the same asset across different markets by buying on the cheaper one and selling on the more expensive one.
• Technology ASIC An ASIC is an integrated circuit designed for one specific task. In crypto, ASIC miners are devices that use such chips to mine efficiently on specific algorithms.
• Trading and markets ATH (all-time high) An ATH (all-time high) is the highest price a cryptocurrency has ever reached in a specific reference currency, such as euros or dollars, according to the available data.

B

• Community slang Bagholder A bagholder is someone who keeps holding a cryptocurrency after a big drop in its value, often hoping the price will return to the level where they bought it.
• Trading and markets Bear market A bear market is a prolonged period of falling prices, with negative sentiment and reduced confidence in the market. It isn’t defined by one bad day but by the broader downward trend.
• Technology BEP-20 BEP-20 is the token standard for creating and running tokens on BNB Smart Chain. It defines common rules for transfers, balances and approving apps to use tokens.
• Trading and markets Bid and ask The bid is the highest available price a buyer is offering for a crypto asset, while the ask is the lowest price a seller is asking. The difference between them is called the spread.
• Trading and markets Bitcoin dominance Bitcoin dominance (BTC dominance) is the share of the total cryptocurrency market cap that belongs to Bitcoin.
• Community slang Bitcoin maximalist A Bitcoin maximalist holds the view that Bitcoin is the only cryptocurrency with real long-term value or reason to exist, and treats the rest with strong skepticism.
• Basics Bitcoin Pizza Day Bitcoin Pizza Day is the anniversary of Laszlo Hanyecz buying two pizzas for 10,000 BTC on May 22, 2010, one of the first recorded purchases of goods with Bitcoin.
• Trading and markets Black swan A black swan is an event outside normal expectations, with enormous consequences, that in hindsight is often presented as if it had been predictable.
• Technology Block A block is a unit of blockchain data that usually contains transactions and a cryptographic reference to the previous block, linking the network’s history into a chain.
• Basics Blockchain A blockchain is a digital record in which entries are grouped into blocks, linked cryptographically and verified by a network of computers following shared rules.
• Technology Block explorer A block explorer is a search tool for a blockchain’s data. It lets you check transactions, addresses, balances and blocks, like Etherscan does for Ethereum.
• Technology Block height Block height is the number that shows a block’s position in the chain by counting how many blocks come before it. In Bitcoin, the first block has a height of 0.
• Technology Block reward A block reward is the payment for adding a valid block to the blockchain. In Bitcoin it consists of newly created bitcoin plus the fees from the transactions in that block.
• Technology Bridge A bridge is a mechanism that allows value or data to be transferred between different blockchains that can’t communicate with each other directly.
• Trading and markets Bull market A bull market is a period in which prices generally trend upward and investors are optimistic, although temporary drops still occur.
• Community slang Buy the dip (BTFD) Buy the dip means buying a cryptocurrency after its price has fallen, expecting a recovery. BTD is its abbreviation and BTFD is the more emphatic version of the same phrase.
• Trading and markets Buy wall and sell wall A buy wall is a large concentration of buy orders at one price level in an exchange’s order book. A sell wall is the equivalent “wall” of sell orders.

