Wind report
Crypto glossary
86 crypto terms explained in plain words, from address to whale.
A
- Address poisoning
- A scam where an attacker sends a tiny transaction from an address that looks like one you use, hoping you copy it from your history next time. Always check the full address before sending.Read more →
- Airdrop
- Free tokens sent to wallet addresses, often to reward early users or spread ownership of a new project. Be careful: scammers send fake airdrops that lead to phishing sites.Read more →
- Altcoin
- Any cryptocurrency other than Bitcoin. The word covers thousands of projects of very different quality, and many altcoins swing in price even more than Bitcoin does.
B
- Bear market
- A period when prices are broadly falling and the mood is gloomy. In crypto, bear markets have seen many assets drop sharply and some projects fail entirely.
- Block
- A batch of transactions added to a blockchain at one time. Each block includes a fingerprint (hash) of the block before it, which links the blocks into a chain.Read more →
- Blockchain
- A shared digital record of transactions, grouped into blocks that are linked in order. Many computers keep copies and check each new block, so past entries are very hard to change without the network noticing.Read more →
- Bridge
- A tool that moves assets between blockchains, usually by locking tokens on one chain and issuing matching tokens on another. Bridges have been frequent targets of large hacks, so use them with care.
- Bull market
- A period when prices are broadly rising and optimism is high. It can last months or years, but no one can reliably tell when it will end.
C
- Candlestick
- A chart bar showing an asset's open, high, low and close prices for a set time period. The thick body spans open to close; the thin wicks mark the high and low.Read more →
- Centralized exchangeCEX
- An exchange run by a company that holds customers' funds and matches their orders. It is usually easier for beginners, but you depend on the company's security, solvency and local regulation.Read more →
- Circulating supply
- The number of coins or tokens currently available and moving in the market. It leaves out coins that are locked, unreleased or not yet created.Read more →
- Coin
- A crypto asset that is the native currency of its own blockchain, such as BTC on Bitcoin or ETH on Ethereum, and is usually used to pay network fees. In everyday speech, people often call any crypto a coin.
- Cold walletCold storage
- A wallet that keeps private keys offline, such as a hardware device or a paper backup. It is much harder for online attackers to reach, but slower to use and must be stored safely.Read more →
- Consumer Price IndexCPI
- A measure of how the prices consumers pay for goods and services change over time, and a closely watched gauge of inflation. Surprises in US CPI data can move crypto and other markets.Read more →
- Custody
- Who holds the keys that control a crypto asset. If an exchange or other company holds them for you, it is called custodial, and you rely on that company to stay secure, honest and solvent.Read more →
D
- Decentralized autonomous organizationDAO
- A group that makes decisions through votes recorded on a blockchain, often using governance tokens. Smart contracts enforce some of its rules, but voting power can be concentrated among large holders.
- Decentralized exchangeDEX
- An exchange that runs on smart contracts, letting you trade directly from your own wallet without an account. You keep custody, but you must check token addresses and contract risks yourself.Read more →
- Decentralized financeDeFi
- Financial services such as trading, lending and borrowing built with smart contracts instead of banks or brokers. Anyone with a wallet can use them, but they carry risks from code bugs, hacks and sudden price moves.
- Dollar-cost averagingDCA
- Investing a fixed amount at regular intervals, whatever the price. It smooths your average purchase price and reduces timing stress, but it does not prevent losses if the price keeps falling.Read more →
E
- Exchange
- A platform where you buy, sell or swap crypto, either for other crypto or for regular money. Exchanges differ in fees, coins offered, security and the rules they follow.Read more →
- Exchange-traded fundETF
- A fund that trades on a regular stock exchange like a share. A spot Bitcoin ETF holds actual bitcoin, so investors get price exposure through a brokerage account without holding coins themselves. Fees and price risk still apply.Read more →
F
- Fear and Greed Index
- A sentiment gauge that scores the crypto market from 0 (extreme fear) to 100 (extreme greed), using data such as volatility, volume and social media. It describes mood, not future prices.
- Fear of missing outFOMO
- The urge to buy because prices are rising fast and others seem to be profiting. It often leads people to buy near a peak without a plan.
- Fear, uncertainty and doubtFUD
- Negative news or rumours that spread worry about a coin or the market. Some FUD is misinformation and some is fair criticism, so check the facts before reacting.
- Federal Open Market CommitteeFOMC
- The US Federal Reserve committee that sets interest-rate policy. Its decisions and statements can move the dollar, stocks and crypto.Read more →
- Fully diluted valuationFDV
- The token price multiplied by its maximum or total supply, showing what the market cap would be if every token were already in circulation. A big gap from market cap can signal many future unlocks.Read more →
- Funding rate
- A regular payment between long and short traders on perpetual futures. When it is positive, longs pay shorts; when negative, shorts pay longs. It helps keep the contract price near the spot price.
- Futures
- A contract to buy or sell an asset at a set price on a future date. Traders use futures to speculate or hedge without owning the asset, often with leverage, which magnifies both gains and losses.
