A–Z crypto reference: blockchain, tokens, wallets, custody, exchanges, DeFi, staking, and on-chain concepts.
Foundational terminology for cryptocurrency, blockchain, token economics, and decentralized finance — 174 terms, arranged alphabetically. Definitions are concise and educational.
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This glossary explains crypto-specific concepts involving blockchain networks, tokens, wallets, custody, exchanges, decentralized finance, staking, derivatives, on-chain data, and security. For triggered technical conditions such as Bitcoin dominance breakouts, funding-rate signals, liquidation signals, and momentum divergences, see the Market Signals Glossary.
Protocol rules, market conventions, legal classifications, and data-provider methodologies can differ.
Airdrop
A distribution of crypto tokens to eligible wallet addresses, often used to reward users, promote adoption, or decentralize ownership.
Algorithmic stablecoin
A stablecoin that attempts to maintain its target value through programmed supply adjustments, incentives, or collateral mechanisms rather than relying only on cash reserves.
All-time high (ATH)
The highest recorded market price reached by a crypto asset.
All-time low (ATL)
The lowest recorded market price reached by a crypto asset.
Altcoin
Any cryptocurrency other than Bitcoin, although the term is sometimes used more narrowly for non-Bitcoin and non- Ethereum assets.
Annual percentage rate (APR)
An annualized rate that generally does not include the effect of compounding.
Annual percentage yield (APY)
An annualized rate that includes the effect of compounding, assuming rewards are reinvested.
Application-specific blockchain
A blockchain designed primarily for one application, protocol, or specialized use case.
ASIC
Application-specific integrated circuit; specialized hardware designed for a narrow task, such as mining a particular cryptocurrency.
Automated market maker (AMM)
A decentralized trading mechanism that prices assets using a formula and liquidity pools instead of a traditional order book.
Base layer
The underlying blockchain network on which transactions are settled and other applications or scaling systems may be built.
Bear market
A sustained period of declining crypto prices, weaker risk appetite, and generally negative market sentiment.
Bitcoin
The first widely adopted decentralized cryptocurrency and the native asset of the Bitcoin network.
Bitcoin dominance
Bitcoin's market capitalization as a percentage of the total cryptocurrency market capitalization.
Block
A data structure containing a group of validated transactions and other network information.
Block explorer
A website or application used to inspect blockchain transactions, addresses, blocks, fees, and other on-chain data.
Block height
The sequential number of a block in a blockchain, measured from the first block.
Block reward
Newly issued cryptocurrency and transaction fees awarded to a miner or validator for producing or confirming a block.
Block time
The average time a blockchain takes to produce or finalize a new block.
Blockchain
A shared digital ledger in which transactions are recorded in linked blocks and maintained by a network of participants.
Bridge
A protocol that transfers or represents assets and data between different blockchain networks.
Bull market
A sustained period of rising crypto prices, stronger risk appetite, and generally positive market sentiment.
Burn
The permanent removal of tokens from usable supply, usually by sending them to an inaccessible address or invoking a protocol function.
Central bank digital currency (CBDC)
A digital form of sovereign currency issued or backed by a central bank.
Centralized exchange (CEX)
A company-operated platform that matches crypto trades and commonly holds customer assets in custody.
Circulating supply
The number of units of a crypto asset currently available and circulating in the market.
Coin
A crypto asset native to its own blockchain, such as BTC on Bitcoin or ETH on Ethereum.
Cold storage
Keeping private keys offline to reduce exposure to internet-based attacks.
Cold wallet
A wallet whose private keys are stored offline, often on hardware or paper.
Collateral
Assets pledged to secure a loan, derivatives position, or stablecoin issuance.
Consensus layer
The part of a blockchain protocol responsible for agreement among network participants about valid blocks and state.
Consensus mechanism
The rules and processes a blockchain uses to agree on valid transactions and the state of the ledger.
Cross-chain
Involving communication, transfers, or activity across more than one blockchain.
Crypto asset
A digitally represented asset that relies on blockchain or similar distributed-ledger technology.
Crypto market capitalization
A crypto asset's current price multiplied by its circulating supply.
Custodial wallet
A wallet in which a third party controls the private keys on behalf of the user.
