Crypto glossary

What are a memo and destination tag?

A shared deposit address may need extra information to identify the receiving account. A memo or tag accompanies the address rather than replacing it.

What are APR and APY? The compounding difference

Comparing APR with APY requires checking whether rewards are reinvested. A higher token balance does not guarantee a higher dollar value at the end of the year.

What are assets under management (AUM)?

Assets under management, or AUM, measure the market value of assets managed for clients. They are not a manager’s personal wealth or the firm’s revenue.

What are block confirmations and finality?

Distinguish confirmation counts from finality. Calculate a Bitcoin confirmation example and understand why Ethereum’s checkpoint rules answer a different question.

What are circulating, total and maximum supply?

Circulating, total and maximum supply measure different quantities: publicly available tokens, issued supply and a potential cap. The definition and observation date matter whenever a supply figure is used.

What are collateral and health factor in DeFi?

Health factor measures how threshold-weighted collateral covers debt in lending protocols such as Aave. It is a risk ratio, not a guarantee against loss.

What are custodial and non-custodial wallets?

Wallet types differ in who manages the keys, not merely where the app runs. That responsibility changes the available options when access is lost.

What are Ethereum and ether (ETH)?

Ethereum is the network on which applications run; ether (ETH) is its native asset. Separating the two helps explain transaction fees, token transfers and the role of staking.

What are GameFi and play-to-earn?

GameFi describes economic systems connecting games with tokens or digital assets. Play-to-earn focuses on rewards for participation; a reward is not necessarily cash or guaranteed income.

What are gas and network fees?

Understanding gas fees starts with separating the amount of computation from the crypto paid for it. Gas measures the work; the network fee is its cost.

What are intents and solvers? Outcome-based crypto orders

Intents describe a desired crypto transaction outcome; solvers find an execution route within its constraints. Learn the relationship through a minimum-output example.

What are KYC and AML?

KYC means know your customer and includes identity checks. AML, or anti-money laundering, covers a broader set of measures against laundering criminal proceeds.

What are layer 2 networks and rollups?

Layer 2 networks and rollups aim to reduce a base chain’s execution load while maintaining links to data publication and verification. Security depends on the design.

What are maker and taker orders?

A maker adds resting liquidity to an order book; a taker matches existing liquidity immediately. The order’s name alone does not determine its execution role.

What are NFT creator royalties?

NFT creator royalties are a share of a sale allocated to a creator or designated recipient. Whether that share is paid depends on the contract and the marketplace.

What are ROI, realised and unrealised profit and loss?

ROI measures a percentage return; profit and loss measure money. Separate the result on units sold from the changing value of assets still held.

What are RWAs and tokenization?

RWA stands for real-world assets. In crypto, it refers to off-chain financial or physical assets and related rights represented by tokens.

What are token networks and token standards?

The network is where transactions are recorded; the standard describes how a token contract works. Similar labels on a transfer screen do not make them the same thing.

What are vesting and token unlocks?

Vesting determines when an allocation is earned. An unlock removes transfer restrictions, while delivery moves tokens to a wallet. None of those events alone proves a sale.

What is a block explorer?

A block explorer makes transaction and address records readable and searchable. It does not hold assets or have the power to reverse a transfer.

What is a blockchain bridge? A cross-chain transfer example

A wallet address can appear on several networks while holding separate balances. A bridge provides the connection needed to move assets or messages between them.

What is a blockchain oracle?

An oracle brings outside information to a smart contract. Whether that information is trustworthy remains a separate question.

What is a blockchain?

A blockchain links records in blocks. Cryptocurrency is one application of that record system; the two terms do not mean the same thing.

What is a centralized crypto exchange (CEX)?

A trading account balance and a personal blockchain wallet rely on different records and control arrangements. The CEX definition explains the company’s role between them.

What is a CID? An IPFS content identifier

An IPFS CID identifies content rather than a server location. Its meaning includes both the data and the format used to represent it.

What is a crypto trading bot?

A crypto trading bot automates order submission according to predefined conditions.

What is a crypto wallet?

The app on a phone, the balance on a blockchain and a transaction signature are different things. Understanding a wallet starts with separating those roles.

What is a crypto whitepaper?

A crypto whitepaper explains a project’s problem, proposed design and, where relevant, token rules. A written commitment is not proof of implementation.

What is a crypto-asset service provider (CASP)?

A crypto-asset service provider, or CASP, supplies professional services involving crypto-assets. Under EU MiCA rules, the term has a specific legal meaning and permission requirements.

What is a DAO?

A DAO organizes shared decisions and resources through defined rules. Voting on a budget and having authority to move treasury funds are separate roles.

