Your crypto glossary
Clear definitions for the words that matter.
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C
D
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A
Address
A string of letters and numbers that shows where crypto can be sent on a blockchain, similar to an account number.
Address whitelisting
Limiting withdrawals to a pre-approved list of addresses.
Airdrop
A distribution of free tokens to wallet holders, often used to promote a new project or reward existing users.
All-Time High
The highest price an asset has ever reached.
Altcoin
Any cryptocurrency other than Bitcoin.
Anti-Money Laundering
A set of laws and procedures designed to detect and prevent the movement of funds linked to criminal activity.
Application Programming Interface
A set of rules that lets software applications share data and interact, often used to connect trading tools to an exchange.
Arbitrage
Profiting from price differences for the same asset across markets.
Avalanche
The native asset of the Avalanche blockchain, known for fast finality.
B
Bagholder
Someone left holding an asset that has fallen sharply in value.
Bear market
A prolonged period of falling prices and negative sentiment.
Bid and ask price
The prices buyers offer and sellers accept for an asset.
Bid-ask spread
The gap between the highest buy price and the lowest sell price.
Bitcoin
The first cryptocurrency, launched in 2009 by the pseudonymous Satoshi Nakamoto.
Bitcoin Cash
A cryptocurrency created from a 2017 split, or fork, of Bitcoin.
Block
A batch of transaction data recorded on a blockchain.
Block reward
The new coins paid to whoever adds a block to a blockchain.
Blockchain
A shared digital ledger that records transactions across a network of computers.
Bull market
A prolonged period of rising prices and positive sentiment.
C
Candlestick
A chart element showing an asset’s open, close, high and low.
Cardano
The native asset of the Cardano blockchain, a Proof of Stake network.
Central Bank Digital Currency
A digital form of a country’s official currency issued by its central bank.
Chainlink
A network and token that connects smart contracts to real-world data.
Circulating supply
The number of coins currently available and in public hands.
Cold storage
Keeping crypto offline to reduce the risk of online theft.
Confirmation
When a transaction is included in a block and accepted by the network.
Consensus mechanism
The method a blockchain network uses to agree on which transactions are valid.
Cross-chain bridge
A tool that moves assets or data between different blockchains.
Crypto Asset Service Provider
A business that offers crypto services such as trading or custody.
Cryptocurrency
A digital asset secured by cryptography that can be transferred across a peer-to-peer network.
Cryptography
The science of securing information using mathematics.
Custodial wallet
A wallet where a third party holds your private keys.
Custody
The safekeeping of crypto assets, either by yourself or by a third party.
D
Decentralisation
Spreading control across a network rather than a single authority.
Decentralised application
An application that runs on a blockchain rather than a central server.
Decentralised autonomous organisation
An organisation run by rules coded on a blockchain and member voting.
Decentralised Exchange
A crypto marketplace where users trade directly from their own wallets without a central operator holding funds.
Decentralised Finance
Financial services built on blockchains that run without traditional intermediaries.
Derivative
A contract whose value is based on an underlying asset.
Diamond hands
Slang for holding an asset firmly through ups and downs.
Digital asset
Anything of value that exists in digital form.
Distributed ledger technology
Technology that records data across many computers at once.
Do Your Own Research
A common reminder to investigate a project independently before making decisions.
Dogecoin
A cryptocurrency that began as an internet joke and built a large community.
Dollar cost averaging
Investing a fixed amount at regular intervals regardless of price.
Double spending
Spending the same crypto more than once.
E
F
Fear of Missing Out
The anxiety that drives people to buy an asset because its price is rising quickly.
Fear, Uncertainty and Doubt
Negative sentiment or information that spreads worry in the market.
Fiat
Government-issued money such as the rand, naira, ringgit or rupiah.
Financial Sector Conduct Authority
South Africa’s regulator for the conduct of financial services.
Fork
A change to a blockchain's rules that can split it into two paths.
Fully diluted valuation
An asset’s value if its entire supply were in circulation.
Fundamental analysis
Assessing an asset’s value from its underlying qualities.
Futures contract
An agreement to buy or sell an asset at a set price and date.
G
H
Halving
A scheduled event that cuts the reward for mining new Bitcoin blocks in half.
Hardware wallet
A physical device that stores your private keys offline.
Hash
A fixed-length string produced by running data through a mathematical function.
HODL
Slang for holding crypto rather than selling, originating from a misspelling of hold.
Hot wallet
A crypto wallet connected to the internet.
I
L
Layer 2
A network built on top of a blockchain to make transactions faster and cheaper.
