Crypto glossary
193 crypto words and abbreviations, each explained in a sentence — and in more depth on its own page.
A
Account abstraction (smart wallet)Wallets that are smart contracts, enabling features like social recovery, spending limits and paying fees in any token.Wallets & securityAddress poisoningA scam that plants a look-alike address in your transaction history, hoping you copy it next time.Wallets & securityAirdropFree tokens given to users, usually as a reward for using a protocol before its token launched.Tokens & tokenomicsAll-time high (ATH)The highest price an asset has ever reached; the opposite is the all-time low (ATL).TradingAlphaValuable information or an edge that others don't have yet.SlangAltcoinAny cryptocurrency other than Bitcoin.BasicsAltseasonA period when most altcoins rise much faster than Bitcoin.Markets & regulationAML (anti-money laundering)Laws that require financial companies, including crypto exchanges, to detect and report money laundering.Markets & regulationAnchoring biasRelying too heavily on the first number you saw, such as your buy price or a coin's all-time high.PsychologyApe (aping in)Buying something quickly and heavily, without much research.SlangAPY vs APRAPR is the simple yearly interest rate; APY includes the effect of compounding.DeFiArbitrageProfiting from the price difference of the same asset on two markets by buying low on one and selling high on the other.TradingAutomated market maker (AMM)A type of DEX that prices trades with a formula based on the tokens in a liquidity pool, instead of an order book.DeFi
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Bagholder (bags)Someone left holding a coin that has fallen a lot, often hoping it will return to their buy price.SlangBear marketA long period of falling prices and pessimism, often a drop of 20% or more from the high.TradingBitcoinThe first cryptocurrency, launched in 2009, with a fixed maximum supply of 21 million coins.BasicsBitcoin dominanceBitcoin's share of the total crypto market cap, as a percentage.BasicsBlockA batch of transactions added to the blockchain at once.Blockchain & techBlock explorerA website for looking up any transaction, address or block on a blockchain.Blockchain & techBlockchainA shared database made of linked blocks of transactions, copied across many computers so no single party can change it.Blockchain & techBridgeA protocol that moves tokens from one blockchain to another.Blockchain & techBull marketA long period of rising prices and optimism.Trading
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Candlestick chartA price chart where each "candle" shows the open, high, low and close for one period.TradingCapital rotationMoney moving from one part of the crypto market to another — for example from Bitcoin to large altcoins, then to small caps.Markets & regulationCapitulationA wave of panic selling where many holders give up and sell at any price.TradingCBDC (central bank digital currency)A digital form of a country's official currency, issued by its central bank.Markets & regulationCentralized exchange (CEX)A company that runs a crypto trading platform and holds customers' funds, like Binance, Coinbase or Kraken.BasicsCirculating supplyThe number of coins that are actually available and trading on the market right now.BasicsCliffAn initial period in a vesting schedule during which no tokens unlock, followed by a large first release.Tokens & tokenomicsCold walletA wallet whose private keys never touch an internet-connected device.Wallets & securityCollateralAssets you lock up to secure a loan or a leveraged position.DeFiConfirmation biasSeeking out information that supports what you already believe and ignoring what contradicts it.PsychologyConsensus mechanismThe rules a blockchain uses so that thousands of computers agree on which transactions happened, in what order.Blockchain & techCrypto ETFA fund traded on the stock market that holds a crypto asset, so investors can get exposure through a normal brokerage account.Markets & regulationCrypto taxes (capital gains)In most countries, selling, swapping or spending crypto at a profit is a taxable event.Markets & regulationCrypto treasury companyA listed company that raises money to buy and hold crypto — usually bitcoin — on its balance sheet.Markets & regulationCrypto walletAn app or device that stores your private keys and lets you send, receive and use crypto.Wallets & securityCryptocurrencyDigital money that runs on a public blockchain instead of being issued and controlled by a bank or government.BasicsCustodial walletA wallet where a company holds the private keys on your behalf, like an exchange account.Wallets & security
D
DAO (decentralized autonomous organization)An organization run by token-holder votes and smart contracts rather than a traditional management structure.DeFiDecentralized exchange (DEX)A trading platform run by smart contracts, where you swap tokens straight from your own wallet.BasicsDeFi (decentralized finance)Financial services — trading, lending, borrowing, earning yield — run by smart contracts instead of banks.DeFiDeFi lendingLending crypto for interest, or borrowing against your crypto, through smart contracts.DeFiDegenShort for "degenerate": someone who takes extreme risks on memecoins, leverage or new protocols.SlangDepegWhen a stablecoin or pegged token trades meaningfully away from its target price.DeFiDEX aggregatorA service that splits your swap across many DEXs to find the best price.DeFiDiamond handsHolding through big price drops without selling.SlangDollar-cost averaging (DCA)Investing a fixed amount at regular intervals, regardless of price.TradingDYOR"Do your own research" — a reminder to check a project yourself before investing.Slang
