Getting started
New to crypto? Here are 109 common terms and bits of jargon, explained simply. No prior knowledge needed. Search for a word you've seen, or start with the essentials below.
Any cryptocurrency other than Bitcoin.
Short for 'alternative coin'. It covers everything from large, established projects like Ethereum and Solana to tiny, highly speculative tokens. Smaller altcoins usually swing much more in price than Bitcoin.
The first and largest cryptocurrency, created in 2009, with a fixed maximum supply of 21 million coins.
Bitcoin was designed as peer-to-peer electronic cash. Because new coins are released on a fixed, shrinking schedule and the total can never exceed 21 million, many people treat it as 'digital gold', a store of value.
A shared digital record of every transaction, copied across thousands of computers so no one can secretly change it.
Transactions are grouped into 'blocks', and each block is linked to the one before it, forming a chain. Changing an old entry would mean redoing every block after it on most of the network's computers at once, which is practically impossible on large blockchains.
In everyday termsThink of a notebook that everyone in town has an identical copy of. If someone scribbles in theirs, everyone else's copies show it's wrong.
A cryptocurrency that is the native currency of its own blockchain, like BTC on Bitcoin or ETH on Ethereum.
Digital money that runs on a public computer network instead of being issued or controlled by a bank or government.
Ownership is recorded on a blockchain, a shared record that thousands of computers keep in sync. Anyone can check it and no single company can change it. Bitcoin was the first; there are now thousands.
In everyday termsSending crypto is a bit like sending an email: it goes directly from you to the recipient, with no bank in the middle.
The second-largest blockchain: a global platform for running apps and smart contracts, with Ether (ETH) as its currency.
Bitcoin mainly moves value. Ethereum lets developers build programs on top of it, powering DeFi, NFTs, stablecoins and much more. ETH pays for the computing work, in the form of gas fees.
Traditional government-issued money, like US dollars, Australian dollars or euros.
Crypto platforms talk about 'fiat on-ramps' (turning your dollars into crypto) and 'fiat off-ramps' (turning crypto back into dollars in your bank account).
The smallest unit of Bitcoin: one hundred-millionth of a BTC (0.00000001 BTC).
Named after Bitcoin's anonymous creator, Satoshi Nakamoto. You don't need to buy a whole bitcoin; you can buy any amount down to individual sats.
A token designed to always be worth a fixed amount, usually US$1, so it doesn't swing in price like other crypto.
Most large stablecoins (USDT, USDC) are backed by cash and short-term government bonds held by the issuing company. They are widely used to park money between trades or to send dollars around the world quickly. Stablecoins carry their own risks: the issuer must actually hold the reserves, and some designs have failed in the past.
In everyday termsLike a casino chip that's always worth $1, but one you can move anywhere in the world in seconds.
A digital asset created on top of an existing blockchain, rather than having a blockchain of its own.
For example, USDC and UNI are tokens that live on Ethereum. Tokens can represent a currency, voting rights in a project, access to a service, or ownership of something. 'Coin' usually means an asset native to its own blockchain, like BTC or ETH, though people often use the words interchangeably.
A wallet that keeps your keys offline, usually a small hardware device, making it much harder to hack.
Hardware wallets like Ledger or Trezor sign transactions inside the device, so your keys never touch your internet-connected computer. They are recommended for larger, long-term holdings.
Custodial means a company (like an exchange) holds your crypto for you; self-custody means you hold the keys yourself.
Custodial is easier: you can reset a password. But you depend on the company staying solvent and honest, as customers of collapsed exchanges like FTX learned. Self-custody removes that risk but makes you fully responsible for your seed phrase.
In everyday terms"Not your keys, not your coins" is the crypto saying for this.
A wallet connected to the internet, such as a phone app or browser extension: convenient, but more exposed to hacks.
Good for small amounts you use regularly. Examples include MetaMask, Phantom and the wallets built into exchange apps.
A secret code that gives full control over the crypto in a wallet. Whoever has it owns the funds.
Wallet apps handle private keys for you behind the scenes. You will almost never see it directly; you'll see a seed phrase instead, which generates your keys.
Your wallet's 'account number': a long string of characters you can safely share so people can send you crypto.
