English for people working with blockchain and crypto
Blockchain & Crypto Vocabulary: 100 Key English Terms
Blockchain and crypto grew up in English: whitepapers, developer documentation, exchange interfaces, audit reports and regulatory texts all share the same core vocabulary. This glossary explains the words people in the field use every day, from blocks, wallets and consensus to smart contracts, exchanges, DeFi, NFTs and regulation, with natural Turkish equivalents and realistic examples. It explains terms only; it does not recommend any coin, token, exchange or investment.
100 terms
10 topics
44 core terms
201 example sentences
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No account needed. Read the meaning, see where the term is used, then study the examples. Click any word in the lesson for help. You can also select a word and press Alt + Enter.
Blockchain Basics
blockchain
noun
Meaning
A shared digital record of transactions that is copied across many computers. New data is added in blocks, and each block is linked to the one before it, so past records are very hard to change.
Where you use it
The basic word of the whole field. People build on a blockchain, record data on the blockchain and compare public and private blockchains. It is countable (Bitcoin and Ethereum are two different blockchains) and often works like an adjective: blockchain technology, blockchain developer.
Examples
Every transfer is recorded on the blockchain, so anyone can check it later.
We are looking for a blockchain developer with at least two years of Solidity experience.
Usage note
Written as one word: blockchain, not block chain.
Common phrases
public blockchain · private blockchain · blockchain technology · build on a blockchain · record on the blockchain
A batch of confirmed transactions that is added to a blockchain at one time. Each block contains the hash of the previous block, which links the blocks together into a chain.
Where you use it
Blocks are produced, mined, validated and added to the chain. Engineers talk about block time (how often a new block appears), block height (its position in the chain) and block size. A transaction is said to be included in a block.
Examples
Your transaction was included in the next block, so it should appear in your wallet now.
Block time on this network is about two seconds.
Common phrases
new block · block time · block height · block size · include in a block
A computer that runs the blockchain software, keeps a copy of the ledger and passes transactions and blocks on to other computers in the network.
Where you use it
Developers and infrastructure teams run, sync and connect to nodes. A full node stores and checks the whole chain; many apps use a node provider through an RPC endpoint instead of running their own. More independent nodes usually mean a more decentralized network.
Examples
Our node fell behind after the upgrade and had to resync from the last snapshot.
Anyone can run a full node and check the rules independently.
Common phrases
run a node · full node · node operator · sync a node · node provider
A record of who owns what and of every transfer between accounts. A blockchain is a type of distributed ledger: many computers keep the same copy instead of one bank or company.
Where you use it
The word comes from accounting and appears in explanations of how blockchains work: a public ledger, a shared ledger, distributed ledger technology (DLT). Banks and regulators often say DLT when they mean blockchain-like systems.
Examples
Because the ledger is public, anyone can trace the flow of funds between addresses.
The central bank is testing a distributed ledger for interbank payments.
Common phrases
public ledger · distributed ledger · shared ledger · distributed ledger technology · record on the ledger
Not controlled by one company, server or person. In a decentralized system, many independent participants share control and keep the network running together.
Where you use it
A key word in whitepapers, pitches and debates: decentralized network, decentralized exchange, decentralized finance, decentralized application. People also argue about how decentralized a project really is. The opposite is centralized; the noun is decentralization.
Examples
The team says the network is decentralized, but just three companies run most of the validators.
Moving to a decentralized governance model will take at least a year.
A short, fixed-length code produced from any piece of data by a mathematical function. Even a tiny change to the data produces a completely different hash, which makes tampering easy to detect.
Where you use it
Used as a noun (the block hash, the transaction hash) and as a verb (hash the data). The function is called a hash function; Bitcoin uses SHA-256. In daily work hash often means a transaction ID: 'Can you send me the hash?'
Examples
Each block stores the hash of the block before it.
Can you send me the hash so I can look up the transfer?
Common phrases
hash function · block hash · transaction hash · hash the data · SHA-256 hash
Impossible to change or delete once recorded. Blockchain records are called immutable because rewriting a confirmed block would require taking control of most of the network.
Where you use it
Used in pitches, whitepapers and developer docs: immutable ledger, immutable record, immutable smart contract. The noun is immutability. Developers point out that an immutable contract cannot be patched, so bugs must be caught before deployment.
Examples
Because the contract is immutable, we cannot fix the bug; we have to deploy a new version.
Diplomas are stored as an immutable record that employers can check online.
Common phrases
immutable ledger · immutable record · immutable contract · immutability
Directly between users, without a bank, server or other middleman in between. Blockchain networks are peer-to-peer: computers connect and share data with each other directly.
Where you use it
Shortened to P2P. Used for networks (a peer-to-peer network), payments (peer-to-peer electronic cash, a phrase from the Bitcoin whitepaper) and trading (P2P platforms where users buy crypto directly from each other).
Examples
The Bitcoin whitepaper describes a peer-to-peer version of electronic cash.
Many users in the region buy crypto through peer-to-peer platforms that match buyers and sellers.
A document published by a crypto project that explains the problem it wants to solve, how its technology works, and how its token will be created and distributed.
Where you use it
You publish, release, read or update a whitepaper. The best-known one is the Bitcoin whitepaper, published under the name Satoshi Nakamoto in 2008. Under MiCA, many token offers in the EU need a crypto-asset white paper with set information. Analysts read whitepapers critically: good writing does not prove that a project is honest.
Examples
Before the meeting, read section four of the whitepaper; it explains the token distribution.
The whitepaper promised a working product within a year, but the team missed every deadline.
Usage note
Both whitepaper and white paper are correct. Outside crypto, a white paper is also a report by a government or company that explains a policy or a problem.
Common phrases
publish a whitepaper · read the whitepaper · the Bitcoin whitepaper · technical whitepaper · crypto-asset white paper
Recorded directly on the blockchain itself, so that anyone can check it with a block explorer. It describes transactions, data, activity and even voting.
Where you use it
Used as an adjective (on-chain data, on-chain transaction, on-chain governance) and as an adverb (the vote happens on-chain). On-chain analysis means studying public blockchain data, such as large transfers or money flowing into exchanges. The opposite is off-chain. It is written with a hyphen.
Examples
On-chain data shows that a large amount of bitcoin moved to exchanges this week.
Every payment we make is on-chain, so the auditors can trace the funds themselves.
Happening or stored outside the main blockchain, for example in a company's own database or on a separate system, and not recorded as a normal blockchain transaction.
Where you use it
Used for data, payments, storage and computation. Trades inside a centralized exchange are usually off-chain: only deposits and withdrawals touch the blockchain. Teams move work off-chain to save fees and time, but users must then trust the off-chain system or a proof that links it back to the chain.
Examples
The NFT's image is stored off-chain, so the token itself only contains a link to it.
Trades between our users are recorded off-chain, and we only use the blockchain for deposits and withdrawals.
Any action recorded on a blockchain, such as sending coins from one address to another or calling a smart contract. It must be signed with the sender's private key.
Where you use it
One of the words you see most in wallets and on explorers. You sign, send, broadcast, speed up or cancel a transaction; it can be pending, confirmed or failed. Developers and users often write it as tx (plural txs).
Examples
The transaction is still pending because the network is very busy.
Please send us the transaction ID so we can check it on the explorer.
Common phrases
sign a transaction · broadcast a transaction · pending transaction · failed transaction · transaction history
The fee paid to the network to process a transaction or run a smart contract, especially on Ethereum and similar chains. It goes up when the network is busy.
Where you use it
Often just gas: pay gas, gas is high, save on gas. Prices are shown in gwei, a tiny unit of ether. Wallets show an estimated gas fee before you confirm, and developers try to make contracts gas-efficient. On Bitcoin people say transaction fee or network fee instead.
Examples
Gas fees were so high on Monday that a simple transfer cost more than the amount being sent.
