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Explore approved Crypto definitions, everyday examples and related lessons.
Showing 12 of 136 matching terms
A count of unique blockchain addresses meeting a data provider's activity rule during a stated period. That rule may include transfers or other ledger activity. Repeated activity by one address is counted once under the metric; an address count is not a count of people.
Example: A shop counts 40 loyalty cards used today. One shopper may use several cards, so 40 cards does not prove there were 40 people. Blockchain addresses have a similar measurement limit.
In Bitcoin, a code that helps a payer wallet create the spending conditions for a payment output. It is a payment destination, not proof of the recipient identity. Other networks use different address and account models.
Example: Think of a delivery destination rather than a person's name. In a Bitcoin payment, the address helps the wallet create spending conditions; the visible code alone does not identify the recipient.
A scam in which an attacker places a look-alike address in your transaction history, hoping you will later copy it by mistake and send funds to them.
Example: A fake contact with a name almost like your sister's appears in your phone. Choosing it from recent contacts sends the message to the wrong person. A look alike address can cause a similar mistake.
A distribution of tokens to eligible wallet addresses, often intended to reward users or spread ownership. A token may be offered without a purchase price, but receiving or claiming it can involve conditions, fees or unsafe requests.
Example: A cafe gives sample vouchers to visitors. A token distribution can resemble that promotion, but claiming a token may involve conditions, fees or an unsafe request. A gift label does not establish safety.
A stablecoin relying on programmed mechanisms to influence supply or demand and support a reference price. Designs differ, including systems with partial collateral. The algorithm does not guarantee that the peg will hold.
Example: Imagine a voucher intended to stay near one US dollar through rules that expand or reduce supply. If confidence in those rules breaks, the price can move away from the promised reference.
Short for "alternative coin": any crypto-asset other than bitcoin. The word is informal; some people use it only for coins with their own blockchain, others for every token too.
Example: A learner first studies Bitcoin, then compares other crypto assets. The broad label altcoin does not tell the learner whether another asset has useful rights, reliable liquidity or sound security.
Relying too heavily on an earlier number, such as a past price, when judging new information.
Example: A jacket first displayed at GBP 100 seems cheap at GBP 70, even when another shop sells it for GBP 60. The first number can distort the later judgment.
In a crypto reward display, an annualised rate commonly shown without assumed reinvestment of rewards. Check fees, units and the calculation period; legal borrowing APR can follow different conventions.
Example: A simplified 10% annual rate on 100 units gives ten units over a full year if the rate and balance stay constant and no fees apply.
Keep in mind: A displayed rate does not guarantee the reward or protect the asset price.
An annualised yield including a stated compounding assumption. Compare the reward rate, reinvestment frequency and costs before comparing products.
Example: At an invented 10% nominal rate compounded twice a year, 100 becomes 110.25 if both half year rewards are reinvested and no costs apply.
Keep in mind: APY assumptions may not match actual rewards or feasible reinvestment.
The contracts, code version and features an auditor agreed to review. That report does not establish that anything outside its scope was checked. Later upgrades need review evidence covering the relevant version.
Example: A mechanic checks a car's brakes but not its engine. A good brakes report says little about the engine. Similarly, a code review only addresses the stated code and review scope.
A trading mechanism that uses rules or formulas to quote swaps against pooled liquidity. Availability depends on the pool, contract and network; it does not guarantee every swap can execute.
Example: Imagine a stall whose price changes according to stock remaining rather than a seller negotiating each purchase. An AMM uses programmed pricing, but a real swap also needs usable liquidity and a working network.
The first widely adopted decentralized cryptocurrency, introduced as a peer-to-peer electronic cash system.
Example: An Australian learner can study Bitcoin's payment record without first buying BTC. Bitcoin names the network and its native asset; the learning exercise is separate from a price prediction.
A batch of Bitcoin transactions plus a header that summarises them and links the block to the one before it.
Example: A clerk groups today's receipts into a numbered packet and refers to the earlier packet. This illustrates batching and linking; Bitcoin also checks the transactions and proof of work.
Keep in mind: This definition describes a Bitcoin block. Other blockchains can use different block contents and consensus rules.
What a miner may claim for a valid block: the block subsidy (newly created bitcoin) plus all transaction fees paid by the transactions in that block.
Example: Imagine a delivery worker receiving a scheduled base payment plus the delivery fees collected. Bitcoin's subsidy and transaction fees are separate parts of its block reward.
Keep in mind: The subsidy creates new units; fees transfer existing units. Neither is a guaranteed return for a person buying BTC.
A shared record organised into linked blocks and maintained under a network's rules for checking and agreeing updates. Participants hold or verify the record in ways that depend on the network design.
Example: Several members of a savings club keep matching copies of an agreed record. A blockchain adds rules for checking and ordering updates rather than trusting a single notebook keeper.
A system that lets tokens or messages move between two blockchains, usually by locking or burning assets on one side and minting or releasing them on the other.
Example: A travel desk accepts one voucher and issues a corresponding voucher for another system. If the desk fails, the second voucher may not be redeemable. Blockchain bridges introduce their own trust dependencies.
A service that arranges or executes crypto purchases or sales for customers. Some quote their own dealing prices; others route orders. Check who acts as the counterparty and how spreads and fees are charged.
