These key terms will help you translate the cryptocurrency lingo into familiar conversation.
A
Altcoin
Any cryptocurrency other than Bitcoin (e.g., Ethereum, Litecoin).
AML (Anti-Money Laundering)
Regulations and procedures designed to prevent illegal financial activity.
B
Bitcoin (BTC)
The first and most well-known cryptocurrency, created in 2009.
Block
A group of transactions that are verified and added to the blockchain.
Blockchain
A decentralized digital ledger that records transactions securely and transparently.
C
Centralized Exchange (CEX)
A platform (like Coinbase) where a company facilitates buying/selling crypto.
Coins or Cryptocurrency
Digital or virtual currency secured by cryptography, operating independently of a central bank.
Cold Wallet
An offline physical storage method for crypto (such as a USB drive); considered very secure and less vulnerable to hacking.
D
Decentralization
A system where control is distributed rather than held by a central authority.
DeFi (Decentralized Finance)
Financial services (like lending or trading) built on blockchain without traditional intermediaries.
Distributed Ledger Technology (DLT)
A digital system for recording transactions across multiple computers so that the data is shared, synchronized, and secured without relying on a central authority. See Blockchain.
E
Ethereum (ETH)
A blockchain platform that enables smart contracts and decentralized applications.
Exchange
A platform where users can buy, sell, or trade cryptocurrencies.
F
Fiat or Fiat Currency
Government-issued money (e.g., USD, EUR).
Fork
A change or upgrade to a blockchain’s protocol, sometimes creating a new cryptocurrency.
Fungible Tokens
Digital assets that are interchangeable and identical in value, meaning each unit can be exchanged for another of the same type without any difference.
G
Gas Fees
Transaction fees paid to process and validate actions on a blockchain (especially Ethereum).
H
Hash
A unique string generated by an algorithm to secure blockchain data.
Hot Wallet
A crypto wallet connected to the internet; convenient but less secure than cold storage.
K
KYC (Know Your Customer)
A verification process used by platforms to confirm user identity. Also used by banks and other financial institutions.
L
Ledger
A record of transactions (blockchain is a distributed ledger).
Liquidity
How easily a cryptocurrency can be bought or sold without affecting its price.
M
Market Cap (Market Capitalization)
Total value of a cryptocurrency (price × number of coins in circulation).
Memecoin
A type of cryptocurrency inspired by internet memes, often driven by online communities or internet hype for entertainment, rather than having a real-world use. Often considered more volatile and speculative than other cryptocurrencies.
Mining
The process of validating transactions and adding them to the blockchain (used by Bitcoin).
N
Network
The system connecting nodes and blockchains.
NFT (Non-Fungible Token)
A unique digital asset representing ownership of a specific item (art, music, etc.).
Node
A computer that participates in maintaining the blockchain network.
O
On-Ramp and Off-Ramp
A service or platform that lets you convert traditional money, like US dollars, into cryptocurrency (on-ramp), and crypto back into traditional money (off-ramp).
P
Private Key
A secret code that allows access to your cryptocurrency; must be kept secure.
Public Key
An address used to receive cryptocurrency (safe to share).
R
Recovery Phrase
A set of words used to restore access to your wallet if lost. Should be 12-24 unique words and stored securely offline.
Recurring Buy
A regular purchase of crypto made on a regular basis, such as weekly or monthly.
S
Smart Contract
Self-executing code on a blockchain that runs when conditions are met.
Stablecoin
A cryptocurrency pegged to a stable asset like the US dollar.
Staking
Locking up crypto to support blockchain operations and earn rewards.
Self-Custodial Wallet (Non-Custodial Wallet)
A type of crypto wallet where you fully control your private keys and funds, rather than a third party (like an exchange).
T
Token
A digital asset built on an existing blockchain (e.g., on Ethereum).
Transaction
The transfer of cryptocurrency between wallets.
Two-Factor Authentication (2FA)
Also known as Multi-Factor Authentication (MFA). A security method for online accounts that requires two methods of identification to log in to a platform. This is commonly a password and a secure access code (SAC) sent to by text message.
V
Volatility
The rate at which crypto prices rise or fall; crypto is known for high volatility.
W
Wallet
A tool used to store, send, and receive cryptocurrency.
Y
Yield Farming
A Decentralized Finance (DeFi) strategy to earn rewards or interest on crypto holdings.