E
EthereumA programmable blockchain where developers deploy smart contracts; its native coin is Ether (ETH).BasicsEVM (Ethereum Virtual Machine)The software environment that runs Ethereum smart contracts — copied by many other chains.Blockchain & techExchange listingWhen an exchange adds a token for trading.Tokens & tokenomicsExit liquidityLate buyers whose purchases let early holders sell at high prices.SlangExit scamA fraud in which the people running a project or platform disappear with users' funds.Wallets & securityExploit (hack)An attack that abuses a bug in code or a weak setup to steal funds from a protocol, bridge or exchange.Wallets & security
F
Fear & Greed IndexA score from 0 (extreme fear) to 100 (extreme greed) that summarizes crypto market sentiment.Markets & regulationFiat moneyGovernment-issued money such as the dollar or euro, which has value because a state declares it legal tender.BasicsFinalityThe point after which a transaction can no longer be reversed.Blockchain & techFlash loanAn uncollateralized loan that must be borrowed and repaid within a single blockchain transaction.DeFiFOMO (fear of missing out)The anxious urge to buy because everyone else seems to be making money.PsychologyFork (hard fork / soft fork)A change to a blockchain's rules; a hard fork is not backward-compatible and can split the chain in two.Blockchain & techFour-year cycleThe pattern of Bitcoin bull and bear markets that has roughly followed its four-year halving schedule.Markets & regulationFront-runningPlacing a trade just ahead of someone else's known pending trade to profit from the price move it will cause.DeFiFUDFear, uncertainty and doubt — negative news or rumours, real or exaggerated.SlangFully diluted valuation (FDV)What a project would be worth if every token that will ever exist were already in circulation: price × max supply.Tokens & tokenomicsFundamental analysis (FA)Judging a crypto project by what it does: product, users, revenue, team, tokenomics and competition.TradingFunding rateA periodic payment between long and short traders that keeps perpetual futures prices close to the spot price.TradingFutures contractAn agreement to buy or sell an asset at a set price on a future date, used to bet on price or hedge.Trading
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Gas (fees)The fee you pay a blockchain network to process your transaction or run a smart contract.Blockchain & techGM"Good morning" — the standard friendly greeting on crypto Twitter and Discord, at any time of day.SlangGovernance tokenA token that gives holders voting rights over a protocol's decisions.Tokens & tokenomicsGweiA small unit of Ether used to quote gas prices: one billionth of 1 ETH.Blockchain & tech
H
HalvingThe event, every 210,000 blocks (about four years), that cuts Bitcoin's new-coin reward in half.Blockchain & techHardware walletA small dedicated device that keeps your private keys offline and signs transactions on its own screen.Wallets & securityHashA fixed-length fingerprint of data: change one character of the input and the hash changes completely.Blockchain & techHash rateThe total computing power miners devote to a proof-of-work blockchain.Blockchain & techHerd mentalityFollowing what the crowd does instead of your own analysis.PsychologyHODLHolding crypto for the long term instead of selling during price swings.SlangHoneypot tokenA token whose contract lets you buy but blocks you from selling.Wallets & securityHot walletA wallet whose keys live on an internet-connected device, like a phone app or browser extension.Wallets & security
I
Illusion of controlBelieving you can influence or predict outcomes that are largely down to chance.PsychologyImpermanent lossThe loss a liquidity provider suffers compared with simply holding the tokens, when their prices drift apart.DeFiInteroperabilityThe ability of different blockchains to send tokens and messages to each other.Blockchain & tech
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Layer 1 (L1)A main blockchain that processes and secures its own transactions, such as Bitcoin, Ethereum or Solana.Blockchain & techLayer 2 (L2)A network built on top of a layer 1 that processes transactions cheaply and then settles them back on the main chain.Blockchain & techLeverageTrading with borrowed money so that a small price move has a big effect on your position.TradingLimit orderAn order to buy or sell only at a price you choose, or better.TradingLiquid stakingStaking through a protocol that gives you a tradeable token (like stETH) representing your staked coins.DeFiLiquidationThe forced closing of a leveraged position or loan when its collateral no longer covers the losses.TradingLiquidityHow easily an asset can be bought or sold without moving its price much.TradingLiquidity poolA pot of tokens locked in a smart contract that traders swap against on a DEX.DeFiLiquidity provider (LP)Someone who deposits tokens into a liquidity pool to earn a share of the trading fees.DeFiLong (going long)A position that profits when the price goes up.TradingLoss aversionThe tendency to feel losses about twice as strongly as gains of the same size.Psychology
