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Quick Glossary

Term Meaning
Address Public identifier where you receive funds. Derived from the public key
Airdrop Free distribution of tokens, usually to early users of a protocol
Altcoin Any crypto that isn't BTC
APY / APR Annual compound / simple yield
ATH / ATL All-time high / low
Bear / Bull market Falling / rising market
Bid / Ask Best buy / sell price in the order book
Burn Permanent destruction of tokens (reduces supply)
CEX / DEX Centralized / decentralized exchange
Cold / Hot wallet Offline wallet (hardware) / wallet connected to the internet
DCA Dollar Cost Averaging — buying a fixed amount on a regular schedule
DeFi Decentralized Finance: financial services built as smart contracts
Depeg Loss of the peg of a stablecoin or mirror token
BTC Dominance % of the total crypto market cap that is Bitcoin
DYOR Do Your Own Research
FDV Fully Diluted Valuation — price × maximum supply
FOMO / FUD Fear Of Missing Out / Fear, Uncertainty, Doubt
Funding rate Periodic payment between longs and shorts in perpetual futures
Gas Fee for executing transactions on a network (Ethereum, etc.)
Halving Cutting BTC issuance in half roughly every 4 years
Hash Cryptographic fingerprint of some data
HODL Holding for the long term (meme from a misspelling of "hold", 2013)
IL (Impermanent Loss) Loss for the LP when the assets in the pair diverge in price
KYC Know Your Customer — identity verification on exchanges
L1 / L2 Base blockchain (Ethereum) / scaling layer on top (Arbitrum, Base)
Leverage Trading with more capital than your own. Multiplies losses. Avoid it
Liquidation Forced closing of a leveraged position when the margin runs out
Liquidity pool Fund of token pairs on a DEX that swaps are made against
LP Liquidity provider — someone who deposits into a pool in exchange for fees
Market cap Price × circulating supply
Memecoin Token with no utility, 100% speculative/community-driven value
Mempool Queue of transactions waiting to be included in a block
Mining / Staking Securing the network in PoW (energy) / PoS (capital) in exchange for a reward
MVRV Market Value / Realized Value — on-chain metric of over/undervaluation
Node A computer that keeps a copy of the blockchain and validates the rules
OCO One-Cancels-Other — a dual stop+target order
On-chain Data verifiable directly on the blockchain
Oracle Service that feeds external data (prices) into smart contracts. E.g.: Chainlink
Order book The list of buy/sell orders for a market
PoW / PoS Proof of Work / Proof of Stake — consensus mechanisms
Private key The key that controls your funds. NEVER share it
Pump & dump Coordinated price inflation, then selling onto those who get in late
R:R Risk/reward ratio of a trade
RSI Relative Strength Index — momentum indicator (0-100)
Rug pull Scam: the creators pull the liquidity and disappear
Seed phrase 12/24 words that regenerate all your keys (BIP-39)
Slippage Difference between the expected price and the executed one due to lack of liquidity
Smart contract Code on a blockchain that runs automatically
Spread Difference between the best bid and the best ask
Stablecoin Token pegged to a fiat currency (USDT, USDC, DAI)
Stop-loss Order that closes your position if the price hits your invalidation level
Supply (circulating/max) Tokens on the market / that will exist in total
Tokenomics The economic design of a token: supply, distribution, issuance, value capture
TVL Total Value Locked — capital deposited in a DeFi protocol
Unlock / Vesting Scheduled release of locked tokens held by the team/investors
Wallet Software/device that manages your keys (it doesn't "store" coins; the coins live on the blockchain)
Whale A holder with a huge position capable of moving the market
Whitepaper A project's founding technical document
Yield Return generated by an asset (staking, lending, LP)