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Crypto Glossary for Beginners
Find clear explanations of the terms you encounter while learning about cryptocurrency, blockchain, wallets, DeFi, and Web3. Look up a word, understand the idea, and continue learning at your own pace.
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51% attack
In proof-of-work networks, an attack involving majority mining power that can support censorship or double spending. It does not reveal private keys or override every rule.
Address
A public identifier used to receive assets or identify an account on a specific blockchain. An address is not a private key.
Address poisoning
A scam that places a look-alike address in transaction history, hoping you copy it as a destination for a later transfer.
Admin key
A key with special authority over an application, such as changing settings, pausing activity, or authorizing upgrades. Its powers depend on the design.
Airdrop
A distribution of tokens to selected addresses. Unexpected tokens or supposed claim pages can also be used to lure people into scams.
Algorithmic stablecoin
A stablecoin that relies mainly on programmed incentives and supply mechanisms to support its peg. Those mechanisms can fail.
Altcoin
A commonly used label for crypto assets other than Bitcoin. The label says nothing about an asset’s purpose, quality, or safety.
Annual percentage rate (APR)
A yearly percentage rate. Crypto platforms may use it for borrowing costs or rewards without compounding; check what their calculation includes.
Annual percentage yield (APY)
An annualized rate that includes compounding. In crypto, an advertised APY depends on assumptions and can change; it does not guarantee profit.
Anonymous
Not linked to an identifiable person. Public blockchain activity is often pseudonymous instead, so visible transactions may reveal connections to real identities.
Arbitrage
Taking advantage of price differences between markets or conversion routes. Stablecoin arbitrage can help a peg, but fees and failed redemptions can interfere.
Attestation (reserve report)
An assurance report about specified reserve information under defined criteria. Its scope and reporting date matter; it is not necessarily a full company audit.
Automated market maker (AMM)
A trading system that uses programmed pricing rules and liquidity pools rather than relying only on matched buyer and seller orders.
Bitcoin (BTC)
A peer-to-peer payment network and its native cryptocurrency. Bitcoin uses proof of work and has a supply limit of 21 million under its current rules.
Blind signing
Signing a wallet request without understandable details about what it authorizes. A valid signature can still approve a harmful action.
Block
A package of blockchain data, usually including transactions and a reference to the previous block. Blocks do not have to be full to be added.
Block explorer
A tool for inspecting blockchain records, including transactions, addresses, and blocks. An explorer displays records; it does not certify a project’s legitimacy.
Block height
A block’s position in a chain, counted from the first block. Competing blocks can temporarily share the same height.
Block reward
Compensation for producing a block. In Bitcoin, it consists of newly issued bitcoin, called the subsidy, plus transaction fees.
Block subsidy
The newly created bitcoin assigned to a miner for a valid block. Transaction fees are separate from the subsidy.
Blockchain
A ledger that organizes records into blocks linked with cryptographic references. Its rules and network participants determine how updates are accepted.
Blockchain network
The connected participants and software that communicate and follow a blockchain’s rules. Different networks can use different assets, fees, and security models.
Bridge
A system that transfers assets or information between networks, often through locking and issuing tokens. Bridges add security and operational risks.
Broadcast
To send a transaction or other network data to peers for propagation. Broadcasting a transaction does not mean it has been confirmed.
Burning
Removing tokens from usable supply through a token’s rules or an inaccessible destination. Burning does not guarantee a higher price.
Centralization
The concentration of control or dependence in one entity or a small group. A blockchain application may retain centralized websites, infrastructure, or administrators.
Centralized exchange (CEX)
A trading platform operated by a company or organization. Many hold users’ private keys and maintain account balances in their own systems.
Censorship resistance
The ability of a system to make blocking valid participation or transactions difficult. It is a design property with limits, not an absolute guarantee.
Chain reorganization (reorg)
A change in the accepted blockchain branch that replaces some recent blocks. Affected transactions can lose confirmations or return to pending status.
Circulating supply
An estimate of units considered available in the market. Providers use different inclusion rules, so circulating supply may differ from total supply.
Coin
A common label for a blockchain’s native crypto asset, such as BTC or ETH. Usage varies, so identify the actual asset and network.
Cold storage (cold wallet)
A custody setup intended to keep private keys away from routine internet-connected activity. It reduces some exposure but cannot prevent every mistake or theft.