Example: A currency kiosk quotes a single all in exchange price instead of showing every customer's offer. A crypto broker may work similarly, so compare its quote and disclosed fees.
Keep in mind: Check the actual contract, counterparty and costs. Services can combine broker and exchange functions.
A crypto trading service managed by a central operator. Many hold customer funds and match buy and sell orders. When the service holds the signing keys, the customer relies on its custody and withdrawal arrangements; check the actual service model.
Example: Leaving an item in a company's storage facility gives that company control over release. An exchange balance similarly depends on the company allowing withdrawals; it is different from holding the signing keys yourself.
The data provider's best estimate of how many tokens are available to the public and trading now. Locked tokens, unvested team and investor allocations and project treasuries are usually excluded.
Example: A bakery has made 1,000 vouchers but keeps 300 locked for staff. A public supply estimate may exclude those 300. Check the data provider's rule rather than assuming every voucher is available.
Malware that monitors copied information and may replace a recognised crypto address with an attacker-controlled address before you paste it.
Example: You copy your cousin's delivery address, but a malicious program replaces it before you paste. Compare the full destination with a trusted source before confirming a crypto transfer.
A recurring tendency in how people select, remember or interpret information, which can push a decision away from what the evidence supports without the person intending to be careless.
Example: You remember the two occasions when a shortcut saved time but forget the five when it delayed you. Keeping a dated record helps you test the impression against the whole sample.
The native asset of a blockchain, built into its rules. It usually pays transaction fees and rewards the people who secure the network. Bitcoin (BTC) and ether (ETH) are coins.
Example: BTC is native to Bitcoin and ETH is native to Ethereum. A token using Ethereum is different from ETH, just as a shop voucher differs from the national currency used to pay fees.
A wallet arrangement that keeps private signing keys offline. A hardware wallet can sign inside its device while connected to an online computer, without exposing those keys to that computer.
Example: A signing device can approve a transaction internally while a connected laptop broadcasts it. The secret stays in the device, but a misleading request or compromised backup can still cause loss.
The share of your total holdings that depends on a single asset, provider or risk. High concentration means one failure can cause most of your loss.
Example: If every saved holiday booking is with one company, that company's failure affects the entire trip. Holding different tokens at the same provider can still leave one shared dependency.
Searching for, preferring and remembering information that supports what you already believe, while giving less weight to information that contradicts it.
Example: You want a used car to be a bargain, so you read only its good reviews. A careful token review also records evidence that could contradict your initial opinion.
The rules and incentives that let a network of independent computers agree on which blocks are valid and in what order, even when some participants are faulty or dishonest.
Example: A club agrees how members will accept new entries in its shared record. A blockchain has technical rules for agreement; those rules do not automatically prove that an asset is valuable.
A number from −1 to +1 that summarises how closely two price series moved together over a stated past period. Near +1 means they tended to move the same way; near 0 means little straight-line relationship. It describes the sample, not the future.
Example: An Australian learner compares weekly changes in two assets in AUD. They moved together in one sample, but a different period or currency can give a different result.
Keep in mind: The minus one to plus one description refers to a defined correlation coefficient, commonly Pearson correlation. Name the data and period.
What you paid to acquire an asset, usually including the fees of buying it, recorded in your home currency. It is the starting point for working out a gain or loss when you later sell or swap.
Example: A Canadian learner records CAD 100 paid for an asset and CAD 2 in acquisition fees. The record supports later calculations, but the permitted tax treatment depends on the applicable rules.
Keep in mind: Tax calculations can use jurisdiction specific valuation, fee and disposal rules. Retain dates, quantities and records.
The risk that the person or company you rely on, such as an exchange holding your crypto, cannot or will not do what it promised.
Example: You pay for furniture before delivery. If the seller cannot supply it or refund you, its failure creates a loss even if the furniture's market price has not changed.
A system that carries instructions or data, not only tokens, from a smart contract on one blockchain to a smart contract on another.
Example: A shop's ordering system sends instructions to a separate warehouse system. Blockchain messaging similarly carries data between systems and depends on how the message is checked.
An asset recorded and transferred using a blockchain or a related distributed ledger. It may be a network's native coin or a token whose rules are implemented by a contract. Different assets can have very different issuers, administrators, rights and risks.
Example: A learner compares a native coin, a governance token and a token linked to a bond. Their common crypto label does not mean they grant the same ownership rights or face the same risks.
An application or device used to view balances and manage interactions with blockchain accounts. A signing wallet uses private keys; a watch only wallet uses public information, while a custodial service controls keys for its customers.
Example: A banking app displays money rather than physically containing it. A wallet similarly reads blockchain records; control depends on the keys and account rules, not the displayed balance alone.
The last price recorded before a chosen cut-off time, often 00:00 UTC. It is a charting convention, not a moment when the market actually stops.
Example: A supermarket can remain open after you total the day's sales at midnight. Crypto trading can continue after a chart provider takes its daily closing observation.
Control or operation distributed among participants rather than concentrated in one central authority. The degree varies: examine who can validate, upgrade, pause or otherwise influence the system.
Example: A neighbourhood group may share routine decisions while one organiser keeps the power to change the rules. Examine the actual powers rather than accepting a distributed label at face value.
