Crypto Glossary A–Z

Explore key crypto, blockchain, and trading terms through concise definitions, organized alphabetically for quick reference.

A · B · C · D · E · F · G · H · I · J · K · L · M · N · O · P · Q · R · S · T · U · V · W · X · Y · Z

A

Address

A blockchain address is a string of characters identifying a destination for receiving or sending assets, with its format and supported network determined by the blockchain.

AI Trading Bot

An AI trading bot uses artificial intelligence models to analyze data or generate trading decisions and may connect to trading interfaces to execute instructions.

Airdrop

An airdrop distributes tokens to addresses or users that meet a project's eligibility criteria.

Algorithm — Trading Algorithm

In trading, an algorithm is a defined sequence of rules or steps that processes market inputs to perform tasks such as generating signals or submitting orders.

Algorithmic Stablecoin

An algorithmic stablecoin attempts to maintain a target price primarily through supply adjustments, incentives, or arbitrage mechanisms, but may still lose its peg.

ATH — All-Time High

An all-time high (ATH) is the highest price recorded for an asset within the history covered by a particular data source.

ATL — All-Time Low

An all-time low (ATL) is the lowest price recorded for an asset within the history covered by a particular data source.

Altcoin

Altcoin generally refers to a cryptocurrency other than Bitcoin and does not, by itself, describe an asset's quality.

AML — Anti-Money Laundering

Anti-money laundering refers to systems and procedures for identifying, monitoring, and preventing illicit funds from entering financial activity.

AMM — Automated Market Maker

An automated market maker uses smart contracts and pricing rules to quote asset exchanges, commonly executing trades against liquidity pools.

API — Trading API

A trading API is an interface that software uses to request market data, query accounts, or submit orders.

Arbitrage

Arbitrage involves trading price differences between related assets or markets, with actual results affected by fees and execution conditions.

Ask Price

An ask price is a price at which a seller offers an asset, with the lowest available ask in an order book called the best ask.

Atomic Swap

An atomic swap exchanges assets through conditional contracts, commonly using time locks that allow unclaimed funds to be refunded if the exchange is not completed.

B

Base Currency

The base currency is the asset being priced in a trading pair, such as BTC in BTC/USDT.

Bear Market

A bear market describes a period in which market prices generally decline over a sustained interval.

Bid Price

A bid price is a price a buyer offers for an asset, with the highest available bid in an order book called the best bid.

Bid-Ask Spread

The bid-ask spread is the difference between the best ask and the best bid in the same market.

Bitcoin

Bitcoin is a peer-to-peer digital currency network that uses proof of work to maintain a distributed ledger, with BTC as its native asset.

Block

A block is a data unit that organizes transactions, other protocol data and related metadata according to a blockchain network's rules.

Block Explorer

A block explorer is a tool for viewing public blockchain information such as blocks, transactions, and addresses.

Block Height

Block height is a block's position relative to the genesis block, which is usually assigned height zero.

Block Reward

A block reward is compensation allocated by a protocol to a block producer and may include newly issued assets and transaction fees.

Blockchain

A blockchain organizes records into cryptographically linked blocks that a network maintains according to consensus rules.

Blockchain Bridge

A blockchain bridge enables messages or representations of assets to move between different blockchains.

Bull Market

A bull market describes a period in which market prices generally rise over a sustained interval.

C

Candlestick Chart

A candlestick chart uses a series of candles with bodies and wicks to show each period's opening, highest, lowest, and closing prices.

CEX — Centralized Exchange

A centralized exchange is a trading platform managed by an operator that typically provides order matching and custody of account assets.

Circulating Supply

Circulating supply is the number of tokens counted as publicly circulating under a particular measurement methodology.

Cold Wallet

A cold wallet keeps private keys in an offline environment.

Collateral

Collateral is an asset pledged to secure borrowing or trading obligations, and changes in its value can affect whether the obligation remains adequately covered.

Confirmation — Block Confirmation

Confirmation begins when a transaction is included in a block and can increase as subsequent blocks or consensus steps validate its place in the ledger.

Consensus Mechanism

A consensus mechanism defines how network participants agree on valid transactions and the state of a ledger.

Copy Trading

Copy trading replicates another trader's activity according to set rules, although execution results can differ because of timing and account conditions.