Collateral
Assets committed to support a loan or another obligation. In DeFi, collateral may be seized through liquidation if required conditions are no longer met.
Commodity-backed stablecoin
A stablecoin designed to track a commodity, such as gold, using backing assets. Custody, verification, and redemption terms still matter.
Compounding
Earning additional returns on previously earned returns. It helps explain APY, but assumes earnings can be reinvested under the stated conditions.
Confirmation
Evidence that a transaction has been included in the accepted blockchain. Additional blocks can increase confidence; exact confirmation conventions vary by network.
Consensus mechanism
The rules and processes that let network participants agree on an accepted blockchain history. Proof of work and proof of stake are different approaches.
Consortium blockchain
A blockchain governed by multiple selected organizations. Shared administration does not make it open to everyone or free of centralized control.
Contract address
The address identifying a deployed smart contract on a particular network. A token’s name or symbol alone does not establish its identity.
Counterparty risk
The risk that another party fails to meet its obligations. Crypto users may face this through custodians, exchanges, issuers, or service providers.
Crypto asset (digital asset)
A digitally represented asset using cryptography and related technology, often recorded on a distributed ledger. Different assets can carry very different rights and risks.
Crypto-backed stablecoin
A stablecoin supported by crypto collateral. Many require extra collateral because backing assets can fluctuate in value; liquidation and contract risks remain.
Cryptocurrency
A type of digital asset that uses cryptography and network rules to authorize transfers and maintain records. Different cryptocurrencies serve different purposes.
Cryptography
Mathematical methods for protecting and verifying information. Blockchains use techniques such as hashes and digital signatures; cryptography does not make every application safe.
Custodial wallet
A wallet service in which a provider controls the relevant private keys. Users depend on the provider’s security, access policies, and ability to honor withdrawals.
Custody
The arrangement determining who controls the credentials or authority needed to access assets. Custody changes where responsibilities and risks sit.
Dai (DAI)
A dollar-referenced stablecoin associated with the Maker ecosystem, now connected with Sky. Its collateral and governance arrangements differ from centrally issued fiat-backed tokens.
Decentralization
The distribution of control across independent participants. A network or application can be decentralized in some respects and concentrated in others.
Decentralized application (dApp)
An application that uses a decentralized network or smart contracts for part of its operation. Its website and other components may still be centralized.
Decentralized autonomous organization (DAO)
A group that coordinates decisions and resources using shared rules and blockchain tools. The degree of automation and member control varies.
Decentralized exchange (DEX)
A trading application that uses blockchain-based mechanisms, commonly smart contracts, to exchange assets. Contract, permission, and liquidity risks remain.
Decentralized finance (DeFi)
Blockchain-based financial applications for activities such as trading, lending, and borrowing. The label does not guarantee full decentralization or traditional banking protections.
Decentralized identity
An approach to digital identity that lets users control identifiers and present verifiable claims with less dependence on a single account provider.
Depeg
A departure from a stablecoin’s intended reference value. A depeg may be temporary or persistent, and recovery is not guaranteed.
Digital signature
Cryptographic evidence that a request was authorized using a signing key. It verifies authorization, not whether the request is safe or appropriate.
Disconnect wallet
End an application’s connection to your wallet. Disconnecting does not remove existing blockchain token approvals or hide already-public transaction history.
Distributed ledger
A record maintained across multiple participants or locations under shared update rules. A blockchain is one kind of distributed ledger.
Double spending
An attempt to spend the same digital funds more than once. Blockchain validation and consensus rules help determine which spend is accepted.
ERC-1155
A token standard that can manage multiple token types in one contract, including fungible and non-fungible assets.
ERC-20
A standard interface for fungible tokens on Ethereum-compatible systems, covering functions such as balances, transfers, and spending allowances. Compliance is not a safety certification.
ERC-721
A standard interface for non-fungible tokens, giving each token a distinct identifier within its contract. It does not determine copyright or legal ownership rights.
Ether (ETH)
Ethereum’s native cryptocurrency, used for transfers, network fees, and proof-of-stake security. ETH is the asset; Ethereum is the network.
Ethereum
A programmable blockchain network that supports smart contracts and applications. Its native asset is ether, commonly identified by the symbol ETH.
