Crypto Glossary

The yearly return you earn, including compound interest. If a protocol offers 10% APY, you'd earn about 10% on your deposit over a year.

Free tokens distributed to wallet holders, usually as a marketing tactic or reward for early users.

Any cryptocurrency other than Bitcoin. Ethereum, Solana, and thousands of others are all 'altcoins'.

A system that automatically provides liquidity for trades using math formulas instead of order books. Uniswap uses an AMM.

A security review of a protocol's code by experts. Audited protocols are generally safer, but audits don't guarantee safety.

The first and largest cryptocurrency by market cap. Created in 2009 by the pseudonymous Satoshi Nakamoto.

A digital ledger that records all transactions across a network of computers. It's public, transparent, and very hard to change.

A tool that lets you move tokens between different blockchains (e.g., from Ethereum to Polygon).

Permanently removing tokens from circulation, often to reduce supply and increase value.

An exchange run by a company (like Coinbase or Binance) where they hold your crypto for you.

A wallet not connected to the internet (like Ledger), used for secure long-term storage.

Earning interest on your interest. This is why APY can be higher than APR.

An organization run by code and token holder votes, not a CEO or board. Members vote on decisions.

An app that runs on a blockchain instead of a central server. Uniswap, Aave, and OpenSea are dApps.

Financial services (lending, trading, savings) built on blockchain without banks or middlemen.

An exchange where you trade directly from your wallet, without a company holding your funds. Uniswap is a DEX.

A reminder to research projects yourself before investing. Don't trust random advice.

The second-largest cryptocurrency and the most popular blockchain for DeFi and smart contracts.

The anxiety that makes you buy something just because the price is rising. Often leads to bad decisions.

Negative or misleading information spread to cause panic. 'Don't spread FUD.'

The fee you pay to complete a transaction on Ethereum. Higher during busy times.

The system for making decisions in a protocol. Often involves voting with governance tokens.

Holding crypto long-term instead of selling during price drops. Originally a typo of 'hold'.

A wallet connected to the internet (like MetaMask), convenient but less secure than cold storage.

A potential loss when providing liquidity to AMMs, caused by price changes between the two tokens.

The main blockchain network (Ethereum, Solana, Bitcoin). Also called L1.

A network built on top of L1 to make it faster and cheaper (Arbitrum, Optimism, Base).

How easily an asset can be bought or sold. More liquidity = better prices and less slippage.

A token you receive for providing liquidity to a pool. It represents your share.

Total value of a cryptocurrency. Calculated as price × total supply.

Cryptocurrencies created as jokes or memes (like Dogecoin, Shiba Inu). Often very risky.

Using computers to validate transactions and earn rewards. Bitcoin uses mining.

A unique digital item on the blockchain. Used for art, collectibles, and more.

A secret code that proves you own your wallet. Never share it with anyone.

A set of rules that define how a DeFi application works. Aave, Uniswap, and Lido are protocols.

A scam where creators drain all funds and disappear. Common in new, unaudited projects.

Traditional assets (like real estate, bonds) brought onto the blockchain as tokens.

12-24 words that can recover your wallet. Write it on paper, never digital. Never share.

The difference between expected and actual trade price. Higher in low-liquidity pools.

Code that automatically executes when conditions are met. Like a vending machine for finance.

A crypto designed to always equal $1 (or another currency). USDC and USDT are stablecoins.

Locking up crypto to support a network and earn rewards. Like earning interest at a bank.

A crypto asset created on an existing blockchain. UNI on Ethereum is a token.

The total amount of crypto deposited in a protocol. Higher TVL often means more trust.

Software that stores your crypto keys. Your 'address' is like an email, your 'private key' is like a password.

The vision of a decentralized internet built on blockchain technology.

Someone who holds a very large amount of crypto. Whale movements can affect prices.

The return or earnings you get from a DeFi investment, expressed as APY or APR.

Moving crypto between protocols to maximize returns. Can be complex and risky.