Moving the app to a layer 2 cut our users' gas fees by more than 90 percent.
Common phrases
pay a gas fee · high gas fees · estimated gas fee · save on gas · gas price
Proof that a transaction has been included in a block. Each new block added after it counts as one more confirmation, and more confirmations make the transaction harder to reverse.
Where you use it
Exchanges and merchants decide how many confirmations they require before crediting a deposit. Users ask how many confirmations a transfer has, and wallets show statuses such as '2/12 confirmations'.
Examples
Your deposit will be credited after three network confirmations.
The transfer has only one confirmation so far, so the funds are not available yet.
Common phrases
network confirmations · wait for confirmations · required confirmations · number of confirmations
A unique code that identifies one transaction on a blockchain. You can paste it into a block explorer to see the sender, receiver, amount, fee and status.
Where you use it
Also called transaction ID, TXID or tx hash. Support teams ask customers for it whenever a deposit or withdrawal seems to be missing, and exchanges show it in the withdrawal history.
Examples
Please share the transaction hash so we can trace your deposit.
The transaction hash shows that the funds were sent on the wrong network.
Common phrases
copy the transaction hash · share the transaction hash · tx hash · look up a transaction hash
A website that lets anyone search a blockchain and see blocks, transactions, addresses and smart contracts in readable form.
Where you use it
Often shortened to explorer. Users check a transaction on an explorer, developers verify contract code on it, and journalists and analysts use explorers to follow funds after a hack. Each network usually has its own explorer.
Examples
You can see on the block explorer that the transaction failed because it ran out of gas.
We verified the contract source code on the block explorer so users can read it.
Common phrases
check on a block explorer · verify on the explorer · explorer link · search the block explorer
The waiting area where a node keeps valid transactions that have been broadcast but not yet included in a block. The name is short for memory pool.
Where you use it
Each node has its own mempool, so there is no single official one. When the network is busy the mempool fills up, and miners or validators usually pick the transactions that pay higher fees first. People say a transaction is stuck in the mempool; developers watch the mempool to estimate fees.
Examples
My transaction has been sitting in the mempool for three hours because the fee was too low.
Check the mempool before you send; fees are high when it is this full.
Common phrases
stuck in the mempool · mempool congestion · mempool size · watch the mempool
The maximum amount of gas a transaction is allowed to use. If the work needs more than this, the transaction fails, but the gas already used is still paid.
Where you use it
Wallets usually estimate the gas limit for you; a plain ETH transfer needs 21,000 gas, while contract calls need more. If the transaction succeeds, you pay only for the gas actually used. An 'out of gas' error means the limit was too low. Blocks also have a block gas limit that caps the total work they can hold.
Examples
The transaction failed with an out-of-gas error, so try again with a higher gas limit.
Our contract's mint function needs a gas limit of about 150,000.
Common phrases
set the gas limit · raise the gas limit · block gas limit · run out of gas
The set of rules that lets the computers in a blockchain agree on which transactions are valid and in what order, without trusting a central authority. Proof of work and proof of stake are the best-known types.
Where you use it
Used when comparing networks and in technical documents. People also say consensus algorithm, consensus protocol or just consensus: 'the network reached consensus', 'a consensus failure'. Each mechanism has trade-offs in security, speed and energy use.
Examples
The two chains use a different consensus mechanism, so their security models are not the same.
Ethereum changed its consensus mechanism from proof of work to proof of stake in 2022.
The process in proof-of-work blockchains where computers compete to solve a difficult puzzle. The winner adds the next block and receives newly created coins and fees as a reward.
Where you use it
Common in news, energy debates and the hardware industry: Bitcoin mining, mining rig, mining farm, mining pool, mining difficulty. The verb is mine (mine a block, mine bitcoin). It does not apply to proof-of-stake networks, where people talk about staking and validating.
Examples
Bitcoin mining uses a lot of electricity, so many farms are built near cheap power sources.
After the Merge, mining ether was no longer possible.
A consensus mechanism in which miners use computing power to solve a puzzle before they can add a block. It makes attacks very expensive but uses a lot of energy. Bitcoin uses it.
Where you use it
Usually shortened to PoW, with a small o. Used when comparing blockchains: a proof-of-work chain, PoW mining, the energy use of proof of work. Write it with hyphens when it comes before a noun.
Examples
Proof of work secures the network by making it expensive to rewrite past blocks.
The report compares the energy use of proof-of-work and proof-of-stake networks.
Common phrases
proof-of-work chain · PoW mining · switch from proof of work · proof-of-work algorithm
A consensus mechanism in which validators lock up coins as a stake to win the right to propose and confirm blocks. Those who break the rules can lose part of their stake. It uses far less energy than proof of work.
Where you use it
Shortened to PoS. Used together with staking, validators and slashing (the penalty for breaking rules). Ethereum and many newer networks use proof of stake. As with PoW, add hyphens before a noun: a proof-of-stake network.
Examples
Under proof of stake, validators who go offline for too long earn smaller rewards.
The new chain launched with proof of stake from day one.
Common phrases
proof-of-stake network · move to proof of stake · PoS chain · proof-of-stake validator
A person, company or computer that takes part in mining on a proof-of-work blockchain, using hardware and electricity to compete for the right to add new blocks.
Where you use it
Used for both the machines and the businesses that run them: large miners, public mining companies, miners selling their coins. Miners choose which transactions to include, usually picking those with higher fees first, and often join a mining pool to share rewards.
Examples
Miners pick transactions with higher fees first, so a low fee can leave yours waiting for hours.
Several miners switched off their older machines after the halving.
Common phrases
Bitcoin miner · mining pool · large miners · miner revenue · miner fees
A participant in a proof-of-stake network who locks up coins and runs software to propose new blocks and check blocks proposed by others. Validators earn rewards and can be penalized for misbehaving.
Where you use it
You run, set up or operate a validator; validators propose, attest to and validate blocks. Words around it include stake, uptime, rewards and slashing. Companies that run validators for others are called staking providers or node operators.
Examples
Our validator was offline for six hours during the data center outage, so it missed some rewards.
A validator that signs two different blocks at the same height can be slashed.
Common phrases
run a validator · validator node · validator rewards · validator set · slash a validator
Locking up coins in a proof-of-stake network to help secure it, either by running a validator or by delegating to one, in return for rewards. Staked coins may not be available to sell straight away.
Where you use it
The verb is stake (stake your tokens, staked ETH), and the noun stake also means the amount locked. People talk about staking rewards, lock-up periods and unstaking. Exchanges offer staking products, which regulators may treat as financial services.
Examples
Staking rewards are paid every day, but unstaking takes up to a week on this network.
Before you start staking, read how long your tokens will be locked.
A built-in event in Bitcoin's code that cuts the block reward for miners in half every 210,000 blocks, roughly every four years, slowing down the creation of new coins.
Where you use it
Called the halving (sometimes the halvening) and discussed in news and miner reports: before or after the halving, the next halving, the impact on miners' revenue. The April 2024 halving cut the reward from 6.25 to 3.125 BTC per block.
Examples
After the halving, miners earn half as many new bitcoins for each block.
The report looks at how the last halving affected small mining companies.
Common phrases
Bitcoin halving · the next halving · after the halving · halving cycle
The new coins a miner or validator receives for adding a block to the chain. On many networks, the transaction fees in that block are paid on top of the reward.
Where you use it
Used when explaining how miners and validators are paid: the block reward, the block subsidy (only the newly created coins), fees plus rewards. In Bitcoin the block reward falls with each halving, so fees are expected to matter more over time.
Examples
The current block reward on Bitcoin is 3.125 BTC.
When the network is busy, fees can add a lot to the block reward.
Common phrases
block subsidy · earn the block reward · block reward halving · fees and block rewards
The total computing power that miners use to secure a proof-of-work network, measured in hashes per second. A higher hash rate makes the network harder to attack.