Ethereum Virtual Machine (EVM)
The execution environment that applies Ethereum’s rules to smart-contract instructions. Other networks may also support EVM-compatible programs.
Exchange
A service or system for buying, selling, or swapping assets. Custodial company-operated exchanges and decentralized exchange applications have different access and risk models.
Failed transaction
A transaction whose requested execution did not succeed. On Ethereum, a failed transaction included in a block can still consume gas and incur a fee.
Fiat currency
Government-issued money, such as U.S. dollars or euros. A token designed to track a fiat currency is a separate asset with its own risks.
Fiat-backed stablecoin
A stablecoin supported by reserves held outside the blockchain, often cash and cash equivalents. Reserve quality, issuer obligations, and redemption access matter.
Finality
The point at which a network treats an accepted record as settled under its consensus rules. Its meaning and reversal assumptions differ across networks.
Fork
A divergence in blockchain history or a change in network rules. Some forks are temporary; others can result in lasting separate chains.
Full node
Software that independently verifies blockchain data against the network’s rules. Running a full node is different from mining or operating a validator.
Fungible
Interchangeable with another unit of the same asset under the relevant system. One unit can substitute for another, unlike a uniquely identified NFT.
Gas
The unit measuring computational work on Ethereum. Gas is not a token; the corresponding network fee is generally paid in ETH.
Gas fee
The charge for Ethereum computation, based on gas used and the price per unit. An included transaction may incur fees even when execution fails.
Gas limit
The maximum gas a transaction is allowed to consume. It limits computational work, rather than directly specifying the final fee in currency.
Genesis block
The first block of a blockchain. It provides the starting point for the chain’s history.
Giveaway scam
A fake reward offer that asks you to send crypto or take another unsafe action to receive a larger payment. The promised reward may never exist.
Governance
The process for making and implementing decisions about a network, protocol, or community. Voting rules and administrator powers determine who actually has influence.
Governance token
A token used for certain governance rights, such as proposing changes or voting. It does not automatically grant company equity or equal influence.
Gwei
A denomination of ETH often used for gas prices. One gwei equals one billionth of an ETH, or 0.000000001 ETH.
Halving
Bitcoin’s scheduled reduction of the block subsidy by half every 210,000 blocks. It reduces new issuance, not existing balances or transaction fees.
Hard fork
A rule change that allows blocks older software would reject. If participants follow incompatible rules, it can produce separate blockchain histories.
Hardware wallet
A device designed to protect signing keys and authorize transactions. It does not remove risks from exposed recovery information or misleading approvals.
Hash
A fixed-length output produced from data by a hash function. Cryptographic hashes help detect changes and link blockchain records.
Hash rate
The number of hash calculations performed per second. In proof-of-work mining, it measures computing activity, not the number of network users.
Hot wallet
A wallet used on an internet-connected device. Its convenience comes with exposure to threats affecting the device, software, or online interactions.
Immutability
Resistance to changing recorded history. Blockchain records can be difficult to alter, but this does not mean applications cannot update state or networks cannot reorganize.
Impermanent loss
The shortfall in a liquidity position’s value compared with holding the same assets outside the pool after relative prices change, before accounting for fees.
Impersonation scam
A fraud in which someone pretends to be a trusted person or organization. Logos, usernames, and convincing language do not prove identity.
Interoperability
The ability of systems to exchange information or work together. Compatible addresses or software do not mean assets can be sent safely across any network.
Investment scam
A fraud that presents a false investment opportunity, often with guaranteed returns or fabricated profits. Account displays and testimonials can be manipulated.
Issuer
The entity or mechanism responsible for creating an asset. For centrally issued stablecoins, issuer policies can affect redemption, transfers, and access.
Layer 1 (L1)
A base blockchain that establishes its own transaction and consensus rules, such as Bitcoin or Ethereum. Scaling systems may build on top of it.
Layer 2 (L2)
A scaling system built on a base blockchain and deriving security from it. Designs vary, and additional operational or administrator risks may remain.
Lending protocol
A set of smart contracts that coordinates supplying assets and borrowing them under programmed rules. Interest rates, collateral requirements, and available liquidity can change.
Liquidation
The forced use or sale of collateral to repay a borrowing position that breaches a protocol’s requirements. It can cause losses and additional charges.