C

• Trading and markets Candlesticks Candlesticks are symbols on a price chart that show the opening price, closing price, highest price and lowest price for a specific time period.
• Regulation and tax Capital gains Capital gains are the profit from an increase in an asset’s value. When you sell crypto, they are calculated by subtracting the purchase cost and directly related expenses from the sale value.
• Trading and markets Capitulation Capitulation is a phase of heavy selling, when many holders give up hope of a recovery and sell under pressure, often at a loss.
• Regulation and tax CASP (crypto-asset service provider) A CASP is a crypto-asset service provider that serves clients on a professional basis, for example by exchanging or holding crypto for them, under the EU’s MiCA regulation.
• Basics CBDC and the digital euro A CBDC is a digital currency issued by a central bank. The digital euro is the planned form of the euro for digital payments using Eurosystem money.
• Trading and markets CEX (centralized exchange) A CEX is a centralized cryptocurrency exchange run by a company. The company executes trades and usually holds users’ money and crypto.
• Regulation and tax CFTC The CFTC (Commodity Futures Trading Commission) is the independent US federal agency that oversees derivatives markets and has powers to fight fraud and manipulation in crypto markets.
• Basics Circulating supply Circulating supply is the estimated number of coins or tokens that are on the market and available to the public, usually excluding locked reserves.
• Basics Coin vs. token: the difference A coin is the native currency of a blockchain, like ETH on Ethereum. A token is created on top of an existing blockchain and follows the rules set when it was issued.
• Wallets and security Cold wallet A cold wallet is a cryptocurrency wallet that keeps the private keys offline, limiting their exposure to online attacks.
• Trading and markets Collateral Collateral is an asset you lock up as security for a loan or a trading position. If the requirements are no longer met, it may be liquidated.
• Technology Consensus mechanism A consensus mechanism is the set of rules by which the computers of a blockchain agree on the valid transaction history, without needing a central operator.
• Basics Cryptocurrency A cryptocurrency is a digital asset that uses cryptography to secure its transactions and is usually recorded on a blockchain.
• Technology Cryptography Cryptography is the science of using mathematical techniques to protect information and verify that it is authentic. In crypto, it makes it possible to sign transactions and detect tampering.
• DeFi Crypto lending Crypto lending means lending out cryptocurrency in exchange for interest, or taking out a loan in crypto, usually with other cryptocurrencies as collateral.
• Wallets and security Crypto scams Crypto scams are deliberate deceptions aimed at stealing money, cryptocurrency or login details, through fake investments, misleading messages and malicious apps.
• Regulation and tax Crypto taxation in Greece Crypto taxation in Greece concerns the tax treatment of income and gains from crypto, depending on the activity, your tax residence and the rules for the relevant year.
• Community slang Crypto Twitter (CT) Crypto Twitter (CT) is the community on X, formerly Twitter, that talks about cryptocurrency: from developers and analysts to investors, companies and anonymous accounts.
• Trading and markets Crypto winter A crypto winter is a prolonged period of low prices and weak interest in cryptocurrency, often with fewer trades and harder funding for projects.
• Wallets and security Custody Custody is the safekeeping and management of the keys that control crypto. With a custody service, a third party, the custodian, takes on this responsibility on your behalf.

D

• Regulation and tax DAC8 DAC8 is an EU directive that requires certain crypto providers to report user and transaction data to tax authorities, so it can be exchanged between countries. It doesn’t introduce a new tax.
• DeFi DAO A DAO (decentralized autonomous organization) is a community that organizes decisions and resources through shared rules, votes and blockchain tools, rather than relying solely on central management.
• Technology dApp (decentralized application) A dApp is an application that relies, in part or entirely, on a decentralized network, usually a blockchain, rather than only on a company’s servers.
• Trading and markets DCA (dollar-cost averaging) DCA (dollar-cost averaging) means buying an asset with a fixed amount of money at regular intervals, regardless of its price. It spreads your purchases over time without eliminating the risk of loss.
• Trading and markets Dead cat bounce A dead cat bounce is a temporary price recovery after a sharp drop, followed by a new decline rather than a lasting change in trend.
• Basics Decentralization Decentralization is the distribution of control over a network, and of its operation, among many independent participants instead of a single central authority or company.
• DeFi DeFi (decentralized finance) DeFi is the set of financial applications that run on a blockchain through smart contracts, allowing crypto trading and lending without the traditional role of banks and intermediaries.
• Community slang Degen In crypto slang, a degen is someone who takes very high risks chasing quick profits, often with minimal research. The term is also used self-deprecatingly within the community.
• Trading and markets Delisting A delisting is the removal of a cryptocurrency or a trading pair from an exchange. Trading stops there, but not necessarily the coin’s operation or trading elsewhere.
• Trading and markets Depeg A depeg is when a crypto asset loses its link to the value it was designed to track, such as when a dollar stablecoin trades noticeably above or below $1.
• Trading and markets DEX (decentralized exchange) A DEX is a decentralized exchange where users swap crypto through smart contracts, usually directly from their own wallet, without depositing it with a company.
• Community slang Diamond hands and paper hands Diamond hands is what people call those who hold on to their crypto despite sharp swings. Paper hands, usually said mockingly, are those who sell quickly out of fear or at the first sign of trouble.
• Basics Digital asset A digital asset is something in digital form that has value or represents rights. In crypto, it includes cryptocurrencies, tokens and NFTs.
• Technology Digital signature A digital signature is cryptographic proof that a message was signed with a specific private key and hasn’t changed since it was signed, without revealing the key.
• Technology Double spending Double spending is using, or trying to use, the same digital coins for two different payments when the funds are only enough for one.
• Community slang DYOR DYOR stands for “Do Your Own Research.” In crypto, it’s the advice to check out a project and its risks yourself, rather than relying on what others say.

