Crypto vocabulary for beginners, 48 essential terms

Virtual money that belongs to no bank or government, secured by cryptography and stored on a blockchain.

Example: Bitcoin, Ethereum, Solana.

The first cryptocurrency, created in 2009 by Satoshi Nakamoto. Supply capped at 21 million units. Considered digital gold.

Example: 1 BTC = roughly $110,000 in May 2026.

Programmable blockchain created in 2015. Enables smart contracts and decentralized applications (DeFi, NFTs).

Example: 1 ETH = roughly $4,200 in May 2026.

Short for 'alternative coin'. Refers to any cryptocurrency that is not Bitcoin.

Example: ETH, SOL, ADA, XRP are altcoins.

A cryptocurrency whose value is pegged to a stable asset (usually $1). Used to avoid volatility.

Example: USDT (Tether), USDC, DAI.

A public database distributed across thousands of computers. Every transaction is recorded permanently and verifiably.

Example: Bitcoin runs on the Bitcoin blockchain, Ethereum on its own.

A digital representation of an asset or a right, created on an existing blockchain (often Ethereum). Different from a coin, which has its own blockchain.

Example: USDT is an ERC-20 token on Ethereum.

A cryptocurrency created for humorous or speculative purposes, with no real technical utility. 99% end up at zero.

Example: DOGE, SHIB, PEPE.

Non-Fungible Token. Represents ownership of a unique digital item (image, video, certificate, game item).

Example: Bored Ape Yacht Club, CryptoPunks.

Software or a device that stores the cryptographic keys proving ownership of cryptos. It does NOT store the cryptos themselves (those live on the blockchain).

Example: Metamask, Phantom, Ledger.

A wallet connected to the internet (mobile, browser, exchange). Convenient for transactions but vulnerable to hacks.

Example: Metamask, Trust Wallet, Binance apps.

A physical offline wallet (hardware wallet). Far more secure. Recommended for storing more than $1,000.

Example: Ledger Nano S Plus, Trezor Safe 3.

A list of 12 or 24 words that restores a wallet. WARNING: whoever owns the seed owns the funds. Keep it absolutely safe.

Example: Never a photo, never on the cloud, paper only.

A secret cryptographic code that proves ownership of a wallet. Derived from the seed phrase. NEVER share it.

Example: Long hexadecimal format, e.g. a1b2c3...

The public cryptographic code matching your private key. It is the address others use to send you crypto. Can be shared safely.

Example: bc1q... for Bitcoin, 0x... for Ethereum.

Two-Factor Authentication. An extra security layer requiring a 6-digit code on top of the password. Use it on ALL exchanges.

Example: Google Authenticator, Authy. NEVER via SMS.

An attack where a scammer convinces the telecom carrier to transfer your number to their SIM, intercepting your 2FA SMS. This is why SMS 2FA is banned for crypto.

Example: Vitalik Buterin was a SIM swap victim in 2020.

A site that lets you buy and sell cryptos against euros, dollars or other cryptos. Centralized (CEX) or decentralized (DEX).

Example: CEX: Binance, XT, Pionex. DEX: Uniswap.

CEX = Centralized Exchange (a company runs it). DEX = Decentralized Exchange (smart contracts, no central entity). CEX is simpler, DEX is freer.

Example: Binance (CEX) vs Uniswap (DEX).

The mandatory identity verification process on regulated exchanges. ID card + selfie + proof of address.

Example: Required on Binance, Coinbase, Kraken to withdraw.

Immediate buying/selling of cryptos. You pay, you receive the crypto, you truly own it.

Example: Buying 0.01 BTC by paying USDT.

Contracts that let you bet on a rise or fall with leverage (up to 125x). Huge risk: you can lose more than your investment.

Example: Long BTC 10x = you gain/lose 10x the moves.

When a futures trader loses enough that their position is closed automatically. The entire margin is lost.

Example: Long BTC 10x at $110K liquidated if BTC drops to $99K.

The list of all pending buy and sell orders on an exchange. Visualizes supply and demand in real time.