A trading application using blockchain contracts to coordinate swaps or orders. Custody, permissions and execution designs vary; AMMs are one design rather than the definition of every DEX.
Example: A learner compares a pool based swap with an order matching system. Both may use contracts while providing different execution arrangements.
Keep in mind: A DEX label does not establish complete decentralisation or freedom from risk.
Financial applications that use blockchain smart contracts for activities such as swapping or lending. Some retain administrators, upgrade powers or dependencies on companies and outside data.
Example: A self service payment machine carries out written instructions, but someone may still maintain or pause it. A DeFi application also needs a review of code, permissions and outside dependencies.
A dated record of each decision you make, written at the time, including your reasons, the information you had, how you felt and what you expected, with the outcome added later in a separate field.
Example: Before a purchase, you record the price, reasons and alternatives. Later you add what happened without rewriting the earlier reasoning. A market journal uses the same separation.
A number showing how hard it currently is to find a valid block, compared with the easiest possible block. Higher difficulty means a lower target.
Example: Imagine a game accepting only a narrower set of ticket numbers. A winning ticket becomes less likely per attempt. This illustrates Bitcoin's changing proof of work difficulty.
Cryptographic data that can be checked against a message and public key to verify signing with the matching private key. It does not by itself prove the rightful owner understood or willingly approved the request.
Example: A valid approval made with a stolen office signing stamp would not prove the manager wanted the purchase. A valid cryptographic signature also cannot establish informed human consent by itself.
Investing a fixed amount at regular intervals, regardless of price. Investor.gov, the US Securities and Exchange Commission's education site, describes it as buying more when the price is low and less when it is high. In the UK it is often called pound-cost averaging.
Example: In an invented practice record, a learner allocates GBP 40 each month. GBP 40 buys more units at GBP 2 than at GBP 4. Regular purchases still can lose value.
An attempt to use the same digital funds in conflicting payments. In Bitcoin, two transactions may try to spend the same earlier output; the agreed chain must not accept both as valid spends of that output.
Example: A copied gift voucher should not pay for two independent purchases. Bitcoin's rules aim to prevent two conflicting spends of the same output from both being accepted in the agreed chain.
The fall from a previous peak to a later low, written as a percentage of the peak.
Example: An example holding rises to EUR 200 and later falls to EUR 150. The decline is EUR 50, or 25% of the earlier peak; this differs from its return since purchase.
The native asset of Ethereum, abbreviated ETH. It is used for transaction fees and staking under Ethereum rules. Ethereum is the network; ether is its native asset.
Example: A learner sees a fee quoted in ETH and checks its GBP equivalent separately. The network name and the fee asset are related but different.
Keep in mind: ETH is different from a token merely issued on Ethereum.
A social-media personality who discusses money, investing or crypto. They may be independent or receive payments from businesses they mention. Check their evidence, incentives and any permissions required for the activity in your jurisdiction.
Example: A video presenter praises a product while receiving a sponsorship payment. A crypto recommendation needs a check of evidence, disclosed incentives and applicable permissions.
Keep in mind: A follower count or an apparent licence does not establish accuracy, independence or permission for every advertised activity.
A loan designed to be borrowed and repaid, usually with a fee, within one transaction. If the required conditions fail, its state changes revert; an included failed attempt can still consume gas.
Example: Imagine a programmed worksheet that accepts a whole sequence only if its final repayment check passes. This illustrates atomic execution, not an ordinary shop loan. An included failed transaction may still cost gas.
Fear of missing out: the anxious feeling that other people are gaining from something you are not part of, which pushes you to act quickly.
Example: Friends discuss a concert selling out, and you feel pushed to buy before checking your budget. A rising chart can create similar urgency without improving the evidence for a decision.
Fear, uncertainty and doubt. In crypto discussions, the label is often used for negative claims or criticism. Check the evidence: a concern may be accurate, mistaken or deliberately misleading.
Example: One message says a shop may close; another calls the warning negativity. Check the lease notice and reliable evidence. In crypto, a criticism's label does not decide whether it is true.
Today's token price multiplied by the maximum supply, or by the total supply where no maximum exists. Data sites differ: CoinMarketCap uses maximum supply, while CoinGecko's guide uses total supply.
Example: If an invented token costs USD 2 and the stated supply basis is one million units, FDV is USD 2 million. Record which supply measure was used; this is not cash invested.
Keep in mind: Data providers can use different supply bases. Preserve the stated method when comparing values.
A percentage, reset at regular intervals, that decides how much one side of a perpetual futures market pays the other. It is designed to pull the perp's price towards the spot price.
Example: Under an invented rule, a 0.01% payment on USD 1,000 notional is USD 0.10 for that interval. Check which side pays; the sign, timing and formula can change.
Keep in mind: Payment direction, time interval and formula are venue specific. A funding payment is different from an ordinary trading fee.
The unit that measures how much computing effort an Ethereum operation needs. You pay for gas in ether.
Example: A taxi meter measures distance while the tariff determines the bill. Gas measures computational work; the gas price helps determine the fee paid in ETH.
A token that gives its holders voting power over a protocol's rules, settings or treasury.
Example: A club gives voting rights under its constitution. A governance token likewise has specific voting rules; holding it need not give ownership of the organisation or a share of its profits.