Where you use it
Also written hashrate. News and mining reports say the hash rate hit a record, dropped or recovered. Units include TH/s (terahashes per second) and EH/s (exahashes per second). Mining difficulty adjusts to follow changes in hash rate.
Examples
The hash rate dropped sharply when miners in the region lost power during the storm.
A rising hash rate means more miners are competing for the same block reward.
Common phrases
network hash rate · hash rate record · hash rate drop · share of the hash rate
An app or device that stores the keys you need to access and move your crypto. The coins themselves stay on the blockchain; the wallet only holds the keys that control them.
Where you use it
You create, set up, connect, back up and restore a wallet. In Web3 apps the first step is usually a 'Connect wallet' button. People distinguish hot and cold wallets, hardware wallets, and custodial and non-custodial wallets.
Examples
Click 'Connect wallet' and approve the request in your browser extension.
If you lose your phone, you can restore the wallet with your recovery phrase.
Usage note
A crypto wallet does not really contain coins the way a leather wallet contains cash; this is a common misunderstanding among beginners.
Common phrases
connect a wallet · create a wallet · back up a wallet · restore a wallet · wallet app
A secret number that proves you own a wallet and lets you sign transactions. Anyone who has the private key can move the funds, so it must never be shared.
Where you use it
Used in security guides, wallet apps and support conversations. You generate, store, back up, import, export or lose a private key, and a key can be leaked or compromised. Support teams repeat one rule constantly: never share your private key.
Examples
No one from our team will ever ask for your private key.
The attacker got hold of the private key and drained the wallet within minutes.
Common phrases
store a private key · import a private key · lose your private key · compromised private key · never share your private key
A key mathematically created from a private key that can be shared safely. Others use it to check your signatures, and wallet addresses are usually derived from it.
Where you use it
Mostly used in technical explanations of how wallets and signatures work, usually together with private key. In daily work people share an address rather than the raw public key. The pair is part of public-key cryptography.
Examples
The network uses your public key to verify that the signature really came from you.
It is safe to share a public key, but never the private key that goes with it.
Common phrases
derive a public key · public-key cryptography · public and private keys · share a public key
A string of letters and numbers that shows where crypto can be sent, similar to an account number. On Ethereum, for example, addresses start with 0x.
Where you use it
People often just say address. You copy, paste, share, check and whitelist an address, and exchanges give each user a deposit address. Support teams tell users to double-check the address and the network, because transfers to a wrong address usually cannot be reversed.
Examples
Copy the wallet address from the app instead of typing it by hand.
Always check the first and last characters of the wallet address before you confirm.
Common phrases
copy the address · deposit address · receiving address · double-check the address · whitelist an address
A list of usually 12 or 24 ordinary words that can rebuild a wallet and all its private keys. It is the master backup of a wallet, so whoever has it controls the funds.
Where you use it
Also called recovery phrase, secret recovery phrase or mnemonic. You write down, back up and store a seed phrase offline, and enter it to restore a wallet. Scammers often try to trick users into typing it on fake websites.
Examples
Write your seed phrase on paper and keep it somewhere safe, not in a screenshot.
He lost his seed phrase, so there was no way to recover the funds.
Common phrases
write down your seed phrase · back up the seed phrase · enter the seed phrase · recovery phrase · 12-word seed phrase
A wallet whose keys are kept on a device connected to the internet, such as a phone app or browser extension. It is convenient for daily use but more exposed to hacking.
Where you use it
Used by both users and exchanges. An exchange keeps a small part of customer funds in hot wallets for quick withdrawals and the rest in cold storage. After a hack, news reports often say the attackers drained a hot wallet.
Examples
Our policy is to keep less than five percent of customer funds in the hot wallet.
The attackers drained the exchange's hot wallet, but cold storage was not affected.
Common phrases
exchange hot wallet · keep funds in a hot wallet · drain a hot wallet · hot wallet app
A wallet whose private keys are kept completely offline, for example on a hardware device or on paper, so that hackers cannot reach them over the internet.
Where you use it
Used together with cold storage, which describes the practice. Exchanges and custodians say they keep most customer assets in cold storage. Signing from a cold wallet takes more steps, so it is used for large amounts and long-term holding.
Examples
We move funds from the cold wallet to the hot wallet twice a day, after two managers approve.
The audit confirmed that 95 percent of client assets are held in cold wallets.
Common phrases
cold storage · move funds to a cold wallet · offline cold wallet · cold wallet setup
A small physical device, often similar to a USB stick, that stores private keys offline and signs transactions inside the device, so the keys never touch an internet-connected computer.
Where you use it
You set up, plug in and connect a hardware wallet, then confirm each transaction by pressing its buttons. Security teams advise buying one only from the official maker and checking that the package has not been opened, because tampered devices are a known scam.
Examples
Check the address on the hardware wallet screen, not only on your computer.
The treasury team signs every large transfer with two hardware wallets.
Common phrases
set up a hardware wallet · confirm on the hardware wallet · hardware wallet device · connect a hardware wallet
A wallet in which a company, such as an exchange, holds the private keys for you. It is easier to use and recover, but you depend on that company to give you access to your funds.
Where you use it
Used in product descriptions, risk discussions and regulation. The opposite is a non-custodial (or self-custodial) wallet, where only the user holds the keys. Regulators treat custodial services more strictly because the company is holding other people's assets.
Examples
Your exchange account works as a custodial wallet, so the exchange holds the keys.
We offer a custodial wallet for beginners and a non-custodial option for advanced users.
Common phrases
custodial wallet provider · non-custodial wallet · custodial service · move funds out of a custodial wallet
Keeping your crypto in a wallet where you alone hold the private keys or seed phrase, instead of leaving it with an exchange or another company.
Where you use it
Wallets that allow it are called self-custodial or non-custodial wallets. Self-custody removes the risk of an exchange freezing or losing your funds, but it moves all the responsibility to you: if the seed phrase is lost or stolen, nobody can help. Common phrases: move to self-custody, self-custody wallet.
Examples
After the exchange paused withdrawals, many users moved their coins to self-custody.
Self-custody gives you full control, but you are the only one who can protect the seed phrase.
Common phrases
move to self-custody · self-custody wallet · self-custodial wallet · full self-custody
Short for multi-signature: a wallet setup that needs approval from several private keys, such as 2 of 3 or 3 of 5, before a transaction can be sent.
Where you use it
Used by companies, funds and DAOs to protect their treasuries, so that one stolen key or one dishonest person cannot move the money. People talk about a 2-of-3 multisig, the signers of a multisig and setting up a multisig. It also works as an adjective: a multisig wallet.
Examples
The treasury sits in a 3-of-5 multisig, so no single founder can move the funds.
We need two more signatures on the multisig before the payment can go out.
Common phrases
multisig wallet · 2-of-3 multisig · set up a multisig · multisig signers
Digital money that exists only on a blockchain and is protected by cryptography instead of being issued by a central bank. Bitcoin was the first one.
Where you use it
Used in news, on exchanges and in everyday talk; people usually shorten it to crypto. You buy, sell, hold, send and receive cryptocurrency. It can be countable (a new cryptocurrency) or uncountable (payments in cryptocurrency). Regulators increasingly prefer the wider term crypto asset.
Examples
The company does not accept cryptocurrency as payment.
Our support team gets many questions from users who are new to cryptocurrency.
Usage note
The plural is cryptocurrencies. In casual speech, crypto can mean the whole industry, not only the coins.
The first cryptocurrency, launched in 2009 by an unknown person or group using the name Satoshi Nakamoto. It runs on its own proof-of-work blockchain and has a maximum supply of 21 million coins.
Where you use it
Used as the name of the network and protocol (the Bitcoin network) and of the coin itself (send 0.5 bitcoin). Its ticker is BTC. News reports often treat it as a benchmark for the whole market: Bitcoin dominance, the Bitcoin price, a Bitcoin ETF.
