Crypto Glossary: Complete Dictionary of Terms Explained

Table of Contents

1. Introduction
2. A
3. B
4. C
5. D
6. E
7. F
8. G
9. H
10. I
11. J
12. K
13. L
14. M
15. N

Meta description: The most comprehensive crypto dictionary in English. Over 200 terms explained simply: Bitcoin, blockchain, DeFi, NFT, staking and more. Your reference for understanding cryptocurrency jargon.

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Introduction

Decode crypto jargon to navigate the world of digital currencies with confidence.

The cryptocurrency world has its own language. Between English acronyms, technical jargon and terms invented by the community, it's easy to feel lost.

This glossary gathers over 200 terms you'll encounter in the crypto ecosystem. Each definition is written in a simple and accessible way, with concrete examples where needed.

How to use this glossary?

• Use Ctrl+F (or Cmd+F on Mac) to search for a term
• Terms are organized in alphabetical order
• Definitions link to other related terms where relevant

A

Essential terms starting with A to master crypto fundamentals.

Address

A unique identifier used to receive cryptocurrencies, similar to a bank account number or an email address. Bitcoin example: bc1qxy2kgdygjrsqtzq2n0yrf2493p83kkfjhx0wlh.

Airdrop

Free distribution of tokens to cryptocurrency holders, generally to promote a new project or reward the community.

Consensus Algorithm

A set of rules enabling participants on a blockchain network to agree on the state of the ledger. Examples: Proof of Work, Proof of Stake.

All-Time High (ATH)

The highest price ever reached by a cryptocurrency. Example: "Bitcoin reached its ATH in November 2021 at $69,000."

All-Time Low (ATL)

The lowest price ever reached by a cryptocurrency.

Altcoin

Any cryptocurrency other than Bitcoin. Contraction of "alternative coin." Examples: Ethereum, Litecoin, Cardano.

AML (Anti-Money Laundering)

A set of regulations aimed at combating money laundering. Crypto exchanges must comply with these rules.

AMM (Automated Market Maker)

An automated market-making protocol on decentralized exchanges. Uses liquidity pools instead of the traditional order book. Examples: Uniswap, Curve.

AMLR

European Anti-Money Laundering Regulation that strengthens compliance obligations for crypto actors starting from 2027.

API (Application Programming Interface)

An interface enabling programs to communicate with each other. Exchanges provide APIs for automated trading.

APR (Annual Percentage Rate)

Simple annual return rate, not accounting for compound interest.

APY (Annual Percentage Yield)

Annual return rate including compound interest. Always greater than or equal to APR.

Arbitrage

A strategy of exploiting price differences for the same asset across different platforms to achieve risk-free profit.

ASIC (Application-Specific Integrated Circuit)

An electronic chip specialized for a single task, typically mining a specific cryptocurrency. More efficient than GPUs but less versatile.

ATH → see All-Time High

B

From Bitcoin to Burning, discover the key concepts of the blockchain ecosystem.

Bag / Bagholder

"Bag" refers to the amount of a crypto held. A "bagholder" is someone who continues to hold a crypto whose value has dropped significantly.

Bear Market

A prolonged period of falling prices, generally exceeding 20%. Opposite of Bull Market.

BIP (Bitcoin Improvement Proposal)

A proposal to improve the Bitcoin protocol. A formal process for suggesting code modifications.

Bitcoin

The first cryptocurrency, created in 2009 by Satoshi Nakamoto. A decentralized peer-to-peer payment network based on the blockchain. Symbol: ₿ or BTC.

Bitcoin Maximalist

A person who is convinced that Bitcoin is the only cryptocurrency that matters and that all others (altcoins) are useless or fraudulent.

Block

A set of validated transactions grouped together in the blockchain. Each block contains a hash of the previous block, creating the chain.

Block Explorer

A website for viewing transactions, blocks and addresses on a blockchain. Examples: blockchain.com, etherscan.io.

Block Height

A block's number in the blockchain, indicating its position since the genesis block. Block height increases with each new block.

Block Reward

Newly created bitcoins awarded to the miner who validates a block. Currently 3.125 BTC, halved every 4 years (halving).

