Glossary
A quick-reference library of crypto terms, explained in plain language. Each term links back to related guides and tutorials so you can learn as you explore.
Airdrop
A free distribution of cryptocurrency, usually as a promotion or reward.
Projects use airdrops to gain attention or reward users for holding or interacting with their platform.
Immutable
Once something is recorded on the blockchain, it can’t be changed.
This is what makes blockchain so secure and tamper-proof.
KYC (Know Your Customer)
The process of verifying a user’s identity before allowing them to use a crypto platform.
Usually involves ID and address checks.
Smart Contract
A bit of code that runs automatically when conditions are met.
Used to automate trades, loans, NFTs, and more — no middleman needed.
Stablecoin
A cryptocurrency tied to something stable, like USD.
Examples: USDT, USDC — designed to avoid big price swings.
Staking
A cryptocurrency tied to something stable, like USD.
Examples: USDT, USDC — designed to avoid big price swings.
Wallet
A tool (app, device, or extension) that stores your private keys.
Used to send, receive, and store crypto.
Altcoin
Any cryptocurrency that isn’t Bitcoin.
Includes everything from Ethereum to meme coins like Dogecoin.
Blockchain
A decentralised digital record of transactions, spread across many computers.
Every new entry is linked to the last — making it secure, transparent, and hard to alter.
Cold Wallet
A crypto wallet that is kept offline.
Used for secure long-term storage, often in the form of USB-like devices.
Custodial Wallet
A wallet where a third party (like an exchange) controls your private keys.
Easier to use but means you don’t have full control over your funds.
DeFi (Decentralised Finance)
Financial services built on blockchain — no banks or middlemen.
Examples: lending, borrowing, earning interest — all done with smart contracts.
Ethereum
A blockchain that allows you to build and run smart contracts and dApps.
ETH is its native currency and second only to Bitcoin in popularity.
Fiat Currency
Government-issued money like pounds, dollars, or euros.
The opposite of decentralised crypto like Bitcoin.
Gas Fees
The fee you pay to make a transaction on a blockchain.
On Ethereum, these fees go to miners or validators who process your request.
Genesis Block
The very first block in a blockchain.
Think of it as the “block zero” — where the whole chain began.
A unique string of letters and numbers created by a cryptographic function.
Used to secure data and confirm transactions.
HODL
Originally a typo of “hold,” now means “hold on for dear life.”
Crypto slang for keeping your coins long-term, no matter the ups and downs.
Hot Wallet
A wallet connected to the internet.
Easier to use for daily transactions but less secure than cold wallets.
ICO (Initial Coin Offering)
A way for crypto projects to raise money by selling tokens.
Like an IPO in stocks — but in crypto, it’s often early-stage and high risk.
Liquidity
How easily an asset can be bought or sold without affecting the price.
More liquidity = easier, faster trades.
Mining
Using computer power to confirm transactions and add them to the blockchain.
Miners are rewarded with crypto (like Bitcoin) for their work.
NFT (Non-Fungible Token)
A unique digital item stored on the blockchain — like art, music, or in-game assets.
Unlike coins or tokens, each one is one-of-a-kind.
Private Key
A computer that helps maintain the blockchain network.
Nodes store, verify, and share transaction data.
Public Key
The address you give others to receive crypto.
Works with your private key to approve transactions.
Tokenomics
The economics behind a crypto token — including supply, utility, inflation, and rewards.
Good tokenomics = a well-balanced project.
Volatility
How much the price of a crypto moves up or down.
Crypto is known for being more volatile than traditional finance.