Addresses look like 0x71C7…976F or bc1q…. Always copy and paste them, never type them by hand, and double-check the first and last few characters, because a crypto transaction sent to the wrong address can't be reversed.
A list of 12 or 24 ordinary words that can restore your entire wallet. It is the master key to your crypto.
Write it on paper (or stamp it in metal) and store it somewhere safe and offline. Never type it into a website, never photograph it, and never share it with anyone, including 'support staff'. No legitimate company will ever ask for it.
In everyday termsIf your phone is lost, the seed phrase brings your wallet back. If a scammer gets it, they can empty your wallet from anywhere in the world.
Holding your own crypto keys in your own wallet, instead of leaving coins with an exchange.
A second login step (usually a code from an app on your phone) so a stolen password alone can't get into your account.
Use an authenticator app or hardware security key rather than SMS codes where possible; scammers can hijack phone numbers through 'SIM swapping'.
An app or device that holds the keys that control your crypto. The coins themselves always stay on the blockchain.
A wallet doesn't store coins the way a leather wallet stores cash. It stores your private keys, which prove you own the coins and let you send them. Lose the keys and you lose access; share them and someone else can take everything.
In everyday termsThe blockchain is a giant wall of locked mailboxes anyone can see. Your wallet holds the only key to yours.
A crypto exchange run by a company that holds customers' funds, such as Coinbase, Kraken or Binance.
They are usually the easiest way to turn dollars into crypto, but you're trusting the company with your money. Check its regulatory status, security record and proof of reserves.
An exchange with no company in the middle: you trade directly from your own wallet through smart contracts.
Examples: Uniswap, Curve. Most spot DEXs price trades from liquidity pools; some on-chain exchanges, such as Hyperliquid, use order books. Aggregators like Jupiter route across many DEXs. DEXs let you trade almost any token, but you pay network gas fees and must watch out for fake tokens and slippage.
Buying a fixed dollar amount at regular intervals (say, $50 every week) instead of all at once.
It spreads your purchases over many prices, so you don't have to guess the 'right' moment. It doesn't remove the risk of the asset falling over the long term.
A platform where you buy, sell and trade crypto, like a stock brokerage for digital assets.
Centralized exchanges (CEXs) such as Coinbase, Kraken or Binance are companies that hold your funds and match buyers with sellers. Decentralized exchanges (DEXs) let you trade directly from your own wallet using smart contracts. Compare them on our Choosing a platform page.
Contracts that let traders bet on a coin's future price (up or down) without owning the coin, usually with leverage.
Perpetual futures ('perps') never expire. Holders pay or receive a periodic 'funding rate' that keeps the contract price close to the real price. These are complex, high-risk products.
The identity check (ID and sometimes proof of address) that regulated exchanges must do before you can trade.
It's a legal requirement aimed at preventing money laundering. Be wary of platforms that let you deposit large amounts with no checks at all; that often means they're unregulated.
Trading with borrowed money to make a bigger bet than your own funds allow. It multiplies both gains and losses.
With 10x leverage, a 10% move against you can wipe out your entire position. Leveraged trading is among the fastest ways beginners lose money, and many regulators restrict it for retail customers.
An order to buy or sell only at a price you choose (or better). It waits until the market reaches that price.
Gives you control over price, but the order might never fill if the market doesn't get there. Limit orders that rest on the book usually pay the lower 'maker' fee.
When a leveraged position or loan is automatically closed because losses ate through the deposit backing it.
You typically lose most or all of the money you put up. Large waves of liquidations can cause sudden, sharp price moves across the market.
Exchange trading fees. 'Takers' trade instantly against existing orders and pay more; 'makers' add new orders to the book and usually pay less.
If you place a market order, you're a taker. If you place a limit order that waits on the book, you're a maker. Fees often drop as your monthly trading volume grows. Our Choosing a platform page calculates the fee for your trade size.
An order to buy or sell immediately at the best price currently available.
Fast and simple, but on a fast-moving or thinly traded asset you may get a worse price than you saw. Market orders usually pay the higher 'taker' fee.
Ways to move money between your bank account and crypto: on-ramps turn dollars into crypto, off-ramps turn crypto back into dollars.
The live list of everyone's buy and sell orders for an asset, showing who wants to buy or sell at which price.