Blockchain

A distributed and immutable ledger where transactions are grouped into cryptographically linked blocks. The technological foundation of cryptocurrencies.

Bridge

A protocol enabling the transfer of assets between two different blockchains. Example: transferring ETH to the Polygon blockchain.

BTD / BTFD (Buy The Dip / Buy The F***ing Dip)

An expression encouraging buying during price drops.

Bull Market

A prolonged period of rising prices. Opposite of Bear Market.

Burning

Permanent destruction of tokens by sending them to an inaccessible address, reducing the total supply in circulation.

C

Cryptography, consensus and custody: master the fundamental technical vocabulary.

CBDC (Central Bank Digital Currency)

A digital currency issued by a central bank. Unlike cryptocurrencies, it is centralized and controlled by the state.

CEX (Centralized Exchange)

A centralized exchange platform where a company manages transactions and holds users' funds. Examples: Binance, Coinbase, Kraken.

Chain Analysis

The study of blockchain transactions to trace fund flows. Used by law enforcement and compliance companies.

CoinJoin

A mixing technique where multiple users combine their transactions to obscure the origin of funds. Improves privacy on Bitcoin.

Cold Storage

Storing cryptocurrencies on a device not connected to the Internet (hardware wallet, paper wallet), maximizing security.

Cold Wallet

A wallet not connected to the Internet. Opposite of Hot Wallet.

Collateral

Assets deposited as a guarantee to obtain a loan. In DeFi, loans are over-collateralized (guarantee > loan amount).

Confirmation

Validation of a transaction through its inclusion in a block. The more confirmations, the more secure the transaction.

Consensus

Agreement between the participants of a blockchain network on the state of the ledger. Mechanisms: Proof of Work, Proof of Stake.

Smart Contract → see Smart Contract

Cross-chain

The ability to interact between different blockchains. Technologies enabling cross-chain transfers: bridges, atomic swaps.

Crypto Winter

A prolonged bear market period in the crypto ecosystem. Historical examples: 2014-2015, 2018-2019, 2022.

Cryptography

The science of secret codes. The blockchain uses asymmetric cryptography (public/private keys) and hash functions.

Custody

The safekeeping and storage of cryptocurrencies. "Self-custody": you hold your keys. "Third-party custody": a third party holds them (exchange, bank).

D

DeFi, DAO and decentralization: the pillars of the digital financial revolution.

DAO (Decentralized Autonomous Organization)

An organization governed by smart contracts and member votes, without traditional hierarchy.

DApp (Decentralized Application)

An application running on a blockchain via smart contracts, without a central server. Examples: Uniswap, Aave, OpenSea.

DAC8

European directive for automatic exchange of tax information including cryptocurrencies starting from 2026.

DCA (Dollar-Cost Averaging)

A regular investment strategy of a fixed amount, regardless of price. Helps smooth out volatility.

Dead Cat Bounce

A temporary rebound in the price of a falling asset, followed by a continuation of the decline.

Decentralization

Distribution of power and control among many participants rather than a central authority.

DeFi (Decentralized Finance)

An ecosystem of financial services operating on blockchain without traditional intermediaries: lending, trading, insurance.

Degen

Contraction of "degenerate." Refers to a crypto investor taking extreme risks, often on speculative projects.

DEX (Decentralized Exchange)

A decentralized exchange platform where users trade directly with each other via smart contracts. Examples: Uniswap, SushiSwap.

Diamond Hands

An expression describing an investor who holds their positions despite volatility. Opposite of Paper Hands.

Difficulty

An adjustable mining parameter defining the complexity of the cryptographic puzzle to solve. Adjusted to maintain a constant block time.

DYOR (Do Your Own Research)

An expression reminding people to do their own research before investing rather than blindly following others' advice.

E

Ethereum, ERC-20 and escrow: understanding the essential standards and protocols.

EIP (Ethereum Improvement Proposal)

A proposal to improve the Ethereum protocol. Similar to BIPs for Bitcoin.

Epoch

A time period in a blockchain protocol, generally used for staking calculations or difficulty adjustments.

