| Crypto Basics & Types | Cryptocurrency | A digital asset designed as a medium of exchange, relying on cryptography for secure transactions and operating independently of a central authority. It can be used as a store of value or a medium of exchange for goods and services. |
| Bitcoin (BTC) | The first and largest cryptocurrency by market capitalization, initiating the blockchain era. It operates as a protocol for a peer-to-peer electronic cash system. |
| Ether (ETH) | The base cryptocurrency for the Ethereum blockchain network, used to pay for transaction fees ('gas'). |
| Altcoin | Any cryptocurrency other than Bitcoin. |
| Stablecoin | A cryptocurrency whose value is pegged to a stable reserve, such as a fiat currency or commodity, or aims to maintain a fixed, unchanging market value. This is typically achieved by backing them with a reserve of assets or using algorithms. |
| Digital Asset / Cryptoasset | A kind of digital asset or digital representation of value made possible by cryptography and blockchain technology. They aim to create a decentralized financial system or serve as a vehicle for transferring value without requiring a trusted third-party entity. |
| Blockchain | A decentralized, immutable ledger of transactions, maintained across a network of computers. It's a method of storing data in discrete sections (blocks) that are linked together, specifying criteria for what data can be stored. |
| Mining | The process of verifying transactions and adding new blocks to a blockchain, typically used in Proof-of-Work (PoW) systems. It involves using computer hardware to solve cryptographic puzzles. |
| Consensus Mechanism / Consensus | The process by which a blockchain network agrees on the validity of transactions and the state of the ledger. It's how distinct sections of a network determine a single truth (e.g., Proof of Work, Proof of Stake). |
| Smart Contract | Self-executing program on a blockchain that runs when predetermined conditions are met. The terms of the agreement are directly written into lines of code. |
| Consortium | A private blockchain network run by a company or a group of companies where participation requires authorization. |
| Token | A digital unit designed for use on a particular blockchain, often representing utility, asset ownership, or access rights. It is also used as a generalized base unit of a cryptocurrency. |
| Fiat Currency | Traditional government-issued money (e.g., USD, EUR) not backed by a physical commodity but by the full faith and credit of a nation state. |
| Exchanges & Trading | Exchange | A platform, website, or app that allows users to buy, sell, and trade cryptoassets. |
| Centralized Exchange (CEX) | A crypto exchange managed by a central authority or company, responsible for custody of users’ assets and operating under regulatory oversight. |
| Decentralized Exchange (DEX) | A peer-to-peer marketplace for cryptocurrency trades, eliminating intermediaries, allowing users to trade assets directly from their wallets. |
| KYC (Know Your Customer) | Verification processes that exchanges and services use to confirm customers’ identities, often for regulatory compliance and preventing fraud. |
| Order Book | A real-time electronic list of buy and sell orders for a specific asset on an exchange. |
| Slippage | The difference between the expected transaction price and the actual executed price due to market movement or insufficient liquidity. |
| Limit Order | An instruction to buy or sell an asset at a specified price or better. |
| Leverage | The use of borrowed funds or margin to amplify trading positions and potential returns, as well as risks. |
| Market Capitalization (Market Cap) | The total market value of a cryptocurrency, calculated as price multiplied by circulating supply. |
| Volume | The total amount of a currency being traded in the open market at any given moment, typically referenced over a 24-hour period in cryptocurrency markets. |
| Volatility | The degree of price fluctuations an asset experiences over time; a market condition in which prices frequently and unpredictably rise and fall. |
| Whale | A term for an individual or entity that holds a large amount of a particular cryptocurrency, often with the potential to influence market prices. |
| Buy the dip | An investing strategy that involves buying an asset when its price has fallen, anticipating that the price will rise again. |
| FUD (Fear, Uncertainty, Doubt) | Negative market sentiment typically fueled by misinformation or pessimism, which can lead to selling pressure. |
| FOMO (Fear of Missing Out) | Psychological effect leading investors to buy into rising markets driven by anxiety of missing profits. |
| Liquidity | The ease with which an asset can be quickly bought or sold without significantly affecting its price; high liquidity indicates active trading and abundant supply. |
| DeFi - Decentralized Finance | DeFi (Decentralized Finance) | A movement and ecosystem utilizing blockchains and cryptocurrencies to recreate and improve upon traditional financial services without centralized intermediaries, providing services like borrowing, lending, and trading. |
| DEX (Decentralized Exchange) | A peer-to-peer marketplace for cryptocurrency trades, eliminating intermediaries, allowing users to trade assets directly from their wallets. |
| Yield Farming / Liquidity Mining | The process of earning rewards or incentives, often in the form of tokens, by lending or staking cryptocurrencies in DeFi protocols or providing liquidity to them. |