Cross-Chain

Cross-chain interaction allows different blockchains to exchange information, asset representations, or execution results.

Crypto Custody

Crypto custody involves safeguarding and managing the keys, signing permissions, and operations needed to control crypto assets.

Cryptocurrency

Cryptocurrency is a category of digital assets recorded, verified, and transferred using cryptography and network protocols.

D

DAO — Decentralized Autonomous Organization

A DAO coordinates decisions and resources through shared rules, blockchain tools, and participant governance.

DApp — Decentralized Application

A decentralized application runs part of its core logic on a blockchain or another decentralized network.

Decentralization

Decentralization describes how control, validation, or decision-making is distributed among multiple participants, with the degree varying by system.

DeFi — Decentralized Finance

Decentralized finance uses blockchains and smart contracts to provide functions such as asset exchange and lending.

DEX — Decentralized Exchange

A decentralized exchange uses blockchain protocols or smart contracts to exchange assets, with custody and execution arrangements varying by design.

Digital Asset

A digital asset is a resource that exists in digital form and has value, usage rights, or other associated rights.

Diversification

Diversification spreads assets or exposures across multiple holdings but does not eliminate every type of risk.

DPoS — Delegated Proof of Stake

Delegated proof of stake is a consensus approach in which token holders elect or delegate to participants responsible for producing blocks.

DYOR — Do Your Own Research

DYOR stands for Do Your Own Research and refers to independently reviewing and verifying information about projects, assets, and risks.

E

ERC-20

ERC-20 is a token standard in the Ethereum ecosystem that defines interfaces for fungible token transfers, balance queries, and approvals.

ERC-721

ERC-721 is a standard in the Ethereum ecosystem for non-fungible tokens with distinct identifiers.

ETF — Exchange-Traded Fund

An ETF is a fund whose shares trade on an exchange, with holdings and investment objectives varying by product.

Ethereum

Ethereum is a blockchain network that supports smart contracts, with ETH as its native asset for uses including payment of network fees.

EVM — Ethereum Virtual Machine

The EVM is the computing environment that executes smart contract bytecode and updates blockchain state on Ethereum and compatible networks.

Expiry Futures

Expiry futures have a specified maturity date and settle or deliver according to agreed contract terms.

F

FOK — Fill or Kill

A fill-or-kill order must execute immediately in full or be canceled entirely.

Finality

Blockchain finality describes the certainty that a confirmed transaction will not be reversed or changed, with guarantees determined by the consensus mechanism.

FOMO — Fear of Missing Out

FOMO is anxiety about missing an opportunity that can influence trading decisions.

Fork

A blockchain fork is a temporary divergence in chain history or a change that creates differing protocol rules.

Fundamental Analysis

Fundamental analysis examines factors such as a project's purpose, economic mechanisms, activity data, and external environment.

Funding Fee

A funding fee is a payment exchanged between long and short positions in certain perpetual contracts, calculated using position size and a funding rate.

Funding Rate

The funding rate determines funding payments on perpetual contracts and helps align their prices with a spot reference price.

Futures Contract

A futures contract is a standardized agreement to buy or sell an underlying asset, or settle in cash, at a future date under specified terms.

G

Gas Fee

A gas fee pays for network computing resources used to execute a transaction or smart contract.

Genesis Block

The genesis block is the first block in a blockchain and provides the starting point for subsequent blocks.

Governance Token

A governance token enables proposals, voting, or delegation of governance rights according to a protocol's rules.

Grid Bot — Grid Trading Bot

A grid trading bot automatically places buy and sell orders at specified intervals within a defined price range.

Gwei

Gwei is a denomination of ETH equal to one billionth of an ETH.

H

Halving

A Bitcoin halving cuts the new block subsidy in half at a predetermined block interval.

Hard Fork

A hard fork is a protocol change that is not backward compatible and may lead nodes following different rules to maintain separate chains.

Hardware Wallet

A hardware wallet uses a dedicated device to store private keys and sign transactions.

Hash — Cryptographic Hash

A cryptographic hash is the fixed-length output of a cryptographic hash function applied to input data, used for purposes such as checking data integrity.

HODL

HODL is a crypto-community term for continuing to hold an asset that originated from a misspelling of hold.

Hot Wallet

A hot wallet manages keys or signs transactions in an internet-connected environment.