ERC-20

The technical standard for tokens on Ethereum. Defines the basic rules (transfer, balance, etc.) that all ERC-20 tokens follow.

ERC-721

The standard for NFTs (non-fungible tokens) on Ethereum. Each token is unique and distinct.

Escrow

A fiduciary deposit service where a third party holds funds until the conditions of a transaction are fulfilled.

ETH

Abbreviation for Ether, the native cryptocurrency of Ethereum.

Ethereum

A programmable blockchain created by Vitalik Buterin in 2015. Enables the execution of smart contracts and hosts the majority of DApps and tokens.

Exchange

A platform for buying, selling and trading cryptocurrencies. Centralized (CEX) or decentralized (DEX).

F

FOMO, FUD and Fork: demystify the terms that influence your decisions.

Faucet

A website distributing small amounts of cryptocurrencies for free, generally for test networks or promotion.

Fiat

Traditional currency issued by a government: euro, dollar, yen, etc. Opposite of cryptocurrencies.

Flash Loan

An instant loan without collateral in DeFi, repaid within the same transaction. Used for arbitrage.

FOMO (Fear Of Missing Out)

The fear of missing an opportunity. Often drives people to buy at the top out of panic.

Fork

A division of a blockchain into two distinct chains. Soft fork: backward compatible. Hard fork: not backward compatible. Example: Bitcoin Cash is a hard fork of Bitcoin.

FUD (Fear, Uncertainty, Doubt)

Negative information, true or false, creating fear and uncertainty. "Don't FUD" = don't spread negative rumors.

Full Node

A computer storing the entirety of the blockchain and validating all transactions and blocks. Contributes to decentralization.

Fungible

The quality of a good being interchangeable with another of the same type. 1 BTC = 1 BTC. Opposite: non-fungible (NFT).

G

Gas, GPU and governance: the technical workings of the blockchain.

Gas

A unit measuring the computational cost of an operation on Ethereum. The gas price determines transaction fees.

Gas Limit

The maximum amount of gas a transaction can consume.

Gas Price

The unit price of gas in gwei (a subdivision of ETH). Gas Price × Gas Used = Transaction Fee.

Genesis Block

The first block of a blockchain. Bitcoin's genesis block was mined on January 3, 2009.

Governance Token

A token granting voting rights in a protocol's governance. Examples: UNI for Uniswap, AAVE for Aave.

GPU (Graphics Processing Unit)

A graphics card. Used to mine certain cryptocurrencies. Less efficient than ASICs but more versatile.

Gwei

A subdivision of Ether. 1 ETH = 1,000,000,000 gwei. Used to express gas prices.

H

Halving, hash and HODL: the concepts that define Bitcoin culture.

Halving

The halving of the Bitcoin block reward, every 210,000 blocks (approximately 4 years). Next halving expected in 2028.

Hard Fork

A non-backward-compatible protocol update, creating a new chain. Nodes must update to follow.

Hardware Wallet

A physical device dedicated to securely storing private keys offline. Examples: Ledger, Trezor, Coldcard.

Hash

A fixed-size digital fingerprint generated by a hash function. Used for data integrity and mining.

Hash Rate

The computing power of a miner or network, measured in hashes per second. The higher the hash rate, the more secure the network.

HODL

A term born from a typo of "hold." Means keeping your cryptocurrencies long-term without selling.

Hot Wallet

A wallet connected to the Internet. More convenient but less secure than cold storage.

Hybrid Blockchain

A blockchain combining characteristics of public and private blockchains.

I

ICO, immutability and interoperability: the foundations of blockchain innovation.

ICO (Initial Coin Offering)

A fundraising event where a project sells tokens to investors. Similar to an Initial Public Offering (IPO).

IDO (Initial DEX Offering)

A fundraising event conducted on a decentralized exchange.

IEO (Initial Exchange Offering)

A fundraising event conducted on a centralized exchange, which serves as an intermediary.

Immutability

A characteristic of a blockchain that makes recorded data unalterable once confirmed.

Impermanent Loss

A temporary loss incurred by liquidity providers on an AMM when the ratio of assets in the pool changes.

