Crypto Glossary

A free distribution of tokens by a project, usually for marketing purposes or to reward early users. Be cautious: phishing schemes are often disguised as airdrops.

Any cryptocurrency other than Bitcoin. The term covers thousands of projects — from Ethereum and Solana to small niche tokens.

Anti-Money Laundering — a set of policies and procedures that exchanges and financial institutions use to prevent illicit financial activity.

The highest price an asset has ever reached over its entire trading history.

A token standard on the BNB Smart Chain (BSC), structurally compatible with ERC-20 but with lower transaction fees.

The first and most well-known cryptocurrency, created in 2009 by an anonymous author (or group) under the pseudonym Satoshi Nakamoto. It works without a central bank or intermediaries — every transaction is recorded on a public blockchain.

A web service that lets you browse blocks, transactions, and addresses on a blockchain in real time (for example, Etherscan for Ethereum).

A distributed database made up of a chain of blocks containing transaction data. Each new block references the previous one, which makes altering past records nearly impossible without the agreement of the entire network.

A protocol that allows assets and data to move between different blockchains that are not natively compatible with one another.

An exchange run by a company that holds user funds in its own wallets and provides liquidity and order matching (for example, Binance, Coinbase).

A wallet whose private keys are stored offline (for example, on a dedicated device). It is considered the safest way to hold large amounts long-term.

A set of rules by which participants in a decentralized network agree on which version of the blockchain is valid (for example, Proof-of-Work or Proof-of-Stake).

A wallet whose private keys are held by a third party (such as an exchange) rather than the user. The principle "not your keys, not your coins" applies.

Decentralized Autonomous Organization — a community that makes decisions through token-holder voting, with its rules encoded in smart contracts.

Decentralized Finance — an ecosystem of blockchain applications (lending, trading, insurance) that operates without banks or other traditional intermediaries.

An exchange where trades happen directly between users via smart contracts, without a central operating company and without depositing funds with a third party.

A technical token standard on the Ethereum network that defines common rules for creating fungible tokens. The vast majority of tokens on Ethereum are issued under this standard.

A platform for buying, selling, and trading cryptocurrencies. It can be centralized (CEX) or decentralized (DEX).

Traditional government-issued currency not backed by a physical commodity, such as the US dollar, euro, or Czech koruna — as opposed to cryptocurrency.

Fear of Missing Out — the emotional state in which an investor buys an asset near the top of a rally out of fear of "missing the move," which often leads to losses.

Fear, Uncertainty and Doubt — the spread of negative or alarming information about a project, often deliberate, intended to push its price down.

The fee paid for executing a transaction or smart contract on a blockchain network such as Ethereum. The gas amount depends on network congestion — the busier the network, the more expensive a transaction becomes.

The very first block in a blockchain, from which the entire chain begins. Bitcoin's genesis block was created on January 3, 2009.

A tiny denomination of ether (ETH) commonly used to express gas fees. One ETH equals one billion gwei.

A programmed event in the Bitcoin network (and some other coins) where the block reward paid to miners is cut in half. It happens roughly once every four years.

A backwards-incompatible change to a blockchain's protocol that splits the network into an old and a new chain (example: the split of Bitcoin and Bitcoin Cash).

A unique, fixed-length string produced from any input data using a mathematical function. The smallest change to the input completely changes the hash, which is why it is used to verify the integrity of blocks and transactions.

Crypto slang (originating from a typo of "hold") for a strategy of holding cryptocurrency long-term regardless of market swings.

A wallet that is always connected to the internet (an app or browser extension). Convenient for frequent transactions, but more vulnerable to hacking than a cold wallet.

Initial Coin Offering — a fundraising method where a project sells its tokens to investors, broadly analogous to an IPO on the stock market.

Initial DEX Offering — a token launch that takes place directly on a decentralized exchange, without a centralized intermediary.

Know Your Customer — an identity-verification procedure that users complete on regulated exchanges to comply with the law.

A secondary protocol built on top of a base blockchain (Layer 1) that speeds up transactions and lowers fees by moving some computation off the main network.