E

• Technology EIP-1559 EIP-1559 is the Ethereum change that introduced a base transaction fee, which is burned, and a separate priority fee for the validator that includes the transaction in a block.
• Technology ERC-20 ERC-20 is the technical standard for fungible tokens on Ethereum. It sets common rules for transfers, balances and spending approvals, so that wallets and apps can work with them.
• Technology ERC-721 ERC-721 is a technical standard for unique tokens, known as NFTs, on Ethereum and compatible networks. It defines how ownership is recorded and how the tokens are transferred.
• Regulation and tax ESMA ESMA is the European Securities and Markets Authority. In crypto, it coordinates supervision under MiCA, shapes technical standards and keeps a register of crypto-asset service providers.
• Trading and markets ETF An ETF is an exchange-traded fund that you buy and sell on a stock exchange, just like a share. Its goal is usually to track the performance of an index or an asset.
• Technology EVM (Ethereum Virtual Machine) The EVM (Ethereum Virtual Machine) is Ethereum’s virtual machine: the environment that runs smart contracts under common rules across the network’s nodes.
• Trading and markets Exchange An exchange is a platform where you buy, sell or swap cryptocurrencies. Depending on the service, trades are made with euros, other fiat currencies or crypto.

F

• Trading and markets Fakeout A fakeout, or false breakout, is a price move beyond a support or resistance level that doesn’t hold, with the price returning to its previous range.
• Community slang Falling knife A falling knife describes a sharp price drop. “Catching a falling knife” means buying while the price is collapsing, trying to time the bottom.
• Trading and markets FDV (fully diluted valuation) FDV (fully diluted valuation) shows the hypothetical value of a cryptocurrency if its entire planned supply were valued at today’s price per coin or token.
• Trading and markets Fear & Greed Index The Fear & Greed Index is an indicator that captures the mood of the crypto market on a scale from 0 to 100: low values signal fear and high values signal greed.
• Basics Fiat Fiat money is money, like the euro and the dollar, that can’t be redeemed for a set quantity of gold. Its value rests on the institutional framework and the trust of the people who use it.
• Trading and markets Fibonacci retracement Fibonacci retracement is a technical analysis tool that marks possible support or resistance levels on a chart by measuring how much the price has retraced from a previous move.
• Technology Finality Finality is a blockchain’s guarantee that a recorded transaction won’t be reversed. Depending on the network, that guarantee rests either on a growing probability or on explicit consensus rules.
• DeFi Flash loan A flash loan is an uncollateralized crypto loan that must be repaid within the same transaction, along with any fee. If it isn’t repaid, the transaction is reverted.
• Trading and markets Flippening The flippening is the hypothetical scenario in which Ether (ETH), Ethereum’s cryptocurrency, overtakes Bitcoin in total market capitalization.
• Community slang FOMO FOMO is the fear that you’re missing an opportunity others are cashing in on. In crypto, it can push you into hasty decisions because you see a price rising or people talking about gains everywhere.
• Technology Fork A fork is a split in a blockchain or a change to its rules. It can be temporary, serve as an upgrade or lead to two separate networks.
• Community slang FUD FUD stands for Fear, Uncertainty and Doubt. In crypto, it describes negative messages that stir up worry, often through rumors or exaggeration.
• Technology Full node A full node is a computer that independently verifies a blockchain’s transactions and blocks, enforcing all of the network’s rules instead of trusting other nodes.
• Trading and markets Fundamental analysis Fundamental analysis evaluates a cryptocurrency based on its utility, technology, usage and economics, not just its price action.
• Trading and markets Funding rate The funding rate is the percentage that sets the periodic payments between holders of long and short positions in perpetual futures, keeping their price close to the spot market price.
• Trading and markets Futures Futures are derivative contracts to buy or sell an asset at an agreed price on a future date. In crypto, they give you exposure to the price without necessarily owning the coin.

G

• NFTs, tokens and Web3 GameFi and play-to-earn GameFi combines games with blockchain-based economies. Play-to-earn (P2E) is a model in which players earn rewards in crypto or NFTs, though that doesn’t guarantee a profit.
• Technology Gas Gas is the unit that measures the computational work for transactions on Ethereum and compatible networks. The charge for that work is called the gas fee and depends on the gas consumed and its price.
• Technology Gas limit The gas limit is the maximum number of gas units you allow a transaction to consume on Ethereum or compatible networks. It sets a cap on computational work, not the price of each unit of gas.
• Technology Genesis block The genesis block is the first block of a blockchain, the point where its history begins. Unlike the blocks that follow, it doesn’t link to a previous one.
• Trading and markets Golden cross and death cross A golden cross is when a short-term moving average crosses above a long-term one. A death cross is the opposite, bearish crossover. They point to a possible change in trend, not a certain outcome.
• DeFi Governance token A governance token is a token that gives you a say in the decisions of a protocol or a DAO, such as changes to its operating rules or to how shared funds are used.
• Technology Gwei Gwei is a denomination of ETH, used mainly for the gas price on Ethereum. One Gwei equals 0.000000001 ETH, that is, one billionth of an ETH.