| Staking | Participating in a proof-of-stake network by locking up cryptocurrency in a protocol or smart contract to help validate transactions and earn rewards. |
| Lending Protocol (e.g., Aave, Compound) | Decentralized protocols on blockchains that enable users to lend or borrow cryptocurrencies without intermediaries. Aave and Compound are prominent examples offering money markets and algorithmic interest rates. |
| Collateral | Digital assets pledged as security for a loan on DeFi platforms, allowing users to borrow other cryptocurrencies against the value of the pledged assets. |
| Impermanent Loss | A temporary reduction in the value of assets provided as liquidity in an Automated Market Maker (AMM), compared to simply holding the assets outside the liquidity pool. |
| Flash Loan | A type of uncollateralized loan unique to DeFi that is executed and repaid within a single blockchain transaction. They can be exploited in arbitrage or attack strategies. |
| Governance Token | A token granting its holders the ability to participate in the decision-making and protocol upgrade processes of a DeFi ecosystem or Decentralized Autonomous Organization (DAO). |
| Automated Market Maker (AMM) | A decentralized protocol that automates trading by using liquidity pools instead of traditional order books. Uniswap and Curve are examples. |
| Synthetic Asset | A blockchain-based representation of another financial asset or derivative, allowing users to gain exposure to various assets (like stocks, commodities) on-chain. |
| DAO (Decentralized Autonomous Organization) | A blockchain-based organization managed by rules encoded as smart contracts, governed transparently by its members rather than any central authority. |
| dApp (Decentralized Application) | An application running on a blockchain that operates without centralized control, often open-source and governed by smart contracts. |
| Liquidity Pool | A pool of crypto assets locked in a smart contract to facilitate decentralized trading, lending, or borrowing activities, providing market liquidity. |
| Maker/MakerDAO/DAI | MakerDAO is a decentralized autonomous organization that manages the issuance of DAI, a stablecoin algorithmically pegged to the US dollar and backed by crypto collateral. |
| Oracle | An external data provider or service that securely delivers off-chain information (like asset prices, weather data) to smart contracts on the blockchain. |
| Primitive | A basic building block or financial tool in DeFi, such as swaps, lending, or synthetic assets, designed to be combined with other primitives to create complex financial solutions ('money Legos'). |
| Tokenization & Assets | Tokenization | The process of converting rights to an asset, whether digital or real-world, into a digital token recorded on a blockchain. |
| Security Token | A blockchain token representing a share or investment contract in an external asset or company, typically subject to securities regulations. |
| Utility Token | A token that provides holders access to a blockchain-based product or service rather than representing ownership or a security. |
| Asset-Backed Token | A token that represents and is backed by a real-world asset (e.g., gold, real estate, commodities), recorded on a blockchain. |
| ERC-20 | A widely used technical standard for fungible tokens issued on the Ethereum blockchain, defining common rules for their creation and interaction. |
| Initial Coin Offering (ICO) | A fundraising method used by blockchain projects where new tokens are sold to early investors in exchange for other cryptocurrencies or fiat. |
| Token | A digital unit of value created or issued on a blockchain, which can serve various purposes including payments, governance, or rewards. It is often distinct from 'coins' which have their own native blockchain. |
| Fungible Token | A type of token where each unit is identical and interchangeable with another unit of the same type (e.g., cryptocurrencies like Bitcoin, or ERC-20 tokens). Contrast with Non-Fungible Tokens (NFTs). |
| Wallets & Custody | Wallet | A digital or physical device, software, or application for securely storing, sending, and receiving cryptocurrency by holding the private keys. |
| Hot Wallet / Cold Wallet (Cold Storage) | A Hot Wallet is a cryptocurrency wallet connected to the internet, suitable for everyday use but more vulnerable to hacking. A Cold Wallet (or Cold Storage) is an offline device or method to store cryptocurrency, providing higher security. |
| Hardware Wallet | A physical electronic device used to store cryptocurrency private keys offline, offering a high level of security (a type of Cold Wallet). |
| Software Wallet | A wallet application installed on a computer or smartphone that is connected to the internet (a type of Hot Wallet). |
| Mobile Wallet | A software wallet designed to run on a mobile device (a type of Hot Wallet). |
| Web Wallet | A wallet accessed through a web browser interface, which can be custodial (keys held by provider) or non-custodial (keys managed by user, often in browser extension). |
| Address / Public Key | The public-facing identifier for receiving crypto funds; paired with the private key. It's typically a string derived from the public key. |
| Private Key | A secret cryptographic key required to access and control cryptocurrency holdings in a wallet. It is essential for authorizing transactions. |
| Seed Phrase (Mnemonic/Secret Recovery Phrase) / Seed | A human-readable sequence of words generated by a wallet that can be used to back up and restore the wallet and its private keys. |
