If someone close to you is into cryptocurrency, you’ve probably heard terms that sound like another language. This glossary breaks down 23 of the most common crypto terms in everyday language, so you can follow along (or at least nod confidently at dinner).
1. Altcoin
Any cryptocurrency that’s not Bitcoin. Think of it like all the other sodas that aren’t Coca-Cola.
2. Blockchain
A digital record book, like a shared Google Doc that can’t be edited without everyone knowing. It keeps track of every crypto transaction.
3. Cold Wallet
A way to store crypto offline—like keeping cash in a safe instead of your wallet. It’s more secure from hackers.
4. Cryptocurrency
A digital form of money that lives online and isn’t controlled by a government or bank. It’s why we’re all here now.
5. DAO (Decentralized Autonomous Organization)
An online group run by its members using rules written in code. No boss—just shared control.
6. Decentralization
No one person or group is in charge. Instead, power is spread out among users.
7. DeFi (Decentralized Finance)
DeFi is a nickname for decentralized financial services (like loans or savings) done on the blockchain—without traditional banks.
8. Degen
Short for “degenerate,” it’s a joking way some crypto fans describe themselves when taking high risks.
9. Ethereum
The second-largest cryptocurrency after Bitcoin. It’s like an operating system for building crypto apps.
10. Fiat
Government-issued money, like U.S. dollars or euros. The opposite of crypto.
11. Gas Fees
Tiny payments you make to use a blockchain, like a toll or service fee.
12. HODL
A typo-turned-slang for “hold.” It means keeping your crypto instead of selling it.
13. Hot Wallet
A crypto wallet connected to the internet. Easier to access, but slightly riskier than a cold wallet.
14. ICO (Initial Coin Offering)
The crypto version of a startup fundraiser—people buy new coins hoping they go up in value.
15. Ledger
Another name for a blockchain. It’s the master list of all transactions.
16. Liquidity
How easily you can turn crypto into cash (or another coin). High liquidity = easy to trade.
17. Mining
How new crypto is created. Computers solve puzzles and earn coins as a reward.
18. NFT (Non-Fungible Token)
A digital certificate of ownership, often for art or collectibles. Think: buying the “original” of a meme or song.
19. Private Key
A private key is like a password that unlocks your cryptocurrency. It proves you’re the owner and lets you send or use your crypto—keep it secret and safe.
20. Public Key
Your crypto address—what you give people so they can send you money. Safe to share.
21. Rug Pull
A scam where crypto developers take everyone’s money and disappear. Like a digital Ponzi scheme.
Examples include Do Kwon’s Terra-LUNA and, more recently, the Hawk Tuah Coin.
22. Smart Contract
Self-executing computer programs that do things automatically—like sending money when conditions are met.
23. Stablecoin
A stablecoin is a kind of cryptocurrency that’s linked to a steady asset like the U.S. dollar, so its value doesn’t swing wildly like other coins.
Final Thoughts
You don’t need to become a crypto investor to understand the basics. With this glossary, you’ll be better equipped to follow conversations, ask questions, and make informed decisions if crypto ever touches your world.
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