H

• Wallets and security Hack A hack in crypto is the exploitation of weaknesses in systems, software or access mechanisms, which can lead to the theft of cryptocurrency or data.
• Technology Halving The halving is the scheduled cut in half of the new coins issued per block. On Bitcoin, it happens every 210,000 blocks, roughly every four years.
• Technology Hard fork A hard fork is a change to a blockchain’s rules that isn’t compatible with the old software. It can lead to two separate chains if both versions keep active supporters.
• Wallets and security Hardware wallet A hardware wallet is a physical device that stores your private keys and signs transactions without exposing the keys to your computer or phone.
• Technology Hash A hash is a digital fingerprint of data, with a fixed length for a given algorithm. In crypto, it’s used to detect tampering, link blocks together and identify transactions.
• Technology Hashrate Hashrate is the number of hash calculations per second performed by a miner or, in total, by a Proof of Work network such as Bitcoin. It expresses the computing power taking part in mining.
• Regulation and tax Hellenic Capital Market Commission The Hellenic Capital Market Commission (HCMC) is Greece’s capital markets regulator. In crypto, it supervises the application of MiCA within its remit, together with the Bank of Greece.
• Community slang HODL HODL means holding your crypto for the long term instead of buying and selling it often. It started as a misspelling of “hold” and became a community rallying cry.
• Wallets and security Honeypot A honeypot in crypto is a trap that lures users with apparent profit, such as a token that can be bought but not sold, or a wallet from which they can’t withdraw the funds they see.
• Wallets and security Hot wallet A hot wallet is a crypto wallet whose private keys are on an internet-connected device. It makes everyday transactions easier, but it’s more exposed to online attacks.
• Regulation and tax Howey test The Howey test is a US legal standard used to decide whether a transaction is an investment contract and therefore falls under securities law. It’s also applied to crypto offerings.

I

• NFTs, tokens and Web3 ICO, IDO and IEO ICOs, IDOs and IEOs are ways to raise funds by selling new tokens. They differ mainly in who runs the sale: the project team, a platform linked to a DEX, or a centralized exchange.
• DeFi Impermanent loss Impermanent loss is the amount by which a liquidity pool position underperforms simply holding the same tokens, when their relative price changes.
• Technology Interoperability Interoperability is the ability of different blockchains to communicate, exchanging data or transferring value between them through dedicated mechanisms.
• Technology IPFS IPFS (InterPlanetary File System) is a protocol for sharing files across a network of computers that locates data by its content rather than by a server’s address.

K

• Regulation and tax KYC (Know Your Customer) KYC (Know Your Customer) is the process by which a business verifies its customer’s identity and assesses the risk of money laundering or terrorist financing.

L

• NFTs, tokens and Web3 Launchpad A launchpad is a platform that helps new crypto projects make the initial sale of their tokens or NFTs to the public, often raising funds under specific participation terms.
• Technology Layer 1 Layer 1 (L1) is a blockchain’s base network, with its own rules for confirming and recording transactions. Examples include the Bitcoin, Ethereum and Solana networks.
• Technology Layer 2 Layer 2 (L2) is a solution that processes transactions outside the base blockchain while drawing on its security, to increase capacity and usually lower fees.
• Trading and markets Leverage Leverage lets you open a position worth more than the capital you commit, through borrowing or derivatives. It magnifies both potential gains and losses.
• Technology Lightning Network The Lightning Network is a Layer 2 payment network on top of Bitcoin that allows fast transfers with usually low fees, without every payment being recorded separately on the blockchain.
• Trading and markets Limit order A limit order is an order to buy or sell at a specific price limit. It only executes at that price or better, with no guarantee that a matching quantity will be available.
• Trading and markets Liquidation Liquidation is the forced closing of a position, or sale of collateral, when it’s no longer enough to cover the requirements of a trade or a loan.
• Trading and markets Liquidity Liquidity shows how easily you can buy or sell a cryptocurrency without significantly affecting its price.
• DeFi Liquidity pool A liquidity pool is a shared reserve of crypto in a smart contract that enables token swaps or other DeFi functions without needing a buyer and seller to be matched directly.
• DeFi Liquidity provider A liquidity provider supplies funds to make trading easier. In DeFi, they usually deposit crypto into a liquidity pool and receive a share of the fees.
• DeFi Liquid staking Liquid staking is a form of staking where you receive a transferable token (LST) representing your staked crypto and the related rewards, so you can use it in other apps.
• Trading and markets Long and short Long and short positions are market positions that profit from a rise or a fall, respectively, in an asset’s price. They describe the direction of the exposure, not how long it lasts.