I

ICO — Initial Coin Offering

An ICO is a way for a project to raise funds by issuing tokens to participants.

IDO — Initial DEX Offering

An IDO distributes tokens initially through a decentralized exchange protocol or an associated launch platform.

IEO — Initial Exchange Offering

An IEO is a token issuance and subscription process conducted through a centralized trading platform.

Impermanent Loss

Impermanent loss is the value shortfall of a liquidity-pool position compared with holding its initial assets after their relative prices change, before accounting for fees earned or other rewards.

Index Price

An index price is a benchmark calculated by combining prices from one or more reference markets under predefined rules.

Indicator — Technical Indicator

A technical indicator is a calculated measure derived from market data such as prices or trading volume.

Initial Margin

Initial margin is the collateral required under trading rules to open a leveraged position.

Insurance Fund

An exchange insurance fund is a pool used under defined rules to cover certain liquidation losses, not a deposit insurance scheme or a guarantee of compensation.

IOC — Immediate or Cancel

An immediate-or-cancel order executes the available quantity immediately and cancels any unfilled remainder.

J

JOMO — Joy of Missing Out

JOMO describes feeling comfortable with not participating in certain market opportunities.

K

K-Line — An alternative name for a candlestick chart; see Candlestick Chart.

KYC — Know Your Customer

KYC is a set of processes through which a service provider identifies and verifies its customers and relevant background information.

L

Layer 1

Layer 1 is a base blockchain network with its own consensus and ledger rules.

Layer 2

In the Ethereum ecosystem, Layer 2 refers to scaling systems that process transactions outside the base chain while deriving security from Ethereum rather than relying solely on an independent consensus.

Leverage

Leverage creates a larger notional exposure from a smaller amount of capital, amplifying both gains and losses relative to that capital.

Limit Order

A limit order executes only at its specified price or better, without guaranteeing that it will be filled.

LST — Liquid Staking Token

A liquid staking token represents rights associated with staked assets, with redemption and reward mechanisms determined by its issuing protocol.

Liquidation

Liquidation occurs when a system reduces or closes positions because an account or position no longer meets margin or other risk requirements.

Liquidation Price — Estimated Liquidation Price

An estimated liquidation price indicates where liquidation may be triggered under current position and account conditions, not a guaranteed execution price.

Liquidity

Liquidity describes how easily an asset can be bought or sold with a limited effect on its price.

Liquidity Pool

A liquidity pool is a collection of assets managed by smart contracts for exchanges or other protocol functions.

Long Position

A long position is a holding of an asset or the buyer’s side of a derivative contract, with price sensitivity depending on the instrument rather than always implying a bullish exposure to its underlying.

M

Mainnet

A mainnet is a blockchain project's production network for processing real assets and transactions.

Maintenance Margin

Maintenance margin is the minimum collateral requirement for keeping a position open.

Maker

A maker adds an order to the order book, providing liquidity for subsequent trades.

Margin

Margin is money or assets provided as collateral for trading positions or contractual obligations.

Margin Ratio

A margin ratio measures collateral against risk requirements using a platform's formula, with definitions and thresholds varying by account mode.

Margin Trading

Margin trading combines a trader's own collateral with borrowed funds or assets to conduct trades.

Mark Price

A mark price is a reference price calculated under platform rules, often used to assess unrealized derivatives profit and loss and liquidation risk.

Market Capitalization

A crypto asset's market capitalization is generally its unit price multiplied by its circulating supply.

Market Depth

Market depth is the quantity of buy and sell orders available at different price levels in an order book.

Market Order

A market order seeks immediate execution at available market prices and may fill at several price levels.

MEV — Maximal Extractable Value

MEV is value obtainable beyond standard block rewards and transaction fees by changing which transactions are included, excluded, or ordered within a block.

Mining

Mining is the process of competing through computation to produce blocks and receive protocol rewards in a proof-of-work network.

Moving Average

A moving average is an indicator formed by averaging prices or other data over successive time windows.

Multisig — Multisignature Wallet

A multisignature wallet requires signatures from a specified number of keys to authorize a transaction.

N

Network Congestion

Network congestion occurs when demand for transaction processing exceeds available capacity, causing delays and competition for resources.