Inflation

The increase in token supply over time. Bitcoin has a predictable and decreasing inflation rate.

Interoperability

The ability of different blockchains to communicate and exchange data or assets.

J

Worthless tokens: learn to identify and avoid them.

Junk Token

A token with no value or utility, often distributed via airdrop for spam or scam purposes.

K

KYC and cryptographic keys: security and compliance in the crypto ecosystem.

KYC (Know Your Customer)

A mandatory identity verification process on regulated platforms. Generally includes ID document and proof of address.

Key

In cryptography, a secret (private key) or public (public key) piece of information used to sign or verify transactions.

L

Layer 2, Lightning and liquidity: optimize your transactions and returns.

L1 / Layer 1

The main blockchain (Bitcoin, Ethereum). Transactions are processed directly on this layer.

L2 / Layer 2

A solution built on top of an L1 to improve performance. Examples: Lightning Network (Bitcoin), Optimism, Arbitrum (Ethereum).

Lambo

"When Lambo?" = "When will I be rich enough to buy a Lamborghini?" An ironic expression from the crypto community.

Ledger

An accounting record. The blockchain is a distributed ledger. Also the name of a hardware wallet brand.

Leverage

Borrowing to increase the size of a position. Amplifies both gains and losses. Very risky.

Lightning Network

An L2 solution for Bitcoin enabling instant and near-free payments via payment channels.

Limit Order

A buy or sell order at a specific price. Only executed if the market reaches that price.

Liquidity

The ease of buying or selling an asset without significant impact on the price. The more liquid an asset, the better.

Liquidity Mining

Providing liquidity to a DeFi protocol in exchange for token rewards.

Liquidity Pool

A pool of tokens locked in a smart contract, used by AMMs to facilitate trading.

Long

A speculative position betting on an asset's price increase. Opposite of Short.

M

Mining, memecoins and multisig: navigating between technology and crypto culture.

Mainnet

The main network of a blockchain, where transactions have real value. Opposite of Testnet.

Market Cap (Market Capitalization)

Unit price × circulating supply. An indicator of a cryptocurrency's size. Bitcoin dominates the total market cap.

Market Order

A buy or sell order at the current market price. Immediate execution.

Maximalist → see Bitcoin Maximalist

Memecoin

A cryptocurrency created from an Internet meme, generally with no technical utility. Examples: Dogecoin, Shiba Inu.

Mempool

A waiting area for unconfirmed transactions on the Bitcoin network. Miners select transactions from here to include in blocks.

Merkle Tree

A data structure organizing transactions for efficient verification. The Merkle root summarizes all transactions in a block.

Metaverse

An immersive virtual universe where users interact through avatars. NFTs and cryptocurrencies represent ownership within it.

MiCA (Markets in Crypto-Assets)

European regulation governing crypto-assets, applicable from 2024-2025.

Mining

The process of validating transactions and creating new blocks by solving cryptographic puzzles (PoW).

Mining Pool

A group of miners combining their computing power to increase their chances of finding a block and sharing the rewards.

Mixer

A service that mixes cryptocurrencies from multiple users to obscure their origin. See CoinJoin.

Mnemonic → see Seed Phrase

Moon / To the Moon

An expression meaning an explosive price increase. "Bitcoin is going to the moon!"

Multi-signature (Multisig)

A wallet requiring multiple signatures to authorize a transaction. Example: 2-of-3 = 2 signatures out of 3 possible.

N

NFT, nodes and network effect: understanding the power of decentralized networks.

Network Effect

The more users a network has, the more useful and attractive it becomes. Bitcoin has the largest network effect in crypto.

NFT (Non-Fungible Token)

A unique and non-interchangeable token representing ownership of a digital or physical asset.

Node

A computer participating in the blockchain network, validating and relaying transactions.

Nonce

A number used only once. In mining, it's the variable that miners modify to find a valid hash.

Not Your Keys, Not Your Coins

A maxim reminding that if you don't control your private keys, you don't truly own your crypto.

O

Oracles and OTC: the bridges between blockchain and the real world.