Custody
The safeguarding and administration of crypto assets and the private keys that control them.
DAO
Decentralized autonomous organization; a blockchain-based organization coordinated through smart contracts, governance rules, and token-holder participation.
dApp
Decentralized application; an application whose core functions operate through smart contracts or a distributed network.
Decentralized exchange (DEX)
A crypto trading venue that allows users to trade through smart contracts without a traditional central intermediary.
Decentralized finance (DeFi)
Financial services delivered through blockchain-based protocols, including trading, lending, borrowing, and asset management.
Delegated proof of stake (DPoS)
A consensus model in which token holders elect a limited group of delegates or validators to produce blocks.
Delegation
Assigning staking power to a validator while retaining ownership of the underlying tokens.
Derivatives
Contracts whose value is based on an underlying crypto asset, index, rate, or event.
Difficulty
A measure of how hard it is for miners to find a valid block under a proof-of-work system.
Difficulty adjustment
A protocol change that raises or lowers mining difficulty to keep block production near a target rate.
Distributed ledger
A synchronized record of transactions maintained across multiple computers or nodes.
Double-spend
An attempt to use the same digital asset more than once.
Emission
The rate or process through which new tokens enter circulation.
Epoch
A defined period or group of blocks used by some blockchains for validator selection, rewards, or protocol accounting.
ERC-20
A widely used Ethereum token standard for fungible tokens.
ERC-721
A widely used Ethereum token standard for non-fungible tokens.
Ether (ETH)
The native crypto asset of the Ethereum network.
Ethereum
A programmable blockchain platform that supports smart contracts, tokens, and decentralized applications.
Exchange inflow
Crypto transferred into exchange-controlled wallets, sometimes interpreted as potential selling supply.
Exchange outflow
Crypto transferred from exchanges to external wallets, sometimes interpreted as accumulation or long-term custody.
Execution layer
The part of a blockchain system that processes transactions and executes smart-contract logic.
Fiat-backed stablecoin
A stablecoin supported by reserves intended to match its circulating value, commonly using cash or short-term government securities.
Finality
The point at which a blockchain transaction is considered irreversible or extremely unlikely to be reversed.
Flash loan
An uncollateralized DeFi loan that must be borrowed and repaid within the same blockchain transaction.
Fork
A change or split in blockchain rules that may create a new software version or, in some cases, a separate network.
Fully diluted valuation (FDV)
Current token price multiplied by the maximum or total potential supply used by the data provider.
Funding rate
A periodic payment between long and short perpetual-futures traders designed to keep contract prices near the spot market.
Fungible token
A token whose units are interchangeable with one another.
Futures contract
An agreement to buy or sell an asset at a future date or according to contract terms, often with leverage.
Gas
A unit used to measure the computational work required to process transactions or smart contracts on certain blockchains.
Gas fee
The amount paid to a blockchain network for processing a transaction or executing a smart contract.
Genesis block
The first block in a blockchain.
Governance token
A token that may give holders voting or proposal rights within a protocol or decentralized organization.
Halving
A programmed reduction in the block reward or new-issuance rate of certain cryptocurrencies.
Hardware wallet
A physical device designed to store private keys and authorize crypto transactions securely.
Hash
A fixed-length output generated from input data by a cryptographic function.
Hash rate
The amount of computational work performed by proof-of-work miners over a specified period.
Hot wallet
A wallet connected to the internet, offering convenience but greater exposure to online threats.
Impermanent loss
A potential reduction in the value of assets supplied to an automated market maker compared with simply holding those assets.
Initial coin offering (ICO)
A token sale used to raise funding for a crypto project, typically before or near launch.
Initial DEX offering (IDO)
A token launch or sale conducted through a decentralized exchange or launch platform.
Initial exchange offering (IEO)
A token sale administered through a centralized crypto exchange.
Interoperability
The ability of different blockchain networks, protocols, or applications to exchange data and assets.
Know your customer (KYC)
Identity-verification procedures used by financial institutions and crypto service providers to comply with laws and manage risk.
Layer 1
A base blockchain network that processes and settles transactions.
Layer 2
A system built on top of a base blockchain to improve speed, cost, or scalability while relying on the base layer for settlement or security.
