Cryptocurrency Glossary

Any cryptocurrency other than Bitcoin. The term encompasses thousands of digital assets that have emerged since Bitcoin's creation, each with unique features and purposes.

The method by which a blockchain network agrees on the validity of transactions. Common mechanisms include Proof-of-Work, Proof-of-Stake, and Delegated Proof-of-Stake.

Decentralized Finance — a ecosystem of financial applications built on blockchain technology that operate without traditional intermediaries like banks or brokers.

Self-executing code stored on a blockchain that automatically enforces the terms of an agreement when predetermined conditions are met.

The cost associated with performing transactions or executing smart contracts on a blockchain network. Fees vary based on network congestion and computational complexity.

Software or hardware that stores the cryptographic keys needed to access and manage cryptocurrency assets. Wallets can be hot (internet-connected) or cold (offline).

A digital asset created on an existing blockchain platform. Tokens can represent various assets, from utility access to ownership stakes in projects.

A radical change to a blockchain's protocol that makes previously invalid blocks valid. Hard forks require all nodes to upgrade and can result in chain splits.

The process of actively participating in transaction validation on a Proof-of-Stake blockchain by locking up cryptocurrency to support network operations.

The ease with which a cryptocurrency can be bought or sold without significantly affecting its market price. High liquidity indicates a healthy, active market.

The total value of a cryptocurrency, calculated by multiplying the current price by the total supply of coins in circulation.

The degree of price variation over time. Cryptocurrencies are known for high volatility, which can present both opportunities and risks for market participants.