Crypto Glossary
Plain-language explanations of common crypto terms, from airdrop to DeFi.
Airdrop
Token distribution to community members, often to reward early users.
Seed Phrase
A set of words that can recover a crypto wallet.
Private Key
The secret key that controls your crypto assets.
Cold Wallet
A wallet that stores private keys offline.
Hot Wallet
A wallet connected to the internet, convenient for daily trading.
DeFi
Decentralized financial services built on blockchains.
DEX
A decentralized exchange that matches trades on-chain.
CEX
A centralized exchange that holds user funds, such as Binance or OKX.
Stablecoin
A cryptocurrency designed to keep a stable value, usually pegged to the US dollar.
USDT (Tether)
USDT is the most widely used stablecoin, designed to stay near 1 US dollar.
Futures
Derivative trading that bets on future prices, usually with leverage.
Leverage
Borrowing funds to enlarge a position and potential returns.
Liquidation
Forced closing of a position when losses exceed margin.
Spot Trading
Buying or selling crypto for immediate delivery.
KYC
Customer identity verification required by exchanges.
Address Whitelist
A security feature that only allows withdrawals to pre-approved addresses.
Two-Factor Authentication
An extra login security layer beyond your password.
SAFU
Binance's emergency fund that protects users in extreme events.
Gas Fee
The transaction fee paid to the blockchain network.
Bitcoin Halving
An event that halves Bitcoin's block reward every 210,000 blocks.
ETF
A fund traded on a stock exchange that tracks assets such as Bitcoin.
Staking
Locking crypto to secure a network and earn rewards.
Mining
The process of validating transactions and issuing new coins on proof-of-work chains.
Token
A digital asset issued on an existing blockchain.
Blockchain
A distributed ledger that records transactions in blocks.
Smart Contract
Code on a blockchain that automatically executes contract terms.
Slippage
The difference between the expected and actual execution price.
Liquidity
How easily an asset can be bought or sold without moving its price much.
Market Cap
A cryptocurrency's total value: price multiplied by circulating supply.
Layer 2
Scaling solutions built on top of a base chain to lower fees.
Cross-Chain Bridge
A protocol that moves assets between different blockchains.
Airdrop Scam
A scheme that lures users with fake token giveaways to steal funds.
Phishing
Fake websites that steal login information or funds.
Rug Pull
A scam where developers run away with investor funds.
Pump and Dump
A manipulation scheme that pumps a price then sells into it.
Crypto Tax
Tax requirements on crypto income vary by region.
Tokenized Stock
A stock represented as a token on a blockchain, tradable with crypto.
Web3 Wallet
A wallet that connects to dApps and manages your keys.
P2P Trading
Direct peer-to-peer crypto trading between users.
Oracle
A service that supplies real-world data to smart contracts.
Learn by trading on a major exchange
Download Binance or OKX from the official website to start trading.