Off-chain

Transactions or operations performed outside the main blockchain, to reduce fees and speed up processing.

On-chain

Transactions directly recorded on the blockchain.

Open Source

Source code that is accessible to everyone, verifiable and modifiable. Most crypto protocols are open source.

Oracle

A service providing real-world data to smart contracts. Examples: asset prices, sports results. Chainlink is the leading oracle provider.

Order Book

A list of buy and sell orders on an exchange, with prices and quantities.

OTC (Over-The-Counter)

A direct transaction between two parties, outside of public exchanges. Used for large volumes.

P

Proof of Work, private keys and pump: essential security and mechanisms.

Paper Hands

An investor who sells at the first downturn out of panic. Opposite of Diamond Hands.

Paper Wallet

Private keys printed on paper. A form of cold storage.

Passphrase

An optional password added to the seed phrase, creating a "hidden" wallet. The 25th word.

P2P (Peer-to-Peer)

A network where participants interact directly with each other, without a central intermediary.

PFP (Profile Picture)

An NFT used as a profile picture on social media. Examples: Bored Ape, CryptoPunks.

Phishing

A scam aimed at stealing your information via fake websites or emails mimicking legitimate services.

PoS → see Proof of Stake

PoW → see Proof of Work

Private Key

A secret number used to sign transactions and prove ownership of your crypto. Never share it.

Proof of Stake (PoS)

A consensus mechanism where validators stake their tokens to validate blocks.

Proof of Work (PoW)

A consensus mechanism where miners solve cryptographic puzzles to validate blocks.

Protocol

A set of rules defining how a blockchain network or DeFi application works.

Public Key

A key derived from the private key, used to generate addresses and verify signatures. Can be shared.

Pump and Dump

Market manipulation: artificially inflating the price of an asset to sell at the top and leave others with losses.

Q

QR codes: simplify your transactions with scanning technology.

QR Code

A visual code encoding an address or other data, easily scannable with a smartphone.

R

Rekt, restaking and rug pull: protect yourself from crypto risks.

Recovery Phrase → see Seed Phrase

Rekt

"Wrecked" (destroyed). Having lost a lot of money. "I got rekt on that trade."

Restaking

Using already-staked tokens as collateral for another protocol, increasing both returns and risks.

Roadmap

A crypto project's development plan, listing planned features and milestones.

ROI (Return on Investment)

(Final Value - Initial Investment) / Initial Investment × 100.

Rug Pull

A scam where developers abandon a project while taking investors' funds.

S

Staking, smart contracts and seed phrase: secure and grow your assets.

Satoshi

The smallest unit of Bitcoin. 1 BTC = 100,000,000 satoshis (sats). Named in honor of Satoshi Nakamoto.

Satoshi Nakamoto

The pseudonym of the anonymous creator of Bitcoin. True identity still unknown.

Scam

A fraud. The crypto world unfortunately attracts many scammers.

Seed Phrase (Recovery Phrase)

A list of 12 or 24 words used to restore a wallet. It's the backup of your private keys. Must be protected at all costs.

Shard / Sharding

A scalability technique that divides the blockchain into parallel fragments to increase throughput.

Shitcoin

A pejorative term for a cryptocurrency with no real value or utility.

Short

A speculative position betting on an asset's price decrease. Opposite of Long.

Sidechain

A secondary blockchain connected to a main blockchain, enabling faster transactions.

Digital Signature

Cryptographic proof that a transaction has been authorized by the holder of the private key.

Slashing

A penalty in PoS systems: a dishonest validator loses part of their staked tokens.

Slippage

The difference between the expected price and the actual execution price of a transaction, due to volatility.

Smart Contract

An autonomous program executing on a blockchain. "If condition X, then action Y." A pillar of DeFi.

Soft Fork

A backward-compatible protocol update. Older nodes remain functional.

Solidity

A programming language for writing smart contracts on Ethereum.

Spot (Trading)

Immediate buying/selling of an asset at market price, without leverage.

Stablecoin

A cryptocurrency with a stable value, generally pegged to the dollar. Examples: USDT, USDC, DAI.

Staking

Locking up cryptocurrencies to participate in the validation of a PoS network and receive rewards.

