Glossary

Crypto Glossary

New to crypto? Our glossary explains key terms in simple language. From “Bitcoin” to “DeFi,” we’ve got you covered.

πŸ” Featured Terms

DeFi

Decentralized Finance: A blockchain-based financial system that removes intermediaries like banks. Enables lending, trading, and earning interest peer-to-peer.

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Gas Fee

Transaction Fee: The cost to execute a transaction or smart contract on a blockchain (e.g., Ethereum). Paid in the network’s native token (e.g., ETH).

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Staking

Earn Passive Income: Locking up crypto assets to support a blockchain network (e.g., Ethereum 2.0) in exchange for rewards.

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A

  • Altcoin – Any cryptocurrency other than Bitcoin.
  • Address – A unique string of characters representing a wallet or destination for crypto transactions.

B

  • Bitcoin – The first and most well-known cryptocurrency, created by Satoshi Nakamoto in 2009.
  • Blockchain – A decentralized, distributed ledger that records transactions across a network of computers.

D

  • DeFi – Decentralized Finance: Financial services without intermediaries.
  • DApp – Decentralized Application: An app that runs on a blockchain.

❓ Frequently Asked Questions

What is blockchain?

A blockchain is a decentralized, distributed ledger that records transactions across a network of computers. It’s the technology behind cryptocurrencies like Bitcoin and Ethereum.

What is the difference between Bitcoin and Ethereum?

Bitcoin is a digital currency designed as a store of value. Ethereum is a platform for smart contracts and decentralized apps (DApps).

What is a smart contract?

A smart contract is a self-executing contract with the terms written in code. It runs on a blockchain (e.g., Ethereum) and automatically executes when conditions are met (e.g., sending funds when a product is delivered).

What is a private key?

A private key is a secret code that allows you to access and manage your crypto assets. It’s like a password for your wallet. Never share it with anyone!

What is staking?

Staking is the process of locking up crypto assets to support a blockchain network (e.g., Ethereum 2.0) in exchange for rewards. It’s like earning interest on your savings.

What is a rug pull?

A rug pull is a type of scam where developers abandon a project and take investors’ funds. Always research projects thoroughly and avoid anonymous teams.

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