Going 'long' means betting the price will rise; going 'short' means betting it will fall.
The difference between the price you expected and the price you actually got, because the market moved or there wasn't enough liquidity.
Common on DEXs and with small tokens. Most DEXs let you set a maximum slippage tolerance; setting it very high can expose you to bad fills.
The gap between the highest price buyers will pay and the lowest price sellers will accept: a hidden cost of trading.
'Instant buy' buttons in many apps quote a price that includes a wider spread on top of any visible fee, which can make them noticeably more expensive than trading on the order book.
The highest price an asset has ever reached.
Bitcoin's share of the total crypto market's value, as a percentage.
Rising dominance often means money is moving into Bitcoin as the 'safer' option; falling dominance can mean appetite for riskier altcoins is growing.
A bull market is a sustained period of rising prices and optimism; a bear market is a long period of falling prices and pessimism.
A fund you can buy on the regular stock market that holds an asset for you, such as a spot Bitcoin ETF that holds real bitcoin.
ETFs let people get crypto price exposure through a normal brokerage account without managing wallets. Big daily inflows or outflows from Bitcoin ETFs are closely watched as a sign of institutional demand. Spot ether, Solana and XRP ETFs have also launched in the US.
A 0–100 gauge of overall crypto market mood, from 'Extreme Fear' (0) to 'Extreme Greed' (100).
Built by Alternative.me from volatility, momentum and volume, social media, Bitcoin dominance and search trends. It describes the mood; it doesn't predict what comes next. Shown on our Markets page.
Our 0–100 measure of how much attention a coin is getting right now, based on trading activity, price movement and search trends.
A high hype score means lots of people are watching and trading a coin, and often that big swings are happening in both directions. It's not a buy or sell signal.
How easily you can buy or sell an asset quickly without pushing its price around.
Bitcoin is highly liquid. A tiny token with little trading may be 'illiquid': selling even a modest amount could crash its price, or there may be no buyers at all.
The total value of all coins in circulation: price × circulating supply. It's the usual way to rank how big a crypto is.
A $1 coin with 10 billion tokens out there (market cap $10B) is 'bigger' than a $1,000 coin with 1 million tokens ($1B). A low price per coin doesn't make something cheap.
In everyday termsBitcoin has the largest market cap of any crypto, which is why it ranks #1 on our Markets page.
The total value of crypto deposited into a DeFi app or blockchain: a rough measure of how much money is using it.
When TVL flows from one chain or app to another, it shows where capital is moving. Our daily brief tracks this in 'Capital Rotation'. TVL also rises and falls with token prices, not just deposits.
How much and how fast a price swings up and down. Crypto is far more volatile than shares or property.
Daily moves of 2–3% are common for Bitcoin, 5–10% days happen in sharp sell-offs, and small coins can move 50% or more. Our Markets page shows a 'volatility range' for each coin based on how much it has moved recently.
Our estimate of how far a coin's price typically moves over a day or a week, based on its recent price swings. It is not a prediction.
Statistically, about two-thirds of the time the price lands inside the range; one-third of the time it moves further. In crypto, big moves outside the range happen more often than the maths suggests.
The total dollar value of a coin traded over a period, usually the last 24 hours.
High volume means lots of buyers and sellers, so it's easier to trade without moving the price. Unusually high volume compared with market cap is one input to our Hype score.
When a project uses its revenue to buy its own tokens from the market, similar to a company buying back shares.
The number of coins currently available and trading on the market.
A date before which no vested tokens are released, followed by a large one-off release.
What a project would be worth if every token that will ever exist were already in circulation: price × max supply.
A big gap between market cap and FDV means lots of tokens are still to be released, which can put downward pressure on the price as they unlock.
A token that gives holders voting power over how a crypto project is run.
Votes can cover fees, treasury spending and upgrades. Many votes happen on Snapshot, which our daily brief tracks under Governance & Catalysts.
A scheduled event, roughly every four years, that cuts the number of new bitcoins created per block in half.
It slows the rate of new supply until the 21 million cap is reached, around the year 2140.
The rate at which new tokens are created, which dilutes existing holders if demand doesn't keep up.
Permanently destroying tokens by sending them to an address no one can access, reducing the supply.