Stop Loss

An automatic sell order if the price drops below a certain threshold, to limit losses.

Supply

Total token supply. Circulating supply: in circulation. Max supply: maximum limit.

Swap

Exchanging one cryptocurrency for another, generally on a DEX.

T

Tokens, TVL and trustless: the decentralized economy and trust.

Taproot

A major Bitcoin upgrade (2021) improving privacy and smart contract efficiency.

Testnet

A test network of a blockchain, using worthless tokens for experimentation.

TFR (Travel Rule)

European regulation requiring the sharing of information about the sender and recipient of crypto transfers.

Token

A digital asset created on an existing blockchain (as opposed to a "coin" which has its own blockchain).

Tokenomics

The economics of a token: distribution, issuance, utility, incentive mechanisms.

TPS (Transactions Per Second)

The number of transactions a network can process per second. A performance indicator.

Trading Bot

Software automating trading strategies according to predefined rules.

Transaction Fee

The cost paid to have a transaction validated by the network.

Travel Rule → see TFR

Trustless

A system that does not require trusting a third party, thanks to cryptographic guarantees.

TVL (Total Value Locked)

The total value of assets deposited in a DeFi protocol. An indicator of size and adoption.

Two-Factor Authentication (2FA)

Authentication with two factors: password + temporary code (app or SMS).

U

UTXO and utility tokens: understanding alternative transaction models.

UTXO (Unspent Transaction Output)

A model used by Bitcoin where each transaction consumes previous outputs and creates new ones.

Utility Token

A token that provides access to a service or feature rather than simple speculative value.

V

Validators, volatility and volume: measure and manage market risks.

Validator

A participant in a PoS network who verifies transactions and proposes blocks.

Vanity Address

A customized address containing a chosen sequence of characters. Example: bc1qSATOSHI...

Volatility

The magnitude of price fluctuations. Cryptocurrencies are known for their high volatility.

Volume

The quantity of an asset traded over a given period. An indicator of liquidity and interest.

VPN (Virtual Private Network)

A virtual private network that encrypts the Internet connection and masks the IP address.

W

Wallets, whales and whitepapers: the savvy crypto investor's tools.

WAGMI

"We're All Gonna Make It." An expression of optimism from the crypto community.

Wallet

Software or device for storing and managing your private keys and cryptocurrencies.

Whale

A holder of a very large amount of cryptocurrency, capable of influencing prices.

Whitelist

A list of addresses authorized to participate in a token sale or use a service.

Whitepaper

A technical document describing a crypto project: technology, economics, team, objectives.

Wrapped Token

A token representing a cryptocurrency from another blockchain. Example: Wrapped Bitcoin (WBTC) on Ethereum.

Wrench Attack

A physical attack to force someone to reveal their private keys. The "five-dollar wrench attack."

X

XRP: the cryptocurrency dedicated to instant cross-border payments.

XRP

The cryptocurrency of the Ripple network, used for fast cross-border payments.

Y

Yield farming: maximize your DeFi returns with strategy and prudence.

Yield

Returns generated by staking, lending or providing liquidity.

Yield Farming

A DeFi strategy maximizing returns by moving funds between protocols.

Z

Zero-knowledge proofs: prove without revealing — the next privacy revolution.

Zero-Knowledge Proof

A cryptographic proof that allows demonstrating information without revealing it. Used by Zcash, zkRollups.

ZK-Rollup

An L2 solution using zero-knowledge proofs for scalability and privacy.

Acronyms and Abbreviations Reference Table

Quick reference table for decoding the most common crypto acronyms.

Conclusion

This glossary covers the essential terms you'll encounter in the crypto ecosystem. The vocabulary is constantly evolving with new innovations and trends.

To go further:

• Understanding Bitcoin - Beginner's Guide
• What is a Blockchain?
• Introduction to DeFi
• OPSEC Security Guide

Feel free to come back to this glossary whenever you encounter an unfamiliar term. With time and practice, this vocabulary will become second nature.

Last updated: December 2025

This glossary is regularly updated to incorporate new terms from the ecosystem.