Examples
The Bitcoin network adds a new block about every ten minutes.
The customer sent 0.02 bitcoin to the wrong address.
Usage note
A common style rule: capital B for the network and protocol (Bitcoin), small b for the unit (two bitcoins).
A blockchain launched in 2015 that can run smart contracts and applications, not just payments. Its own currency is called ether (ETH), and it has used proof of stake since 2022.
Where you use it
Developers build on Ethereum or deploy contracts to Ethereum. Many other networks describe themselves as Ethereum-compatible or EVM-compatible. In everyday speech people often call the coin Ethereum too, although its official name is ether.
Examples
We deployed the first version of the contract on Ethereum last week.
Fees on Ethereum were high during the launch, so many users moved to a layer 2.
Usage note
The 2022 switch from proof of work to proof of stake is known as the Merge.
A digital asset created on top of an existing blockchain, usually by a smart contract, rather than on its own network. Tokens can stand for money, voting rights, access to a service or a unique item.
Where you use it
One of the most frequent words in the field: issue, launch, mint, burn, list, transfer and swap tokens. People describe a token's purpose with labels such as utility token, governance token and security token. The people who own them are token holders.
Examples
The project will issue a governance token so that users can vote on changes.
The exchange listed the token after a two-month review.
Usage note
Many people say coin for an asset with its own blockchain (like bitcoin) and token for one built on another chain, but in casual talk the two words are often mixed.
A crypto token designed to keep a steady price, usually one US dollar, backed by cash and bonds, by other crypto or by an algorithm. It is used for payments, trading and moving money between platforms.
Where you use it
Common on exchanges, in DeFi and in regulation. People say a stablecoin is pegged to the dollar, holds its peg or loses its peg (de-pegs). Regulators look closely at the reserves that back it and how often they are checked.
Examples
Most traders on the platform keep their balance in a dollar stablecoin between trades.
The stablecoin briefly lost its peg and fell to 0.97 dollars.
Any cryptocurrency other than Bitcoin. The word comes from 'alternative coin' and covers thousands of very different projects.
Where you use it
Common in market news and trader talk: altcoin season, the altcoin market, small-cap altcoins. Some people do not count Ethereum or stablecoins as altcoins, so the exact meaning depends on the speaker. Shortened to alts in casual chat.
Examples
Altcoins usually move more sharply than Bitcoin when the market turns.
The exchange lists more than 300 altcoins, but most of the volume comes from just ten.
Common phrases
altcoin season · altcoin market · small-cap altcoin · list an altcoin
The standard set of rules that most fungible tokens on Ethereum follow, so that wallets, exchanges and apps can handle them all in the same way. ERC stands for Ethereum Request for Comments.
Where you use it
Used as an adjective and a noun: an ERC-20 token, ERC-20 transfers. Exchanges ask users to pick the right network, such as ERC-20, when depositing. NFTs follow other standards, mainly ERC-721 and ERC-1155.
Examples
Our token is a standard ERC-20, so it works with any Ethereum wallet.
Make sure you select ERC-20 as the network before you copy the deposit address.
Usage note
Read as 'E-R-C twenty'.
Common phrases
ERC-20 token · ERC-20 standard · ERC-20 transfer · ERC-20 network
The economic design of a token: how many exist, how they are created and distributed, who receives them and when, and what they can be used for.
Where you use it
A blend of token and economics, found in whitepapers, pitch decks and research reports. People discuss supply, allocation to the team and investors, vesting schedules and token unlocks. Analysts often treat weak tokenomics as a red flag.
Examples
The tokenomics section shows that 40 percent of the supply goes to the team and early investors.
We changed the tokenomics after the community complained about the unlock schedule.
A free distribution of tokens to many wallet addresses, often to reward early users of a product or to spread ownership of a new token.
Where you use it
Used as a noun and a verb: receive an airdrop, airdrop tokens to users, claim an airdrop, be eligible for an airdrop. Fake airdrop sites are a common phishing trick, so security teams warn users never to connect a wallet to an unknown claim page.
Examples
Users who traded on the platform before March are eligible for the airdrop.
That airdrop link is fake; the real claim page is only on our website.
Common phrases
claim an airdrop · eligible for an airdrop · airdrop tokens · airdrop campaign · fake airdrop
Short for initial coin offering: a way for a new crypto project to raise money by selling its tokens to the public, usually before the product is ready.
Where you use it
Said letter by letter. ICOs were very popular around 2017, and many failed or turned out to be fraud. Regulators in several countries treated some ICO tokens as securities. Later forms include the IEO (run by an exchange) and the IDO (on a decentralized exchange).
Examples
The startup raised 20 million dollars in an ICO but never released a working product.
The lawyers told the team not to call the token sale an ICO.
Common phrases
launch an ICO · ICO investors · token sale · raise funds through an ICO
The number of coins or tokens that are currently available and moving in the market, not counting those that are locked, reserved or not yet created.
Where you use it
Shown on price-tracking sites next to total supply (all tokens created so far, minus any burned) and max supply (the hard limit, such as 21 million for Bitcoin). Market cap is usually calculated from the circulating supply.
Examples
The circulating supply is only a quarter of the total, because most tokens are still locked.
When a large unlock happens, the circulating supply can jump overnight.
Common phrases
total supply · max supply · circulating supply data · increase the circulating supply
The smallest unit of bitcoin, equal to one hundred millionth of a bitcoin (0.00000001 BTC). It is named after Satoshi Nakamoto, the creator of Bitcoin.
Where you use it
Often shortened to sats: 'The fee was 2,000 sats.' Used for small payments and fee rates (satoshis per virtual byte, sat/vB). Some apps show balances in sats to make small amounts easier to read.
Examples
One bitcoin is divided into 100 million satoshis.
The wallet set the fee at 12 satoshis per virtual byte.
Common phrases
sats per byte · stack sats · a few thousand sats · fee in satoshis
To create new tokens or NFTs by calling a smart contract and recording them on the blockchain for the first time. As a noun, a mint is the act or event of creating them.
Where you use it
Very common with NFTs: mint an NFT, mint price, public mint, free mint. Stablecoin issuers mint new coins when customers deposit money and burn them when customers redeem. The word comes from a mint, the place where a state makes its coins.
Examples
You will need some ETH in your wallet to pay the gas when you mint the NFT.
The issuer minted 50 million new stablecoins after a large customer deposit.
Only the admin wallet can mint new tokens, so we keep its key in cold storage.
Common phrases
mint an NFT · mint tokens · mint price · public mint · mint and burn
To remove tokens from circulation permanently, usually by sending them to an address that nobody controls or by using a contract function that destroys them.
Where you use it
Used as a verb and a noun: burn tokens, a token burn, burn address, burn mechanism. Projects announce burns to reduce supply, and since 2021 Ethereum has burned part of every transaction fee. A burn only reduces supply; it says nothing certain about the future price.
Examples
The team burned 10 percent of the total supply, and anyone can check the burn on a block explorer.
When customers redeem their stablecoins for dollars, the issuer burns the same amount.
Common phrases
burn tokens · token burn · burn address · burn mechanism · mint and burn
A program stored on a blockchain that runs automatically when certain conditions are met. Once deployed it usually cannot be changed, and it can hold and move funds without a middleman.
Where you use it
Developers write, test, deploy, audit and interact with smart contracts, and each one has its own contract address. Despite the name, a smart contract is code, not a legal agreement, so lawyers use the word carefully.
Examples
The smart contract releases the payment automatically when both sides confirm delivery.
We found a bug in the smart contract two days before launch.
Common phrases
deploy a smart contract · audit a smart contract · interact with a smart contract · smart contract address · smart contract bug
Short for decentralized application: an app whose main logic runs on smart contracts on a blockchain instead of on a company's own servers. Users usually open it in a browser and connect a wallet.