M
Mainnet / testnetMainnet is the live blockchain with real money; a testnet is a copy for testing where coins have no value.Blockchain & techMarginThe money you put up as collateral to open and keep a leveraged position.TradingMarket capitalizationThe total value of a coin's circulating supply: price × circulating supply.BasicsMarket makerA firm or program that constantly posts buy and sell orders, earning the spread and providing liquidity.TradingMarket orderAn order to buy or sell immediately at the best price currently available.TradingMax supply / total supplyMax supply is the most coins that can ever exist; total supply is how many exist today, including locked ones.BasicsMemecoinA token based on a joke, animal or internet trend, with value driven almost entirely by community and attention.Tokens & tokenomicsMempoolThe waiting room of pending transactions that have been broadcast but not yet included in a block.Blockchain & techMEV (maximal extractable value)Profit that bots and block producers make by reordering, inserting or censoring transactions in a block.DeFiMiCAThe European Union's rulebook for crypto companies and stablecoins, fully in force since December 2024.Markets & regulationMiningRunning specialized computers to secure a proof-of-work blockchain in exchange for newly created coins and fees.Blockchain & techMoon (to the moon)A huge price increase — or the hope of one.SlangMoving average (MA)The average price over the last set number of periods, drawn as a smooth line on a chart.TradingMPC walletA wallet where the private key is split into pieces held by different parties and never assembled in one place.Wallets & securityMultisigA wallet that needs several keys to approve a transaction, for example 2 out of 3.Wallets & security
N
NarrativeA story or theme that attracts investors to a group of coins at the same time, such as AI, RWA or memecoins.Markets & regulationNarrative fallacyOur tendency to explain random events with a neat story, and then trust the story too much.PsychologyNFA"Not financial advice" — a disclaimer often added after a tip or price call.SlangNFT (non-fungible token)A unique token that proves ownership of a specific item, such as digital art, a game item or a ticket.Tokens & tokenomicsNodeA computer that runs the blockchain's software, keeps a copy of the ledger and checks every new block.Blockchain & tech
O
On-chain analysisStudying public blockchain data — transfers, holders, exchange flows — to understand what investors are doing.Markets & regulationOn-ramp / off-rampA service that turns regular money into crypto (on-ramp) or crypto back into regular money (off-ramp).BasicsOpen interest (OI)The total value of futures and perpetual positions that are still open.TradingOracleA service that brings outside data — such as prices — onto the blockchain for smart contracts to use.Blockchain & techOrder bookThe live list of all buy (bid) and sell (ask) orders for a trading pair, sorted by price.TradingOverconfidence biasOverestimating your own skill and the accuracy of your predictions.Psychology
P
Paper handsSelling quickly at the first sign of a drop (or a small profit).SlangPassphrase (25th word)An optional extra word added to a seed phrase that opens a completely separate, hidden wallet.Wallets & securityPerp DEXA decentralized exchange for trading perpetual futures from your own wallet.DeFiPerpetual futures (perps)Futures contracts with no expiry date, kept close to the spot price by regular funding payments.TradingPhishingFake websites, emails or messages that trick you into revealing your seed phrase or signing a harmful transaction.Wallets & securityPig butchering scamA long con where a scammer builds a friendship or romance online, then lures the victim into a fake crypto investment platform.Wallets & securityPoints programA loyalty system where a project rewards activity with points that may later turn into an airdrop.Tokens & tokenomicsPonzi schemeA fraud that pays earlier investors with money from new investors, not from real profits.Wallets & securityPosition sizingDeciding how much money to put into a single trade or coin.TradingPresent biasValuing a reward now much more than a bigger reward later.PsychologyPrivate keyThe secret number that controls a crypto address — whoever has it can spend the funds.Wallets & securityProof of stake (PoS)A consensus method where validators lock up coins as collateral and lose part of them if they cheat.Blockchain & techProof of work (PoW)A consensus method where miners spend computing power and electricity to win the right to add the next block.Blockchain & techPublic keyThe shareable counterpart of a private key, used to create your address and check your signatures.Wallets & securityPump and dumpCoordinated buying and hype to push a price up, followed by insiders selling to the late buyers.Slang
R
Real-world assets (RWA)Traditional assets — government bonds, stocks, real estate, gold — represented as tokens on a blockchain.Tokens & tokenomicsRecency biasAssuming that what happened recently will keep happening.PsychologyRekt"Wrecked" — having suffered a big loss, often through a liquidation.SlangRestakingReusing already-staked ETH (or other coins) to secure additional services for extra rewards.DeFiRisk/reward ratioHow much a trade could gain compared with how much it could lose.TradingRollupA layer 2 that executes transactions off the main chain and posts compressed data back to it.Blockchain & techRSI (Relative Strength Index)A momentum indicator from 0 to 100 that shows whether an asset has risen or fallen unusually fast.TradingRug pullWhen a project's creators suddenly take the investors' money and disappear.Wallets & security