Keep in mind: Voting rights can require delegation or other conditions. They do not automatically grant company ownership or distributions.
A small unit of ether used to price gas: 1 gwei is one-billionth of an ETH (0.000000001 ETH), and 1 ETH = 1,000,000,000 gwei.
Example: Cents are a smaller way to quote an amount of dollars. Gwei is a smaller unit of ETH, useful for quoting gas prices; it is not a separate coin.
In Bitcoin, the scheduled reduction by half of the new block subsidy every 210,000 blocks under its issuance rules. It changes new issuance, not existing wallet balances or transaction fees.
Example: A production schedule cuts new output after a specified count, rather than on an exact calendar anniversary. Bitcoin's halving is tied to block height and does not halve existing balances.
A fixed-length fingerprint produced from data by a specified cryptographic hash function, within that function’s supported input limits. Identical inputs give the same output. Changed inputs ordinarily give different outputs, although collisions are mathematically possible.
Example: A file checking tool produces a fingerprint for a receipt file. A changed file will normally have a different fingerprint. A hash is not encryption and does not prove that the receipt's contents are true.
A token whose contract lets people buy but blocks or heavily penalises selling, usually through hidden rules that only the creator can bypass.
Example: A shop takes payment but secretly blocks returns under rules the owner can bypass. A token can similarly permit buying while imposing hidden barriers to selling.
A wallet whose private keys are stored on an internet-connected device: convenient for regular use, but more exposed to malware and remote attacks.
Example: Keeping a spending wallet on a phone is convenient, like keeping everyday cash within reach. An online signing environment also increases exposure to malware and deceptive requests.
Putting money into an asset or activity with the aim of receiving income or growth over time, while accepting that its value or returns may disappoint. The planned holding period depends on the goal and asset; holding longer does not remove risk.
Example: A learner researches an asset intended for a longer holding period. Waiting longer does not guarantee recovery after a fall, and an asset can lose most or all of its value.
The creation of new units of a currency. In Bitcoin, all new coins are issued through the block subsidy paid to miners.
Example: A bakery prints new vouchers under its published schedule. Bitcoin creates new units through the block subsidy; transaction fees transfer existing units instead.
KYC, or know your customer, refers to customer checks that commonly include identifying and verifying the customer. AML, or anti-money laundering, is the wider framework for preventing, detecting and reporting money laundering. Covered services can also have duties concerning terrorist financing. The required checks and duties depend on applicable rules.
Example: Checking an identity document is one customer check. Detecting unusual activity, keeping records and reporting concerns belong to a wider compliance process; KYC and AML are related, not identical.
A base blockchain that agrees on its own blocks and secures itself, such as Bitcoin or Ethereum.
Example: Think of a base record system with its own agreement rules. Bitcoin and Ethereum are separate base networks; the same looking asset label does not make their transfers interchangeable.
A separate network that processes transactions away from a layer 1 but relies on that layer 1 for security, for example by posting its data or proofs back to it.
Example: A branch system processes work and settles specified evidence to its base system. Check what security it actually inherits, where its data is available and who can change its rules.
Keep in mind: Security can depend on proofs, data availability, sequencers and upgrade controls. A sidechain is not automatically a layer 2.
A company, foundation or association set up under a country's law to give a DAO a legal identity and, depending on the law, limit its members' personal liability.
Example: A community association registers a legal entity to sign contracts. A DAO may also use an entity, but the name alone does not establish members' rights or limited liability everywhere.
Keep in mind: Legal personality and member liability depend on the jurisdiction and documents. A wrapper does not remove every legal obligation.
A token representing a claim on pooled staked assets under the service rules. Rewards may appear through more tokens or a changing redemption rate; trading price, redemption timing and backing can differ.
Example: A receipt records a claim on pooled assets. Selling the receipt today is different from waiting to redeem the assets; the receipt's market price may differ from its underlying claim.
Forced reduction or closure when a trading position fails its margin requirements, or seizure of collateral when a lending position crosses its liquidation threshold. The trigger and process depend on the venue or protocol.
Example: In an invented borrowing example, collateral worth USD 150 supports USD 100 debt. A price fall may cross the protocol's threshold and permit collateral seizure before the collateral reaches zero.
The debt value divided by the collateral value, usually expressed as a percentage at a stated valuation time. Protocols set borrowing limits separately from liquidation thresholds.
Example: USD 100 debt against USD 200 collateral gives 50% LTV in an invented example. If collateral falls to USD 125 with debt unchanged, LTV becomes 80%.
Keep in mind: LTV is not the same as the liquidation threshold or health factor.
The tendency for a loss to feel more painful than a gain of the same size feels good, measured from a reference point such as the purchase price.
Example: Losing EUR 20 may feel more upsetting than finding EUR 20 feels pleasant. That feeling can tempt someone to delay a necessary review of a losing position.
The total amount of money, written as a cash figure in your home currency, that you have decided in advance you could lose on crypto without touching essential money or your emergency fund.
Example: A learner writes a cash boundary after setting aside rent, bills and emergency money. A planned boundary is a control to review, not a promise that any position will stop at it.
A record of a liquidity provider position and its withdrawal rights under a pool design. Some systems use fungible tokens; others use NFTs. Withdrawable assets and fee collection depend on that design.
