Glossary

Crypto terms explained like you are building your first mental map.

Crypto has a lot of vocabulary. This page gives you plain-English definitions so the rest of the site is easier to understand.

Blockchain

A public database shared across many computers. Instead of one company controlling the records, many nodes help verify and store them.

Bitcoin

The first major cryptocurrency. Many people view BTC as digital gold because it has a fixed maximum supply of 21 million coins.

Wallet

An app or device that lets you manage crypto. A wallet does not really hold coins like a physical wallet; it controls keys that can move coins on-chain.

Private Key

The secret code that proves ownership of crypto. If someone gets your private key, they can move your funds.

Seed Phrase

A backup phrase, usually 12 or 24 words, that can recover your wallet. Never type it into random websites or share it with anyone.

Gas Fee

A transaction fee paid to use a blockchain. It is like paying for space and computation on the network.

Market Cap

The total value of a coin based on price times circulating supply. In Python terms, market_cap = price * supply.

Liquidity

How easily an asset can be bought or sold without moving the price too much. Low liquidity can make prices swing hard.

Stablecoin

A crypto token designed to track another asset, usually the U.S. dollar. USDC and USDT are common examples.

Memecoin

A coin based mostly on internet culture, jokes, or attention. Some pump hard, but many collapse when hype disappears.

NFT

A unique token that represents ownership of a specific digital item, membership, collectible, ticket, or other asset.

Perpetual Futures

A futures-style trading contract with no expiration date. Traders use perps to go long, short, and often use leverage.

Leverage

Borrowed exposure that makes wins and losses bigger. Leverage can liquidate an account quickly if the trade moves against you.

Liquidation

When a leveraged trade is automatically closed because the trader no longer has enough collateral to keep it open.

Airdrop

A token distribution to users, often as a reward for using a protocol early or completing certain actions.

Token Unlock

When previously locked tokens become available to sell or move. Big unlocks can create supply pressure.

Floor Price

For NFTs, the cheapest listed item in a collection. It is often treated like the collection's basic market price.

Wash Trading

Fake or misleading trading activity, often created when someone trades with themselves to make demand look stronger than it is.

Beginner tip

When you see a new crypto word, ask two questions: what problem does it describe, and who benefits from it? That habit keeps you from memorizing buzzwords without understanding the system.

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