What is a dApp?

A dApp combines a user interface with programs running on a decentralized network. The website and the onchain code are different layers, and not every component is necessarily decentralized to the same degree.

What is a decentralized exchange (DEX)?

A decentralized exchange describes how trades are settled. The operator of its website and the contracts behind a trade still need separate examination.

What is a depeg?

A depeg occurs when a stable-value crypto asset’s market price moves away from its reference value. The deviation can be downward or upward, and the market where it occurs provides context.

What is a digital signature? Wallet messages and authorization

The result of pressing Sign depends on the data being signed. A login message and a spending authorization can use similar prompts while granting different powers.

What is a funding rate? Payments in perpetual futures

A funding rate determines periodic payments between long and short positions in perpetual futures.

What is a genesis block? The first block explained

A genesis block is the first block of a blockchain, defining its starting point without referring to an earlier block.

What is a governance token?

A governance token may provide defined rights in a project’s decision process. Voting power can depend on delegation and a historical measurement point as well as a balance.

What is a grid trading bot?

A grid trading bot divides a price range into levels for automated buying and selling.

What is a liquid restaking token (LRT)?

An LRT represents a liquid restaking position. A numerical example separates token count, represented value, secondary-market sale and protocol redemption.

What is a liquidity pool?

A liquidity pool is a reserve of assets held in a smart contract to support transactions. Providers can deposit assets and earn fees under the pool’s rules.

What is a nonce in Ethereum transactions?

A nonce identifies the account sequence used by a standard Ethereum transaction. A transaction hash identifies the transaction itself; the two fields answer different questions.

What is a private key?

An address can be shared; the secret used to sign transactions cannot. A private key explains the difference between seeing an account and having authority over it.

What is a real interest rate?

A real interest rate adjusts a nominal rate for inflation. Using expected inflation answers a different question from using inflation already observed.

What is a rug pull?

A rug pull is a crypto exit scam in which insiders remove funds or liquidity and leave participants with losses. A falling token price alone does not prove a rug pull.

What is a seed phrase?

Recovery words are not simply another way of writing a login password. They carry a secret that can rebuild access to keys after a device is replaced.

What is a smart contract?

Smart contracts execute onchain actions through code. They are used for swaps, collateral and token management, but automated execution does not guarantee safety or correct design.

What is a spot Bitcoin ETF?

A spot Bitcoin ETF seeks price exposure by holding the underlying BTC. Owning its shares is different from holding BTC in a personal wallet.

What is a stablecoin?

A stablecoin is a crypto asset designed to track a currency or another reference asset. Its stable-value target does not mean that the market price is guaranteed to stay fixed.

What is a Sybil attack? Many identities, one actor

A Sybil attack uses many identities controlled by one actor. A voting example shows why resource-weighted networks do not treat account count as consensus power.

What is a token approval?

A token approval lets a specific address use tokens in your account up to an authorized limit. Balance, wallet connection and spending permission are separate concepts.

What is a transaction hash (TXID)?

A TXID identifies a blockchain transaction. It differs from a wallet address, and its existence does not establish that the transaction is confirmed.

What is a validator? Validation and delegation

Learn what a validator does through an Ethereum example. Separate proposing blocks, voting, operating a full node and delegating stake to an operator.

What is a wallet address?

An address identifies where crypto is to be received. The address itself does not grant permission to spend the funds.

What is a wallet passphrase? PIN and recovery phrase differences

A passphrase is an optional extra secret used with recovery words to derive a separate wallet. It has a different role from a PIN and cannot be reset by support.

What is a wrapped token? Representation and redemption

A wrapped token is related to its underlying asset but exists in a separate contract. Its usability and redemption path depend on the particular implementation.

What is a zero-knowledge proof?

A zero-knowledge proof can establish a condition without exposing a secret. The claim proved and the privacy an application provides need separate examination.

What is Aave?

Aave is a DeFi protocol for supplying crypto assets to pools and borrowing against eligible collateral. AAVE is its governance token, which serves a different role.

What is active and passive fund management?

Active fund management involves investment choices within a fund’s mandate. Passive management aims to track a specified index rather than select a different portfolio.

What is an altcoin?

The altcoin label does not imply shared technology or equal risk. Knowing when it is used broadly or narrowly helps you read market commentary.

What is an automated market maker (AMM)?

An automated market maker prices swaps using pool reserves and contract rules instead of matching individual orders.

What is an Avalanche L1? Networks and the Subnet connection

An Avalanche L1 lets an application operate its own blockchain. Membership in the ecosystem does not mean every network shares an identical validator set.