Projects burn tokens to offset new issuance or return value to holders. A burn on its own doesn't guarantee the price goes up.
When previously locked tokens (often held by the team or early investors) become free to sell.
Many projects lock insider tokens for a period, then release them on a schedule. A big 'cliff' unlock can suddenly add a lot of sellable supply.
In everyday termsLike a company's early staff finally being allowed to sell their shares.
The economics of a token: how many exist, who holds them, how new ones are released, and what they're used for.
Total supply is every coin that exists right now (including locked ones); max supply is the most that will ever exist.
Bitcoin's max supply is 21 million. Some tokens have no maximum, and new ones keep being created. Comparing circulating supply to max supply shows how many more tokens could still hit the market.
A schedule that releases tokens to team members or investors gradually over time, rather than all at once.
Free tokens sent to wallets, usually to reward early users of a project.
Real airdrops never ask you to send money or enter your seed phrase. 'Claim your airdrop' links are one of the most common scams.
Annual yield figures. APR is simple interest; APY includes compounding, so it looks higher.
Very high advertised yields usually come from new token emissions or carry hidden risks. If a yield looks too good to be true, ask where the money is coming from.
A tool for moving tokens from one blockchain to another.
Bridges hold large amounts of locked funds, which makes them frequent targets for hackers. Some of the biggest crypto hacks in history have been bridge exploits.
A group that runs a crypto project collectively, with token holders voting on decisions instead of a CEO.
Financial services (lending, borrowing, trading, earning interest) run by code on a blockchain instead of by banks.
You connect your own wallet and interact directly with smart contracts. It's open to anyone, 24/7, but there's no customer support or deposit insurance, and bugs or hacks can mean permanent losses.
A governance proposal to start sharing a protocol's fee revenue with its token holders.
Fee switches can change a token's economics significantly, which is why our brief watches for them in DAO votes.
The loss a liquidity provider can suffer, compared with simply holding the tokens, when the prices of the pooled tokens move apart.
A pot of two or more tokens locked in a smart contract that people trade against on a DEX.
People who deposit tokens into the pool ('liquidity providers') earn a share of the trading fees, but face the risk of impermanent loss.
A unique digital token that proves ownership of a specific item, such as artwork, a collectible or a ticket.
Unlike a bitcoin, where every coin is interchangeable, each NFT is one of a kind. Owning an NFT doesn't automatically mean you own the copyright to the image.
A service that feeds real-world data, like prices, into smart contracts, which can't access the outside world on their own.
A program stored on a blockchain that runs automatically when its conditions are met, with no middleman.
In everyday termsLike a vending machine: put in the right input and it automatically gives the output, with no shopkeeper needed.
Locking up your crypto to help secure a proof-of-stake blockchain, earning rewards in return.
Rewards are often quoted as an annual percentage (APY). Risks include price falls while your coins are locked, waiting periods to withdraw, and losing part of your stake if the validator misbehaves ('slashing').
A token that represents another asset on a different blockchain, like WBTC, which is Bitcoin represented on Ethereum.
Moving crypto between DeFi apps to earn the highest rewards, often paid in each app's own token.
A batch of transactions added to the blockchain together.
Bitcoin adds a block about every 10 minutes; faster chains add one every second or less.
A website that lets anyone look up transactions, addresses and blocks on a blockchain, such as Etherscan or mempool.space.
When your transaction is included in a block. Each new block added on top counts as one more confirmation, making it more final.
The rules a blockchain's computers use to agree on which transactions are valid, without needing to trust each other.
The fee you pay the network to process a transaction, especially on Ethereum. It rises when the network is busy.
Gas is paid in the network's own coin (ETH on Ethereum, SOL on Solana). That's why you need a little of that coin in your wallet even to move other tokens. Layer 2 networks make gas much cheaper.
In everyday termsLike a delivery fee that goes up at peak hour.
A unique digital fingerprint of some data. Change the data even slightly and the fingerprint changes completely.
Every transaction has a 'transaction hash' (TX ID) you can paste into a block explorer to track it.
A main, base blockchain such as Bitcoin, Ethereum or Solana.
A network built on top of a main blockchain (usually Ethereum) to make transactions faster and cheaper.
Examples include Arbitrum, Optimism and Base. They bundle many transactions together and settle them on Ethereum for security.
