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Plain definitions of the crypto, DeFi and trading terms you meet in the news, from airdrop to zero knowledge proof.
An airdrop is a free distribution of tokens to wallet addresses. How projects use airdrops, how to qualify and how to avoid airdrop scams.
An altcoin is any cryptocurrency other than Bitcoin. Main types of altcoins and why they are riskier than BTC.
APY, or annual percentage yield, shows yearly returns including compounding. How APY differs from APR in crypto staking and lending.
A blockchain is a shared ledger that many computers keep in sync. Here is how it works, why it is hard to change and where it is used.
A crypto bridge moves tokens between blockchains. How bridges work and why they are a frequent target of hacks.
A CEX, or centralized exchange, is a company like Binance or Coinbase that holds your funds and matches trades. Pros, cons and safety.
A cold wallet keeps your private keys offline, usually on a hardware device. Why it is the safest way to store crypto for the long term.
A crypto ETF is an exchange traded fund that tracks a cryptocurrency, letting investors buy exposure through a regular brokerage account.
A crypto wallet stores the keys that control your coins. Hot vs cold wallets, custodial vs self custody and how to keep a wallet safe.
A DAO is a decentralized autonomous organization run by token holder votes. How DAOs make decisions and the problems they face.
Dollar cost averaging (DCA) means buying a fixed amount at regular intervals. Why it reduces timing risk and when it works best.
DeFi, or decentralized finance, rebuilds lending, trading and saving with smart contracts instead of banks. How it works and its risks.
A DEX, or decentralized exchange, lets you swap tokens straight from your wallet without an intermediary. How it differs from a CEX.
FDV, or fully diluted valuation, is a token's price times its maximum supply. Why a large gap to market cap can signal sell pressure.
FOMO, the fear of missing out, pushes traders to buy after big price jumps. How it shows up in crypto markets and how to avoid it.
FUD stands for fear, uncertainty and doubt: negative news or rumors that push prices down. How to tell real risks from FUD.
The funding rate is a periodic payment between long and short traders on perpetual futures. What positive and negative funding mean.
Gas is the fee paid to a blockchain's validators for processing a transaction. Why gas prices change and how to pay less.
The Bitcoin halving cuts the reward for mining new blocks in half about every four years. Why it happens and how it affects supply.
HODL means holding crypto for the long term instead of trading. Where the word came from and the reasoning behind the strategy.
Impermanent loss is the value liquidity providers lose when pooled token prices move apart. A simple example and how to limit it.
KYC, or know your customer, is the identity check exchanges require. Why it exists, what documents are asked for and how data is protected.
A layer 2 is a network built on top of a blockchain like Ethereum to make transactions faster and cheaper. How rollups work and the trade offs.
Leverage lets traders open positions larger than their own money by borrowing. How 10x works and why it leads to liquidations.
A liquidation is the forced closing of a leveraged position when losses eat the margin. How liquidation prices work and how to avoid them.
A liquidity pool is a pot of tokens locked in a smart contract that powers swaps on decentralized exchanges. How providers earn fees.
Market cap is a coin's price multiplied by the number of coins in circulation. What it tells you and where it misleads.
A memecoin is a token driven by internet culture and community hype rather than utility. Why they surge, why most crash and how to spot scams.
MiCA is the EU's Markets in Crypto Assets regulation. What it requires from exchanges and stablecoin issuers and what it means for users.
Crypto mining is the process of securing proof of work blockchains like Bitcoin and earning new coins. How mining works and whether it pays.
An NFT is a unique token on a blockchain that proves ownership of a digital item. How NFTs work, what they are used for and their risks.
A blockchain oracle brings outside data, such as prices, onto the chain for smart contracts. Why oracles matter for DeFi security.
Perpetual futures, or perps, are derivatives with no expiry that track a coin's price. How they work and why they dominate crypto trading volume.
Proof of stake secures blockchains with locked up coins instead of mining. How validators work and what slashing means.
Proof of work secures blockchains like Bitcoin by making miners spend energy to add blocks. How it works and why it is criticized.
A rollup is a layer 2 that bundles many transactions and posts them to Ethereum. Optimistic vs zero knowledge rollups explained.
A rug pull is a scam in which a project's creators drain its funds or dump their tokens and vanish. Warning signs and how to protect yourself.
A seed phrase is the 12 or 24 words that can restore your crypto wallet. Why it must stay secret and how to store it safely.
Slippage is the gap between the price you expect and the price your trade actually fills at. Why it happens and how to set tolerance.
A smart contract is a program stored on a blockchain that runs exactly as written. What it does, where it is used and the risks of bugs.
A stablecoin is a token designed to hold a steady value, usually one US dollar. How USDT and USDC keep their peg and what can go wrong.
Staking means locking up crypto to help run a proof of stake network in exchange for rewards. How it pays, where to stake and the risks.
A token unlock releases previously locked tokens to investors or the team. Why unlocks can pressure prices and where to track them.
TVL, or total value locked, measures how much money sits in a DeFi protocol or chain. How it is calculated and what it misses.
A whale is an individual or entity holding a large amount of a cryptocurrency. Why traders watch whale wallets and what their moves can mean.
Yield farming means moving crypto between DeFi protocols to earn the highest returns. How it works and why high APYs carry high risks.
A zero knowledge proof lets someone prove a statement is true without revealing the underlying data. How ZK proofs power privacy and rollups.