The use of borrowed funds to increase the size of a trading position. Leverage multiplies both potential profit and potential losses — a high-risk tool.

An order to buy or sell at a specific price or better. It only executes once the market reaches that price.

The forced closure of a leveraged trading position by the exchange when losses approach the size of the deposited collateral. It results in losing part or all of the funds invested.

A shared reserve of two or more tokens locked in a smart contract that enables asset swaps on decentralized exchanges without a traditional order book.

The total value of all coins of a cryptocurrency in circulation: the coin price multiplied by the circulating supply. It is used to compare the relative size of different projects.

An order to buy or sell an asset immediately at the best price currently available in the market.

The process of verifying transactions and creating new blocks in Proof-of-Work networks, such as Bitcoin. Miners solve complex computational puzzles and are rewarded with cryptocurrency.

A Non-Fungible Token — a unique blockchain record that certifies ownership of a specific digital or physical item, such as artwork, music, or a ticket.

A computer connected to a blockchain network that stores a copy of the ledger and validates transactions according to the protocol's rules. The more independent nodes there are, the more resilient and decentralized the network.

A wallet in which the private keys are fully controlled by the user, with no intermediary. It carries more responsibility, but also more control over the funds.

A number used once, which miners search for when mining a block in Proof-of-Work networks; also a counter that prevents a transaction from being replayed on an account.

A list of all open buy and sell orders for an asset on an exchange, sorted by price. It shows real-time supply and demand.

Peer-to-peer — a direct cryptocurrency exchange between two users, often for fiat money, without a centralized intermediary handling the trade itself.

A secret code that proves ownership of cryptocurrency and allows you to sign transactions. Whoever knows the private key has full control over the funds — it should never be shared with anyone.

A consensus mechanism in which the right to validate blocks goes to participants who have locked up (staked) their cryptocurrency as collateral. It is more energy-efficient than Proof-of-Work.

A consensus mechanism in which miners prove they performed computational work in order to add a new block. Used by Bitcoin, among others; it requires significant energy.

A cryptographic key from which a wallet address is derived to receive funds. Unlike a private key, it can be safely shared with others — similar to a bank account number.

A scam in which a project's creators suddenly withdraw all liquidity or dump their tokens, crashing the price and leaving investors with worthless holdings.

The smallest unit of Bitcoin, equal to one hundred-millionth (0.00000001) of a BTC. Named after Bitcoin's creator.

A set of 12–24 words from which all of a wallet's private keys can be restored. It is the single most important thing to protect: anyone who knows your seed phrase can take full control of your funds.

The difference between the expected price of a trade and the price at which it is actually executed, typically caused by low liquidity or high market volatility.

A program that automatically executes on the blockchain once predefined conditions are met, without intermediaries. It powers most DeFi, NFT, and DAO applications.

A backwards-compatible update to a protocol's rules, where old nodes can continue operating on the upgraded network without being forced to update.

A cryptocurrency pegged to a stable asset, most often the US dollar. It is used to avoid volatility and to settle transactions within the crypto market (examples: USDT, USDC).

Locking up cryptocurrency to help validate transactions in Proof-of-Stake networks. In return, the participant earns rewards, but risks losing part of the stake if the network's rules are broken.

A token's economic model: total supply, distribution between the team and investors, and mechanisms for burning or minting new tokens.

A record of a cryptocurrency transfer from one address to another. Once confirmed by the network, a transaction becomes part of the blockchain and can no longer be reversed or altered.

An equivalent of the ERC-20 standard, but on the TRON network. It is widely used for USDT transfers — fees on TRON are typically much lower than on Ethereum.

Software or a device for storing the private keys that give access to cryptocurrency on the blockchain. The coins themselves are not physically "stored" in the wallet — it only holds the keys needed to control them.

An investor or wallet holding a very large amount of cryptocurrency. The actions of whales (large buys or sells) can noticeably move an asset's price.

A project's official document describing its technology, goals, token economics, and team. It is the first thing worth reading before investing in a new project.

A DeFi strategy in which a user supplies assets to protocols (for example, liquidity pools) in order to earn interest income or additional tokens.