What is an AVS? Services secured through restaking

An AVS links operator duties with economic security commitments. A price-reporting example explains service rules, allocations and the limits of penalty assumptions.

What is an ETF? Fund shares and exchange prices

An ETF, or exchange-traded fund, is an investment fund whose shares trade on an exchange. Shares provide exposure to its portfolio. Their market price can differ from the net asset value represented by each share.

What is an Ethereum Improvement Proposal (EIP)?

An Ethereum Improvement Proposal, or EIP, records a technical proposal or standard for Ethereum. Publishing a document does not activate a network change.

What is an investment fund? Shares and fund value

An investment fund pools investors’ money into a portfolio managed under stated rules. Investors hold shares or units in that portfolio rather than buying each underlying asset separately. Their value reflects gains, losses and fund expense

What is an IPFS gateway? Access through the web

An IPFS gateway delivers IPFS content over HTTP so that an ordinary web browser can retrieve it.

What is an NFT?

An NFT is a token with a distinct identity recorded on a blockchain. Owning it does not automatically transfer the copyright or every usage right in the linked artwork.

What is Arweave (AR)? A permanent storage network

Arweave aims to preserve archives, application data and documents through an upfront payment model rather than a recurring storage bill.

What is Avalanche (AVAX)? Platform, token and networks

Avalanche names an ecosystem of networks; AVAX is its native asset. Moving between chains can change fee rules and validator requirements.

What is backtesting?

Backtesting simulates predefined trading rules on historical data; it does not predict future profits.

What is bad debt in DeFi?

A liquidation threshold, collateral value and uncollectible debt measure different things. Bad debt describes the part that cannot be recovered.

What is Binance?

Binance is a centralized platform for trading crypto assets through account balances. The exchange, BNB token and a self-custody wallet are different concepts.

What is Bitcoin (BTC)?

Bitcoin is a network that validates transfers without a central issuer; BTC is the network’s native monetary unit.

What is Bitcoin halving?

Bitcoin halving cuts the subsidy of newly issued BTC every 210,000 blocks. It does not reduce transaction fees by the same percentage.

What is Chainlink (LINK)?

A short distinction between Chainlink’s services and its LINK token, illustrated with a lending collateral calculation.

What is Coinbase?

Coinbase provides crypto trading and centrally managed account custody. Advanced is a trading interface, while self-custody involves different key-control responsibilities.

What is CoinGlass? A derivatives data platform explained

CoinGlass is a market data platform for comparing cryptocurrency indicators across exchanges.

What is correlation?

Correlation describes co-movement between two data series. Moving together does not, on its own, establish causality or a trading opportunity.

What is CoW Swap? Order matching and CoW Protocol

CoW Swap is an interface for signed trade orders routed through CoW Protocol. Explore matching, solver execution and the difference between the interface and COW token.

What is CPI? Consumer prices and inflation rates

CPI tracks consumer-price changes over time. Its index level and the inflation rate calculated from it answer different questions.

What is cryptocurrency?

Cryptocurrency is a broad term for digital assets recorded on blockchain networks, with transfers validated through cryptographic methods.

What is Curve Finance? A swap protocol explained

Curve Finance is a DeFi protocol for exchanging tokens through smart contracts and liquidity pools.

What is data availability?

Data availability concerns access to the required data. It does not by itself establish correct computation or guarantee permanent archival storage.

What is Decentraland LAND? Parcels and ownership

Decentraland LAND is an NFT asset representing ownership of virtual parcels on the Genesis City map.

What is Decentraland? A virtual world explained

Decentraland is a virtual world where people meet through avatars, attend events and create digital spaces.

What is DeFi?

DeFi describes financial applications, including swaps and lending pools, that operate through smart contracts. Execution by code does not remove every intermediary, dependency or source of risk.

What is DeFiLlama?

DeFiLlama brings measurements from different DeFi protocols into shared dashboards. Reading those measurements is separate from transacting with assets.

What is double counting in DeFi TVL?

Double counting includes the same underlying economic collateral more than once. Adding protocol TVL figures can therefore overstate independent capital.

What is Dune Analytics?

Dune Analytics is a platform for researching blockchain data through queries, tables and charts.

What is EigenLayer? The restaking protocol explained

Understand EigenLayer’s restakers, operators and services. A practical service example distinguishes the protocol from EigenCloud and the EIGEN token.

What is ENS?

ENS, or Ethereum Name Service, connects readable names with crypto addresses and other records. A .eth name is not a wallet; it provides a more convenient way to look up the right record.

What is Etherscan?

Etherscan is a block explorer for looking up Ethereum transactions and addresses. It displays status, fees and token movements, but does not provide wallet custody.