Leverage
The use of borrowed funds or derivatives to increase market exposure relative to posted capital.
Light client
Software that verifies selected blockchain information without storing and processing the complete ledger.
Liquid staking
A staking arrangement that issues a transferable token representing a staked position and its associated rewards or claims.
Liquidation
The forced closing of a leveraged position when collateral falls below required levels.
Liquidity
The ease with which a crypto asset can be traded without materially affecting its price.
Liquidity mining
The distribution of token rewards to users who provide liquidity to a protocol.
Liquidity pool
Crypto assets deposited into a smart contract to facilitate trading, lending, or other decentralized-finance activity.
Long position
A position that generally benefits when the underlying crypto asset rises in price.
Mainnet
A blockchain's live production network where transactions have real economic value.
Market capitalization
Current token price multiplied by circulating supply.
Maximum extractable value (MEV)
Value that block producers or other participants may capture by selecting, ordering, inserting, or excluding transactions.
Maximum supply
The highest number of units that can exist under a crypto asset's protocol rules.
Mempool
A collection of valid but not yet confirmed transactions waiting to be included in a block.
Merkle tree
A cryptographic structure that efficiently summarizes and verifies large sets of data.
Mining
The process by which proof-of-work participants use computing power to validate transactions and compete to produce blocks.
Mining pool
A group of miners who combine computing power and share rewards according to agreed rules.
Minting
The creation or issuance of new tokens or non-fungible tokens.
Multisignature wallet
A wallet that requires approval from more than one private key before a transaction can be executed.
Native token
The primary asset built into a blockchain and used for functions such as fees, staking, or network incentives.
Network fee
A payment made to process a transaction on a blockchain.
Node
A computer or software instance that connects to a blockchain network and may store, relay, or validate data.
Non-custodial wallet
A wallet in which the user controls the private keys.
Non-fungible token (NFT)
A blockchain-based token representing a distinct item, right, or ownership record.
Nonce
A value used once in cryptographic or blockchain processes, including transaction ordering and proof-of-work mining.
Off-chain
Activity or data handled outside the main blockchain ledger.
On-chain
Activity or data recorded directly on a blockchain.
On-chain data
Blockchain-recorded information such as transfers, wallet balances, fees, active addresses, and network usage.
Open interest
The total number or value of outstanding derivatives contracts that have not been closed or settled.
Optimistic rollup
A Layer 2 system that posts transaction data to a base chain and generally assumes transactions are valid unless challenged.
Oracle
A service that supplies external data, such as prices or events, to a blockchain or smart contract.
Order book
A list of outstanding buy and sell orders organized by price.
Peer-to-peer (P2P)
Direct interaction or transfer between participants without a traditional central intermediary.
Permissioned blockchain
A blockchain network in which participation or validation is restricted to approved entities.
Permissionless blockchain
A blockchain network that generally allows anyone to transact, develop, or participate under its protocol rules.
Perpetual futures
Futures-like derivatives without an expiration date, commonly kept near spot prices through funding payments.
Private key
A secret cryptographic credential used to authorize transactions and control crypto assets.
Proof of authority (PoA)
A consensus model in which approved validators produce blocks based on their authorized identity or role.
Proof of stake (PoS)
A consensus model in which validators commit eligible tokens to help secure the network and may earn rewards.
Proof of work (PoW)
A consensus model in which miners use computational resources to validate transactions and compete to produce blocks.
Protocol
A set of technical rules governing how a blockchain or decentralized application operates.
Public key
A cryptographic value derived from a private key and used to generate addresses or verify signatures.
Realized capitalization
An on-chain valuation measure that values units based on the price at which they last moved, subject to the provider's methodology.
Rebase token
A token whose supply automatically expands or contracts according to programmed rules.
Recovery phrase
A sequence of words used to restore access to a crypto wallet; also called a seed phrase.
Restaking
Using already staked assets or staking claims to help secure additional protocols or services, potentially adding new rewards and risks.
Rollup
A Layer 2 scaling system that processes transactions outside the base chain and submits compressed data or proofs back to it.
Rug pull
A fraud or project failure in which developers or insiders abruptly remove liquidity, abandon the project, or otherwise leave holders with major losses.
