Crypto Glossary

Crypto

Crypto refers to digital assets, blockchain networks, wallets, tokens, and decentralized systems secured by cryptographic technology.

Blockchain

A blockchain is a shared digital ledger that records transactions in blocks across a network of computers.

Web3

Web3 is a term for internet applications that use wallets, tokens, smart contracts, and blockchain networks.

Decentralization

Decentralization means control or operation is distributed across multiple participants instead of one central authority.

Token

A token is a digital asset created on a blockchain, often using a smart contract standard such as ERC-20, BEP-20, or SPL.

Coin

A coin is usually the native asset of a blockchain network, used for fees, value transfer, and network incentives.

Stablecoin

A stablecoin is a crypto asset designed to track the value of another asset, often a fiat currency such as the US dollar.

Gas Fee

A gas fee is the network fee paid to process a blockchain transaction or smart contract interaction.

Transaction

A crypto transaction is an on-chain action such as sending assets, swapping tokens, approving a contract, or interacting with a smart contract.

Confirmation

A confirmation means a blockchain transaction has been included in a block and has gained network validation over time.

Liquidity

Liquidity refers to how easily an asset can be traded without causing large price changes.

Market Cap

Market cap is an estimate of a token or coin's value based on price multiplied by circulating supply.

FDV

FDV, or fully diluted valuation, estimates value by multiplying token price by the total or maximum token supply.

Volume

Trading volume is the amount of an asset traded during a period of time, often shown in token units or dollar value.

Wallet Terms

Wallet-related terms for addresses, keys, seed phrases, signatures, connection flows, and wallet types.

Wallet

A crypto wallet is software or hardware that lets users manage addresses, sign transactions, and interact with blockchain networks.

Wallet Address

A wallet address is a public identifier used to receive crypto assets and view on-chain activity.

Private Key

A private key is secret cryptographic data that can control access to a crypto wallet address.

Seed Phrase

A seed phrase is a set of recovery words that can restore access to a crypto wallet.

Recovery Phrase

A recovery phrase is another name for a seed phrase used to restore access to a wallet.

Public Key

A public key is cryptographic data related to a private key and can be used to derive or verify wallet information.

Hot Wallet

A hot wallet is a crypto wallet connected to an internet-enabled device, such as a browser or mobile app.

Cold Wallet

A cold wallet is a wallet setup designed to keep private keys away from regular internet exposure.

Hardware Wallet

A hardware wallet is a physical device designed to keep private keys isolated while signing transactions.

Browser Wallet

A browser wallet is a crypto wallet used through a browser extension or browser-integrated wallet interface.

Watch-Only Wallet

A watch-only wallet lets users view an address without having signing control over that wallet.

Multisig Wallet

A multisig wallet requires multiple approvals or signatures before certain transactions can be executed.

Smart Contract Wallet

A smart contract wallet is a wallet controlled by smart contract logic instead of only a simple private key account.

Account Abstraction

Account abstraction refers to wallet designs that allow more flexible account logic, transaction rules, recovery methods, or gas payment models.

WalletConnect

WalletConnect is a connection method that lets wallets interact with decentralized applications across devices or apps.

Wallet Signature

A wallet signature is a cryptographic approval created by a wallet to authorize or prove something.

Token Terms

Token terms covering contracts, standards, supply, vesting, unlocks, allocation, holders, and tokenomics.

Tokenomics

Tokenomics describes the supply, allocation, distribution, utility, incentives, unlocks, and economic design of a token.

Contract Address

A contract address is the on-chain address of a smart contract, such as a token contract or dApp contract.

Token Contract

A token contract is a smart contract that defines token balances, transfers, approvals, supply, and other token rules.

ERC-20

ERC-20 is a common token standard used by fungible tokens on Ethereum and many EVM-compatible networks.

BEP-20

BEP-20 is a token standard commonly used for fungible tokens on BNB Smart Chain.

SPL Token

An SPL token is a token created using Solana's token program standard.

Token Supply

Token supply describes how many tokens exist, circulate, are locked, can be minted, or may be released over time.

Circulating Supply

Circulating supply is the amount of a token that is considered available in the market or active circulation.

Total Supply

Total supply is the number of tokens that currently exist, often excluding tokens that have been burned.

Max Supply

Max supply is the maximum number of tokens that can exist if a token has a fixed cap.

Token Allocation

Token allocation describes how a token supply is divided among categories such as team, investors, community, liquidity, rewards, and ecosystem funds.

Vesting

Vesting is a release schedule that gradually makes tokens available over time.

