Your Questions Answered: 50 Crypto Terms Explained in Plain English

Why You Need to Know These Crypto Terms

The crypto world is full of buzzwords. From blockchain and wallets to DeFi and NFTs, understanding the language is step one to smart investing. If you’re just getting started, we also recommend reading our Beginner’s Guide to Buying Crypto.

50 Common Crypto Terms Explained

1. Bitcoin (BTC): The first and most well-known cryptocurrency.
2. Altcoin: Any cryptocurrency other than Bitcoin.
3. Blockchain: A public digital ledger where crypto transactions are recorded.
4. Wallet: A digital tool to store your cryptocurrency.
5. Private Key: Your secret password to access your crypto wallet.
6. Public Key: Your wallet’s address—shareable with others to receive crypto.
7. Exchange: Platforms like Coinbase where you buy/sell crypto.
8. Fiat: Traditional government-issued currency like USD or EUR.
9. Token: A type of cryptocurrency built on another blockchain (e.g., ERC-20 tokens).
10. DeFi: Decentralized Finance—financial services without banks.
11. Gas Fee: The fee for processing a transaction on the blockchain.
12. HODL: A misspelling of “hold” turned slang—means to keep crypto long-term.
13. FOMO: Fear Of Missing Out—buying crypto just because others are.
14. FUD: Fear, Uncertainty, Doubt—negative news or misinformation.
15. Mining: Solving complex problems to validate crypto transactions and earn coins.
16. Staking: Locking up crypto to earn rewards in proof-of-stake networks.
17. Proof of Work (PoW): A consensus method used by Bitcoin to validate transactions.
18. Proof of Stake (PoS): A newer, energy-efficient method for validating transactions.
19. Liquidity: How easily a crypto asset can be bought or sold.
20. Market Cap: The total value of a cryptocurrency in circulation.
21. Whale: Someone who holds large amounts of a cryptocurrency.
22. Bear Market: A period where prices are falling.
23. Bull Market: A period where prices are rising.
24. ATH: All-Time High—the highest price a coin has ever reached.
25. Bagholder: Someone holding onto a crypto that’s dropped significantly in value.
26. Rug Pull: A scam where developers abandon a project and take investors’ money.
27. ICO: Initial Coin Offering—a way to raise funds by selling a new crypto.
28. IEO: Initial Exchange Offering—an ICO hosted by an exchange.
29. Tokenomics: The economics behind how a token works.
30. Smart Contract: Self-executing code on the blockchain.
31. DAO: Decentralized Autonomous Organization—run by code, not people.
32. Metamask: A popular browser wallet for Ethereum and dApps.
33. Ledger: A hardware wallet for cold storage of crypto.
34. KYC: Know Your Customer—identity verification process on exchanges.
35. Stablecoin: Crypto tied to a stable asset like the USD.
36. APR: Annual Percentage Rate—what you earn in interest.
37. APY: Annual Percentage Yield—includes compounding of earnings.
38. dApp: Decentralized Application—runs on a blockchain, not a server.
39. Burn: Destroying tokens to reduce supply and increase value.
40. Cold Wallet: An offline wallet (like hardware) for secure storage.
41. Hot Wallet: An online wallet connected to the internet.
42. Yield Farming: Earning rewards by lending crypto on DeFi platforms.
43. Airdrop: Free distribution of tokens to promote a new crypto.
44. Gas Limit: Max amount of gas you’re willing to spend on a transaction.
45. Nonce: A unique number used to keep transactions in order.
46. Node: A computer that helps run the blockchain.
47. Halving: A Bitcoin event where mining rewards are cut in half.
48. Fork: A change in a blockchain that can split it into two versions.
49. Layer 1: Base blockchain (e.g., Ethereum).
50. Layer 2: Scaling solutions built on top of Layer 1 (e.g., Polygon).

What’s Next in Your Crypto Learning Journey?

Understanding these terms will help you make smarter crypto decisions. If you’re ready to dive deeper, check out our blog on Crypto Mistakes Beginners Should Avoid.

For real-time data and charts, websites like CoinGecko offer great tools to stay updated.