Satoshi
The smallest standard unit of Bitcoin, equal to one hundred-millionth of a BTC.
Seed phrase
A sequence of words that can restore a crypto wallet and its private keys.
Self-custody
Direct control of crypto assets through possession of the relevant private keys.
Sequencer
An entity or system that orders and batches transactions for certain Layer 2 networks.
Short position
A position that generally benefits when the underlying crypto asset falls in price.
Sidechain
A separate blockchain connected to another network through a bridge or two-way transfer mechanism.
Slashing
A proof-of-stake penalty that removes some or all of a validator's staked assets for prohibited or faulty behavior.
Slippage
The difference between an expected trade price and the actual execution price.
Smart contract
Code deployed on a blockchain that automatically executes defined rules or transactions.
Spot market
A market in which crypto assets are bought or sold for immediate settlement rather than through derivatives.
Stablecoin
A crypto asset designed to maintain a relatively stable value, often by referencing a fiat currency or another reserve asset.
Staking
Committing eligible tokens to support a proof-of-stake network, often in exchange for rewards.
Staking pool
A service or smart contract that combines tokens from multiple participants for staking.
State channel
A scaling method that allows participants to conduct multiple off-chain interactions and later settle the final state on- chain.
Synthetic asset
A blockchain-based token or derivative designed to track the value of another asset or reference.
Testnet
A blockchain network used for testing applications and protocol changes without using mainnet assets.
Token
A digital unit recorded on a blockchain that may represent utility, governance, ownership, access, or another function.
Token allocation
The planned distribution of a token supply among investors, founders, employees, communities, treasuries, and other groups.
Token burn
The permanent removal of tokens from usable supply.
Token generation event (TGE)
The event at which a project's tokens are created, issued, or first made available.
Token holder
A person or entity that controls units of a crypto token.
Token standard
A technical specification defining how a class of tokens behaves and interacts with wallets or applications.
Token unlock
The release of previously restricted or vested tokens into transferable supply.
Tokenomics
The supply rules, distribution, incentives, utility, governance, and economic design of a token.
Total supply
The number of tokens created minus tokens permanently removed, subject to the data provider's methodology.
Total value locked (TVL)
The value of assets deposited in a DeFi protocol or group of protocols, based on the provider's methodology.
Transaction hash
A unique identifier for a blockchain transaction.
Transaction throughput
The number of transactions a network can process over a specified period.
Treasury
Assets controlled by a protocol, foundation, company, or decentralized organization for operations, incentives, or development.
Unbonding period
The waiting period between requesting a staking withdrawal and regaining transferable access to the tokens.
Unconfirmed transaction
A transaction that has been broadcast but not yet included in a finalized or sufficiently confirmed block.
Utility token
A token designed primarily to provide access to a product, service, network function, or protocol feature.
UTXO
Unspent transaction output; a discrete unit of cryptocurrency available to be used as an input in a future transaction.
Validator
A network participant that verifies transactions and may propose or attest to blocks in a proof-of-stake or related system.
Validator set
The group of validators eligible to participate in a blockchain's consensus process.
Vesting
A schedule or conditions determining when tokens become owned, transferable, or claimable.
Virtual machine
The execution environment used by a blockchain to run smart-contract code.
Wallet
A system that manages blockchain addresses and the private keys used to authorize transactions.
Wallet address
A public identifier used to receive crypto assets or interact with blockchain applications.
Web3
A broad term for internet applications and services that use blockchains, tokens, decentralized identity, or user- controlled digital assets.
Whale
An informal term for a holder or trader with a very large crypto position.
Wrapped token
A tokenized representation of another asset designed for use on a different blockchain or protocol.
Yield farming
Moving or depositing crypto assets across DeFi protocols to earn interest, fees, or token incentives.
Zero-knowledge proof
A cryptographic method that allows one party to prove a statement without revealing the underlying private information.
Zero-knowledge rollup
A Layer 2 system that batches transactions and submits cryptographic validity proofs to a base blockchain.
Important note: This glossary is provided for educational purposes only. It does not constitute investment, legal, tax, cybersecurity, or financial advice. Crypto assets and decentralized protocols can involve substantial volatility, technology risk, custody risk, smart-contract risk, regulatory uncertainty, and possible total loss.