A
B
Bitcoin
The original cryptocurrency that introduced blockchain technology and decentralized digital money to the world.
Bitcoin Dominance
A metric that measures Bitcoin's share of the total cryptocurrency market capitalization relative to all other coins.
Block
A data structure that acts as a "page" in a blockchain ledger, containing a bundle of confirmed transactions.
Blockchain
A shared, immutable digital ledger that records transactions across a network of computers, ensuring security and transparency without a central authority.
BTC (Bitcoin)
The currency symbol for Bitcoin, used like USD for U.S. dollars.
C
CEX (Centralized Exchange)
A crypto trading platform run by a company that holds custody of your funds.
Coinbase Transaction
The first transaction in every block that mints new coins and pays the miner who found the block.
Cold Wallet
An offline crypto wallet that keeps private keys disconnected from the internet, offering the highest level of security for long-term storage.
Consensus Mechanism
A set of rules that a blockchain network uses to agree on the validity of transactions and secure the ledger without a central authority.
Crypto Exchange
A platform where you can buy, sell, and trade cryptocurrencies.
Crypto Wallet
A software program or physical device that stores the keys needed to access and manage your cryptocurrency.
Cryptocurrency
Digital money secured by cryptography that operates independently of central banks and governments.
D
DCA (Dollar-Cost Averaging)
A strategy of investing a fixed amount regularly regardless of price.
DeFi (Decentralized Finance)
An ecosystem of financial applications built on blockchain networks that operate without central authorities like banks or payment processors.
DEX (Decentralized Exchange)
A peer-to-peer exchange that allows trading without a central intermediary.
Distributed Ledger
A shared database spread across multiple locations that maintains consensus without a central administrator.
Dollar-Cost Averaging
A strategy of investing fixed amounts regularly to reduce the impact of market volatility.
G
H
Halving
A scheduled event in a blockchain protocol that cuts the reward for mining new blocks in half, effectively reducing the inflation rate.
Hash
A unique string of characters generated by a mathematical formula that acts as a digital "fingerprint" for a piece of data.
Hot Wallet
An internet-connected crypto wallet that offers convenience for trading but requires caution due to online security risks.
K
L
Layer 1
The foundational blockchain network (like Bitcoin or Ethereum) that settles transactions without relying on another network.
Layer-2
A secondary protocol built on top of an existing blockchain to improve its speed and efficiency while maintaining security.
Lightning Network
A Layer 2 solution for Bitcoin enabling instant, nearly free transactions off the main blockchain.
Liquidity
The ease with which a cryptocurrency can be converted into cash or another asset without affecting its market price.
Liquidity Pool
Smart contract-based pools of crypto assets that enable decentralized trading and yield generation.
M
Market Cap
The total value of a cryptocurrency, calculated as price multiplied by circulating supply.
Memecoin
Cryptocurrencies born from internet memes and jokes, driven by community hype rather than utility.
Mining
Using computers to validate blockchain transactions and earn newly created cryptocurrency as a reward.
P
Private Key
A secure alphanumeric code that acts as the password to a crypto wallet, allowing the owner to sign transactions and access funds.
Proof of Stake (PoS)
A consensus mechanism that secures a blockchain by requiring validators to lock up tokens as collateral rather than expending energy on mining.
Proof of Work (PoW)
A security mechanism where computers (miners) compete to solve complex mathematical puzzles to validate transactions and earn new coins.
Public Key
A cryptographic code derived from your private key that serves as your identity on the blockchain and allows you to receive funds.
S
Satoshis (sats)
The smallest denomination of Bitcoin, equal to one hundred millionth of a single Bitcoin (0.00000001 BTC).
Scalability
The ability of a blockchain network to handle a growing number of transactions per second without compromising security or decentralization.
Seed Phrase
A sequence of 12 to 24 random words that functions as the master password to recover a crypto wallet and access all funds inside.
Slippage
The difference between the expected price of a trade and the actual price at which the transaction is executed.
Smart Contract
A self-executing program stored on a blockchain that runs when predetermined conditions are met.
Stablecoin
A type of cryptocurrency designed to maintain a stable market value by being "pegged" to an external asset, usually a fiat currency like the U.S. Dollar.
Z
Zero-Knowledge Proof
A cryptographic method that allows one party to prove to another that a statement is true without revealing any specific information about the statement itself.
zk-SNARK
A cryptographic proof technology that allows one party to prove they possess certain information without revealing the information itself.