Ledger
A record of transactions; on a blockchain it is shared across the network.
Leverage
Using borrowed funds to increase the size of a position.
Limit order
An order to buy or sell at a specific price or better.
Liquidity
How easily an asset can be bought or sold without moving its price much.
Litecoin
An early cryptocurrency created as a lighter, faster alternative to Bitcoin.
M
Mainnet
The live, fully operational version of a blockchain.
Maker and taker
Roles for adding liquidity to an order book or taking it away.
Margin trading
Trading with borrowed funds, using your assets as collateral.
Market capitalisation
The total value of a cryptocurrency, found by multiplying its price by its circulating supply.
Market order
An order to buy or sell immediately at the best available price.
Maximum supply
The largest number of coins that will ever exist for an asset.
Merkle tree
A structure that organises data so it can be verified efficiently.
Metaverse
Shared, persistent virtual spaces people can interact in.
Mining
The process of validating transactions and creating new blocks on a Proof of Work network.
Moon
Slang for a sharp rise in an asset’s price.
Multi-signature
A wallet setup that needs more than one approval to move funds.
N
O
P
Paper hands
Slang for selling an asset quickly, often at the first sign of trouble.
Peer-to-peer
Direct exchange between two parties without a central intermediary.
Phishing
A scam that tricks you into revealing passwords or keys.
Polkadot
The native asset of Polkadot, a network that connects many blockchains.
Polygon
A network and token built to make Ethereum transactions faster and cheaper.
Portfolio
The full collection of assets a person holds.
Private key
A secret code that lets you access and control your crypto. Never share it.
Proof of Reserves
A check that shows a platform holds enough assets to cover balances.
Proof of Stake
A consensus method where validators are chosen based on the amount of crypto they lock up.
Proof of Work
A consensus method where miners solve puzzles to validate transactions.
Public key
A code derived from your private key that others use to send you crypto.
Pump and dump
A scheme that inflates a price then sells off, leaving others with losses.
R
Recurring buy
An automatic, repeating purchase of crypto on a set schedule.
Rekt
Slang for suffering heavy losses.
Return on Investment
A measure of the gain or loss on an investment relative to its cost.
Rollup
A Layer 2 method that bundles many transactions into one.
Rug pull
A scam where a project’s team abandons it and takes investors’ funds.
S
Sanctions screening
Checking transactions and users against official sanctions lists.
Satoshi
The smallest unit of Bitcoin, equal to one hundred millionth of a bitcoin.
Sats
Short for satoshis, the smallest units of Bitcoin.
Seed phrase
A list of words that can restore access to your wallet. Keep it private and offline.
Sharding
Splitting a blockchain into parts to handle more transactions.
Sidechain
A separate blockchain linked to a main chain.
Slippage
The difference between an expected trade price and the price you get.
Smart contract
Code that runs automatically on a blockchain when set conditions are met.
Solana
The native asset of the Solana blockchain, known for high speed and low fees.
Spot trading
Buying or selling crypto for immediate settlement at the current price.
Stablecoin
A cryptocurrency designed to hold a steady value, often tied to a currency like the US dollar.
Staking
Locking up crypto to help secure a Proof of Stake network and earn rewards.
Stellar
A network and asset (XLM) built for low-cost cross-border payments.
Stop-loss order
An order that sells automatically if the price falls to a set level.
T
Technical analysis
Studying price charts and patterns to inform trading decisions.
Testnet
A trial version of a blockchain used to test features without real funds.
Tether
A stablecoin designed to track the value of the US dollar.
Token
A digital asset issued on an existing blockchain.
Token burn
Permanently removing tokens from circulation.
Tokenisation
Representing a real-world or digital asset as a token on a blockchain.
Tokenised stocks
Digital tokens that track the price of traditional company shares.
Tokenomics
The design of a token’s supply, distribution and incentives.
Total supply
All coins that exist now, minus any that have been burned.
Trading pair
Two assets that can be traded against each other.
Transaction fee
A small charge paid to process a transaction on a network.
Travel Rule
A requirement to share sender and recipient details for certain transfers.
Two-factor authentication
A security step that requires a second form of verification when logging in.
V
W
Wallet
A tool that stores the keys used to send and receive crypto.
Web3
A vision of the internet built on blockchains and user ownership.
Whale
A person or entity that holds a very large amount of a cryptocurrency.
Whitepaper
A document that explains a crypto project’s purpose and design.
Wrapped token
A token that represents another asset on a different blockchain.