| Multisig Wallet | A type of cryptocurrency wallet that requires multiple private key signatures to authorize a transaction, enhancing security, especially for shared control of funds. |
| Custody / Custodial Wallet | Custody refers to the service of holding and safeguarding digital assets by a third party on behalf of the owner. A Custodial Wallet is a wallet managed by a third party that holds and secures the private keys on behalf of the user. |
| Non-Custodial Wallet | A wallet where the user holds and manages their own private keys, giving them full control over their digital assets and eliminating reliance on a third party for security. |
| Blockchain Tech & Infrastructure | Blockchain | A decentralized, immutable ledger of transactions, maintained across a network of computers. It's a method of storing data in discrete sections (blocks) that are linked together, specifying criteria for what data can be stored. |
| Distributed Ledger (DLT) | A database that is shared and synchronized across a network of participants (nodes) in multiple locations, allowing transactions and data to be recorded, shared, and synchronized across them. A blockchain is a type of DLT. |
| dApp (Decentralized Application) | An application running on a blockchain that operates without centralized control, often open-source and governed by smart contracts. |
| Scalability | The ability of a blockchain network to handle an increasing number of transactions and users efficiently as the network grows. |
| Node | Any computer or device participating in and supporting the blockchain network by storing a copy of the ledger, validating transactions, and propagating new blocks. |
| Miner | An actor in a Proof-of-Work blockchain network that uses computational power to solve cryptographic puzzles, verify transactions, create new blocks, and earn rewards. |
| Blockchain Explorer / Block Explorer | Tools or software, usually with a graphical user interface, that allow users to view and verify transactions, blocks, addresses, and other data on a public blockchain ledger. |
| Smart Contract | Self-executing code on a blockchain that automatically enforces rules and transactions without intermediaries, running when predetermined conditions are met. |
| Private Blockchain | A type of blockchain network where participation (reading, writing, validating) is restricted and requires permissions or authorization from a central authority or consortium. |
| Consortium | A private blockchain network run by a company or a group of companies, where participating entities collectively manage the network and consensus process. |
| Public Blockchain | A type of blockchain network where anyone can participate, read data, submit transactions, and typically participate in the consensus mechanism (e.g., Bitcoin, Ethereum). |
| Consensus Algorithm | The method used by blockchain nodes to agree on the state of the ledger and the validity of new blocks, ensuring all distributed copies of the ledger are synchronized (e.g., Proof-of-Work, Proof-of-Stake). |
| Actor | Any entity capable of participating in an action or network within the blockchain industry, such as a user, a node, a smart contract, or an organization. |
| Address | The public address associated with a private key, serving as an identity for an actor or account on a blockchain network. It is used to send and receive transactions. |
| ASIC (Application-Specific Integrated Circuit) | A specialized computer processing chip designed for a singular function, such as performing the specific hashing required for mining in certain Proof-of-Work blockchains. |
| Block | A data structure within a blockchain containing a batch of validated transactions and a cryptographic hash linking it to the previous block, forming a chain. |
| Canonical Block | A block that is included in the primary or longest chain of a blockchain, considered the single source of truth by the network's consensus rules. |
| NFTs & Metaverse | NFT (Non-Fungible Token) | A unique, blockchain-based digital asset used to authenticate ownership of a specific digital or physical item (like art, collectibles, virtual real estate) because each NFT has distinct properties and cannot be interchanged on a one-to-one basis. |
| Non-Fungible Token (NFT) | A unique, indivisible digital token on a blockchain representing ownership of a distinct asset, enabling use cases in digital art, collectibles, gaming, virtual worlds, and more. |
| Minting (NFT) | The process of creating a new NFT on a blockchain. It involves publishing a unique instance of a digital item onto the blockchain as an NFT. |
| NFT Marketplace | Online platforms where users can buy, sell, and trade Non-Fungible Tokens (NFTs), connecting creators, buyers, and sellers. |
| Digital Art NFT | An NFT representing ownership of a piece of digital art, providing verifiable authenticity and provenance on the blockchain. |
| Gaming NFT | NFTs used within video games to represent unique in-game assets (like characters, items, land), allowing players verifiable ownership and the ability to trade or sell them outside the game. |
| Metaverse | A virtual, shared space enhanced by digital assets, augmented reality (AR), and virtual reality (VR), often powered by blockchain, where users interact, transact, and create within persistent digital environments. |
| Play-to-Earn (P2E) / GameFi | Blockchain-based gaming models (often referred to as GameFi) where players can earn cryptocurrency, NFTs, or other digital assets with real-world value through gameplay, achievements, or participation. |
