Understanding cryptocurrency begins with mastering its language. For newcomers, the jargon can feel overwhelming — terms like staking, gas fees, and decentralized exchanges might seem like code from another planet. But once you break them down, the world of blockchain becomes far more accessible.
This comprehensive glossary covers over 160 essential cryptocurrency terms, organized alphabetically for easy reference. Whether you're researching DeFi, exploring NFTs, or just trying to understand market trends, this guide will equip you with the vocabulary to navigate the space confidently.
A
Account (帳戶)
An account in blockchain refers to a public-private key pair that controls your digital assets. Your funds aren’t stored in wallets or accounts per se — they exist on the blockchain itself. Think of it like a Reddit username (public) and password (private). In Ethereum, you manage your own keys, meaning you are the custodian of your assets — not a third party.
For enhanced security, private keys can be encrypted with a passphrase, adding an extra layer of protection.
Address / Public Key (地址/公鑰)
A public address is a string of alphanumeric characters used to send and receive transactions on a blockchain. It’s derived from your public key and often starts with 0x on Ethereum networks. For example: 0x06A85356DCb5b307096726FB86A78c59D38e08ee
This address can also be represented as a scannable QR code for convenience.
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Air-Gapping (氣隙)
Air-gapping is a security practice where a device is physically isolated from the internet or any network connection. This method is commonly used to protect cold wallets and sensitive systems from remote cyberattacks.
Airdrop (空投)
An airdrop is a distribution method where free tokens or coins are sent directly to users’ wallets. Often used for marketing, airdrops may require simple tasks like sharing posts, referring friends, or downloading an app.
Altcoin (山寨幣)
Any cryptocurrency other than Bitcoin is considered an altcoin — short for "alternative coin." Examples include Litecoin (LTC), Ethereum (ETH), and Solana (SOL). While some are Bitcoin forks, most now refer to any non-Bitcoin digital asset.
AMM – Automated Market Maker (自動做市商)
An Automated Market Maker (AMM) is a decentralized exchange (DEX) protocol that uses algorithms to price assets based on supply and demand within liquidity pools. Unlike traditional order books, AMMs allow continuous trading without needing buyers and sellers to match directly.
All-Time High (ATH) & All-Time Low (ATL)
- ATH (All-Time High): The highest price a cryptocurrency has ever reached.
- ATL (All-Time Low): The lowest recorded price in its history.
These metrics are crucial for technical analysis and investment timing.
AML – Anti-Money Laundering (反洗錢)
AML regulations are international laws designed to prevent illegal financial activities like money laundering. Crypto platforms must comply with AML rules, which vary by jurisdiction and often require identity verification (KYC).
API – Application Programming Interface
An API allows software applications to communicate with each other. In crypto, APIs connect trading bots, price trackers, and wallets to exchanges and blockchains.
ASIC – Application-Specific Integrated Circuit
An ASIC is a specialized chip built for a single purpose — such as mining Bitcoin. These devices outperform general-purpose hardware in speed and efficiency but are expensive and quickly become obsolete.
Attestation (證明)
In Proof-of-Stake (PoS) blockchains, attestation occurs when validators vote on the validity of a proposed block. Multiple attestations form consensus, confirming the block and its transactions.
B
Bear / Bearish (熊市 / 看跌)
A bear market describes a prolonged period of declining prices. When investors are “bearish,” they expect further drops and may sell assets to avoid losses.
Bear Trap (熊市陷阱)
A bear trap is a manipulation tactic where large traders sell off holdings to trigger panic selling. Once prices drop, they buy back at lower levels before the market rebounds — profiting from the artificial dip.
Beacon Chain (信標鏈)
The Beacon Chain was Ethereum’s upgrade path from Proof-of-Work (PoW) to Proof-of-Stake (PoS). It coordinated validator activity and laid the foundation for scalability improvements like sharding.
Bitcoin (BTC)
Launched in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin was the first decentralized cryptocurrency using PoW consensus. Its whitepaper introduced a peer-to-peer electronic cash system, solving the double-spending problem without central oversight.