NFT — Non-Fungible Token

An NFT is a token representing a distinct asset rather than an interchangeable unit of the same asset, with an identifier that distinguishes it within its token contract.

Node — Blockchain Node

A blockchain node is a computer instance running network software to store, relay, or validate blockchain data.

Non-Custodial Wallet

A non-custodial wallet gives the user control over asset authorization without requiring a service provider to hold the user's private keys.

O

Off-Chain

Off-chain refers to data or activity not directly executed or recorded on the blockchain under discussion.

Onchain

Onchain refers to data and activity recorded, verified, or executed by a blockchain.

Open Interest

Open interest is the number or notional value of derivatives contracts that remain open and unsettled at a given time.

Options

An option gives its holder the right, but not the obligation, to buy or sell an underlying asset at a specified strike price within the permitted exercise period, or to receive a cash-settled payoff under the contract’s terms.

Oracle — Blockchain Oracle

A blockchain oracle supplies smart contracts with off-chain data or information from other systems.

Order Book

An order book records unfilled buy and sell orders organized by price and other matching rules.

P

P2P Trading — Peer-to-Peer Trading

P2P trading exchanges assets between users, either through direct agreement or with a platform helping match counterparties.

Perpetual Swap

A perpetual swap is a derivative that generally has no fixed expiry and commonly uses funding payments to help track a reference price.

Post-Only Order

A post-only order may enter the book only as a maker order and is canceled or rejected under platform rules if it would immediately take liquidity.

Price Impact

Price impact is the change in market or liquidity-pool price caused by the trade itself.

Private Key

A private key is secret cryptographic data used to generate digital signatures and authorize transactions.

Proof of Reserves

Proof of reserves presents verifiable information about assets held at a particular time, but evidence of assets alone does not establish full solvency.

Proof of Stake

Proof of stake uses staked assets and protocol rules to assign consensus participation and constrain participant behavior.

Proof of Work

Proof of work uses verifiable computational effort to compete for block production and maintain consensus.

Public Key

A public key is public cryptographic data paired with a private key and can verify signatures generated by that private key.

Q

QR Code — Wallet QR Code

A wallet QR code encodes an address or payment request in a two-dimensional image whose contents still need verification.

Quote Currency

The quote currency expresses the price of the base asset in a trading pair, such as USDT in BTC/USDT.

R

Resistance

Resistance is a price area that technical analysis identifies as a possible concentration of selling pressure.

Restaking

Restaking uses already staked assets or their representative tokens to support additional services, potentially adding slashing and protocol risks.

Risk Management

Risk management is the process of identifying, measuring, and addressing uncertainty and potential losses.

Rollup

A rollup processes transactions outside a base blockchain and submits data and verification information to that chain.

RSI — Relative Strength Index

RSI is a momentum indicator calculated from gains and losses over a period, and its readings do not guarantee price reversals.

RWA — Real-World Assets

In crypto, RWA generally refers to off-chain assets or rights and their onchain representations, with holder rights depending on the underlying arrangements.

S

Scalping

Scalping uses frequent trades and short holding periods to capture small price movements.

Seed Phrase

A seed phrase is a sequence of words used to recover wallet keys, and disclosure may allow others to gain control of the assets.

Self-Custody

Self-custody means holders control their own keys or signing authority and take responsibility for safeguarding them.

Short Position

A short position is a position created by selling an asset not owned or taking the seller’s side of a derivative contract, with price sensitivity depending on the instrument rather than always implying a bearish exposure to its underlying.

Slippage

Slippage is the difference between a trade's expected price and its actual execution price.

Smart Contract

A smart contract is a program deployed on a blockchain that executes logic defined by its code and inputs and can read or update blockchain state.

Soft Fork

A soft fork is a backward-compatible protocol change that typically tightens the rules for valid blocks or transactions.

Spot Trading

Spot trading involves buying, selling, and settling actual assets according to a market's trading rules.

Stablecoin

A stablecoin aims to maintain its price relative to an asset or value benchmark, but neither its peg nor redemption is inherently guaranteed.

Staking

Staking commits assets to support consensus or related functions in proof-of-stake systems and may involve lockups and slashing.

Stop-Loss — Stop-Loss Order

A stop-loss order triggers an instruction such as closing a position when predefined conditions are met, without guaranteeing execution at the trigger price.