Example: A receipt can identify a share in a joint pool. The pool's rules decide what the receipt can redeem and how fees are collected; a percentage share does not freeze the original asset mix.
Software designed to harm you or your device, for example by stealing data, watching what you type or changing what you copy, paste or see.
Example: A fake update installs a program that watches passwords or changes payment details. Obtain software through verified channels and inspect requests before approving them.
The latest price of one token multiplied by its circulating supply: a snapshot estimate, not money invested or money that could be withdrawn.
Example: An invented price of USD 3 times two million circulating units gives USD 6 million. It does not show that USD 6 million was deposited or can be withdrawn at that price.
An informal belief that one crypto network or asset should dominate, or has meaningful long-term value while alternatives do not. Bitcoin maximalism is one example; people who use the label can hold different views.
Example: A phone fan insists one brand should replace all others. A similar attachment to one crypto network can discourage fair comparison of evidence and tradeoffs.
The stated upper supply limit under an asset's current rules, where such a limit exists. Check how the limit is enforced and whether anyone has power to change those rules.
Example: A ticket printer has a stated lifetime printing limit. Check whether the token's rules actually enforce a cap and who could change those rules.
Keep in mind: A stated maximum is different from currently circulating units or total units already created.
A crypto-asset whose appeal comes mainly from a joke, theme or online community rather than from a product or service.
Example: A themed souvenir becomes popular because an online community enjoys the joke. Popularity can change quickly and does not itself establish cash flows or useful rights.
An extra field, sent with a transfer on certain networks, that tells a receiving service which customer the funds belong to when many customers share one address.
Example: A shared apartment building has one street address but separate flat numbers. A receiving service may need a tag or memo to credit the correct customer.
A node's list of valid transactions that have been broadcast but not yet included in a block.
Example: Different shops have different queues of pending requests. Nodes likewise can have different pending transaction sets; there is not necessarily one identical global mempool.
Creating valid Bitcoin blocks, which requires showing proof of work. A miner is a person who runs mining machines, or the machine itself.
Example: A Bitcoin miner searches for a qualifying header hash, while nodes still check all the block rules. Finding a hash does not make an otherwise invalid transaction acceptable.
A wallet that needs signatures from a set number of separate keys (for example, two of three) before a transaction is valid.
Example: A savings club requires two approvals out of three authorised signers. A two of three wallet similarly needs the required distinct keys; two copies of one key do not provide two signers.
The blockchain carrying a transfer. For an ordinary transfer on one blockchain, confirm that the destination supports the exact network and asset. Bridged or other cross-network routes introduce additional steps and risks; matching names or logos is insufficient.
Example: A parcel needs the correct destination and delivery service. A crypto transfer must use a network and asset the recipient supports, as well as the correct address and any required tag.
Keep in mind: Confirm the exact network, supported asset, destination and required tag. Matching token names or address formats alone is insufficient.
A token with its own unique ID, recorded on a blockchain, that shows which address holds that particular item.
Example: Owning a numbered collectible receipt does not automatically transfer the artist's copyright. An NFT identifies a token; separate documents decide any associated intellectual property rights.
Keep in mind: Token ownership does not automatically transfer copyright, ownership of an associated physical item or continuing access to a file.
A number in the block header that miners change freely. Each new nonce gives ordinarily a different hash, like printing a new ticket.
Example: A miner changes a header number to try a different hash. In Ethereum, an account transaction nonce has a different role: sequence and replay control. Keep the Bitcoin context visible.
Keep in mind: Here the definition describes the Bitcoin mining nonce. An account transaction nonce on Ethereum is a different use of the term.
A reference value describing the exposure represented by a derivatives position. For a simple linear contract, quantity times contract multiplier times the stated reference price gives notional; other contract designs use different conventions.
Example: For an invented linear position covering 0.2 BTC at USD 50,000 each, the reference notional is USD 10,000. Contract specifications and the chosen price basis must be stated; notional is different from margin.
Deciding protocol changes through public proposals, discussion and voluntary software upgrades, rather than through votes recorded on the blockchain.
Example: Neighbours discuss a rule and choose whether to adopt it. A blockchain community can similarly coordinate through discussion and software choices rather than a binding token vote.
An on-ramp converts national currency into crypto, for example by bank transfer or card. An off-ramp converts crypto back into national currency and pays it out.
Example: A Canadian learner uses CAD to acquire crypto through an on ramp, and later converts crypto to CAD through an off ramp. Each step can have fees, limits and verification requirements.
The number of derivatives contracts still open at a point in time. Each contract has one long side and one short side, and it is counted once.
Example: If 100 contracts remain open, they represent 100 matched long and short pairs, not 200 contracts. A data service may display a money equivalent instead, so read the units.
Keep in mind: Read the reporting units: a service may publish contracts, asset units or a converted notional amount.
A mechanism supplying information to blockchain applications, often bringing outside data such as prices on chain. Its sources, update rules and trust assumptions affect applications that rely on it.
Example: A heating controller needs a thermometer reading. A contract using an external price likewise depends on the quality and freshness of the supplied reading.
Keep in mind: An oracle does not guarantee the truth of the information it supplies.
A loan supported by collateral worth more than the borrowed amount at the stated valuation time. This buffer can shrink; liquidation, price gaps or other failures can still leave losses.