Block (區塊)
A block is a batch of verified transactions added to the blockchain. Once confirmed, blocks are cryptographically linked to previous ones, forming an immutable chain.
Block Height (區塊高度)
Block height refers to the number of blocks connected since the genesis block (Block 0). It indicates how far the blockchain has progressed.
Block Reward (區塊獎勵)
Miners or validators receive a block reward for adding new blocks. In Bitcoin, this includes newly minted coins and transaction fees. The reward halves approximately every four years — a process known as halving.
Block Time (區塊時間)
Block time is the average duration between newly created blocks. For Bitcoin, it's about 10 minutes; for Ethereum, ~12 seconds post-merge.
Blockchain (區塊鏈)
A blockchain is a distributed, immutable ledger that records transactions across many computers. Each block contains a cryptographic hash of the previous one, ensuring data integrity.
Public blockchains like Bitcoin and Ethereum are open to all, while private versions restrict access.
Bounty / Bug Bounty
Projects offer bounties — rewards in crypto — for identifying bugs or vulnerabilities in their code. This crowdsources security testing and strengthens protocol resilience.
Brain Wallet (腦錢包)
A brain wallet involves memorizing a seed phrase instead of writing it down. While convenient, it's risky — forgetting the phrase means permanent loss of funds.
Bull / Bullish (牛市 / 看漲)
A bull market reflects rising prices and positive sentiment. Investors who are “bullish” anticipate growth and may accumulate assets.
Burn (燒毀)
To burn tokens means to permanently remove them from circulation by sending them to an unrecoverable address. This reduces supply, potentially increasing value.
Bytecode
Bytecode is low-level machine-readable code. On Ethereum, high-level languages like Solidity are compiled into bytecode executed by the Ethereum Virtual Machine (EVM).
C
Client (Ethereum) (客戶端)
An Ethereum client is software that connects your computer to the Ethereum network. It enables transaction processing, smart contract interaction, and wallet functionality. Popular clients include Geth and Prysm.
Chain Linking (鍊式鏈接)
Chain linking enables asset transfers between different blockchains by synchronizing transactions across both ledgers — critical for cross-chain interoperability.
Circulating Supply
The circulating supply is the number of coins currently available for trading. It excludes locked, reserved, or burned tokens.
Cold Wallet / Cold Storage
A cold wallet is an offline storage solution — such as a hardware device like Ledger — that protects crypto from online threats. Since it’s not connected to the internet, it’s highly secure against hackers.
👉 Learn how cold storage keeps your digital wealth safe from cyber threats.
Confirmation
A confirmation occurs when a transaction is validated by the network. More confirmations mean greater security — especially important for large transfers.
Note: A double-spend attack happens when someone tries to spend the same coin twice — nearly impossible after multiple confirmations.
Crypto Bounties
Rewards paid in cryptocurrency for completing tasks like bug reporting or community promotion.
Crypto-Compliance
Ensuring projects follow legal frameworks around AML, KYC, taxation, and securities laws.
Cryptoeconomics
The study of economic incentives within decentralized systems — how rewards, penalties, and game theory shape network behavior.
Crypto Assets
A broad term covering all digital assets on blockchain: cryptocurrencies, NFTs, stablecoins, utility tokens, and more.
Cryptocurrency
A digital currency secured by cryptography, operating independently of central banks via distributed ledger technology.
D
DAO – Decentralized Autonomous Organization
A DAO is an organization governed by smart contracts and member votes rather than centralized leadership. Built on blockchains like Ethereum, DAOs enable transparent decision-making and fund management.
The first major DAO raised record funds in 2016 but was hacked — leading to Ethereum’s hard fork and the creation of Ethereum Classic.
Decentralization
Shifting control from central authorities to distributed networks. This principle underpins blockchain’s resistance to censorship and single points of failure.
Decentralized Application (DApp)
A DApp runs on a peer-to-peer network instead of centralized servers. Unlike Twitter, which controls user data, DApps let users interact directly via blockchain — enhancing privacy and ownership.
