Altcoin
Any cryptocurrency other than Bitcoin.
Bitcoin
The first and largest cryptocurrency by market capitalization, created in 2009 by the pseudonymous Satoshi Nakamoto.
Consensus Mechanism
The process by which all nodes in a blockchain network agree on the valid state of the ledger.
Blockchain
A distributed, immutable digital ledger that records transactions across a network of computers without a central authority.
CBDC
A digital form of a country's official currency issued and regulated by the central bank.
Cold Storage
Keeping cryptocurrency private keys offline to protect them from online threats.
Crypto Exchange
A platform where users buy, sell, and trade cryptocurrencies.
Crypto Wallet
Software or hardware that stores the private and public keys needed to interact with a blockchain.
Cryptocurrency
A digital or virtual currency secured by cryptography and typically operating on a decentralized blockchain network.
Custodial Wallet
A crypto wallet where a third party holds and controls the private keys on the user's behalf.
DCA Return
Calculates the total return of a DCA strategy by averaging purchase prices across multiple periods.
DEX
A peer-to-peer crypto trading platform governed by smart contracts with no central intermediary.
DeFi
A blockchain-based ecosystem of financial services that operate without banks or brokers.
Digital Asset
Any asset that exists in digital form and has economic value, including cryptocurrencies, NFTs, and tokenized securities.
Ethereum
The second-largest cryptocurrency platform, known for smart contracts and decentralized applications (dApps).
Gas Fees
Transaction fees paid to validators for processing operations on a blockchain network.
Hard Fork
A permanent divergence in a blockchain's rules that creates two incompatible, separate chains.
Hash Rate
The total computational power being used to mine and process transactions on a proof-of-work blockchain.
Hot Wallet
A cryptocurrency wallet connected to the internet, offering convenience at the cost of greater security exposure.
Kelly Criterion
Calculates the optimal fraction of capital to allocate per trade or bet to maximize long-run portfolio growth.
Layer 2
Secondary networks built on top of a blockchain to process transactions faster and at lower cost.
Mining
The process of validating blockchain transactions by solving computational puzzles to earn new cryptocurrency.
NFT
A unique digital asset recorded on a blockchain that represents ownership of a specific item — unlike fungible tokens, each NFT is one-of-a-kind.
Proof of Stake
A blockchain consensus mechanism where validators lock up cryptocurrency as collateral to earn the right to validate transactions.
Proof of Work
A blockchain consensus mechanism where miners expend computational effort to earn the right to add the next block.
Public/Private Key
The cryptographic key pair that enables secure ownership and transfer of cryptocurrency on a blockchain.
Smart Contract
Self-executing code stored on a blockchain that automatically enforces agreement terms when preset conditions are met.
Soft Fork
A backward-compatible blockchain protocol upgrade that does not create a permanent chain split.
Stablecoin
A cryptocurrency designed to maintain a stable value, typically pegged to the US dollar or another fiat currency.
Token Standard
A set of rules that defines how tokens are created, transferred, and interact with other contracts on a blockchain.
Token
A digital asset built on an existing blockchain that represents ownership, utility, or governance rights.
Token Dilution
Measures the percentage increase in a token's total supply when new tokens are minted, quantifying how existing holders' ownership is reduced.
Wallet Address
A unique alphanumeric identifier representing where cryptocurrency can be sent or received on a blockchain.
Web3
A vision of a decentralized internet built on blockchain, where users own their data and digital assets.