What is Exodus?

Exodus is crypto-wallet software whose keys remain the user’s responsibility. An ETH example separates the application, the on-chain balance and a custodial exchange account.

What is fiat money?

Cash in a bank account and a stablecoin with the same displayed value are different holdings. A simple dollar example makes the distinction clear.

What is impermanent loss?

Impermanent loss measures price-driven underperformance against holding the same starting tokens. It is not the same as an absolute loss of deposited dollars.

What is IPFS pinning? Keeping a file available

IPFS pinning instructs a node to retain content instead of treating it as disposable data during routine cleanup.

What is IPFS? Content-addressed file sharing

IPFS is a peer-to-peer protocol for locating and sharing content by its identifier rather than relying on one server location.

What is Kraken?

Kraken is a centralized cryptocurrency exchange. Kraken Pro is its order-book interface with more detailed trading controls.

What is L2BEAT? A Layer 2 research platform

A short explanation of L2BEAT, its research purpose and the limits of its ratings.

What is LDO? Lido governance rights versus stETH

LDO is the governance token of Lido DAO. It is used in decisions about protocol parameters and treasury management. Buying LDO does not stake ETH or give its holder a claim to withdraw ETH from Lido’s staking pool.

What is Lido?

Lido’s shared Ethereum pool represents staked positions through stETH and wstETH. LDO carries separate governance rights; the three tokens do not represent the same economic claim.

What is liquid staking?

Liquid staking represents a staked position with a transferable token. Its protocol asset claim and the amount available from a market sale can differ.

What is liquidation in crypto?

Liquidation is the forced settlement of a borrowing or leveraged position when its risk limits are breached. The trigger and costs depend on the protocol or platform.

What is liquidity in crypto?

Trading volume does not show whether your entire order can fill at the displayed price. Liquidity depends on the venue, pair, timing and size of the trade.

What is MetaMask?

MetaMask is a wallet interface for managing accounts on supported blockchains and connecting them to crypto apps.

What is MEV? Value extracted from transaction ordering

MEV is extra value available through transaction inclusion, exclusion and ordering. See how arbitrage differs from sandwiching through a simple execution example.

What is MiCA? The EU crypto-asset framework

MiCA is the European Union’s framework for offering crypto-assets and providing related services.

What is open interest? Outstanding contracts versus volume

Open interest counts outstanding derivatives contracts rather than trading turnover or the number of bullish traders.

What is OpenSea? The NFT marketplace explained

OpenSea brings listings and offers for NFT collections into a marketplace interface.

What is PancakeSwap?

PancakeSwap is a DeFi protocol offering token swaps and liquidity services across supported blockchains. Its web interface, protocol contracts and CAKE token are separate concepts.

What is PAX Gold (PAXG)?

PAX Gold (PAXG) is a Paxos-issued token representing one fine troy ounce of allocated gold per token. Its dollar value is not fixed.

What is Phantom wallet?

Phantom brings accounts on several blockchains into one application. A shared wallet view does not mean every asset lives on the same network.

What is phishing?

Phishing impersonates a trusted person or service to obtain secrets, payments or authorization through deception.

What is Pinata? IPFS storage and file delivery

Pinata helps projects retain IPFS files and serve them to web users without operating every part of the delivery infrastructure themselves.

What is price impact?

Price impact describes how much a trade moves pricing relative to the available liquidity.

What is Proof of History (PoH)?

Proof of History makes the ordering of records verifiable. Deciding which record the network accepts remains a separate consensus task.

What is proof of reserves?

Proof of reserves refers to methods used to verify a crypto platform’s disclosed reserve assets at a particular time. The scope varies by report; it is not equivalent to a full financial audit.

What is Proof of Stake (PoS)?

Proof of Stake connects validation duties to economic stake. Holding assets in a wallet, delegating them and operating a validator are different forms of participation.

What is Proof of Work?

Proof of Work ties a proposed block to computational effort. In Bitcoin, miners and full nodes perform different roles.

What is protocol revenue? Fees, revenue and profit

Protocol revenue is the share of DeFi user payments allocated to the protocol side. It is neither all user fees nor automatically net profit.

What is quadratic funding?

Quadratic funding distributes matching support partly according to the breadth of a project’s donor base, rather than only the total amount donated.

What is quorum in DAO voting?

Quorum is the minimum participation required for a valid decision. A DAO may measure it in voting power rather than people, under its chosen counting rules.

What is restaking? Extra duties for staked collateral

Restaking commits collateral to additional security duties. A worked penalty example separates the original staking role, extra rewards and the amount at risk.

What is SafePal?