M

• Trading and markets MACD MACD is a technical analysis indicator that compares two moving averages of the price to show the direction of a market and changes in its momentum.
• Technology Mainnet A mainnet is the live version of a blockchain, with real transactions and assets, as opposed to a test network (testnet).
• Trading and markets Margin trading Margin trading means trading with borrowed funds backed by your own collateral, known as margin. It increases your market exposure, magnifying both potential gains and losses.
• Trading and markets Market cap Market cap (market capitalization) is a cryptocurrency’s current price multiplied by its circulating supply. It shows the market value of the coins in circulation, not how much money has been invested.
• Trading and markets Market maker A market maker is a market participant who systematically places buy and sell orders, providing liquidity and aiming to profit from the difference between the prices.
• Trading and markets Market order A market order is an order to buy or sell crypto that seeks immediate execution at the best available prices, without you setting a specific price limit.
• Basics Max supply Max supply is the upper limit on the number of units of a cryptocurrency that can ever exist, according to its rules. Not all cryptocurrencies have such a limit.
• NFTs, tokens and Web3 Memecoin A memecoin is a cryptocurrency inspired by an internet joke, an image or a popular figure. Its appeal rests mainly on community and hype, not necessarily on any practical use.
• Technology Mempool The mempool is the temporary area where a node keeps valid, unconfirmed transactions until they’re included in a block or dropped from its memory.
• Technology Merkle tree A Merkle tree is a data structure that combines the hashes of many pieces of data into one final hash, the Merkle root, so you can check whether an item is included without downloading all the data.
• NFTs, tokens and Web3 Metaverse The metaverse is the idea of shared, persistent digital worlds where users meet, play or work through digital characters. It doesn’t necessarily require crypto or virtual reality gear.
• DeFi MEV MEV (maximal extractable value) is the extra value that can be extracted by including, excluding or reordering transactions in a block, beyond the usual rewards and fees.
• Regulation and tax MiCA MiCA is the EU regulation on markets in crypto-assets. It sets rules for crypto issuers and service providers, without guaranteeing that investments are safe.
• Technology Mining Mining is the process in which computers compete to add new blocks to Proof of Work networks such as Bitcoin, earning a reward and helping to secure the network.
• Technology Mining difficulty Mining difficulty is a measure of how hard it is to find a valid new block on a Proof of Work network. It adjusts according to set rules to keep blocks coming at the target rate.
• NFTs, tokens and Web3 Minting Minting is the creation of new tokens on a blockchain. For NFTs, it is the step that issues the token linked to a digital work, item or right.
• Trading and markets Moving average A moving average is an indicator that smooths out an asset’s price fluctuations by calculating the average price over a set number of periods.
• Basics Mt. Gox Mt. Gox was one of the largest Bitcoin exchanges, based in Tokyo. It collapsed in 2014 after losing a huge number of bitcoin, leaving its customers waiting years for repayments.
• Wallets and security Multisig Multisig is a way of managing a wallet that requires digital signatures from more than one private key to approve a transaction.

N

• Technology Network fees Network fees are the charges you pay to have a transaction executed on a blockchain. They depend on the network’s rules, demand and the resources the transaction requires.
• NFTs, tokens and Web3 NFT NFTs are non-fungible tokens: digital units on a blockchain with a distinct identity that can be linked to artworks, collectibles or access rights.
• Basics Node A node is a computer that takes part in a blockchain network by running special software. Depending on its type, it relays, stores or verifies transactions and blocks.
• Technology Nonce A nonce is a numerical value whose role differs by blockchain: on Bitcoin it changes during mining, while on Ethereum it counts the transactions an account sends.
• Wallets and security Not your keys, not your coins “Not your keys, not your coins” means that if you don’t control the private keys to your crypto, you depend on whoever holds them to access and move it.