G
- Gas
- The unit that measures how much computing work a transaction needs on networks such as Ethereum. More complex actions, like using a smart contract, need more gas than a simple transfer.Read more →
- Gas fee
- The fee you pay to have a transaction processed on networks like Ethereum, based on the gas used and the price per unit of gas at that moment. It tends to rise when the network is busy.Read more →
H
- Halving
- A built-in event where Bitcoin's reward for mining a new block is cut in half. It happens every 210,000 blocks, roughly every four years, and slows the creation of new bitcoins.Read more →
- Hash rate
- The total computing power miners devote to a proof-of-work network, measured in hashes per second. A higher hash rate generally makes the network more costly to attack.Read more →
- HODL
- Crypto slang for holding an asset long term instead of trading in and out. It began as a misspelling of hold in a 2013 forum post. Holding still carries the full risk of price falls.
- Hot wallet
- A wallet whose keys sit on an internet-connected device, such as a phone app or browser extension. It is convenient for everyday use but more exposed to malware, phishing and hacks.Read more →
K
- Know Your CustomerKYC
- Identity checks that regulated companies, including many exchanges, run before you can use their services. You usually provide an ID document and sometimes proof of address.Read more →
L
- Layer 1L1
- A base blockchain that processes and finalizes its own transactions, such as Bitcoin, Ethereum or Solana. Other networks and apps can be built on top of it.
- Layer 2L2
- A network built on top of a layer 1 that handles transactions away from the main chain and then settles them back to it. The aim is lower fees and faster transfers while relying on the base chain for security.Read more →
- Leverage
- Using borrowed funds to open a bigger position than your own money allows. It multiplies both gains and losses, and a small price move against you can wipe out your deposit.Read more →
- Limit order
- An order to buy or sell only at a price you choose or better. It gives you control over the price, but it may fill only partly or not at all.Read more →
- Liquidation
- When an exchange forcibly closes a leveraged position because the trader's margin can no longer cover the losses. The trader usually loses most or all of the margin in that position.Read more →
- Liquidity
- How easily an asset can be bought or sold without moving its price much. High liquidity means tighter spreads and less slippage; low liquidity can make it hard to exit at a fair price.
- Liquidity pool
- A pair or group of tokens locked in a smart contract so others can trade against it on a DEX. People who supply tokens earn a share of trading fees but can lose value when prices change, known as impermanent loss.
- Long
- A position that profits if the price goes up. Buying and holding an asset is the simplest long; traders can also go long with futures.
M
- Margin
- The money you put up as collateral to open and keep a leveraged position. If losses push it below a required level, the exchange may ask for more funds or close the position.Read more →
- Market capitalizationMarket cap
- A coin's current price multiplied by its circulating supply. It gives a rough sense of size, but it is not the amount of money invested and can change quickly.Read more →
- Market dominanceDominance
- The share of the total crypto market cap held by one asset, most often Bitcoin. Traders watch Bitcoin dominance to see whether money is flowing toward Bitcoin or toward altcoins.Read more →
- Market order
- An order to buy or sell right away at the best price available. It fills quickly, but in a fast or thin market the final price can be worse than you expected.Read more →
- Max supply
- The most coins that will ever exist under a project's rules, if it has a limit. Bitcoin's is 21 million; some coins, such as Ether, have no fixed maximum.Read more →
- Memecoin
- A token driven mainly by jokes, internet culture or community hype rather than a product. Prices can swing wildly and many lose most of their value, so treat memecoins as very high risk.Read more →
- Mining
- The process on proof-of-work blockchains where computers compete to solve a puzzle and add the next block. The winner earns newly created coins plus transaction fees. Mining uses a lot of electricity.Read more →
N
- Network feeTransaction fee
- The fee a blockchain charges to process and confirm your transaction. It usually depends on how busy the network is, not on the amount you send, and is separate from any fee an exchange or app adds.Read more →
- Node
- A computer that runs a blockchain's software, keeps a copy of the ledger and checks that new transactions and blocks follow the rules. Many independent nodes make a network harder for any one party to control.Read more →
- Non-fungible tokenNFT
- A token that is unique rather than interchangeable, often linked to digital art, collectibles or in-game items. Owning one does not always mean owning the copyright, and many are hard to resell.
O
- Oracle
- A service that brings outside data, such as asset prices, onto a blockchain so smart contracts can use it. If an oracle reports wrong data, the apps relying on it can fail.Read more →
- Order book
- The live list of buy orders (bids) and sell orders (asks) for an asset on an exchange, sorted by price. It shows how much is waiting to trade at each price level.Read more →
P
- Perpetual futuresPerps
- A futures contract with no expiry date, popular on crypto exchanges. Regular funding payments between long and short traders keep its price close to the spot price. It is usually traded with leverage and is high risk.