Liquidation threshold
The collateral-risk boundary a lending protocol uses to decide when a borrowing position can be liquidated. It differs from the maximum initially permitted borrowing amount.
Liquidity
How readily an asset can be traded without substantially changing its price. Low liquidity can make trades difficult or costly.
Liquidity mining
A reward program that distributes tokens for supplying liquidity or participating in a protocol. Incentive rewards can change or lose value.
Liquidity pool
Assets held in a smart-contract system to support activities such as swaps or lending. Depositing into a pool exposes assets to its rules and risks.
Liquidity provider (LP)
Someone who supplies assets to a liquidity pool. Providers may earn fees or incentives while facing market, contract, and liquidity risks.
Mainnet
A network’s live production environment, where transactions can involve assets with real economic value. It differs from a testing network.
Malware
Software designed to harm systems or compromise information. In crypto, it may steal credentials, alter copied addresses, or interfere with wallet software.
Market capitalization (market cap)
An asset’s quoted price multiplied by its circulating supply. It is an estimate, not the amount invested or the cash available for withdrawals.
Maximum supply
The upper limit on units an asset’s rules allow to exist. Some assets have no fixed maximum, and scarcity alone does not establish value.
Mempool
A node’s collection of unconfirmed transactions awaiting possible inclusion in a block. Nodes may hold different collections; there is no single universal queue.
Message signing
Creating a signature over a message rather than submitting a transaction directly. Some signatures can authorize later asset transfers, so no immediate fee does not mean no risk.
Miner
A participant performing proof-of-work mining. A miner cannot make an otherwise invalid transaction acceptable simply by including it in a block.
Mining
The process of building proposed blocks and performing proof-of-work computations. Valid blocks must still satisfy the rules checked by the network.
Mining difficulty
A measure of how demanding a network’s proof-of-work target is. Bitcoin adjusts difficulty to keep block production near its intended average rate.
Mining pool
A group that combines mining work and shares rewards under agreed rules. Pool participation changes payout patterns and introduces dependence on the operator.
Minting
Creating new tokens or units according to an asset’s rules. Minting alone does not establish backing, demand, or value.
Multifactor authentication (MFA)
Authentication requiring more than one distinct type of evidence, such as a password and a security device. Two passwords are not two independent factors.
Multisignature wallet (multisig)
A wallet arrangement requiring multiple authorized signatures to approve an action. It can spread control but still needs secure keys and recovery planning.
Native asset
A blockchain’s built-in asset, such as BTC on Bitcoin or ETH on Ethereum. It often pays network fees and supports network incentives.
Network fee (transaction fee)
A charge for processing a blockchain transaction. It is separate from exchange withdrawal fees, application charges, or a token’s own transfer fees.
Node
A running instance of software participating in a blockchain network. Its role may include checking records, storing data, and communicating with peers.
Non-fungible token (NFT)
A token with a distinct identifier within its contract. It may represent an item or right; owning the token does not automatically grant copyright.
Nonce
In an Ethereum transaction, a sender’s sequence number that helps order transactions and prevent replay. The term has different uses in other contexts.
Off-chain
Activity or information outside a particular blockchain’s recorded execution. An application can combine off-chain services with on-chain contracts.
On-chain
Activity or data recorded or executed on a blockchain. Being on-chain makes certain records inspectable; it does not prove that all outside claims are true.
Open source
Software whose source code is available under a license allowing specified use, inspection, and modification. Visible code is not proof that someone has verified its safety.
Oracle
A system that supplies smart contracts with data they cannot directly obtain from outside the blockchain. Incorrect or manipulated data can cause harmful outcomes.
Overcollateralization
Providing collateral worth more than the amount borrowed or issued against it. The extra backing is a buffer, not a guarantee against losses.
Passphrase (wallet recovery)
An additional secret used by some recovery systems to derive a different wallet from the same recovery words. Losing it can prevent access.
Peer-to-peer (P2P)
Communication or exchange directly among participants rather than through a single central server. Peer-to-peer systems can still depend on other intermediaries.
Peg
The reference value an asset aims to maintain, such as one U.S. dollar per token. A target price is not a guarantee.
Pending transaction
A submitted transaction awaiting inclusion or further processing. It may take time, be replaced, or never enter the accepted blockchain.
