Crypto Glossary

A–C

Altcoin — Any cryptocurrency other than Bitcoin.

AMM (Automated Market Maker) — A decentralised exchange protocol that prices assets using a mathematical formula rather than an order book.

Bear market — A period of sustained price decline, typically >20% from recent highs.

Bull market — A period of sustained price increase.

CEX (Centralised Exchange) — A crypto exchange operated by a company (e.g. Binance, Coinbase).

Cold wallet — A crypto wallet not connected to the internet, used for secure long-term storage.

D–L

DeFi (Decentralised Finance) — Financial services built on public blockchains without intermediaries.

DEX (Decentralised Exchange) — A peer-to-peer exchange operating via smart contracts.

DYOR — Do Your Own Research. A reminder that investment decisions are your own responsibility.

Gas fees — Transaction costs on Ethereum and compatible networks.

Halving — A programmatic reduction of Bitcoin's block reward, occurring every ~4 years.

Layer 2 — A scaling solution built on top of a base blockchain to increase speed and reduce costs.

Liquidity — The ease with which an asset can be bought or sold without affecting its price.

M–Z

Market cap — Total market value of a cryptocurrency (price × circulating supply).

NFT (Non-Fungible Token) — A unique digital asset verified on a blockchain.

On-chain — Data or activity recorded directly on a blockchain.

Proof of Stake (PoS) — A consensus mechanism where validators lock up tokens to secure the network.

Proof of Work (PoW) — A consensus mechanism requiring computational effort to validate transactions.

Stablecoin — A cryptocurrency designed to maintain a stable value, usually pegged to USD.

TVL (Total Value Locked) — The total capital deposited in a DeFi protocol.

Whale — An entity holding a large amount of cryptocurrency, capable of influencing prices.