Example: Visible on Binance Pro, Bybit, Coinbase Advanced.

Maker = you place an order at a specific price (limit). Taker = you take an existing order at market. Maker is often cheaper (0.02% vs 0.05%).

Example: Limit order = maker. Market order = taker.

The difference between the expected price and the price actually obtained on a trade. The bigger the order, the larger the slippage.

Example: Buying $100,000 of an illiquid altcoin = 5-10% slippage.

A strategy of buying the same amount at regular intervals, regardless of price. Smooths out volatility.

Example: $100 of BTC on the 1st of every month.

Holding your cryptos long term without selling, regardless of volatility. Comes from a 2013 typo of 'hold'.

Example: HODLing BTC since 2020.

Fear of missing an opportunity. Pushes you to buy in a panic when the price pumps. The beginner's worst enemy.

Example: Buying BTC at $110K in a bull market for fear of missing out.

Negative communication tactics to push a price down. Can be organized (manipulation) or organic (negative news).

Example: An anti-crypto article that dumps the market 5%.

Studying price charts to predict future moves. Uses candles, indicators and patterns.

Example: Spotting an Order Block, an FVG, a trend.

Studying the crypto project itself: team, technology, adoption, tokenomics. To decide whether it is worth holding.

Example: Evaluating Ethereum on its on-chain metrics and adoption.

Support = a price where the market tends to bounce. Resistance = a price where the market tends to pull back. Important psychological levels.

Example: BTC support at $100K, resistance at $120K.

Bull = an extended upward trend (months/years). Bear = an extended downward trend. The crypto cycle is roughly 4 years.

Example: Bull 2024-2025, Bear expected 2026 (halving + 18 months).

A methodology that analyzes institutional moves to anticipate prices. Includes Order Blocks, FVG, BOS, liquidity.

Example: Our core Investisseur 2.0 methodology.

The last candle of opposite direction before an impulsive move that breaks structure. A zone where institutions placed their orders.

Example: Bullish OB = retest = probable bounce.

A price gap left by a vertical institutional move. Price almost always returns to partially fill it.

Example: 3 consecutive candles with no overlap = FVG.

BOS = Break of Structure (trend continuation). CHoCH = Change of Character (trend reversal). A key read of structure.

Example: Bullish BOS = new high. CHoCH = reversal signal.

BSL = Buy Side Liquidity (above the highs). SSL = Sell Side Liquidity (below the lows). Price almost always sweeps these zones.

Example: Equal highs = BSL targeted by institutions.

A methodology created by Michael J. Huddleston. An advanced evolution of SMC with concepts like Killzones, OTE, Mitigation Block.

Example: Killzones London 7-10am UTC, NY 12-3pm UTC.

Richard Wyckoff's methodology (1929). Identifies 4 phases: accumulation, manipulation, expansion, distribution. The theoretical basis of SMC.

Example: Accumulation phase = institutions buying quietly.

Decentralized Finance. Financial applications on blockchain without an intermediary (bank). Lending, saving, swapping, derivatives.

Example: Uniswap (swap), Aave (lending), MakerDAO (stablecoin).

Fees paid to validators to execute a transaction on the blockchain. Varies with network congestion.

Example: Ethereum gas: $0.5-50 depending on congestion.

A strategy of lending your cryptos to earn a return in interest or additional tokens.

Example: Stake ETH on Aave for 3-8% APY.

Locking cryptos on a Proof-of-Stake network to help secure it and earn rewards.

Example: Stake ETH = ~4% APY, Stake SOL = ~7% APY.

A pool of cryptos deposited by users that allows DEXs to function. You deposit, you earn a share of the fees.

Example: USDC/ETH pool on Uniswap V3.

A theoretical loss when you provide liquidity and the relative prices of the 2 assets diverge.

Example: ETH/USDC pool during an ETH pump = IL.

Computer code that executes automatically on a blockchain when certain conditions are met.

Example: The Uniswap smart contract that swaps token A for B.