Example: A lender takes security worth more than a loan when it starts. If that security falls quickly or cannot be sold, the extra starting value may not prevent a loss.
Optional extra text, chosen by you, that is combined with the seed phrase to create a separate wallet. Without the exact passphrase, the seed phrase alone opens a different wallet.
Example: The same BIP 39 recovery words with different passphrases derive different wallets. A device PIN is a separate feature; a forgotten passphrase cannot be replaced by remembering the PIN.
A system where participants deal with each other directly, instead of routing everything through one central organisation.
Example: Two neighbours exchange information directly while still following agreed rules. A peer network can avoid one central organiser without removing every trust or security assumption.
An off-chain signed message that, when someone submits it, creates a token approval without you sending the approval transaction yourself.
Example: A signed permission slip authorises a specified party to act later. A token permit can grant spending allowance even before you send an on chain transaction yourself; inspect the spender and amount.
Keep in mind: A signature can have spending consequences even without an immediate transaction from your wallet. Read the spender, allowance and expiry.
A rule you write in advance that pauses your decisions when a named trigger appears, such as a price spike, a "last chance" message or a loss.
Example: You decide in advance to pause whenever a last chance message appears. The pause creates time to check facts and budget instead of responding to pressure.
An attempt to trick you into revealing a secret, visiting a fake site, installing harmful software or approving a transaction, by pretending to be someone you trust.
Example: An email imitates your delivery company and asks for a password on a copied site. A fake crypto support message may instead ask for recovery words or a harmful signature.
A fraud that uses money from new investors to pay purported returns to earlier investors, rather than the genuine earnings it claims. It becomes unsustainable when new money cannot meet payments or investors seek withdrawals.
Example: A club pays earlier members using money from new arrivals while pretending it earned investment profit. An attractive payout does not establish that a genuine income source exists.
Making a decision in advance, usually in writing, so that your future self in a heated moment has a clear rule to follow instead of deciding from scratch.
Example: Before shopping, you write a spending limit and a waiting rule for expensive items. A learning plan can use the same idea to reduce decisions made under excitement or fear.
The change in available price associated with the size of your own trade relative to available liquidity. A larger trade in a shallow pool can have a larger effect.
Example: Buying all the cheap items at a stall leaves only higher priced stock for the rest of the order.
Keep in mind: Separate the effect of your own size from market movement between quote and execution.
Secret cryptographic data used to create signatures for the associated account or spending condition. Someone who obtains the necessary signing keys may gain control of the assets.
Example: An office signing credential can approve requests without being sent to the recipient. A crypto key similarly signs without needing to be revealed.
Keep in mind: A private key is not a receiving address, account password or public key.
A check or report concerning selected assets controlled by a provider at a stated time. Its scope varies and may omit liabilities or other obligations; it does not by itself establish solvency.
Example: A photo shows cash in a shop's till, but not its unpaid supplier bills. A reserves snapshot also cannot by itself reveal all liabilities or prove continuing solvency.
Keep in mind: A snapshot is different from a financial statement audit and is not a guarantee of future withdrawal access.
A consensus approach in which validators commit stake and follow rules for proposing and voting on blocks. Rewards and penalties encourage correct participation; details differ between networks.
Example: A participant commits security before taking a checking role. This illustrates incentives, not a promise that every network has the same design.
Keep in mind: Holding a token is not automatically the same as operating a validator.
A mechanism requiring demonstrable computational work. In Bitcoin, miners search for a qualifying block header hash and nodes verify the block against the protocol rules.
Example: A qualifying number is costly to find through repeated attempts but simple to check against the threshold.
Keep in mind: A qualifying hash alone cannot make invalid transactions valid.
Acting under a persistent identifier, such as a wallet address, that is not your name but can be linked to you if other information connects them.
Example: An online username is not a legal name, but a public profile may connect the two. An address can similarly become linked to a person through other information.
Cryptographic data associated with a private key and used to verify its signatures. An address may be derived from keys or other spending information, depending on the network.
Example: A public verification tool can check a signed message without revealing the secret that signed it.
Keep in mind: A public key and a receiving address are not interchangeable in every system.
A scheme in which insiders buy a token cheaply, hype it to attract buyers, and sell their holdings into the rising price, leaving later buyers with losses.
Example: A promoter praises a collectible while secretly selling a large stock into the new demand. Later buyers may be left with an item few people want at the promoted price.
A token linked to an asset or economic exposure outside the blockchain, such as a bond or property. Actual ownership, redemption and enforceable rights depend on its legal structure and documents.
Example: A token mentions a property, but the buyer still needs to know who owns it and what redemption rights exist. A digital label is different from an enforceable deed or claim.
Bringing a portfolio back to the mix you originally chose after price moves have shifted it. Investor.gov names three ways: selling some of what has grown too large and buying what has shrunk, buying only the smaller parts with new money, or directing new contributions to them.
Example: In a hypothetical record, EUR 60 of one holding and EUR 40 of another become EUR 80 and EUR 40. The mix is now about 67% and 33%; restoring a chosen mix may incur costs or tax consequences.
A written, offline summary of what crypto you hold, where the backups are, and the steps needed to recover access, designed so that it does not by itself reveal any secret.
