Explore approved Crypto definitions, everyday examples and related lessons.
Showing 6 of 6 matching terms
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.