Where you use it
Written dApp, dapp or DApp and pronounced 'dee-app' or 'dap'. Developers build and launch dApps; users connect to them, sign transactions and grant approvals. Many dApps still use a normal website as their front end.
Examples
Open the dApp in your browser and connect your wallet to see your balance.
We are hiring a front-end developer to build our first dApp.
Common phrases
build a dApp · connect to a dApp · dApp front end · launch a dApp
The most widely used programming language for writing smart contracts on Ethereum and other EVM-compatible blockchains. Its syntax looks a little like JavaScript and C++.
Where you use it
Appears in job ads, code reviews and audit reports: Solidity developer, Solidity code, written in Solidity, Solidity version. Developers compile Solidity code and deploy the result to the chain. Vyper is a less common alternative.
Examples
The contract is written in Solidity and compiled with the latest stable version.
We are looking for a Solidity developer who has worked on audited DeFi protocols.
Common phrases
Solidity developer · written in Solidity · Solidity code · compile Solidity
Short for Ethereum Virtual Machine: the software environment that runs smart contracts on Ethereum. Every node runs it, so all nodes get the same result from the same code.
Where you use it
Said letter by letter. Most often seen in EVM-compatible or EVM chains, meaning networks that can run the same contracts and use the same tools as Ethereum. Developers say a contract runs on the EVM.
Examples
Because the chain is EVM-compatible, we deployed the same contracts without changing a line.
Gas measures how much work the EVM does to run your transaction.
Common phrases
EVM-compatible · EVM chain · run on the EVM · EVM bytecode
A service that brings outside information, such as asset prices, sports results or weather data, onto a blockchain so that smart contracts can use it.
Where you use it
Used heavily in DeFi: price oracle, oracle feed, oracle manipulation. Since a contract cannot check the outside world by itself, a wrong or manipulated oracle price can trigger unfair liquidations, which is why teams combine several data sources.
Examples
The lending protocol uses an oracle to get the current price of each collateral token.
Attackers manipulated the oracle price and borrowed far more than their collateral was worth.
A detailed security review of smart contract code by independent experts, who look for bugs and weaknesses before the code goes live and publish their findings in a report.
Where you use it
Used as a noun and a verb: get an audit, audit the contracts, audit report, audited code. Findings are ranked as critical, high, medium or low. Teams stress that an audit reduces risk but does not guarantee that code is safe.
Examples
The audit found two high-severity issues, and both were fixed before launch.
Users asked whether the new contracts had been audited.
Usage note
In finance, an audit usually means checking a company's accounts; in crypto it usually means checking code.
Common phrases
security audit · audit report · audited smart contract · audit firm · get an audit
To publish a smart contract to a blockchain so that it gets its own address and can be used. Deploying costs gas, and the code usually cannot be changed afterwards.
Where you use it
Developers deploy a contract to mainnet, to a testnet or on a layer 2. The noun is deployment (deployment script, deployment address). After deploying, teams usually verify the code on a block explorer.
Examples
We deployed the token contract to the testnet this morning.
Do not deploy to mainnet until the audit report is final.
Common phrases
deploy a contract · deploy to mainnet · deployment script · redeploy
The set of rules and code that defines how a blockchain or crypto service works. In DeFi, the word often means the whole system of smart contracts behind an app.
Where you use it
Very frequent: the Bitcoin protocol, a lending protocol, a protocol upgrade, protocol fees, protocol revenue. People say a protocol launched, was hacked or was upgraded. Teams often call the website the front end and the contracts the protocol.
Examples
The protocol charges a 0.3 percent fee on every swap.
A protocol upgrade next month will change how rewards are calculated.
Short for decentralized autonomous organization: a group whose rules are written in smart contracts and whose members vote on decisions, usually with governance tokens.
Where you use it
Many DeFi protocols are run by a DAO: members create proposals, vote and control a shared treasury, often held in a multisig. Common phrases: DAO proposal, DAO vote, DAO treasury, governance token. Usually said as one word, 'dow', though some people spell it out. Its legal status differs from country to country.
Examples
The protocol's DAO voted to spend two million dollars from the treasury on security audits.
Anyone holding at least 1,000 governance tokens can submit a proposal to the DAO.
Usage note
Do not confuse a DAO with The DAO, an early Ethereum project from 2016. After it was hacked, Ethereum made a hard fork, and the original chain continued as Ethereum Classic.
Common phrases
DAO proposal · DAO vote · DAO treasury · governance token · join a DAO
A base blockchain that processes and finalizes transactions on its own network, such as Bitcoin or Ethereum. Other systems can be built on top of it.
Where you use it
Written layer 1, Layer 1 or L1. People compare L1s on speed, fees and security, and talk about building on an L1 or settling to L1. The native coin of an L1 pays its fees, like ether on Ethereum.
Examples
We chose a layer 1 with fast finality because our users make many small payments.
Every few months a new layer 1 claims to be faster than Ethereum.
Common phrases
layer 1 blockchain · L1 network · build on a layer 1 · settle to layer 1
A network built on top of a layer 1 blockchain that handles transactions faster and more cheaply, then sends the results back to the main chain for security. Rollups and the Lightning Network are examples.
Where you use it
Written layer 2, Layer 2 or L2. Teams deploy to an L2 and bridge assets to it, and people discuss L2 fees and L2 adoption. A common user question is how long a withdrawal from an L2 back to layer 1 takes.
Examples
Fees on the layer 2 are a few cents, compared with several dollars on mainnet.
Withdrawals from this layer 2 to Ethereum can take up to seven days.
Common phrases
layer 2 network · L2 solution · bridge to a layer 2 · deploy on a layer 2
The ability of a blockchain to handle more users and transactions without becoming slow or expensive. It is one of the biggest technical challenges in the field.
Where you use it
Used in technical debates and pitches: the scalability problem, scaling solutions, transactions per second (TPS). People often mention the blockchain trilemma, the idea that it is hard to get security, decentralization and scalability at the same time.
Examples
Scalability was the main reason we moved from mainnet to a rollup.
The whitepaper promises scalability, but the testnet handled only 200 transactions per second.
A change to a blockchain's rules or a split in its history, which can lead to one updated chain or to two separate chains. In software, it also means a copy of a code base that is developed separately.
Where you use it
Used as a noun and a verb: the chain forked, a fork of the protocol. People separate a hard fork, which is not backward-compatible, from a soft fork, which is. Developers also fork an open-source project to build a new one from its code.
Examples
Many DeFi apps started as a fork of an older protocol with a few changes.
Exchanges paused deposits while the fork was taking place.
Common phrases
hard fork · soft fork · fork the code · chain split · fork of the protocol
A change to a blockchain's rules that is not compatible with older software, so every node must upgrade. If part of the community refuses, the chain can split into two separate networks.
Where you use it
Most hard forks are planned network upgrades set for a specific block height or date. Exchanges announce that they will support the hard fork and may pause deposits and withdrawals. A contentious hard fork is one the community disagrees about.
Examples
The hard fork is scheduled for block 19,500,000, so node operators must upgrade before then.
Deposits and withdrawals will be suspended for about an hour during the hard fork.
Common phrases
planned hard fork · contentious hard fork · support the hard fork · hard fork upgrade
The live, public version of a blockchain network where transactions are real and tokens have real value, as opposed to a test network.
Where you use it
Projects announce a mainnet launch after testing. Developers deploy to mainnet, and users are reminded to check whether their wallet is on mainnet or testnet. For Ethereum, mainnet usually means the layer 1 chain itself.
Examples
After six months on testnet, the protocol finally launched on mainnet.
Double-check that your wallet is on mainnet before sending real funds.