- Phishing
- Tricks that impersonate trusted sites, apps or people to steal your logins, seed phrase or wallet approvals. Check web addresses carefully, and never share your seed phrase with anyone.Read more →
- Private key
- A secret number that lets you spend the crypto at an address. Anyone who has it can move your funds, so never share it or type it into a website.Read more →
- Proof of reservesPoR
- A report in which an exchange shows it holds assets matching customer balances, often with cryptographic checks. It helps, but it may not cover all liabilities and does not by itself prove the company is solvent.Read more →
- Proof of stakePoS
- A way for a blockchain to agree on new blocks by letting validators who lock up coins propose and confirm them. Ethereum switched to it in 2022. It uses far less energy than proof of work.Read more →
- Proof of workPoW
- A way for a blockchain to agree on new blocks by having miners spend computing power solving puzzles. Bitcoin uses it. It has a strong security record but consumes a lot of energy.Read more →
- Public key
- A key mathematically derived from your private key. Others can use it to verify your signatures, and wallet addresses are usually created from it. Sharing it does not let anyone spend your funds.Read more →
R
- Resistance
- A price area where selling has tended to stop a rise in the past. Prices may stall there, but resistance can also be broken.Read more →
- Rug pull
- A scam where a project's creators suddenly drain its funds or dump their tokens, leaving buyers with near-worthless coins. Warning signs include anonymous teams, tokens you cannot sell and promises of big returns.
S
- Seed phraseRecovery phrase
- A list of words, usually 12 or 24, that can rebuild your wallet and all its keys. Write it down offline and keep it private: anyone who sees it can take your funds.Read more →
- Self-custody
- Holding your own private keys in your own wallet instead of leaving crypto with a company. You get full control but also full responsibility: lose the keys or seed phrase and nobody can restore access.Read more →
- Short
- A position that profits if the price goes down, usually opened with futures or borrowed assets. Losses on a short can grow quickly if the price rises instead.
- Slippage
- The difference between the price you expect for a trade and the price you actually get. It tends to grow with large orders, low liquidity and fast-moving markets.Read more →
- Smart contract
- A program stored on a blockchain that runs automatically when set conditions are met. It powers DeFi, NFTs and most tokens. Bugs in the code can be exploited, and transactions usually cannot be reversed.Read more →
- Spot tradingSpot
- Buying or selling an asset for immediate delivery at the current price. When you buy bitcoin on the spot market you actually own it, unlike with futures and other derivatives.Read more →
- Spread
- The gap between the highest price buyers are offering and the lowest price sellers are asking. A wide spread is a hidden trading cost and is common in less-traded coins.Read more →
- Stablecoin
- A token designed to keep a steady value, usually tied to a currency such as the US dollar. Most are backed by reserves held by an issuer, but the peg can still break if the reserves or design fail.Read more →
- Staking
- Locking up coins on a proof-of-stake network to help secure it in return for rewards. Rewards vary and are not certain, funds may be locked for a time, and validators can lose part of their stake for breaking the rules.Read more →
- Stop-loss
- An order that sells or closes a position automatically if the price reaches a level you set, to limit losses. In fast markets it can fill at a worse price than that level.Read more →
- Support
- A price area where buying has tended to stop a fall in the past. It is a guide, not a promise, and support levels often break.Read more →
T
- Take-profit
- An order that closes a position automatically when the price reaches a target you set, locking in a gain without you watching the market.Read more →
- Token
- A crypto asset created on top of an existing blockchain, often by a smart contract, rather than being that chain's own native currency. Tokens can represent money, voting rights, access to an app or other things.
- Token approvalApproval
- Permission you give a smart contract to move a certain token from your wallet. Unlimited or malicious approvals can let attackers drain that token, so review and revoke ones you no longer need.Read more →
- Token unlock
- A scheduled release of tokens that were locked, often those held by early investors or the team. Unlocks add to circulating supply and can create selling pressure.Read more →
- Total value lockedTVL
- The total value of crypto deposited in a DeFi app or blockchain, for example in pools and lending markets. It is a rough gauge of usage and moves up and down with token prices.
- Trading volumeVolume
- The total amount of an asset traded over a period, often 24 hours. Rising volume shows more activity, but some platforms have been found to report inflated or fake volume.
V
- Validator
- A participant in a proof-of-stake network that locks up coins as collateral and proposes or checks new blocks. Honest work earns rewards; breaking the rules can mean losing part of the stake.Read more →
- Volatility
- How much and how fast a price moves up and down. Crypto is highly volatile, so large swings within a day or week are common; size positions so you can live with them.Read more →
W
- Wallet
- Software or a device that stores the keys you need to control your crypto and sign transactions. The coins themselves stay on the blockchain; the wallet holds the keys that prove they are yours.Read more →
- Wallet addressAddress
- A string of letters and numbers that others use to send you crypto, similar to an account number. Each network has its own format, and sending funds on the wrong network can mean losing them.Read more →
- Whale
- A person or organisation holding a very large amount of a cryptocurrency. Their big trades can move prices, so some traders watch known whale wallets on the blockchain.