SafePal can refer to an app, hardware-wallet products or an ecosystem that includes SFP. A signing example explains why those names do not describe the same thing.

What is slashing? Staking penalties explained

Slashing penalizes specified validator violations by removing stake. On Ethereum, being briefly offline and signing conflicting blocks have different consequences.

What is slippage?

Slippage describes the result of execution; tolerance is a boundary chosen before the transaction.

What is Snapshot?

Snapshot brings community proposals and voting results together. The rules that assign voting power are distinct from the process that implements an approved decision.

What is Solana (SOL)?

Separating the Solana network from SOL helps explain wallet balances and tokens issued on the chain. Sharing the same infrastructure does not make them the same asset.

What is StableSwap? An AMM for closely priced assets

StableSwap is an automated market maker design for exchanging assets expected to trade near the same value.

What is staking?

Staking commits assets to validation on a proof-of-stake network. Rewards, penalties and withdrawal conditions follow network rules; not every yield product is staking.

What is stETH? ETH exposure and a changing balance

stETH is a liquid staking token representing a share of ETH staked through Lido. Its token balance can change as accounting updates reflect rewards and possible penalties. It is not the same asset as Ethereum’s native ETH.

What is Tether Gold (XAUT)?

Tether Gold (XAUT), issued by TG Commodities, represents an interest in one fine troy ounce of gold per token. It is not a dollar-pegged token.

What is the Arweave storage endowment?

The Arweave storage endowment reserves AR to help pay for future data retention under an upfront fee model.

What is the bid–ask spread?

The bid–ask spread is the gap between the best sell offer and the best buy offer. Providers may also use spread to describe a markup embedded in a quoted price.

What is the difference between a coin and a token?

The difference between a coin and a token concerns how an asset operates within a blockchain network. Everyday usage overlaps, but the technical label alone tells you little about safety or value.

What is the difference between a reserve attestation and an audit?

A reserve attestation examines a defined reserve assertion against stated criteria. A financial statement audit addresses the financial statements as a whole.

What is the metaverse? Shared virtual worlds explained

What is the metaverse? Shared virtual worlds where people meet through avatars and experience content together. A concert example explains how participation differs from owning an NFT.

What is The Sandbox?

The Sandbox is an ecosystem of games and creation tools. Studio, SAND and LAND serve different functions; being associated with the same brand does not confer the same rights.

What is the SEC? The US securities regulator explained

The SEC is the US Securities and Exchange Commission. It oversees securities markets, works to protect investors and supports fair markets and capital formation. It is a regulator, not an exchange where investors place trades.

What is the US Dollar Index (DXY)?

The US Dollar Index, commonly called DXY, measures the dollar’s nominal value against a selected basket of six currencies.

What is token burning?

Token burning removes a quantity of a crypto asset from use permanently. Its effect on supply depends on the mechanism and on whether new tokens are issued during the same period.

What is Token Terminal? Onchain data and an example

Token Terminal is a research platform that compares blockchain projects using measures of activity, revenue and valuation.

What is tokenomics?

Tokenomics describes a crypto asset’s economic design: how supply is created, who receives it and what the asset is needed for. These pieces explain the rules behind the token rather than predicting its market price.

What is Trust Wallet?

The Trust Wallet application, the asset record on a blockchain and the TWT token have different roles. Separating them makes the wallet easier to understand.

What is TVL (total value locked)?

A rise in TVL does not always mean new deposits. Asset quantities, prices and measurement scope all affect the result.

What is TVS? Total value secured explained

Total value secured, its asset scope and the difference from TVL.

What is Uniswap?

Uniswap can refer to a protocol, an application or the UNI token in different contexts. Separating those roles helps distinguish the trading service from the investment asset.

What is volatility?

Volatility describes how much a price fluctuates over a period. It does not, by itself, predict the direction of the next move.

What is vote delegation? A DAO voting example

Vote delegation lets another address represent your voting power in a DAO or protocol decision. It does not itself transfer ownership of your tokens.

What is wash trading?

Wash trading creates the appearance of trading demand without an independent economic buyer. Reported volume can rise even when genuine collector interest does not.

What is WETH? Wrapped Ether versus native ETH

WETH means wrapped Ether. On Ethereum, the canonical contract issues the same amount of WETH as the ETH deposited. It lets native ETH work through an ERC-20 token interface. Wrapping is not staking and does not create an additional return.

What is wstETH? A fixed balance and a changing ratio

wstETH is the wrapped form of stETH. Its wallet balance does not rebase; the amount of stETH represented by each token changes instead. Wrapping presents the same stake in another accounting form rather than creating a second staking return