Common phrases
mainnet launch · deploy to mainnet · go live on mainnet · Ethereum mainnet
A copy of a blockchain network used for testing, where the tokens have no real value. Developers try out contracts and upgrades there before using them on mainnet.
Where you use it
Developers deploy to a testnet, get free test tokens from a faucet and run a public testnet so users can try a product early. Since testnet tokens are worthless, anyone selling them is usually running a scam.
Examples
Deploy the new version to the testnet first and let QA test it for a week.
You can get free testnet tokens from the faucet.
Common phrases
deploy to testnet · public testnet · testnet tokens · testnet faucet
A service or set of smart contracts that moves tokens or data from one blockchain to another, usually by locking the asset on one chain and issuing an equivalent on the other.
Where you use it
Used as a noun (a cross-chain bridge) and a verb (bridge your tokens to the L2). Bridges have been the target of some of the largest hacks in crypto, so security teams treat them as high-risk.
Examples
It took about fifteen minutes to bridge the tokens from Ethereum to the layer 2.
The bridge was paused after the team noticed unusual withdrawals.
Common phrases
cross-chain bridge · bridge tokens · bridge hack · bridge to a layer 2
A type of layer 2 that bundles many transactions together off the main chain and posts the compressed data or a proof back to layer 1, which cuts fees while keeping layer 1 security.
Where you use it
There are two main kinds: optimistic rollups, which assume transactions are valid unless someone challenges them, and zero-knowledge (ZK) rollups, which post a cryptographic proof. Developers deploy on a rollup and talk about rollup fees and data costs.
Examples
The rollup posts a batch of transactions to Ethereum every few minutes.
We are comparing an optimistic rollup with a ZK rollup for our payments app.
Common phrases
optimistic rollup · ZK rollup · deploy on a rollup · rollup fees
A platform where people buy, sell and swap cryptocurrencies, either for other crypto or for traditional money. Some are run by a company, and some work entirely through smart contracts.
Where you use it
You sign up for, deposit to, withdraw from and trade on an exchange; an exchange lists or delists tokens. People separate centralized exchanges (CEX) from decentralized exchanges (DEX). Laws often use longer names such as crypto asset service provider.
Examples
The exchange paused withdrawals for two hours during the network upgrade.
Before you send funds to an exchange, check which networks it supports.
Common phrases
crypto exchange · deposit to an exchange · withdraw from an exchange · list on an exchange · exchange account
Short for market capitalization: the total value of a cryptocurrency, found by multiplying its current price by the number of coins in circulation.
Where you use it
Used to rank and compare projects: large-cap, mid-cap and small-cap coins, the total crypto market cap, the top ten by market cap. Analysts warn that a high market cap does not mean that the same amount of money could actually be taken out of the market.
Examples
The total crypto market cap fell by 8 percent over the weekend.
The token is in the top fifty by market cap, but trading volume is very low.
Common phrases
total market cap · market cap ranking · large-cap · small-cap · fully diluted market cap
A crypto exchange run by a company that holds customers' funds, matches buy and sell orders on its own system and usually checks users' identities. Often shortened to CEX.
Where you use it
Used when comparing with decentralized exchanges. A CEX offers customer support, bank deposits and familiar order types, but users trust the company with their assets. Licensing, regulation and proof of reserves are key topics for centralized exchanges.
Examples
Most new users buy their first crypto on a centralized exchange.
After the collapse, many traders moved funds from centralized exchanges to their own wallets.
Common phrases
trade on a centralized exchange · CEX listing · licensed centralized exchange · proof of reserves
A live list of all open buy and sell orders for a trading pair, sorted by price. It shows what buyers will pay, what sellers want and how much is available at each price level.
Where you use it
Traders read the order book to judge depth and liquidity: a thin or deep order book, bids and asks, the spread between them. Centralized exchanges use order books; most decentralized exchanges use liquidity pools instead.
Examples
The order book is so thin that a single large sell order moved the price by 5 percent.
Our matching engine updates the order book in under a millisecond.
Common phrases
deep order book · thin order book · order book depth · place an order · bids and asks
Two assets that can be traded directly against each other on an exchange, such as ETH/BTC. The price shows how much of the second asset you need for one unit of the first.
Where you use it
Exchanges add, list and remove trading pairs. The first asset is the base currency and the second is the quote currency. Turkish exchanges usually offer TRY pairs alongside pairs against stablecoins.
Examples
We are adding three new trading pairs against the Turkish lira next week.
This trading pair has low volume, so expect a wider spread.
Common phrases
add a trading pair · TRY trading pair · base currency · quote currency · list a trading pair
How much and how quickly a price moves up and down. Crypto prices are known for high volatility, with moves of 10 percent or more in a single day.
Where you use it
Common in market reports and risk warnings: high or low volatility, periods of volatility, volatility spikes. The adjective is volatile (a volatile market). Regulators require risk warnings that mention volatility and the chance of losing money.
Examples
Volatility usually rises around big economic announcements.
Our risk notice explains that crypto prices are subject to high volatility.
Common phrases
high volatility · price volatility · volatile market · periods of volatility · volatility spike
Ordinary government-issued money such as the US dollar, the euro or the Turkish lira, as opposed to cryptocurrencies. It is not backed by gold; its value rests on trust in the state that issues it.
Where you use it
Used constantly on exchanges and in the news: fiat currency, fiat deposit, fiat withdrawal, fiat on-ramp (a service that turns fiat into crypto) and off-ramp (the way back). Many stablecoins are described as fiat-backed because they hold reserves in fiat and similar assets.
Examples
The exchange added a fiat on-ramp, so users can now buy crypto directly with Turkish lira.
Most of this week's support tickets are about fiat withdrawals that have not arrived yet.
Usage note
Do not confuse fiat with the Turkish word 'fiyat' (price). In crypto texts, fiat means traditional money; the word comes from Latin and means 'let it be done'.
Common phrases
fiat currency · fiat deposit · fiat withdrawal · fiat on-ramp · fiat-backed stablecoin
How easily an asset can be bought or sold quickly without moving its price much. In DeFi, it also means the funds that users deposit into pools so that others can trade.
Where you use it
Traders talk about high or low liquidity, deep or thin liquidity, and liquidity drying up. In DeFi you provide or add liquidity and remove it later; people who do this are liquidity providers (LPs). Low liquidity usually means wider spreads and more slippage.
Examples
Liquidity is very thin on that pair, so a large order could move the price a lot.
We added liquidity to the pool on launch day so that early users could trade.
Usage note
Do not mix up liquidity and liquidation. Liquidity is about how easily something can be traded; liquidation is the forced closing of a position or a loan.
Common phrases
provide liquidity · low liquidity · deep liquidity · liquidity provider · remove liquidity
Buying and selling crypto at the current market price for immediate settlement, so that the buyer really owns the coins, unlike trading futures or other derivatives.
Where you use it
Exchanges separate the spot market and spot wallet from futures and margin trading. Without leverage, the most you can lose in spot trading is the amount you paid, while a small price move can wipe out a highly leveraged position. News reports also mention spot bitcoin ETFs, which hold real bitcoin.
Examples
I only do spot trading; I'm not comfortable with futures.
Spot trading volume fell this month, while futures volume kept rising.
The use of borrowed funds to open a trading position larger than your own money. It is shown as a ratio such as 10x and makes both gains and losses bigger.
Where you use it
Common in futures and margin trading: use leverage, trade with 5x leverage, high leverage, leveraged position. With 10x leverage, a 10% price move against you can wipe out your margin and lead to liquidation. Several regulators limit or ban leveraged crypto products for retail customers.
Examples
He opened a position with 20x leverage, and a small drop was enough to close it.
Our risk team set the maximum leverage for new users at 3x.
Usage note
Americans usually say LEV-er-ij; British speakers often say LEE-ver-ij. Both are correct.