Permissioned blockchain
A blockchain that restricts some participation to approved entities. Permission to read records and permission to publish or validate can differ.
Permissionless blockchain
A blockchain allowing participation without approval from a central gatekeeper, subject to its rules. Applications built on it may still impose restrictions.
Phishing
Deception that imitates a trusted source to obtain sensitive information or induce an unsafe action. Fake wallet websites and support messages are common examples.
Price impact
The change in execution price caused by your own trade. Larger trades relative to available liquidity can create greater price impact.
Price oracle
An oracle that supplies price information to a smart contract. Lending and stablecoin systems may rely on it for collateral values and liquidation decisions.
Private blockchain
A blockchain whose access or administration is restricted, commonly under one organization. It does not have the same participation model as a public network.
Private key
Secret cryptographic information used to create signatures authorizing actions. Anyone who obtains the relevant key may gain control over associated assets.
Proof of stake (PoS)
A consensus approach in which validators commit assets and participate in proposing or voting on blocks. Penalties discourage certain harmful behavior.
Proof of work (PoW)
A consensus approach using demonstrable computational work to help select accepted blocks. In Bitcoin, miners compete to find hashes meeting the network’s target.
Protocol
A set of rules governing a network or application. In DeFi, the term also commonly refers to the smart-contract system delivering a service.
Pseudonymous
Identified by an address or other alias rather than directly by a real name. Public activity may still be traced or linked to an identity.
Public blockchain
A blockchain whose records are publicly inspectable. Public visibility alone does not establish how decentralized, private, or secure the system is.
Public key
Cryptographic information mathematically related to a private key and used to verify signatures. It is not the same thing as a wallet address.
Recovery phrase (seed phrase)
A sequence of words used by many wallets to recreate signing keys. It can control multiple accounts; protect it as secret recovery information.
Recovery scam
A fraud that promises to retrieve lost or stolen assets, often demanding advance payment or sensitive information. A recovery claim does not establish real capability.
Redemption
Exchanging a token with its issuer or designated mechanism for the specified underlying value. Eligibility, fees, timing, and availability depend on the terms.
Reserves
Assets held to support an issuer’s obligations, such as stablecoin redemption. Their composition, liquidity, custody, and legal treatment affect the backing’s quality.
Revoke approval
Remove or reduce an existing token-spending permission. This usually changes blockchain state; disconnecting a website alone does not revoke the permission.
Rollup
A scaling system that executes transactions outside layer 1 and posts data and supporting evidence to it. Different rollups use different verification methods.
Satoshi (sat)
One hundred-millionth of a bitcoin: 0.00000001 BTC. Bitcoin amounts can be expressed in satoshis rather than whole coins.
Security exploit
The use of a software vulnerability or design weakness to cause unintended behavior, potentially stealing assets or disrupting an application.
Self-custody (non-custodial wallet)
An arrangement in which you control the credentials or authority needed to access assets. You are responsible for securing access and recovery information.
Sidechain
A separate blockchain with its own consensus and security, connected to another chain. A sidechain does not automatically inherit that chain’s security.
SIM swap
A takeover in which an attacker gets your phone number reassigned to a SIM they control. This can compromise accounts using text-message verification.
Slashing
A proof-of-stake penalty that removes part of a validator’s stake for specified offenses. Ordinary inactivity penalties and slashing are different mechanisms.
Slippage
The difference between the expected execution price and the price actually received. Market changes and available liquidity can affect the outcome.
Slippage tolerance
The permitted deviation from a swap’s quoted outcome before the transaction fails. A wider tolerance may allow a much worse execution price.
Smart contract
A program deployed on a blockchain that executes according to its code when invoked. It is not automatically safe, intelligent, or a legally enforceable agreement.
Smart-contract audit
A review of contract code and design for vulnerabilities. Its scope, version, findings, and fixes matter; an audit cannot guarantee that all flaws were found.
Smart-contract risk
The risk of loss or disruption from bugs, flawed design, malicious code, or unexpected contract interactions. A secure blockchain does not eliminate this risk.
Soft fork
A rule change that narrows valid behavior so updated blocks remain acceptable to older software. Adoption and enforcement determine how it operates.
Spending allowance (spending cap)
The amount of a particular token an approved spender is authorized to move. A large allowance can expose more tokens than a single intended transaction.