Example: An offline checklist says where authorised recovery instructions are held and who should act. It helps organisation without placing all the secrets into one easily stolen document.
Using collateral received from a customer as collateral for the recipient's own borrowing or other obligations. The agreement and applicable rules determine whether this is allowed. Lending or reusing customer assets is a broader category.
Example: A storage provider accepts an item, then pledges it to someone else under its terms. Customer asset reuse creates dependencies beyond simple safekeeping.
Keep in mind: Asset reuse, lending and pledging are related activities but their permitted scope and legal treatment depend on the agreement.
A fraud in which a scammer builds trust through a friendship, romance or other relationship, then steers the victim toward a fake investment platform. Invented profits and pressure for larger deposits hide the theft. The term pig butchering is sometimes used for this type of scam.
Example: A new online friend builds trust, then recommends a platform that displays invented profits and blocks withdrawals. Independent verification is needed even when the conversation feels personal.
A scam in which a token's creators abandon the project and take the money, leaving buyers with tokens that are worth little or nothing.
Example: Organisers sell entry passes to a project, then take the funds or remove essential support. In crypto, a sudden removal of liquidity or malicious control can leave holders unable to exit.
An ordered set of words used by a compatible wallet to derive recovery keys. A BIP 39 wallet may also require its exact passphrase; multisig recovery may require other keys. Treat recovery material as secret.
Example: A recovery backup is closer to a master access secret than a customer account number. Its words, order and any additional recovery requirements matter; never give it to someone claiming to be support.
A fraud in which a criminal takes control of your phone number by persuading or bribing your mobile provider to move it to a SIM card they hold.
Example: A criminal persuades a mobile provider to redirect your number to another SIM. They may then receive text verification codes; SMS access is not the same as secure control of your recovery material.
A penalty in proof of stake that destroys part of a validator's deposit when it provably breaks the rules, for example by voting for two conflicting blocks.
Example: A referee penalises a participant for a specific rule violation. In Ethereum staking, conflicting signed votes can trigger slashing; ordinary downtime penalties are a different mechanism.
Keep in mind: The two retained source contexts overlap. Network specific rules decide the penalty and validator exit; ordinary downtime is not necessarily slashable.
In Ethereum proof of stake, a penalty for specified conflicting block proposals or votes that destroys some staked ETH and forces the validator to exit. Other networks have their own offences, penalties and exit rules.
The difference between an expected or quoted execution outcome and the outcome actually obtained. It may be favourable or adverse; compare compatible price and quantity references.
Example: An invented quote estimates 100 tokens received, but execution produces 98. The difference must be checked against the quote and its stated terms.
Keep in mind: Slippage tolerance is an execution limit, not a guaranteed final outcome.
A blockchain program whose rules execute when called under the network conditions. It can move assets or update records, but may contain bugs or depend on administrator permissions, upgrades and external data.
Example: A programmed vending rule checks an input before updating records. The rule can still contain a mistake or administrator powers, so automatic operation is different from guaranteed safety.
The difference between the highest price a buyer is offering (best bid) and the lowest price a seller is asking (best ask).
Example: An invented best bid is USD 99 and best ask is USD 101. The spread is USD 2; fees and the available quantity can add further execution costs.
A crypto token designed to hold a steady value against a reference, usually a national currency such as the US dollar. Stablecoins aim to hold a peg; they carry no guarantee and are not bank deposits.
Example: A token aims to stay near one US dollar. If it trades at USD 0.94, the reference remains one dollar but the market price has moved away from it.
Treating money, time or effort already spent as a reason to keep going, even though that past cost cannot be recovered by continuing.
Example: A prepaid cinema ticket tempts you to stay even when you feel unwell. The past payment cannot decide whether staying is the best choice now.
A stated upper supply limit under an asset’s current rules. Bitcoin’s current issuance rules limit newly created BTC to about 21 million units. A cap is different from circulating supply and does not guarantee demand or value.
Example: A Bitcoin learner separates the supply rule from market demand. A finite supply does not make any particular future price certain.
Keep in mind: The Bitcoin supply statement refers to its current consensus rules. A cap does not guarantee value, liquidity or future demand.
In Bitcoin proof of work, the threshold the block header hash must be less than or equal to. A lower target makes a qualifying hash less likely per attempt.
Example: A simplified number game accepts results of 10 or less. Reducing the threshold to 5 makes a qualifying result less likely. Bitcoin uses a much larger numerical threshold.
An Ethereum smart contract investment project launched in 2016. Its June 2016 exploit prompted a disputed July hard fork; the chains continued as Ethereum and Ethereum Classic.
Example: A jointly funded project had a software flaw; participants disagreed on how to respond. The DAO episode shows that code risk and governance decisions can affect each other.
A digital asset issued using an existing blockchain. Many tokens use smart contracts to maintain balances and transfer rules, but technical designs, permissions and holder rights vary.
Example: A voucher uses an existing shop system rather than being the shop's national currency. Many blockchain tokens similarly use an existing network, but their rights and technical designs differ.
Permission allowing a specified spender to transfer a defined token amount from an account, under the token rules. An allowance may be created by an on chain approval or a supported permit signature.
Example: A written collection authorisation names the person and quantity they may collect. Review a token permission with the same attention to scope.
Keep in mind: Connecting a wallet is different from granting spending allowance.
