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Crypto glossary

Blockchain
A shared ledger copied across many computers, where new records are added in blocks and linked to the ones before, making past entries very hard to alter.
Bitcoin (BTC)
The first cryptocurrency, launched in 2009, with a hard cap of 21 million coins and a proof-of-work consensus system.
Ethereum (ETH)
A blockchain that runs programs called smart contracts. ETH pays for computation and secures the network through staking.
Altcoin
Any cryptocurrency other than Bitcoin.
Stablecoin
A token designed to hold a steady value, usually one US dollar, backed by reserves or managed by an algorithm.
Wallet
Software or hardware that stores the private keys controlling your crypto. It does not store the coins themselves; those live on the blockchain.
Seed phrase
A list of 12 or 24 words that can restore a wallet. Anyone who has it controls the funds. Never share it.
Custody
Who holds the keys. Custodial means a company holds them for you; self-custody means you hold them yourself.
Exchange
A platform that matches buy and sell orders. Centralized exchanges hold user funds; decentralized exchanges settle trades on-chain.
Gas fee
The fee paid to process a transaction on a blockchain such as Ethereum. It rises when the network is busy.
Halving
The scheduled cut in new Bitcoin issuance, roughly every 210,000 blocks or about four years.
Proof of stake
A consensus method where validators lock up coins as collateral to propose and confirm blocks, instead of using mining hardware.
DeFi
Decentralized finance: lending, trading and other financial services run by smart contracts rather than companies.
Market cap
Price multiplied by circulating supply. A rough size measure, not the amount of money invested.
Volatility
How sharply a price swings. Crypto is far more volatile than most stocks or currencies.
Rug pull
A scam where a project's creators drain its funds or liquidity and disappear.

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