O

• Community slang OG OG is a label for a long-standing, recognized member of the crypto community or of a project. It comes from “Original Gangster” and usually signals early involvement and experience, not an official status.
• Trading and markets On-chain analysis On-chain analysis is the study of data recorded on the blockchain, such as transfers and address balances, to understand a network’s activity and the movement of funds.
• Technology On-chain and off-chain On-chain is anything recorded on the blockchain itself. Off-chain is anything that happens outside it, such as an internal balance transfer on an exchange.
• Trading and markets Open interest Open interest is the total number of derivatives contracts, such as futures and options, that remain open. It shows how many contracts are outstanding, not how many trades took place.
• Trading and markets Options Options are contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a set price within a specific time frame.
• Technology Oracle An oracle is a mechanism that brings data from outside sources onto a blockchain, so smart contracts can use information such as cryptocurrency prices or the outcomes of events.
• Trading and markets Order book An order book is the list of pending buy and sell orders for a trading pair on a platform, sorted by price, along with their quantities.
• Technology Ordinals Ordinals are a system for numbering and tracking individual satoshis on Bitcoin. Through inscriptions, content such as images or text is linked to specific satoshis.

P

• Wallets and security Paper wallet A paper wallet is a piece of paper with a private key and usually its matching address, used to store access to crypto without a permanent internet connection.
• Basics Peer-to-peer (P2P) Peer-to-peer (P2P) is a way of connecting in which computers exchange data directly with each other instead of depending on a central server.
• Trading and markets Perpetual futures Perpetual futures are derivatives contracts with no expiry date that let you take a position on a crypto’s rise or fall without buying it. They are often used with leverage.
• Wallets and security Phishing Phishing is a scam in which someone impersonates a trusted service or person to trick you into handing over passwords, wallet keys or approval to transfer crypto.
• NFTs, tokens and Web3 POAP A POAP is a digital keepsake in the form of an NFT, given for taking part in an event or activity. Its name comes from Proof of Attendance Protocol.
• NFTs, tokens and Web3 Points Points are units that track your participation in a Web3 app or program. They may be linked to perks or a future airdrop, but they don’t guarantee a reward or any monetary value.
• Wallets and security Ponzi scheme A Ponzi scheme is an investment scam in which the supposed returns of earlier participants are paid with money from newer ones instead of coming from real profits.
• Trading and markets Portfolio diversification Portfolio diversification is spreading your investments across different assets so that risk isn’t concentrated in a single one. It doesn’t eliminate the possibility of losses.
• Wallets and security Private key A private key is a secret cryptographic number that lets you sign transactions and control the crypto at a corresponding address.
• Wallets and security Proof of Reserves Proof of Reserves is a process for verifying the assets a crypto provider holds, often compared against its customers’ balances.
• Technology Proof of Stake Proof of Stake (PoS) is a consensus mechanism in which validators lock up cryptocurrency as collateral to take part in confirming transactions and creating new blocks.
• Technology Proof of Work Proof of Work (PoW) is a consensus mechanism in which computers compete by performing calculations to add new blocks to the blockchain. Bitcoin uses it.
• Wallets and security Public key A public key is a cryptographic element used to verify digital signatures. It’s mathematically linked to the private key, but it doesn’t give access to your crypto.
• Trading and markets Pump and dump A pump and dump is market manipulation: a group artificially inflates the price of a crypto with misleading promotion and coordinated buying, so they can sell to those who get swept up in it.

Q

• Technology Quantum computers and crypto Quantum computers are systems that use quantum physics to perform calculations. If they become powerful enough, they could threaten some of the cryptographic methods that protect crypto.

R

• Community slang Rekt Rekt is slang for a very large financial loss in crypto. It comes from the English word “wrecked” and is used for losses from falling prices, liquidated positions or scams.
• Technology Restaking Restaking is the use of funds that are already staked to secure additional services or networks, with the potential for extra rewards but also additional risks.
• NFTs, tokens and Web3 Roadmap A roadmap is a crypto project’s development plan, with its goals, development stages and often a timeline for them. It describes what the team plans to do, not what it has already delivered.
• Technology Rollup A rollup is a Layer 2 technology that executes transactions outside the main blockchain and posts data there so they can be verified, reducing the load and usually the fees.
• Trading and markets RSI The RSI (Relative Strength Index) is a technical analysis indicator that measures price momentum by comparing recent gains and losses on a scale from 0 to 100.
• Wallets and security Rug pull A rug pull is a crypto scam in which a project’s creators withdraw the liquidity or take users’ funds, leaving them with tokens that have no real value or can’t be sold.

