Crypto dictionary
Short definitions of crypto terms in plain words: from the blockchain to smart contracts. With examples and what not to do.
21 terms
AltcoinAny cryptocurrency other than Bitcoin. Many altcoins have higher volatility and lower liquidity.BasicsBitcoin (BTC)The first and best-known cryptocurrency. It runs on a blockchain with no central operator, and supply is capped at 21…BasicsBlockchainA chain of blocks holding transaction records. Each block is linked to the previous one by a hash, so rewriting…BasicsCEX and DEXOn a centralized exchange (CEX) a company holds your funds and runs the order book. On a decentralized one (DEX)…Market and servicesDeFiFinancial services built on smart contracts: swaps, loans, staking with no middleman. Risks: code bugs, hacks…Market and servicesHalvingAn event that cuts the Bitcoin miner reward in half. It happens roughly every four years, every 210,000 blocks.BasicsHot and cold walletA hot wallet is online and convenient. A cold wallet keeps keys offline (for example, a hardware wallet) and is safer…SecurityKYCIdentity verification at an exchange or broker: documents, sometimes a selfie. It is required to meet regulator rules.Market and servicesMarket capThe price of one coin multiplied by the number of coins in circulation. It shows the size of a project, not its…BasicsMiningMining is the job a Proof of Work network uses to check transactions and pack them into blocks. Miners run powerful…BasicsNetwork fee (gas)A fee paid to process a transaction on a network such as Ethereum. The busier the network, the higher the fee.Market and servicesNFTAn NFT is a non-fungible token. It is a blockchain record tied to one specific digital item. Unlike bitcoin, one NFT…BasicsPhishingA scam where the fraudster poses as a real service to get your data or seed phrase, often through a look-alike site…SecurityPoW and PoSThese are two ways a blockchain decides who adds the next block. In Proof of Work (PoW), miners compete with…BasicsPrivate keyA secret number that gives full control over the coins at an address. Whoever knows the key controls the funds.SecurityRug pullA scheme where the project creators raise money and drain the liquidity or vanish. Signs: an anonymous team and…SecuritySeed phraseA wallet backup of 12 or 24 words that restores all keys. Lose it and you lose access; give it away and you lose the…SecuritySmart contractA smart contract is a program on a blockchain that carries out the terms written in its code by itself. You trigger…BasicsStablecoinA token that aims to hold a stable price, most often one US dollar. It can lose its peg (depeg) if reserves or the…BasicsStakingLocking coins to help secure a Proof of Stake network and earn rewards. Risks: coins are frozen for a period, and…Market and servicesWalletAn app or device that stores the keys to your coins and signs transactions. The coins themselves live on the…Security
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See also
Where to trade
WEEXReferral link: ARUT may receive a reward. Trading with leverage carries a high risk of losing funds; this is not investment advice.