Stablecoin
A crypto asset designed to track a reference value, often a fiat currency. Backing and stabilization methods differ, and the target value can be lost.
Staking
Committing assets to participate in proof-of-stake security, directly or through a service. Rewards, withdrawal conditions, penalties, and custody risks depend on the arrangement.
Store of value
Something held with the aim of preserving purchasing power over time. Calling bitcoin a store of value does not remove volatility or guarantee future value.
Swap
An exchange of one asset for another. A swap can involve network fees, application charges, price impact, and slippage.
Testnet
A network used to test software and transactions separately from mainnet. Test tokens generally are not intended to have real economic value.
Token
A digital asset represented by a blockchain-based system, often a smart contract. Its rules determine what it represents and how it can be transferred.
Token approval
Permission for a specified spender to move a particular token on your behalf. An approval can remain active after the transaction you originally intended.
Token standard
A shared interface specifying how tokens behave and how applications interact with them. Standards support compatibility but do not certify an asset’s safety.
Tokenization
Representing an asset, claim, or right through a token. The token’s connection to an outside asset depends on technical arrangements and enforceable terms.
Total supply
The amount of an asset that currently exists under its accounting rules, generally excluding units formally burned. It differs from a possible future maximum.
Total value locked (TVL)
A measure of assets committed to a protocol or group of protocols. Calculation methods vary; a large TVL does not establish security or solvency.
Transaction
A request that updates blockchain state when accepted and executed under network rules, such as sending an asset or interacting with a contract.
Transaction ID (transaction hash)
An identifier derived from transaction data, used to find its record on the relevant network. It differs from a wallet or contract address.
Trustless
A term for systems designed to reduce reliance on particular intermediaries through verifiable rules. Users still rely on software, assumptions, and surrounding services.
Unlimited approval
A token allowance set high enough to function as unrestricted spending permission. It can expose current and future holdings of that token to the approved spender.
Upgradeability
A design that lets an application change its contract logic through specified mechanisms. Upgrade authority can fix problems but also introduce new control risks.
USDC
A U.S. dollar-referenced stablecoin issued by Circle. Its issuer describes reserve backing and redemption arrangements; users still face issuer, network, and access risks.
USDT (Tether)
A U.S. dollar-referenced stablecoin issued by Tether. Reserve composition, redemption eligibility, and supported networks matter when evaluating or using it.
Utility token
A token intended to enable access to a service or network function. Claimed utility does not establish demand, price stability, or investment value.
Validator
In proof-of-stake systems, a participant that checks and votes on blocks and may propose them. Being a validator differs from simply running a node.
Volatility
The extent of price fluctuations over time. A volatile asset can change value sharply even when its underlying network is functioning normally.
Wallet
A tool for managing blockchain accounts, signing requests, and viewing assets. The blockchain records the assets; the wallet manages access to them.
Wallet backup
Protected information needed to restore wallet access. The correct backup depends on the wallet design; a screenshot of a balance is not a recovery method.
Wallet connection
Letting an application interact with a selected wallet account and request actions. Connecting usually does not move assets, but later requests may authorize transfers.
Wallet password or PIN
A credential that protects access to a device, app, or encrypted wallet data. It is different from blockchain signing keys and a recovery phrase.
Web1
A shorthand for the early web’s emphasis on reading published pages. It is a simplified description, not a strict boundary covering every website.
Web2
A shorthand for interactive internet services with user-created content and company-operated platforms. These services coexist with other approaches to building the web.
Web3
A broad term for applications using blockchains, wallets, and tokens for digital ownership or participation. It is not a single standard or guarantee of decentralization.
Wei
The smallest denomination of ETH. One ETH equals 1,000,000,000,000,000,000 wei, or 10 to the eighteenth power wei.
Wrapped token
A token representing another asset in a compatible format or on another network. Its backing and redemption mechanism introduce additional assumptions and risks.
Yield
Returns earned through an activity such as lending or supplying liquidity. Yield can come from fees, interest, or incentives and may be offset by losses.
Yield farming
Using DeFi services to seek returns, often including token incentives. The activity can involve several protocols and accumulate market, contract, and permission risks.
Clear up common confusion
Related Terms, Different Meanings
Small differences in wording can change what you understand—or what you authorize. These comparisons help you keep the important distinctions clear.