An event or schedule that removes restrictions on allocated tokens, making specified units available under the project terms. Availability is different from an actual sale.
Example: A locked allocation becomes transferable on its written date. The holder may keep it, move it or sell it.
Keep in mind: Check the units, recipients and practical transfer restrictions rather than treating every unlock as an immediate sale.
All tokens created so far, minus any that have been verifiably burned. It includes tokens that are still locked.
Example: A project has created 1,000 units and verifiably burned 100. Under that stated measure, total supply is 900, including units still locked or not publicly circulating.
A measure of the market value of assets counted as committed to a DeFi protocol under a stated data provider’s method at a particular time. Eligible assets, valuation and treatment of nested positions can differ between methods.
Example: A pool holds ten units priced at USD 5, giving USD 50 under that valuation rule. If the price doubles, measured TVL can rise without any new units being deposited.
Keep in mind: Prices, eligible assets and counting rules affect this figure. Nested positions can create double counting across services.
Buying and selling, or opening and closing market positions, to benefit from price changes. Holding periods vary. Costs, execution and losses matter even when the activity follows a written plan.
Example: A learner records an intended entry, exit and costs in a practice trade. The holding period alone does not determine whether the plan is sensible or whether it will make money.
In the Bitcoin context, a transaction spends earlier outputs and creates new outputs with specified spending conditions. These may require a signature, several signatures or other conditions. Other blockchains use different transaction models.
Example: In a Bitcoin example, one input supports a payment output and a change output. The difference between total inputs and outputs pays the fee; the wallet chooses the spending conditions.
A FATF standard concerning collection and secure transmission of originator and beneficiary information for relevant transfers involving regulated providers. National implementation and applicable requirements vary.
Example: A provider may ask who is sending and receiving a transfer. Which information is required depends on its applicable rules; a transfer between personal wallets is not automatically treated like every provider transfer.
An organisation, such as a bank or payment company, that both sides of a payment rely on to keep the record and settle disputes.
Example: Two buyers trust an escrow company to release payment when conditions are met. Its service can help coordination while also creating a dependency on that company.
An output that has been received but not yet spent. Your wallet's balance is the total of all the UTXOs it can spend.
Example: A Bitcoin wallet has spendable outputs of 0.003 and 0.002 BTC. Together they total 0.005 BTC before considering the fee and conditions of a new transaction.
Keep in mind: Spendable outputs are subject to their conditions and transaction fees. A visible balance need not all be immediately spendable.
A protocol participant that performs specified validation, proposal or voting duties. In Ethereum proof of stake, validators use stake and signing keys under the consensus rules.
Example: A shared record needs designated checking duties and evidence of who performed them.
Keep in mind: Validator concentration and key handling matter as well as the number of participants.
The mechanisms through which network activity may benefit a token or its holders, such as fee distributions, buybacks or burns. A burn reduces units instead of paying cash directly, and greater network usage does not guarantee a higher token price.
Example: A busy shopping centre can earn income without paying visitors. A busy blockchain also need not reward every token holder; inspect the actual fee, burn or distribution rules.
Keep in mind: Burns do not directly distribute cash. Usage or fee growth need not produce gains for a token holder.
A schedule under which an allocation becomes available according to time or other conditions. Read who can claim it, the start, any initial waiting period and the release rules.
Example: An invented staff allocation releases 10 units each month rather than all 120 at once.
Keep in mind: A release schedule is not a guarantee that recipients will retain the tokens.
A malicious website or script that persuades you to connect your wallet and sign a request which lets the attacker move your funds.
Example: A fake sale page asks you to sign a request that grants an attacker spending power. Connecting a wallet and approving a signature are distinct steps; inspect each request.
Keep in mind: Connection alone does not necessarily authorise spending, but a separate signature or approval can create dangerous permissions.
Buying and selling the same asset at nearly the same time without any real change in who owns it, usually to make trading look busier than it is.
Example: A seller repeatedly trades an item between accounts it controls to make demand look strong. Reported activity can rise without independent buyers or genuine ownership changes.
Keep in mind: The two retained source definitions describe the same broad concept. Suspicious activity needs evidence; high volume alone is not proof of manipulation.
Buying and selling the same asset, at the same time, without any real change in who owns it, to create a false picture of trading volume and demand.
A wallet that tracks addresses using public information without holding their signing keys. It can display activity and, in some implementations, prepare transactions or broadcast transactions signed elsewhere. It cannot independently authorise spending from those addresses.
Example: A shared budget dashboard displays balances but cannot authorise payments. A watch only wallet similarly observes public information without holding the signing keys.
A setting that lets your account send crypto only to addresses you have saved in advance, often with a waiting period before a new address can be used.
Example: A payment account permits transfers only to saved destinations. A waiting period may help review a new destination, but the control does not guarantee the destination or account is safe.
Income or rewards associated with depositing, lending or staking an asset, often quoted as an annualised rate. The rate, fees, reward asset and calculation method matter. Additional token units do not guarantee a positive return in your home currency.
Example: A displayed 8% annualised token reward may change tomorrow. Even if units increase, their price can fall, so token rewards and a return measured in your home currency are different.
Keep in mind: Check whether the rate is APR or APY, the reward asset, costs and reward source. Asset price losses can outweigh additional units.