| Metaverse Real Estate / Virtual Land | Digital parcels of land or property within a virtual world or metaverse, often represented as NFTs, which can be bought, sold, traded, or developed. |
| ERC-721 | An Ethereum token standard specifically designed for Non-Fungible Tokens (NFTs), defining a set of rules to create unique, non-interchangeable digital tokens. |
| Regulation & Compliance | Regulated | An environment or market where activities, participants, and/or assets are subject to oversight and compliance with established legal standards and regulations set by governmental or financial authorities. |
| AML (Anti-Money Laundering) | Laws, rules, and policies aimed at preventing criminals from disguising the origins of illegally obtained money or assets, including within the cryptocurrency space. |
| KYC (Know Your Customer) | Verification processes that financial institutions, exchanges, and services use to confirm the identity of their customers, often required for regulatory compliance to prevent fraud and illicit activities. |
| Security Token Regulation | Rules and guidelines applied by financial regulators to digital tokens classified as securities, governing their issuance, trading, and compliance requirements. |
| FATF (Financial Action Task Force) | An intergovernmental body that sets international standards and promotes effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system. |
| Travel Rule | An anti-money laundering requirement from the FATF mandating that financial institutions, including Virtual Asset Service Providers (VASPs), obtain and share identifying information about the originators and beneficiaries of transactions above a certain threshold. |
| Crypto-compliance | The state of adhering to applicable regulations, laws, and standards governing cryptocurrency projects, exchanges, and related services within specific jurisdictions. |
| Counter-Terrorism Financing (CTF) | Government legislation, regulations, and other measures designed to disrupt the flow of funds and other resources to terrorist organizations. |
| Beneficial Owner | The natural person(s) who ultimately owns or controls a customer of a financial service provider or the natural person on whose behalf a transaction is being conducted, identified as part of KYC/AML processes. |
| Virtual Asset Service Provider (VASP) | Any natural or legal person who conducts one or more specified activities or operations for or on behalf of another person, including exchanging, transferring, safekeeping, or administering virtual assets. |
| FinCEN (Financial Crimes Enforcement Network) | A bureau of the United States Department of the Treasury responsible for collecting and analyzing information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes. |
| National Competent Authority (NCA) | A government or regulatory body designated within a specific jurisdiction to oversee compliance with financial regulations, including those related to AML/CTF and virtual assets. |
| Digital Operational Resilience Act (DORA) | A European Union regulation aimed at strengthening the IT security of financial entities, including those dealing with cryptoassets, to ensure they can withstand, respond to, and recover from ICT-related disruptions and threats. |
| Enhanced Due Diligence (EDD) | An advanced level of KYC process involving gathering additional data and information to verify the identity of clients and mitigate the higher risks associated with them, often applied to politically exposed persons or high-risk transactions. |
| Risk-Based Approach (RBA) | A strategy where financial institutions and crypto companies identify, assess, and understand their money laundering and terrorist financing risks, then implement controls and procedures proportionate to those risks. |
| Pre-Transaction Decision-Making | The process of analyzing and evaluating potential compliance and risk factors associated with a crypto transaction (e.g., sanctions screening, counterparty verification) before it is executed. |
| Virtual Asset (VA) | A digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes, as defined by bodies like the FATF. |
| Fintech Integration | Fintech | Financial technology; the combination of financial services with new technology and technological innovations. It encompasses new firms, existing entities using new tech, and tech companies offering financial services. |
| Blockchain Payment Solution | Systems or platforms leveraging blockchain technology to facilitate faster, lower-cost, or more transparent payment processing, often for domestic or cross-border transactions. |
| Crypto Cross-border Payment | Utilizing cryptocurrencies or blockchain technology to transfer value between different countries, often bypassing traditional correspondent banking networks. |
| Digital Identity Verification | The process of confirming a user's identity using digital methods and data, increasingly integrated with blockchain for secure and verifiable identity management (related to KYC). |
| On-ramp/Off-ramp | Services that allow users to convert traditional fiat currency (like USD, EUR) into cryptocurrencies (on-ramp) or convert cryptocurrencies back into fiat currency (off-ramp). |
| API (Application Programming Interface) | A set of protocols and tools for building and integrating application software. APIs are widely used in Fintech and crypto to connect different services, platforms, and data sources. |
| Digital Asset | Digital representations of value or ownership made possible by cryptography and blockchain technology. This broad term includes cryptocurrencies, tokens, and NFTs. |