Ethereum and ETH
Ethereum is the network. Ether, or ETH, is its native asset.
Wallet and assets
A wallet manages access and signatures. The blockchain maintains the asset records.
Address, public key, and private key
They serve different purposes. An address identifies a destination or account; public keys help verify signatures; private keys authorize actions and must remain secret.
Connecting, signing, and approving
A connection lets an application request interactions. A signature authorizes particular data or instructions. A token approval grants spending permission. Review each request separately.
Disconnecting and revoking
Disconnecting ends the wallet connection. Existing on-chain token permissions remain until they are removed or changed.
Gas and gas fees
Gas measures computational work. The gas fee is the charge for that work.
Confirmation and finality
Confirmation records progress toward settlement. Finality describes settlement under a network’s consensus rules; the meaning differs between networks.
Stable and risk-free
A stablecoin aims to track a reference value. Its name does not guarantee its backing, redemption, or market price.
Audited and guaranteed safe
An audit reviews a particular scope of code. It can miss flaws, and later changes can introduce new risks.
NFT and copyright
A token’s identity and transfer record do not by themselves grant rights to the associated artwork or other content. Review the actual rights and terms.
Two-factor and multifactor authentication
Two-factor authentication, or 2FA, uses two distinct authentication factors. MFA is the broader term for authentication using more than one distinct factor.
Continue Learning
- The Complete Beginner’s Guide to Cryptocurrency
- What Is Blockchain?
- What Is Bitcoin?
- What Is Ethereum?
- What Are Smart Contracts?
- What Is DeFi?
- Crypto Wallets Explained
- What Are Stablecoins?
- What Is Web3?
- Cryptocurrency Security
Definition sources
- NIST — Blockchain Technology Overview
- Bitcoin developer guide — Block Chain
- Bitcoin developer guide — Transactions
- Bitcoin developer guide — Wallets
- Bitcoin.org — Vocabulary
- Bitcoin.org — FAQ
- Bitcoin.org — Securing your wallet
- Ethereum.org — Wallets
- Ethereum.org — Accounts
- Ethereum.org — Gas and fees
- MetaMask — Revoking allowances and approvals
- Ethereum token specification — ERC-20
- Ethereum token specification — ERC-721
- Ethereum.org — Technical introduction to dapps
- Ethereum.org — Nodes and clients
- Ethereum.org — Glossary
- FTC — Cryptocurrency and scams
- Ethereum.org — Smart contract security
- Ethereum.org — Scaling
- Ethereum.org — Blockchain bridges
- Ethereum.org — Introduction to Web3
- Ethereum.org — DeFi
- Aave — Health factor and liquidations
- Uniswap Labs — Liquidity pools
- Uniswap Labs — Impermanent loss
- Uniswap Labs — Signature permits and blind signing
- Ethereum.org — DAOs
- Ethereum.org — Stablecoins
- Circle — Reserve transparency
- BIS — The crypto ecosystem: key elements and risks
- CFPB — Annual percentage yield calculation
- Bitcoin.org — Halving
- Ethereum.org — Decentralized identity
- Ethereum.org — ERC-1155
- Ethereum.org — What is Ethereum?
- Ethereum.org — Proof of stake
- Aave — Supply tokens
- NIST — Multifactor authentication
- NIST — Malware
- MetaMask — Address poisoning scams
- FINRA — Crypto assets
- Ethereum.org — Oracles
- FTC — Recognize and avoid phishing
- FTC — Crypto recovery scams
- FTC — SIM swap scams
- Ethereum.org — Smart contracts
- MetaMask — Token approvals
- Ethereum.org — Transactions
- Uniswap Labs — Price impact and slippage
- Ethereum.org — Proof of work
- Bitcoin developer guide — Mining
- Ethereum.org — Proof-of-stake rewards and penalties
- Bitcoin developer glossary
- CoinGecko — Market data methodology
- Circle — USDC
- Tether — How it works
- Sky — Official ecosystem information
- Philadelphia Fed — Making Sense of Decentralized Finance
Your next step
Put the Terms Into Context
Learning the vocabulary is one step. Understanding how the ideas connect is the next. Follow the Crypto Fundamentals learning path for a clear sequence, or browse the Guides page to explore a topic that interests you.