S

• Wallets and security SAFU SAFU is a crypto community expression meaning “funds are safe.” It’s also the name of Binance’s user protection fund, the Secure Asset Fund for Users.
• Basics Satoshi (sats) A satoshi (sat, plural sats) is the smallest unit of bitcoin on its base network. One bitcoin equals 100,000,000 satoshis, so 1 satoshi is 0.00000001 BTC.
• Basics Satoshi Nakamoto Satoshi Nakamoto is the pseudonym of the person or group who created Bitcoin. The real identity behind the name has never been confirmed.
• Regulation and tax SEC The SEC (Securities and Exchange Commission) is the US federal agency that oversees the securities market and enforces the related US laws.
• Wallets and security Security audit A security audit is a review of code or systems for vulnerabilities that attackers could exploit. In crypto it often covers smart contracts, without guaranteeing they are completely secure.
• Basics Security token A security token is a token that represents a financial security, such as a share or a bond, and is tied to specific investor rights and obligations.
• Wallets and security Seed phrase A seed phrase (recovery phrase) is a series of words from which a crypto wallet’s private keys are derived. It lets you regain access if you lose your device.
• Technology SegWit SegWit (Segregated Witness) is a Bitcoin upgrade that separates signature data from the main part of a transaction, improving block capacity and fixing technical problems.
• Wallets and security Self-custody Self-custody means managing your crypto with your own control of the private keys, instead of entrusting them to an exchange or another custodian.
• Technology Sharding Sharding is a technique that splits a blockchain’s workload into separate parts, called shards, so the network can handle more data or transactions in parallel.
• Community slang Shitcoin Shitcoin is a derogatory community term for a cryptocurrency seen as having no real value, utility or credibility. It’s a subjective label, not an official category.
• Technology Sidechain A sidechain is a separate blockchain linked to a main chain, allowing assets to be moved between them. It has its own rules and security mechanism.
• Technology Slashing Slashing is the removal of some or all of the crypto locked up in staking, as a penalty for a validator breaking the network’s rules.
• Trading and markets Slippage Slippage is the difference between the expected price of a trade and the price at which it’s actually executed. It can lead to a worse or a better result for the trader.
• Technology Smart contract A smart contract is a program stored on a blockchain that runs predefined rules when it’s called, enabling transactions without manual approval from an intermediary.
• NFTs, tokens and Web3 Snapshot A snapshot is a record of a blockchain’s state at a specific block, such as which wallets hold certain tokens or NFTs. It’s often used for airdrops and voting rights.
• NFTs, tokens and Web3 SocialFi SocialFi combines social networks with financial features through blockchain, such as token rewards, digital memberships and peer-to-peer payments.
• Technology Soft fork A soft fork is a change to a blockchain’s rules that remains compatible with the old software: blocks that follow the new, stricter rules are also accepted by old nodes.
• Technology Solidity Solidity is a programming language for smart contracts on Ethereum and other compatible networks. It’s used to write the rules that power apps, tokens and DeFi services.
• Trading and markets Spot market The spot market is where you buy or sell the cryptocurrency itself at the current available price, with immediate settlement, rather than a contract tied to its price.
• Trading and markets Spread The spread is the difference between the highest available buy price (bid) and the lowest available sell price (ask) for a cryptocurrency in the same market.
• Basics Stablecoin A stablecoin is a cryptocurrency designed to keep a stable value relative to a reference asset, usually the dollar or the euro. That stability is a goal, not a guarantee.
• DeFi Staking Staking is locking up cryptocurrency to help run and secure a Proof of Stake network, with the potential to earn rewards. Returns aren’t guaranteed and there are risks of loss.
• Trading and markets Stop loss A stop loss is an order that triggers when the price reaches a preset level, with the aim of limiting the loss on a position. It doesn’t guarantee that the trade will be filled at exactly that price.
• Basics Store of value A store of value is an asset that can retain its purchasing power over time, so that the value you save today is still available in the future.
• Trading and markets Support and resistance Support and resistance are price zones where a decline or a rally, respectively, has run into obstacles. They are used in technical analysis, without guaranteeing that the price will react there again.
• Technology Sybil attack A Sybil attack is the creation of many seemingly independent identities by the same attacker, in order to gain disproportionate influence over a network or an application.

