Crypto Glossary

Explore our comprehensive glossary of cryptocurrency and blockchain terms. From basic concepts to advanced trading terminology, find clear explanations to help you navigate the crypto world.

Airdrop

Distribution of free tokens to users as a form of project promotion or reward.

promotion

Altcoin

Any cryptocurrency other than Bitcoin, often offering additional features or technological innovations.

crypto

Bitcoin

The first and most popular cryptocurrency, created by Satoshi Nakamoto, considered digital gold.

crypto

Block Reward

Reward given to miners for adding a new block to the blockchain.

mining

Blockchain

A distributed ledger where transactions are recorded in cryptographically linked blocks, ensuring security and transparency.

technology

Centralized Exchange

A cryptocurrency exchange where transactions and fund storage are managed by a central entity.

exchange

Consensus

A mechanism through which blockchain network participants reach agreement on the state of the transaction ledger.

technology

Custodial Wallet

A wallet where private keys are stored by a trusted third party, giving the user less control over their funds.

wallet

DAO (Decentralized Autonomous Organization)

An organization governed by rules encoded in smart contracts, where decisions are made by the community.

technology

DApp (Decentralized Application)

An application running on a decentralized blockchain, whose operations are not controlled by a central server.

technology

Decentralized Exchange (DEX)

An exchange enabling direct cryptocurrency trading between users without a central intermediary.

exchange

DEX Aggregator

A platform that aggregates trading offers from various decentralized exchanges, helping to find the best available prices.

exchange

DeFi (Decentralized Finance)

A system of financial services operating on the blockchain that eliminates the need for traditional intermediaries.

defi

FOMO (Fear Of Missing Out)

Fear of missing out on potential profits, which can lead to impulsive cryptocurrency purchases.

investment

FUD (Fear, Uncertainty, Doubt)

A technique of spreading fear, uncertainty, and doubt, often used to influence the market.

investment

Fork

A split in the blockchain that can lead to the creation of a new cryptocurrency or change in the network protocol.

technology

Gas

Fee for executing operations on the Ethereum network, measured in gas units.

technology

Governance Token

A token enabling holders to participate in decision-making processes regarding cryptocurrency project development.

technology

Halving

The process of reducing block mining rewards by half, occurring in certain cryptocurrencies, such as Bitcoin.

mining

Hashrate

A measure of blockchain network's computational power, expressing the number of operations that can be performed in a given time.

mining

HODL

A term derived from a misspelling of 'hold', meaning long-term holding of cryptocurrencies regardless of market fluctuations.

investment

ICO (Initial Coin Offering)

A process of raising capital by a new cryptocurrency project through selling its tokens to investors.

investment

IEO (Initial Exchange Offering)

A token offering conducted by cryptocurrency exchanges, with additional project verification, increasing investor trust.

investment

Interoperability

The ability of different blockchain networks to interact and exchange data with each other.

technology

Klucz publiczny (Public Key)

An address to which cryptocurrencies can be sent; the part of the key pair that is publicly available.

security

Klucz prywatny (Private Key)

A secret code enabling access to funds in a cryptocurrency wallet; should be stored in a secure location.

security

Liquidity Pool

A pool of funds that users have deposited on decentralized exchanges to enable cryptocurrency trading, and liquidity providers receive a portion of the fees.

exchange

Market Cap

The total value of a cryptocurrency, calculated by multiplying the current price by the total number of mined units.

investment

Mining

The process of solving cryptographic puzzles that enables adding new blocks to the blockchain and generating new cryptocurrencies.

mining

Node

A computer or device participating in the blockchain network, responsible for storing, synchronizing, and transmitting data.

technology

Non-Custodial Wallet

A cryptocurrency wallet where the user manages their private keys independently, maintaining full control over their funds.

wallet

Portfel (Wallet)

A digital tool used to store, send, and receive cryptocurrencies. Cryptocurrency wallets can be hardware-based, software-based, or web-based.

wallet

Proof of Stake (PoS)

A consensus algorithm where transaction validation is based on the number of tokens held, rather than computational power.

technology

Proof of Work (PoW)

A consensus algorithm where miners must solve complex cryptographic puzzles to validate transactions and add blocks to the blockchain.

mining

Rug Pull

A cryptocurrency scam where project creators suddenly withdraw all funds, leading to a drastic drop in token value.

investment

Security Token

A token representing shares in assets or the right to participate in profits, compliant with legal regulations.

investment

Shilling

Intensive, often exaggerated promotion of a project or cryptocurrency, aimed at artificially boosting its popularity.

investment

Smart Contract

Self-executing code running on the blockchain that automatically enforces contract terms between parties.

technology

Stablecoin

A cryptocurrency whose value is tied to a traditional currency (e.g., USD) or other asset, minimizing its volatility.

investment

Staking

The process of locking cryptocurrencies to support blockchain network operations and receive rewards.

investment

Satoshi

The smallest unit of Bitcoin, equal to 0.00000001 BTC, named after Bitcoin's creator, Satoshi Nakamoto.

crypto

Token

A digital asset representing value or the right to use functions of a given project (e.g., utility token, security token).

investment

Whale

A large investor holding significant amounts of cryptocurrencies, whose actions can significantly impact the market.

investment

Yield Farming

A method of generating additional profits by investing cryptocurrencies in liquidity pools in the DeFi ecosystem.

defi

Ethereum

A decentralized platform that enables smart contracts and decentralized applications (dApps). Ethereum is the second-largest cryptocurrency by market cap and supports a wide range of blockchain applications.

crypto

Wallet

A digital tool used to store, send, and receive cryptocurrencies. Cryptocurrency wallets can be hardware-based, software-based, or web-based.

wallet

Private Key

A secret number that allows you to spend cryptocurrency from your wallet. Private keys should be kept secure and never shared, as they provide full access to your crypto assets.

security

DeFi

Decentralized Finance - financial services built on blockchain technology that operate without traditional intermediaries like banks. DeFi includes lending, borrowing, trading, and other financial activities.

defi

NFT (Non-Fungible Token)

A non-fungible token representing unique digital or physical ownership on the blockchain.

technology

Layer 2

Solutions built on existing blockchains (Layer 1), aimed at increasing scalability and reducing transaction costs by processing operations off the main chain.

technology

Tokenomics

The study of economic aspects of cryptocurrency tokens, including supply, distribution, burning mechanisms, and other factors affecting token value.

investment

AMM (Automated Market Maker)

A decentralized exchange protocol that uses mathematical algorithms to price assets instead of a traditional order book, enabling automated cryptocurrency trading.

exchange

TVL (Total Value Locked)

The total value of assets locked in DeFi protocols, serving as an indicator of adoption and trust in decentralized finance.

defi

KYC (Know Your Customer)

The process of verifying a customer's identity required by many regulated cryptocurrency exchanges and financial platforms to prevent fraud and money laundering.

security

Gas Fee

Transaction fee in Ethereum and other blockchains, required to process transactions or execute smart contracts.

technology