Decentralized Exchange (DEX)
A DEX allows direct peer-to-peer trading without intermediaries. Examples include Uniswap and PancakeSwap, which use AMMs instead of order books.
DeFi – Decentralized Finance
DeFi removes middlemen from financial services like lending, borrowing, and trading. Using smart contracts, users interact directly — enabling faster, cheaper, and permissionless access globally.
Deposit
Funds locked in a smart contract that get forfeited if conditions aren’t met — common in escrow arrangements or staking protocols.
Diamond Hands
Holding through volatility without panic-selling — symbolizing long-term conviction. Opposite of paper hands.
Depth Chart
Shows buy (bids) and sell (asks) orders across price levels. Helps traders identify support/resistance zones and optimal entry/exit points.
Deterministic Wallet
Generates multiple keys from a single seed phrase. If lost, the wallet can be restored using the seed — making backups easier and more secure.
E
ERC-20
The standard for fungible tokens on Ethereum. All ERC-20 tokens follow the same rules — enabling predictable interactions across wallets and exchanges.
Ethereum
The second-largest cryptocurrency by market cap, Ethereum supports smart contracts and dApps — distinguishing it from Bitcoin’s simpler payment-focused design.
F
FOMO – Fear of Missing Out
The anxiety of missing profitable opportunities — often driving impulsive buys during price surges.
Finality
A transaction achieves finality when it cannot be reversed — typically after sufficient confirmations. Unlike traditional banking, blockchain transactions are irreversible once finalized.
G
Gas
Unit measuring computational effort required for transactions or smart contract execution on Ethereum.
Gas Limit & Gas Price/Fee
- Gas limit: Maximum gas you’re willing to spend.
- Gas price: Amount you pay per unit of gas (usually in Gwei).
- Total fee = Gas used × Gas price
High network congestion increases gas fees.
H
Halving
Every 210,000 blocks (~4 years), Bitcoin’s block reward halves — reducing inflation. With a fixed supply of 21 million BTC, halvings historically precede bull runs.
Next halving: 2024
Final halving: ~2140
I
Immutability
Once data is written to a blockchain, it cannot be altered — ensuring transparency and trustlessness.
K
Keystore File
An encrypted JSON file containing your private key — protected by a password. Safer than storing raw keys but still vulnerable if mishandled.
L
Ledger
An immutable record of transactions — updated only by appending new entries.
M
Mainnet
The live blockchain network where real transactions occur — as opposed to testnets used for development.
P
Private Key
A secret alphanumeric string that grants access to your crypto assets. Whoever holds the private key owns the funds — never share it.
S
Smart Contracts
Self-executing programs on blockchain that run when predefined conditions are met — automating agreements without intermediaries.
T
Trustless
In crypto, “trustless” means no need to trust third parties. Everyone can verify transactions independently thanks to transparent ledgers and cryptographic proofs.
Frequently Asked Questions (FAQ)
Q: What’s the difference between a coin and a token?
A: Coins have their own blockchain (e.g., BTC, ETH), while tokens are built on existing platforms (e.g., USDT on Ethereum).
Q: How do I keep my crypto safe?
A: Use cold wallets for long-term storage, enable two-factor authentication, never share your private key or seed phrase.
Q: Is DeFi safe?
A: While innovative, DeFi carries risks like smart contract bugs and rug pulls. Always research projects before investing.
Q: What does ‘HODL’ mean?
A: Short for “Hold On for Dear Life,” it means holding through market dips rather than selling during volatility.
Q: Can I recover lost crypto?
A: Not without your private key or seed phrase. There’s no central authority to reset passwords — self-custody means full responsibility.
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This guide covers core concepts needed to understand today’s digital asset landscape — from blockchain basics to advanced DeFi mechanics. By learning these terms, you’re better equipped to make informed decisions in the fast-evolving world of cryptocurrency.
Keywords: cryptocurrency terms, blockchain glossary, DeFi basics, crypto wallet security, smart contracts explained