T

• Technology Taproot Taproot is a Bitcoin upgrade that improves the efficiency and privacy of complex transactions, as well as the flexibility of the rules under which bitcoin can be spent.
• Trading and markets Technical analysis Technical analysis is the study of historical prices and trading volume to identify trends and possible market moves. It uses charts and indicators, without guaranteeing its forecasts.
• Technology Testnet A testnet is a test blockchain network where developers and users try out apps, transactions and upgrades with test coins instead of real funds.
• Basics Token A token is a digital asset created on top of an existing blockchain. It can be used for payments, access to services, voting or representing other assets.
• NFTs, tokens and Web3 Token burn A token burn is the permanent removal of tokens from the available supply, through a dedicated function or by sending them to an address from which they can’t be spent.
• DeFi Tokenization and RWAs Tokenization is the representation of assets or rights as tokens on a blockchain. RWAs (real-world assets) are assets outside the blockchain, such as bonds, real estate or gold, that can be represented this way.
• NFTs, tokens and Web3 Tokenomics Tokenomics is the economics of a token: the rules for its supply, distribution and use, as well as the incentives that participants in its network have.
• Trading and markets Token unlock A token unlock is the release of locked tokens, so that their holders can transfer or sell them, according to a project’s terms and schedule.
• Basics Total supply Total supply is the total number of coins or tokens that have been created, minus those that have been permanently burned. It also includes those that are locked or not yet circulating on the market.
• Community slang To the moon “To the moon” is a crypto community expression for expecting a big rise in a coin’s price. It expresses excitement, not a well-founded prediction.
• Technology TPS (transactions per second) TPS (transactions per second) is the number of transactions a network processes per second. It’s used as a performance measure, but on its own it doesn’t show how quickly a transaction is finalized.
• Basics TradFi TradFi is the traditional financial system: banks, stock exchanges, insurers and investment firms that provide services through established, regulated institutions.
• Trading and markets Trading volume Trading volume is the total quantity or value of trades completed on a market within a specific period, usually 24 hours.
• Regulation and tax Travel Rule The Travel Rule requires sender and recipient information for crypto transfers involving a provider in the EU, with the aim of combating money laundering.
• DeFi TVL (Total Value Locked) TVL (Total Value Locked) is the total value of the crypto deposited in a DeFi protocol, usually expressed in dollars.
• Technology TXID (transaction hash) A TXID is the identifier of a transaction on a blockchain. With it, you can look up the transaction and check its status on a block explorer.

U

• Basics Utility token A utility token is a digital token that gives access to a project’s services or features, such as paying for data storage or using an app.
• Technology UTXO A UTXO is an output of a previous transaction that hasn’t been spent yet. In Bitcoin, a wallet’s balance is the sum of the UTXOs it can spend.

V

• Technology Validator A validator takes part in checking and confirming the blocks of a blockchain. On Proof of Stake networks, its participation is tied to crypto locked up through staking.
• NFTs, tokens and Web3 Vesting Vesting is the schedule under which someone gradually gains the right to tokens allocated to them, instead of being able to dispose of them all at once. It’s usually tied to time or to specific conditions.
• Trading and markets Volatility Volatility measures how sharply the price of an asset changes over a specific period. High volatility means bigger price swings, whether up or down.

W

• Community slang WAGMI and NGMI WAGMI stands for “We’re All Gonna Make It” and expresses optimism in the crypto community. NGMI stands for “Not Gonna Make It” and is used as teasing or disapproval.
• Wallets and security Wallet A wallet is an app or device you use to manage cryptocurrency on the blockchain. It lets you receive, send and check your balance.
• Wallets and security Wallet address A wallet address is an identifier, usually made up of letters and numbers, that you use to receive crypto on a specific network. You can share it, but it isn’t a password.
• Community slang Weak hands Weak hands is a community label for crypto holders who are seen as selling easily out of fear when prices fall or negative news comes out.
• Basics Web3 Web3 is an approach to the internet that uses blockchain, so that users can control digital assets and interact without a central operator at every step.
• Trading and markets Whale A whale is a holder of a large amount of a cryptocurrency whose trades may move the price, especially when liquidity is limited.
• Community slang Whale alert A whale alert is a notification about a large cryptocurrency transfer on the blockchain, often to or from an exchange. It shows funds moving, not necessarily a purchase or a sale.
• Community slang When Lambo “When Lambo” is a crypto community catchphrase meaning “when will we make enough for a Lamborghini?” It expresses, usually jokingly, the hope for quick, big profits.
• NFTs, tokens and Web3 Whitelist A whitelist, or allowlist, is a list of approved users or wallet addresses that get access to a specific feature, such as an initial NFT mint or a token sale.
• Basics Whitepaper A whitepaper is the document that explains what a crypto project wants to achieve, how it is designed to work and what role its coin or token plays.
• DeFi Wrapped token A wrapped token is a representation of a cryptocurrency in a format compatible with other apps or networks, designed to track the original coin 1:1. Well-known examples are WBTC and WETH.

Y

• DeFi Yield farming Yield farming means putting crypto to work in DeFi apps to earn returns from interest, fees or token rewards, with risks to the capital you put in.

Z

• Technology Zero-knowledge proof A zero-knowledge proof is a cryptographic method that lets you prove a claim is true without revealing the secret information behind it.