Plain English definitions for the terms you'll come across when learning about cryptocurrency.
Any cryptocurrency that is not Bitcoin. The term covers thousands of coins and tokens, from legitimate projects to outright scams.
A string of letters and numbers that acts like a bank account number for cryptocurrency. You share your address with people who want to send you crypto.
When a crypto project distributes free tokens to wallet holders, usually to promote a new coin or reward early users.
The highest price a cryptocurrency has ever reached.
The lowest price a cryptocurrency has ever reached.
The first and largest cryptocurrency, created in 2009. Often described as digital gold due to its fixed supply of 21 million coins.
A shared, distributed ledger (record) of transactions. Data is stored in "blocks" that are chained together in a permanent, tamper-resistant sequence.
A period of falling prices, typically defined as a decline of 20% or more from recent highs. The opposite of a bull market.
A period of rising prices and positive investor sentiment.
The amount of cryptocurrency given to miners or validators for successfully adding a new block to the blockchain.
A hardware device that stores your crypto offline, away from the internet. Much more secure than keeping crypto on an exchange or software wallet.
Digital money secured by cryptography, running on a decentralised blockchain network.
A wallet managed by a third party (like an exchange), which holds your private keys on your behalf. You trust them to keep your funds safe.
A crypto exchange run by a company, which acts as an intermediary between buyers and sellers. Examples: Coinbase, Kraken, Binance.
Financial services — like lending, borrowing, and trading — that run on blockchains without banks or brokers.
A decentralised application that runs on a blockchain rather than a centralised server.
A crypto exchange that runs on a blockchain with no central authority. Users trade directly with each other.
A common phrase in the crypto community, urging people to investigate a project themselves rather than trusting others' opinions blindly.
The second-largest cryptocurrency and a programmable blockchain platform that supports smart contracts and dApps.
A technical standard for tokens built on the Ethereum blockchain. Most tokens you encounter are ERC-20 tokens.
Government-issued money — pounds, dollars, euros — backed by a government rather than a commodity or algorithm.
The anxiety that others are profiting from an investment you're not in. A major driver of poor investment decisions.
Negative information or rumours spread about a cryptocurrency, sometimes to manipulate prices.
When a blockchain splits into two separate chains. A "hard fork" creates two incompatible chains (as happened when Bitcoin Cash split from Bitcoin).
The fee paid to process a transaction on the Ethereum blockchain. Gas fees vary based on network demand.
The very first block in a blockchain. Bitcoin's genesis block was mined in January 2009.
Originally a typo for "hold", now stands for "Hold On for Dear Life". It describes the strategy of holding cryptocurrency long-term regardless of price movements.
A crypto wallet connected to the internet. Convenient but more vulnerable to hacking than a cold wallet.
A fixed-length output generated by running data through a cryptographic algorithm. Used to secure blockchain transactions.
An event where the reward for mining Bitcoin is cut in half. This happens approximately every four years and reduces the rate at which new Bitcoin enters circulation.
The identity verification process exchanges and financial services use to comply with anti-money laundering regulations. You'll need to provide ID to use a legitimate exchange.
A record of transactions. In crypto, the blockchain is the ledger — a shared, public record of every transaction ever made on that network.
How easily an asset can be bought or sold without significantly affecting its price. Bitcoin has high liquidity; obscure altcoins often do not.
The total value of a cryptocurrency, calculated by multiplying the current price by the total number of coins in circulation.
The process by which new Bitcoin transactions are verified and added to the blockchain. Miners use powerful computers to solve complex mathematical problems and are rewarded with Bitcoin.
Short for "memory pool" — where unconfirmed transactions wait before being processed and added to the blockchain.
A unique digital asset stored on a blockchain. Unlike cryptocurrency, each NFT is one-of-a-kind and cannot be exchanged one-for-one with another NFT.
Any computer participating in a blockchain network. Nodes store copies of the blockchain and help verify transactions.
A wallet where you hold your own private keys — and therefore full control of your crypto. No third party can access your funds.
A secret code that gives you access to your cryptocurrency. Never share it with anyone. Losing it means losing access to your funds permanently.
Derived from your private key, this is used to generate your wallet address. Safe to share.
The consensus mechanism used by Bitcoin. Miners compete to solve complex calculations to validate transactions. Energy-intensive but highly secure.
An alternative consensus mechanism where validators lock up (stake) cryptocurrency as collateral to earn the right to validate transactions. More energy-efficient than Proof of Work.
The smallest unit of Bitcoin. One Bitcoin equals 100,000,000 satoshis. Named after Bitcoin's creator, Satoshi Nakamoto.
A series of 12 to 24 randomly generated words that acts as a master backup for your crypto wallet. Store it offline and never share it with anyone.
Self-executing code stored on a blockchain that automatically carries out an agreement when preset conditions are met — no middleman required.
A cryptocurrency pegged to a stable asset, usually the US dollar. Examples: USDT (Tether), USDC. Designed to maintain a consistent value of approximately $1.
Locking up cryptocurrency to help validate transactions on a Proof of Stake blockchain, in exchange for rewards.
A digital asset built on top of an existing blockchain (like Ethereum). Tokens often represent a utility, governance right, or share in a project.
The fee paid to have your crypto transaction processed and added to the blockchain. Varies by network and congestion.
The degree to which an asset's price fluctuates. Crypto is known for extreme volatility — prices can rise or fall dramatically in hours.
Software or hardware that stores the private and public keys needed to access and manage your cryptocurrency.
A technical document published by a crypto project explaining its purpose, technology, and plans. Bitcoin's whitepaper was published by Satoshi Nakamoto in 2008.