Address
A public destination for receiving crypto. Similar to an account reference, but transfers to a wrong address are usually irreversible.
Reference · 30 useful terms
The word, the meaning, the consequence.
Crypto jargon often names a real technical idea, then hides the practical risk. This glossary gives you both in two sentences or fewer.
Airdrop
Tokens distributed to wallets, often for marketing or participation. Airdrops can be taxable and fake claim links are common.
Altcoin
An informal label for a cryptoasset other than Bitcoin. It says nothing about quality or risk.
Blockchain
A shared record of transactions maintained under a network's rules. Different blockchains make different trade-offs.
Bridge
A system for moving value or representations of assets between blockchains. Bridges add smart-contract and security risk.
Cold wallet
A loose term for keeping signing keys away from everyday internet-connected devices, often with hardware.
Consensus
The method a network uses to agree which transactions are valid and in what order.
Custody
Responsibility for controlling the keys that can move an asset. Exchange custody and self-custody fail in different ways.
DAO
A group coordinating through tokens, smart contracts and voting. The label does not guarantee genuine decentralisation.
DeFi
Financial-style services delivered through blockchain software, often without a traditional account provider.
Exchange
A platform for buying or trading assets. Centralised exchanges hold accounts; decentralised exchanges use wallet transactions.
Gas
The fee paid for computation or transaction processing on some blockchains. It is not fuel and can vary with demand.
Hash
A fixed-length digital fingerprint produced from data. Changing the data changes the fingerprint.
Hot wallet
A wallet used through an internet-connected phone, browser or computer. Convenient, but more exposed to device and phishing risk.
Layer 2
A system built around a base blockchain to increase capacity or reduce cost, with its own design and withdrawal assumptions.
Liquidity
How easily an asset can be bought or sold without moving its price. Low liquidity can turn a quoted price into a poor execution.
Market order
An instruction to trade immediately against available prices. It prioritises speed, not a guaranteed price.
Mining
Using computing work to help secure some networks and propose blocks, in return for potential rewards.
NFT
A token designed to be individually identifiable. Ownership of the token does not automatically transfer copyright.
Oracle
A service that supplies external information, such as asset prices, to smart contracts. Bad data can trigger bad outcomes.
Private key
The secret used to authorise transactions. Control of the key generally means control of the associated assets.
Recovery phrase
A human-readable backup used to recreate many wallets. It is usually more sensitive than an account password.
Slippage
The difference between the expected trade price and the price actually received, often due to size, speed or low liquidity.
Smart contract
Code deployed to a blockchain that follows programmed rules. Code can contain bugs and still execute exactly as written.
Stablecoin
A token designed to track another asset, usually a currency. Stability depends on reserves, redemption, market confidence and structure.
Staking
Committing tokens to support a proof-of-stake network, directly or through a provider, in exchange for potential rewards and risks.
Token
A digital unit recorded on a blockchain. A token can represent many things—or very little.
Validator
A participant that helps check transactions and propose or confirm blocks in a proof-of-stake network.
Wallet
Software or hardware that manages keys and signs transactions. The assets remain recorded on the blockchain.
Web3
A broad marketing and technical label for services that use wallets, tokens or blockchains. Always ask what it means in the specific product.
Use the words in context
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A definition is useful. Seeing how the pieces connect is better.