Token Unlock

A token unlock is an event where previously locked tokens become available according to a vesting or release schedule.

Cliff

A cliff is a waiting period before tokens begin to unlock under a vesting schedule.

Burn

Token burning is the process of removing tokens from circulation, usually by sending them to an unusable address or using contract logic.

Mint

Minting is the creation of new tokens or NFTs through contract logic.

Holder

A token holder is a wallet address or account that holds a token balance.

Whale

A whale is a wallet, person, or entity that holds a large amount of a crypto asset.

Blockchain & Network Terms

Network terms for mainnets, testnets, RPCs, nodes, validators, Layer 1, Layer 2, bridges, and explorers.

Mainnet

Mainnet is the live production version of a blockchain network where real assets and real transactions exist.

Testnet

A testnet is a blockchain network used for testing applications, contracts, and transactions without using mainnet assets.

Network

A crypto network is a blockchain environment where transactions, tokens, validators, nodes, and smart contracts operate.

Chain ID

A chain ID is a number used to identify a blockchain network, especially in EVM-compatible ecosystems.

RPC

RPC is a communication method that lets wallets and applications read from and send requests to blockchain nodes.

RPC Endpoint

An RPC endpoint is a URL that applications and wallets use to communicate with a blockchain node or provider.

Node

A node is a computer or server that participates in a blockchain network by storing, validating, or serving blockchain data.

Validator

A validator is a network participant that helps validate blocks or transactions in many proof-of-stake blockchain systems.

Consensus

Consensus is the process a blockchain network uses to agree on valid transactions and the state of the ledger.

Layer 1

Layer 1 refers to a base blockchain network that processes and secures transactions directly.

Layer 2

Layer 2 refers to scaling systems built on top of a Layer 1 blockchain to improve transaction speed, cost, or throughput.

Rollup

A rollup is a Layer 2 scaling approach that processes transactions off the base layer and posts data or proofs back to a Layer 1.

Bridge

A bridge is a tool or protocol that helps move assets or messages between different blockchain networks.

Cross-Chain

Cross-chain refers to activity, assets, or messages that involve more than one blockchain network.

Wrapped Token

A wrapped token represents an asset from one network or format on another network or protocol.

Block Explorer

A block explorer is a website or tool for viewing blockchain data such as transactions, blocks, addresses, contracts, and token transfers.

DEX & DeFi Terms

DEX and DeFi words for swaps, AMMs, liquidity pools, LP tokens, slippage, price impact, TVL, and oracles.

DEX

A DEX, or decentralized exchange, is a crypto exchange system that allows users to trade through smart contracts rather than a traditional centralized exchange account.

DeFi

DeFi, or decentralized finance, refers to financial applications built with blockchain networks and smart contracts.

AMM

An AMM, or automated market maker, is a DEX design that uses liquidity pools and formulas instead of a traditional order book.

Liquidity Pool

A liquidity pool is a smart contract pool of tokens used to support swaps or other DeFi activity.

LP Token

An LP token represents a liquidity provider's share of a liquidity pool.

Slippage

Slippage is the difference between the expected price of a trade and the actual executed price.

Price Impact

Price impact is the effect a trade has on the market price because of trade size relative to available liquidity.

Swap

A swap is an exchange of one crypto asset for another, often through a DEX, router, or aggregator.

Router

A DEX router is a smart contract or system that helps route swaps through one or more liquidity pools.

DEX Aggregator

A DEX aggregator is a tool or protocol that searches multiple liquidity sources to find swap routes.

TVL

TVL, or total value locked, estimates the value of assets deposited in a protocol, pool, or DeFi system.

Oracle

An oracle provides external data to smart contracts, such as prices, rates, or real-world information.

Security Terms

Security terms for phishing, scams, honeypots, wallet drainers, approvals, and unlimited permissions.

Phishing

Crypto phishing is a scam method that tricks users into visiting fake sites, sharing secrets, signing harmful messages, or approving malicious contracts.

Scam

A crypto scam is a deceptive scheme designed to steal funds, wallet access, signatures, approvals, or sensitive information.

Honeypot

A honeypot token is a token that may allow buying but restrict or prevent selling or transferring.

Wallet Drainer

A wallet drainer is a malicious system designed to steal assets through harmful signatures, approvals, transactions, or fake claim pages.

Token Approval

Token approval allows a smart contract or spender to move a certain amount of tokens from a user's wallet.

Unlimited Approval

Unlimited approval gives a spender permission to move an unlimited or very large amount of a token from a wallet.