Common phrases
use leverage · high leverage · leveraged position · 10x leverage · reduce leverage
The forced closing of a leveraged position or a loan when the value of the collateral falls below a required level, so that the lender or the exchange does not lose money.
Where you use it
Exchanges show a liquidation price for each leveraged position, and news reports add up total liquidations after sharp price moves. In DeFi lending, outside users called liquidators repay part of a risky loan and receive some of the collateral at a discount. People say a position or a trader got liquidated.
Examples
The price fell below my liquidation price, and the exchange closed the whole position.
The sudden drop caused more than 400 million dollars of liquidations in an hour.
Usage note
In general business English, liquidation also means closing a company and selling its assets. In crypto it nearly always means the forced closing of a position or a loan.
Common phrases
liquidation price · forced liquidation · face liquidation · get liquidated · liquidation threshold
The difference between the price you expect when you place a trade and the price at which it is actually completed, usually caused by low liquidity or fast price moves.
Where you use it
On decentralized exchanges you set a slippage tolerance, such as 0.5%; if the price moves more than that, the swap fails instead of going through. Large market orders on thin order books also suffer slippage. Setting the tolerance too high can expose a trade to front-running bots.
Examples
The swap failed because the price moved more than my slippage tolerance.
We split the big order into smaller ones to reduce slippage.
Short for decentralized finance: financial services such as lending, borrowing and trading that run on smart contracts instead of through banks or brokers. Users keep control of their own wallets.
Where you use it
Used as a noun (DeFi is growing) and before nouns: DeFi protocol, DeFi app, DeFi user, DeFi hack. Total value locked (TVL) is the usual measure of a DeFi protocol's size. The contrast is with traditional finance (TradFi) and with crypto companies that hold users' funds (CeFi).
Examples
Most DeFi protocols publish their code so that anyone can check it.
She left a bank job to work on risk management for a DeFi lending platform.
Usage note
Usually pronounced 'dee-fye', though some people say 'dee-fee'.
Common phrases
DeFi protocol · DeFi platform · DeFi lending · DeFi user · total value locked
Short for non-fungible token: a unique token on a blockchain that proves who owns a specific item, such as digital art, a ticket or an in-game object. Unlike coins, one NFT cannot be swapped one-for-one with another.
Where you use it
Used in art, gaming, ticketing and marketing. You mint, buy, sell, list, transfer and collect NFTs; a group of them is a collection. Owning an NFT does not automatically give you the copyright of the artwork it points to.
Examples
The museum minted 500 NFTs of its photo archive as a fundraising project.
Each ticket for the festival is an NFT, so it can be checked at the gate.
Usage note
Fungible means interchangeable: one dollar is worth the same as any other dollar. Non-fungible means each item is different.
Common phrases
mint an NFT · NFT collection · NFT marketplace · buy an NFT · NFT holder
An exchange that runs on smart contracts, letting users trade directly from their own wallets without handing their funds to a company. Often shortened to DEX.
Where you use it
Most DEXs use liquidity pools and automated market makers instead of an order book. Users connect a wallet, choose two tokens and swap. Typical concerns are slippage, gas fees and fake tokens with copied names.
Examples
The token is only traded on a decentralized exchange, so you need a wallet to buy it.
Always check the contract address before swapping on a decentralized exchange.
Common phrases
swap on a decentralized exchange · DEX aggregator · DEX volume · trade on a DEX
Assets that a borrower locks up as security for a loan or a leveraged position. If the debt is not repaid or the collateral loses value, it can be sold to cover the loss.
Where you use it
Most DeFi loans are overcollateralized: you might lock 150 dollars of ETH to borrow 100 dollars of stablecoins. Typical phrases: post or deposit collateral, collateral ratio, collateral factor, add collateral. Stablecoins are also described as fiat-collateralized or crypto-collateralized.
Examples
I deposited ether as collateral and borrowed stablecoins against it.
When prices fell, many borrowers rushed to add collateral before their loans were liquidated.
Common phrases
deposit collateral · collateral ratio · add collateral · overcollateralized loan · use as collateral
A smart contract that holds two or more tokens which traders can swap against. Users who deposit tokens into it earn a share of the trading fees.
Where you use it
Liquidity pools are the core of most decentralized exchanges. Liquidity providers (LPs) deposit a pair of tokens and receive LP tokens as a receipt. Their main risks are smart contract bugs and impermanent loss, which happens when the prices of the two tokens move apart.
Examples
The new token has only one small liquidity pool, so even modest trades move its price a lot.
The developers withdrew all the funds from the liquidity pool and disappeared.
Common phrases
deposit into a liquidity pool · LP tokens · pool share · stablecoin pool · drain a liquidity pool
A type of decentralized exchange that sets prices with a mathematical formula and trades against liquidity pools, instead of matching buyers and sellers in an order book.
Where you use it
Usually shortened to AMM. The best-known formula is the constant product rule x × y = k: as traders buy one token from the pool, its price rises. Because prices depend on pool size, large trades in small pools cause high slippage. Arbitrage traders keep AMM prices close to prices on other exchanges.
Examples
An automated market maker does not need an order book; the pool itself is always on the other side of your trade.
Our automated market maker uses a different curve for stablecoin pairs to keep slippage low.
Usage note
In traditional finance, a market maker is a firm that is always ready to buy and sell. An AMM does the same job with code instead of people.
Common phrases
automated market maker (AMM) · AMM pool · AMM formula · constant product AMM
Moving crypto between DeFi protocols, for example by providing liquidity or lending, to earn rewards that are often paid in the protocols' own tokens.
Where you use it
It became popular in the 'DeFi summer' of 2020. Farmers compare the APY (annual percentage yield) of different pools, but very high APYs are often temporary and paid in tokens whose price can fall sharply. Risks include contract bugs, exploits, impermanent loss and rug pulls.
Examples
Yield farming rewards dropped sharply after the protocol cut its token emissions.
Before we try any yield farming, our risk team checks whether the contracts have been audited.
Usage note
Liquidity mining is a close synonym, used especially when the rewards come from providing liquidity.
Short for know your customer: the checks a regulated company carries out to confirm who its customers are, usually by collecting an ID document, a selfie and an address.
Where you use it
Used as a noun and before nouns: complete KYC, pass KYC, KYC checks, KYC documents, KYC level. Exchanges require it before deposits or withdrawals, and it is part of anti-money laundering rules. Said letter by letter: K-Y-C.
Examples
You need to complete KYC before you can withdraw to a bank account.
The compliance team rejected the KYC documents because the photo was blurred.
Short for anti-money laundering: the laws and controls that stop criminals from hiding the origin of illegal money by moving it through financial systems, including crypto.
Where you use it
Usually paired with KYC and CFT (countering the financing of terrorism): AML/KYC checks, AML policy, AML compliance, AML officer. Exchanges monitor transactions, screen addresses and report suspicious activity to the authorities.
Examples
Our AML team flagged the deposit because the funds came from a sanctioned address.
Every new employee completes AML training in their first week.
Common phrases
AML compliance · AML policy · AML checks · AML officer · AML/KYC
A scam in which the creators of a crypto project suddenly take investors' money and disappear, for example by removing all the liquidity from a token's trading pool.
Where you use it
Informal but widely used, even in news and security reports. Projects get rugged or rug-pulled, and analysts list warning signs such as an anonymous team, unlocked liquidity or no audit. It is a form of fraud, not a normal market fall.
Examples
The developers removed the liquidity overnight; it was a classic rug pull.
Our report lists the warning signs of a rug pull, such as an anonymous team and unlocked liquidity.
Common phrases
rug pull scam · victims of a rug pull · get rugged · warning signs of a rug pull
A trick in which attackers pretend to be a trusted company or person to make victims reveal passwords, seed phrases or private keys, or approve a harmful transaction.