Support

Support is a price area that technical analysis identifies as a possible concentration of buying demand.

Swing Trading

Swing trading is a trading approach in which positions are typically held for several days or weeks in an attempt to capture price swings, without guaranteeing a profit.

T

Take-Profit — Take-Profit Order

A take-profit order triggers a closing instruction when a target condition is reached, without guaranteeing the expected profit.

Taker

A taker matches against an existing order in the order book and removes liquidity.

Technical Analysis

Technical analysis studies prices, volume, and related market data to describe trends and patterns.

Token — Crypto Token

A crypto token is a digital unit issued and transferred under blockchain or smart contract rules that may represent different functions or rights.

Token Standard

A token standard is a technical specification defining token functions, interfaces, and interaction behavior.

Tokenization

Tokenization represents assets or associated rights as blockchain tokens, with token-holder rights determined by the specific design and arrangements.

Tokenized Stocks

Tokenized stocks represent stock-related rights or price exposure through tokens and do not necessarily confer direct shareholder rights.

Tokenomics

Tokenomics is the study and design of a token's supply, distribution, utility, incentives, and circulation mechanisms.

Total Supply

Total supply generally counts all issued tokens that have not been burned, including tokens not yet circulating.

TPS — Transactions per Second

TPS measures transactions processed per second, with results depending on transaction types, measurement methods, and test conditions.

Trading Pair

A trading pair expresses the trading and pricing relationship between two assets.

Trailing Stop

A trailing stop adjusts its trigger condition by a predefined distance or percentage as the price moves favorably.

Trigger Order

A trigger order submits an actual order only after a specified price or other condition is reached.

TVL — Total Value Locked

TVL measures the value of assets deposited or locked in a protocol under a chosen methodology and may be affected by prices and double counting.

TXID — Transaction ID

A TXID identifies a blockchain transaction and is usually generated by cryptographically hashing transaction data.

U

Unified Account

A unified account brings assets or risk calculations for multiple trading products into one account framework, with specific rules set by the platform.

Unrealized PnL — Unrealized Profit and Loss

Unrealized profit and loss is the floating gain or loss of an open position calculated using a reference price.

Utility Token

A utility token serves functions such as accessing services or making payments under a project's design.

UTXO — Unspent Transaction Output

A UTXO is a transaction output that has not yet been spent as an input in a subsequent transaction.

V

Validator

A validator participates in transaction validation, block proposals, or consensus voting according to network rules.

Vesting

Vesting makes tokens or associated rights become available or earned progressively according to agreed schedules and conditions.

Volatility

Volatility is a statistical measure of variation in an asset's price or returns.

Volume — Trading Volume

Trading volume is the quantity or monetary value of assets traded in a market during a specified period.

W

Wallet — Crypto Wallet

A crypto wallet manages keys or signing permissions and interacts with a blockchain, while asset records remain onchain.

Wallet Approval

A wallet approval is an onchain permission allowing a contract to operate on specified assets within an authorized scope.

Web3

Web3 refers to internet applications and technical practices built around ideas such as blockchains, digital assets, and user control.

Whale

Whale is an informal term for an address or entity holding or controlling a large amount of a particular crypto asset.

Wrapped Token

A wrapped token represents another asset through a specified mechanism, with redemption depending on reserves, custody, or protocol arrangements.

X

X Layer

X Layer is an Ethereum Layer 2 network built by OKX using the OP Stack, providing an EVM-equivalent environment for running smart contracts.

X-Perps

X-Perps are leveraged crypto derivatives with a fixed settlement date 60 months after issuance, unlike contracts without expiry, and leverage can amplify losses as well as gains.

Y

Yield

Yield measures income relative to the amount committed over a specified period and methodology, rather than promising future returns.

Yield Farming

Yield farming supplies assets to DeFi protocols to receive fees or token rewards under their rules.

Z

Zero-Knowledge Proof

A zero-knowledge proof lets a verifier confirm that a statement is true without revealing the secret information used to prove it.

ZK Rollup

A ZK rollup submits validity proofs to a base blockchain to verify state changes from batches of transactions.

ZK-SNARK

ZK-SNARKs are succinct, non-interactive zero-knowledge argument constructions, some of which require a trusted setup.

ZK-STARK

ZK-STARKs are zero-knowledge argument constructions designed for scalability and transparent setup.