Using powerful computers to secure a proof-of-work blockchain like Bitcoin, earning new coins as a reward.
The specific blockchain a token is on. Sending a token over the wrong network can lose it.
The same token (like USDC) can exist on many networks: Ethereum, Solana, Base and others. When withdrawing from an exchange, make sure the network you choose matches the one your receiving wallet supports.
A computer that keeps a full copy of the blockchain and helps check and share transactions.
A way of securing a blockchain where participants lock up coins as collateral instead of using computing power. Ethereum uses it.
A way of securing a blockchain where computers compete to solve puzzles, using lots of electricity. Bitcoin uses it.
A participant that stakes coins to check transactions and add blocks on a proof-of-stake blockchain.
A review of a project's smart-contract code by a security firm to find bugs before attackers do.
An audit lowers risk but doesn't eliminate it; audited projects still get hacked.
When a stablecoin loses its intended value, for example trading at $0.90 instead of $1.
When attackers steal funds by breaking into an exchange or abusing a bug in a smart contract.
Crypto thefts are often irreversible. Our Choosing a platform page lists major hacks in each exchange's history.
A disclaimer meaning the content is general information that doesn't consider your personal situation, and you're responsible for your own decisions.
Be wary of anyone who says 'NFA' and then tells you exactly what to buy. Genuine personal advice comes from licensed advisers.
The fixed value a stablecoin aims to hold, usually US$1.
Fake websites, emails, messages or ads that impersonate real companies to steal your login or seed phrase.
Bookmark the real sites you use. Never click 'urgent' links about your account, and never enter your seed phrase anywhere online. Scammers also pose as support staff in Discord and Telegram.
Evidence published by an exchange to show it actually holds enough crypto to cover all customer balances.
Usually done with a cryptographic technique (Merkle tree) and sometimes an outside accountant. It's a useful check, but it shows assets, not always all of the exchange's debts.
When a group hypes up a coin to push its price up, then sells their holdings to the people who bought in late.
A scam where a project's creators suddenly pull out the money or dump their tokens, leaving investors with worthless coins.
Warning signs: anonymous team, no audit, most of the supply held by a few wallets, liquidity that isn't locked, and aggressive hype promising huge returns.
A malicious website or smart contract that tricks you into signing a transaction that gives it permission to empty your wallet.
Read what you're approving in your wallet before you sign. If a site asks for unlimited spending approval on your tokens for no clear reason, stop.
Buying into something quickly and heavily without much research.
'Bags' are your holdings of a coin; a 'bagholder' is someone stuck holding a coin that has fallen a lot in value.
Short for 'degenerate': someone who takes very high-risk bets in crypto, often on new or obscure tokens.
A reminder to check the facts yourself before buying anything rather than trusting hype or strangers online.
Fear of missing out: the urge to buy something because the price is rising fast and everyone seems to be making money.
FOMO buying near the top of a hype spike is one of the most common ways beginners lose money.
Fear, uncertainty and doubt: negative news or rumours, sometimes legitimate concerns, sometimes spread deliberately.
Holding crypto for the long term instead of selling during price swings. It started as a typo of 'hold' in a 2013 forum post.
A token based on a joke, meme or internet trend, usually with little purpose beyond speculation.
Examples: DOGE, PEPE. Memecoins can rise spectacularly and crash just as fast. Most new ones go to zero.
When a coin's price rises dramatically. 'To the moon!' is hype talk; treat it as a red flag, not information.
Promoting a coin, often because the promoter owns it or is being paid, while presenting it as independent opinion.
'We're all gonna make it' (optimism) and 'not gonna make it' (mocking a bad decision). Internet slang, not analysis.
Someone who holds a very large amount of a cryptocurrency, enough that their trades can move the price.
No terms match your search. Try a shorter word, or clear the search.
The three rules that protect most beginners: never share your seed phrase, double-check addresses and networks before sending, and be suspicious of anything promising guaranteed or fast returns. This glossary is general education, not financial advice.
See these ideas in action on our Markets page, or compare exchanges' fees and safety records in Choosing a platform.
Token unlocks, governance votes, TVL flows: our daily brief applies this vocabulary to what's actually happening in the market each morning. $25/month. Cancel anytime.