Glossary of Crypto Terms

Comprehensive Glossary of Cryptocurrency Terms

A

  • Altcoin: Any cryptocurrency other than Bitcoin.
  • Address: A unique identifier used to send and receive cryptocurrency transactions.

B

  • Bitcoin (BTC): The first decentralized cryptocurrency created by an anonymous person or group known as Satoshi Nakamoto.
  • Blockchain: A decentralized digital ledger recording cryptocurrency transactions across multiple computers.
  • Block: A collection of data recording cryptocurrency transactions permanently added to the blockchain.

C

  • Cold Wallet: A cryptocurrency wallet not connected to the internet, used for secure storage.
  • Consensus Mechanism: Method used in blockchain networks to achieve agreement on a single data value.

D

  • Decentralized Finance (DeFi): Financial services built on blockchain technology, operating without intermediaries.
  • Decentralized Application (DApp): Applications running on a decentralized blockchain network.
  • Digital Wallet: Software or hardware device used to store, send, and receive cryptocurrencies.

E

  • Ethereum (ETH): Blockchain platform enabling smart contracts and decentralized applications.
  • Exchange: Online platform facilitating cryptocurrency trades and transactions.

F

  • Fork: A split in the blockchain, resulting in two separate chains and cryptocurrencies.

G

  • Gas: Transaction fee required to execute transactions and smart contracts on Ethereum and other blockchains.

H

  • Hash: A function converting an input of letters and numbers into an encrypted output of fixed length.
  • Hot Wallet: Cryptocurrency wallet connected to the internet for convenient access and transactions.

I

  • Initial Coin Offering (ICO): Crowdfunding method used by blockchain projects, offering new tokens for investment.

L

  • Ledger: Record of cryptocurrency transactions stored within a blockchain.
  • Liquidity: Ease of buying or selling a cryptocurrency without significantly affecting its price.

M

  • Mining: Process validating transactions and adding them to the blockchain, rewarded by newly created cryptocurrency.
  • Market Cap: Total market value of a cryptocurrency, calculated by multiplying current price by circulating supply.

N

  • Node: Computer connected to the blockchain network that validates and relays transactions.
  • Non-Fungible Token (NFT): Unique digital asset stored on a blockchain.

P

  • Private Key: Secure cryptographic key used to access and manage cryptocurrency holdings.
  • Public Key: Cryptographic key used to receive cryptocurrencies; publicly shared.

S

  • Smart Contract: Self-executing contracts with terms directly written into code on a blockchain.
  • Stablecoin: Cryptocurrency pegged to a stable asset like fiat currency or gold.

T

  • Token: Digital asset created and hosted on an existing blockchain.
  • Transaction: Transfer of cryptocurrency from one wallet address to another.

W

  • Wallet: Digital tool allowing users to store, manage, and transact cryptocurrencies securely.

Y

  • Yield Farming: Process of staking cryptocurrency to earn rewards or interest.