Glossary Grid (Preview)
Glossary · Quick reference
Crypto Glossary — Scan & Expand
Tap a term to read a simple, BS‑free definition. The grid keeps everything tidy so you can find what you need fast.
Basics
▶Blockchain
A public database that stores transactions in blocks linked together. It’s the foundation of most cryptocurrencies.
▶Cryptocurrency
Digital money secured by cryptography, running on a blockchain. Examples: Bitcoin, Ethereum, Solana.
▶Coin vs. Token
A coin runs on its own blockchain (e.g., BTC, ETH). A token is built on another chain (e.g., USDC on Ethereum).
▶Fiat
Government‑issued currency like USD or EUR. You’ll often on‑ramp from fiat to crypto through an exchange.
▶Gas Fee
The network fee paid to process your transaction. Varies by chain demand and complexity.
Wallets
▶Hot Wallet
A wallet connected to the internet (e.g., Coinbase Wallet, MetaMask). Easy to use, higher risk than cold storage.
▶Cold Wallet
Offline storage (e.g., Ledger, Trezor). Best for long‑term security since it’s not online.
▶Seed Phrase
A 12–24 word backup that can recover your wallet. Never share it or type it into random websites.
▶Private Key
Your secret key that signs transactions. If someone gets it, they control your funds.
▶Address
Your public receiving identifier (like an email for money). Always verify the chain (e.g., BTC vs. ETH) before sending.
Trading
▶Exchange
A platform to buy, sell, or trade crypto. Centralized (e.g., Coinbase) vs Decentralized (e.g., Uniswap).
▶Market Order
Buys or sells immediately at the best available price.
▶Limit Order
Executes only at your chosen price or better. Good for control; may not fill.
▶Liquidity
How easily an asset can be bought/sold without moving the price much. Higher liquidity = tighter spreads.
▶Volatility
How much and how quickly the price moves. Crypto is generally more volatile than stocks.
Security
▶2FA
Two‑Factor Authentication. Use an authenticator app (not SMS) for stronger account protection.
▶Phishing
Scams that trick you into revealing secrets. Always double‑check URLs and never click random support DMs.
▶Rug Pull
When project creators vanish with investors’ funds. Red flags: no audit, anonymous team, unrealistic yields.
▶SIM Swap
A hacker ports your phone number to steal codes. Use email‑based 2FA apps and carrier PIN locks.
▶Cold Storage
Keeping long‑term funds offline on a hardware wallet or air‑gapped device.
DeFi & Web3
▶Smart Contract
Code that runs on a blockchain and executes automatically when conditions are met.
▶DEX
Decentralized Exchange. Trades happen via smart contracts and liquidity pools (e.g., Uniswap).
▶Staking
Locking tokens to help secure a network and earn rewards. Risks vary by chain and provider.
▶Yield Farming
Providing liquidity or using DeFi strategies to earn fees/rewards. Higher returns often mean higher risk.
▶Bridge
A tool to move assets between blockchains. Useful but a common target for hacks—use reputable bridges.
Advanced
▶Layer 2
A network built on top of a base chain (e.g., Arbitrum on Ethereum) to make transactions faster and cheaper.
▶Protocol
A set of rules and smart contracts that power an on‑chain system (e.g., lending, exchanges).
▶Validator
A node that helps secure a network by verifying transactions/blocks—often earns rewards for doing so.
▶On‑Chain vs Off‑Chain
On‑chain actions are recorded on a blockchain. Off‑chain happens elsewhere (e.g., centralized servers) and is later reconciled.
▶KYC / AML
Identity and anti‑money‑laundering checks required by many exchanges to comply with regulations.