Crypto vocabulary for serious readers.

A decentralized digital asset secured by proof-of-work mining. Often treated as crypto’s macro benchmark and used as collateral through wrapped representations on smart-contract networks.

A programmable blockchain where smart contracts run. Most DeFi lending, DEX routing, and atomic liquidity patterns are documented first on Ethereum and its Layer 2 networks.

A high-throughput blockchain optimized for speed and low fees. Useful for studying parallel markets, validator economics, and fast execution environments.

A digital token designed to track a reference value such as the U.S. dollar. Real stablecoins are issued by identifiable issuers and move on-chain like any other token.

A widely traded dollar-referenced stablecoin used as a quote asset across exchanges. It is not temporary magic money—transfers settle as normal token movements.

A dollar-referenced stablecoin commonly used in DeFi collateral and institutional settlement rails, with public issuer reporting practices.

Decentralized finance: lending, trading, and derivatives executed by smart contracts instead of traditional intermediaries.

A decentralized exchange that swaps tokens using liquidity pools or on-chain order books without a custodial middleman.

A smart-contract reserve of tokens that enables swaps and lending. Providers deposit assets and take on risks such as impermanent loss.

A blockchain transaction that fully succeeds or fully reverts. Partial settlement does not remain if a required step fails.

The cost paid to validators/miners to execute transactions. Fee markets spike when network demand rises.

Software or hardware that holds keys controlling blockchain addresses. Seed phrases must stay offline and private.

Secret material that controls funds. Anyone with the seed can move assets—never share it in chat, forms, or screenshots.

Infrastructure that moves value representations between chains. Bridges add smart-contract and custody risk beyond a single network.

Scaling systems that settle back to a base chain (often Ethereum) with lower fees, such as optimistic or zero-knowledge rollups.

A data feed that brings prices or real-world information on-chain. Bad oracle design can break lending and liquidation logic.

Forced closure of an undercollateralized position to protect lenders. Timing, discounts, and available liquidity matter.

Trading the same asset across venues to capture price gaps. On-chain arbitrage often competes on speed and gas efficiency.

A risk for liquidity providers when token prices diverge from deposit ratios, reducing value versus simply holding.

Total value locked—an estimate of assets deposited in a protocol. Useful context, not a guarantee of safety or yield.

Locking or delegating tokens to secure a proof-of-stake network (or similar) in exchange for rewards and protocol rights.

A network participant that proposes/attests blocks. Validator performance and decentralization affect chain reliability.

The waiting area for pending transactions before block inclusion. Congestion and priority fees show up here.

The point after which a transaction is considered practically irreversible under the network’s consensus rules.

Identity and anti-money-laundering checks used by many centralized platforms. Requirements vary by jurisdiction.

Keeping keys offline (for example hardware wallets) to reduce online attack surface for long-term holdings.

Social-engineering attacks that trick users into signing malicious approvals or revealing seeds. Verify URLs and contracts.

Permission for a contract to move tokens from your wallet. Unlimited approvals increase risk if a contract is compromised.

Price multiplied by circulating supply—a rough size metric, not intrinsic value.

How quickly and how far prices move. Crypto markets can gap sharply around news, liquidations, and liquidity shocks.