S
Sandwich attackA bot buys right before your swap and sells right after it, profiting from the price impact you pay.DeFiSatoshi (sat)The smallest unit of bitcoin: one hundred-millionth of a BTC (0.00000001 BTC).BasicsSECThe US Securities and Exchange Commission, the regulator that decides whether a crypto asset counts as a security.Markets & regulationSeed phraseA list of 12 or 24 words that can recreate every key in your wallet.Wallets & securitySelf-custodyHolding your own private keys, so no company can freeze, lose or misuse your crypto.Wallets & securityShillPromoting a coin, often because you hold it or are paid to.SlangShort (short selling)A position that profits when the price goes down.TradingShort squeeze / long squeezeA sharp move that forces crowded traders on one side to close their positions, pushing the price further the same way.TradingSIM swapAn attack where someone takes over your phone number to intercept SMS codes and reset your accounts.Wallets & securitySlashingThe penalty in proof-of-stake networks: part of a validator's staked coins is destroyed for breaking the rules.Blockchain & techSlippageThe difference between the price you expect and the price you actually get.TradingSmart contractA program stored on a blockchain that runs exactly as written when someone calls it.Blockchain & techSocial engineeringManipulating people — not hacking computers — to get access to their accounts or funds.Wallets & securitySpot tradingBuying and selling the actual coins, paid in full, for immediate delivery.TradingSpread (bid-ask spread)The gap between the highest price buyers are paying (bid) and the lowest price sellers are asking (ask).TradingStablecoinA token designed to keep a stable price, usually 1 US dollar.BasicsStakingLocking coins to help secure a proof-of-stake network and earning rewards in return.DeFiStop-lossAn order that automatically sells (or closes a position) if the price falls to a level you set, to limit losses.TradingSunk cost fallacySticking with a losing investment because of what you have already put in.PsychologySupport and resistancePrice levels where buying (support) or selling (resistance) has repeatedly stopped a move.TradingSurvivorship biasDrawing conclusions only from the winners you can see, ignoring the many that failed.Psychology
T
Take-profitAn order that automatically sells when the price reaches your target, locking in a gain.TradingTechnical analysis (TA)Studying price charts, volume and indicators to judge where the price might go next.TradingTGE (token generation event)The moment a project's token is created and starts trading.Tokens & tokenomicsToken (vs coin)A crypto asset issued by a smart contract on an existing blockchain, as opposed to a coin, which is the native asset of its own chain.BasicsToken approvalPermission you give a smart contract to move a token from your wallet.Wallets & securityToken burnPermanently destroying tokens by sending them to an address nobody controls, reducing supply.Tokens & tokenomicsToken buybackA project using its revenue to buy its own token on the market, sometimes burning or distributing it afterwards.Tokens & tokenomicsToken inflation (emissions)The rate at which new tokens are created, which dilutes existing holders.Tokens & tokenomicsToken sale (ICO, IDO, IEO)Selling a new token to the public before or at launch, to raise money for the project.Tokens & tokenomicsToken unlockThe release of previously locked tokens — usually team, investor or treasury allocations — into circulation.Tokens & tokenomicsTokenomicsThe economics of a token: supply, who holds it, how new tokens are released and what the token is used for.Tokens & tokenomicsTPS (transactions per second)How many transactions a blockchain can process each second.Blockchain & techTrading volumeThe total value of an asset traded over a period, usually 24 hours.TradingTravel RuleA rule requiring exchanges to share sender and receiver details when crypto moves between them.Markets & regulationTVL (total value locked)The total value of crypto deposited in a DeFi protocol or blockchain.DeFiTwo-factor authentication (2FA)A second login step, such as a code from an app or a security key, on top of your password.Wallets & security
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WAGMI / NGMI"We're all gonna make it" (optimism) and "not gonna make it" (said of a bad decision).SlangWallet addressThe string of characters you share to receive crypto, like an account number.Wallets & securityWallet drainerMalicious code on a fake site that empties your wallet once you sign its transaction or approval.Wallets & securityWash tradingTrading with yourself to fake activity and make volume look bigger than it is.Markets & regulationWhaleA person or entity holding enough of a coin to move its price.Markets & regulationWhitepaperThe document in which a crypto project explains what it does, how it works and how its token is designed.BasicsWrapped tokenA token that represents another asset 1:1 on a different blockchain or in a different format.DeFi
Y
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