Where you use it
Very common in crypto security: phishing emails, phishing sites, phishing links and fake support accounts on social media. In Web3, a phishing site may ask users to sign a malicious approval that lets attackers move their tokens.
Examples
A phishing site copied our login page and changed only one letter in the domain.
We send users a phishing warning every time a fake support account appears.
Usage note
Pronounced exactly like fishing; the spelling with ph is deliberate.
Common phrases
phishing attack · phishing site · phishing email · phishing link · fall for a phishing scam
An attack in which one person or group controls more than half of a network's mining power or stake, which lets them reverse their own recent transactions and spend the same coins twice.
Where you use it
Read as 'fifty-one percent attack'. Used in security discussions, especially about smaller proof-of-work coins where renting enough hash rate is cheap. It is closely linked to double spending. Exchanges respond by raising the number of confirmations they require.
Examples
After the 51% attack, the exchange raised the required confirmations from 12 to 500.
A 51% attack cannot take coins from other people's wallets, but it can reverse the attacker's own payments.
Common phrases
suffer a 51% attack · launch a 51% attack · 51% attack risk · double spending
A digital asset that exists on a blockchain or a similar technology and can be stored and transferred electronically. It is the wider legal term that covers cryptocurrencies, stablecoins and other tokens.
Where you use it
Preferred in laws, tax rules, contracts and annual reports because it is neutral and covers more than money-like coins. EU texts write crypto-asset with a hyphen, as in MiCA, while US agencies often say digital asset. Common phrases: crypto asset service provider, hold crypto assets.
Examples
The new rules apply to every company that offers crypto asset services to customers in Turkey.
Our auditors asked how we value the crypto assets on our balance sheet.
Common phrases
crypto asset service provider · hold crypto assets · crypto asset holdings · crypto asset regulation
An attack that takes advantage of a bug or design weakness, often in a smart contract or bridge, to steal funds or make a system behave in a way its creators did not intend.
Where you use it
Common in security reports and the news: a protocol suffers an exploit, an exploit drains a pool, a post-mortem explains the exploit. As a verb, attackers exploit a vulnerability, and a protocol 'was exploited for 30 million dollars'. Writers often prefer exploit to hack when the attacker only used the code as it was written.
Examples
The bridge exploit drained more than 100 million dollars in a few minutes.
Our post-mortem explains how the attacker exploited a rounding error in the contract.
Usage note
The noun is stressed on the first syllable (EX-ploit) and the verb on the second (ex-PLOIT). In everyday English, exploit can also mean to use people unfairly.
Common phrases
suffer an exploit · exploit a vulnerability · smart contract exploit · bridge exploit
A form of market manipulation in which a group buys a little-known coin cheaply, hypes it with misleading claims to push the price up, then sells to latecomers and lets the price crash.
Where you use it
Often written with hyphens as an adjective: a pump-and-dump scheme or group. Tokens with low liquidity are typical targets, and social media channels are the main tools. It is illegal in securities markets, and in the EU, MiCA bans market manipulation of crypto assets. Compliance teams also watch for coordinated pumps and paid promotion.
Examples
The token rose 400 percent in an hour and then collapsed; it looks like a classic pump and dump.
The exchange delisted the coin after finding evidence of a pump-and-dump scheme.
Common phrases
pump-and-dump scheme · pump-and-dump group · coordinated pump · classic pump and dump
Short for Markets in Crypto-Assets, the EU regulation that sets common rules for issuing crypto assets and stablecoins and for crypto service providers, including their licensing.
Where you use it
Adopted in 2023; its stablecoin rules have applied since June 2024 and the rest since 30 December 2024. Firms licensed as CASPs (crypto-asset service providers) in one EU country can serve clients across the EU. News and job ads often say MiCA-compliant, MiCA licence and under MiCA.
Examples
We applied for a MiCA licence in the Netherlands so that we can serve customers across the EU.
Under MiCA, the issuer must publish a white paper before offering the token to the public.
Usage note
EU texts use British spelling: licence (noun) and authorisation. American texts write license and authorization.
Common phrases
under MiCA · MiCA licence · MiCA-compliant · MiCA white paper
A rule that requires crypto service providers to collect and pass on information about the sender and the recipient when they transfer crypto for a customer, as banks do for wire transfers.
Where you use it
It comes from FATF standards, which applied the wire-transfer rule (Recommendation 16) to crypto service providers in 2019. In the EU, the Transfer of Funds Regulation has applied it since 30 December 2024, with no minimum amount. The name comes from an older US banking rule: customer information must travel with the money.
Examples
Because of the travel rule, we need the recipient's full name before we can send your withdrawal to another exchange.
Our compliance team is testing a new tool for sharing travel rule data with other exchanges.
Common phrases
comply with the travel rule · travel rule data · travel rule solution · travel rule requirements
Ten questions from this glossary. Pick the right meaning for each term and see your score.
How to learn blockchain & crypto vocabulary
Read real texts from the field: the Bitcoin whitepaper, Ethereum's developer documentation, exchange help-center articles, smart contract audit reports and the English summaries of regulations such as MiCA. Compare an exchange's English and Turkish help pages to see how each term is translated.
Learn terms in opposite pairs: public key and private key, hot wallet and cold wallet, custodial and non-custodial, on-chain and off-chain, centralized and decentralized, mainnet and testnet, mint and burn.
Learn the verbs that go with each noun: you sign and broadcast a transaction, deploy and audit a contract, mint and burn tokens, stake and unstake coins, deposit to and withdraw from an exchange.
Learn how abbreviations are said: NFT, KYC, AML and EVM are spelled letter by letter, DeFi is said 'dee-fye', DAO usually sounds like 'dow', MiCA is 'mee-ka' and HODL sounds like 'hoddle'.
Watch capital letters and spelling: Bitcoin with a capital B is the network and bitcoin is the unit; whitepaper and white paper are both used; British texts write decentralised and licence where American texts write decentralized and license.
Frequently asked questions
What is the difference between a coin and a token?
In careful use, a coin is the native currency of its own blockchain, such as bitcoin on Bitcoin or ether on Ethereum, and it is used to pay that network's fees. A token is created by a smart contract on top of an existing blockchain, such as an ERC-20 token on Ethereum. In everyday talk, and in many Turkish sources, the two words are often used loosely for the same thing.
Is a crypto asset the same as a cryptocurrency?
Not exactly. Cryptocurrency usually means a coin used like money, such as bitcoin. Crypto asset is a wider and more neutral term that also covers stablecoins, NFTs and other tokens, which is why laws prefer it. Turkish works the same way: people say 'kripto para' in daily life, while Turkish legislation, including the 2024 amendments to the Capital Markets Law, uses 'kripto varlık'.
What does 'Not your keys, not your coins' mean?
It is a well-known saying in crypto. If an exchange or another company holds the private keys to your wallet, you depend on that company to give you access to your assets. Only when you hold the keys yourself (self-custody) do you have full control. The other side of the saying is responsibility: if you lose your seed phrase, nobody can recover the funds for you.
Why do people say 'gas' when they talk about fees?
On Ethereum and similar networks, gas is the unit that measures how much computing work a transaction needs, a bit like fuel for a car. The fee is roughly the gas used multiplied by the gas price, which is usually shown in gwei, a tiny fraction of one ether. That is why people say 'gas is high today' when the network is busy. On Bitcoin, people simply say transaction fee or network fee.
Do people working in crypto in Turkey use the English terms?
Very often, yes. Developers, traders and support teams in Turkey say wallet, staking, airdrop, mainnet, deploy, gas and rug pull in daily work, sometimes with Turkish verbs added ('stake etmek', 'deploy etmek'). Official texts, user agreements and news reports prefer Turkish terms such as 'blokzincir', 'kripto varlık', 'cüzdan', 'akıllı sözleşme' and 'kimlik doğrulama'. Knowing both versions helps you read English documentation and Turkish regulations side by side.
