Dictionary
Crypto & finance Dictionary
Plain-language definitions of 54 terms used in our coverage.
54 entries
A
B
- Bear Market A sustained period of falling prices and pessimism. Trading & Markets
- Blockchain A shared, tamper-evident ledger maintained by many independent computers. Blockchain Basics
- Bridge A system that moves assets or messages between blockchains. Interoperability
- Bull Market A sustained period of rising prices and optimism. Trading & Markets
C
- Centralized Exchange A company-run platform that holds customers’ funds and matches trades. Trading & Markets
- Circulating Supply The number of tokens currently available to trade. Tokens & Tokenomics
- Collateral Assets pledged to secure a loan or position. DeFi
- Consensus Mechanism The rules that let a network agree on one version of the ledger. Consensus
- Cryptocurrency A digital asset recorded on a blockchain and controlled by private keys. Blockchain Basics
- Custody Who holds the keys controlling crypto assets. Wallets & Custody
D
F
H
I
K
L
- Layer 1 A base blockchain with its own consensus and security. Scaling
- Layer 2 A network that adds capacity on top of a base blockchain. Scaling
- Liquid Staking Staking while receiving a tradable token for the staked deposit. DeFi
- Liquidation The forced closing of a position whose collateral has run short. Trading & Markets
- Liquidity How easily an asset can be traded without moving its price. Trading & Markets
- Liquidity Pool Tokens pooled in a contract to enable trading or lending. DeFi
M
- Market Capitalization Price multiplied by circulating supply. Trading & Markets
- Maximal Extractable Value Profit captured by reordering or inserting pending transactions. DeFi
- Memecoin A token driven by internet culture and speculation. Tokens & Tokenomics
- Multisig A wallet that needs several keys to approve a transaction. Wallets & Custody
O
P
- Peg The target value an asset is designed to track. Stablecoins
- Phishing Impersonation scams that trick users into giving up keys or approvals. Security & Privacy
- Privacy Coin A cryptocurrency that conceals transaction details. Security & Privacy
- Private Key The secret that controls a blockchain address. Wallets & Custody
- Proof of Stake Consensus secured by validators who put tokens at risk. Consensus
- Proof of Work Consensus secured by competitive computing work. Consensus
R
S
- Seed Phrase The backup words that can restore a wallet’s keys. Wallets & Custody
- Self-Custody Holding your own keys instead of relying on a company. Wallets & Custody
- Sequencer The rollup component that orders and batches transactions. Scaling
- Slashing A penalty that destroys part of a misbehaving validator’s stake. Consensus
- Slippage The gap between expected and actual execution price. Trading & Markets
- Smart Contract Self-executing code deployed on a blockchain. Smart Contracts
- Spot Bitcoin ETF A stock-exchange fund that holds actual bitcoin. Regulation & Compliance
- Stablecoin A token designed to hold a stable value, usually one dollar. Stablecoins
- Staking Locking tokens to help secure a network in exchange for rewards. Consensus