Crypto Glossary

Any cryptocurrency other than Bitcoin. The term is short for "alternative coin" and includes thousands of different cryptocurrencies.

The first and most well-known cryptocurrency, created by Satoshi Nakamoto in 2009. Bitcoin operates on a decentralized peer-to-peer network and uses blockchain technology to enable secure digital transactions without intermediaries.

A distributed ledger technology that maintains a continuously growing list of records (blocks) that are linked and secured using cryptography. Each block contains a cryptographic hash of the previous block, timestamp, and transaction data.

A method of storing cryptocurrency offline, away from internet connectivity, to protect against hacking and theft.

The mechanism by which a distributed network agrees on the validity of transactions and the state of the blockchain.

A digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies are typically decentralized and based on blockchain technology.

The distribution of control and decision-making away from a central authority. In blockchain, this means no single entity controls the network.

Decentralized Finance - a movement that aims to recreate traditional financial systems (like lending, borrowing, trading) using blockchain technology and smart contracts, removing intermediaries.

A decentralized platform that enables smart contracts and decentralized applications (DApps) to be built and run without downtime, fraud, control, or interference from a third party.

A platform where users can buy, sell, and trade cryptocurrencies. Exchanges can be centralized (CEX) or decentralized (DEX).

A change to a blockchain's protocol rules. Hard forks create permanent divergences, while soft forks are backward-compatible upgrades.

The fee required to execute transactions or smart contracts on the Ethereum network. Gas fees compensate miners for the computational energy required to process transactions.

A fixed-length string of characters generated by a mathematical algorithm from input data. In blockchain, hashes are used to secure and link blocks together.

A term derived from a misspelling of "hold," referring to the strategy of buying and holding cryptocurrency for long periods regardless of price volatility.

The ease with which an asset can be bought or sold without significantly affecting its price. High liquidity means easy trading.

The total value of a cryptocurrency, calculated by multiplying the current price by the total number of coins in circulation.

The process of validating transactions and adding them to the blockchain by solving complex mathematical problems. Miners are rewarded with newly created cryptocurrency for their computational work.

Non-Fungible Token - a unique digital asset that represents ownership of a specific item or piece of content on the blockchain. Unlike cryptocurrencies, NFTs cannot be exchanged on a like-for-like basis.

A secret cryptographic key that allows the owner to access and control their cryptocurrency. It must be kept secure as anyone with access to it can control the associated funds.

A cryptographic key that can be shared publicly and is used to receive cryptocurrency transactions. It's mathematically linked to a private key but cannot be used to derive the private key.

Self-executing contracts with terms directly written into code. Smart contracts automatically execute when predetermined conditions are met, eliminating the need for intermediaries.

The process of holding and locking cryptocurrency in a wallet to support the operations of a blockchain network. Stakers are rewarded with additional tokens for their participation.

The degree of price fluctuation in a cryptocurrency over time. High volatility means large price swings, while low volatility indicates more stable prices.

A digital tool that allows users to store, send, and receive cryptocurrencies. Wallets can be software-based (hot wallets) or hardware-based (cold wallets) and contain public and private keys.

The practice of lending or staking cryptocurrency in DeFi protocols to earn rewards, often in the form of additional tokens.