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Crypto Glossary

20 terms explained

A

Airdrop

An airdrop is a distribution of free cryptocurrency tokens to wallet holders, usually as a marketing or community-building strategy.

Arbitrum

An Ethereum layer-2 rollup. EVM-compatible with much lower fees than Ethereum mainnet, but a separate network.

B

BEP20

BEP20 is the token standard of the BNB Smart Chain network (formerly Binance Smart Chain): it sets the shared rules for issuing and transferring coins.

Bear Market

A bear market is a prolonged period of falling prices — typically defined as a 20%+ decline from recent highs — accompanied by widespread pessimism, reduced trading volume, and negative market sentiment.

Blockchain

Blockchain is a distributed digital ledger that records transactions across a network of computers, making data transparent and tamper-proof.

C

Consensus

Consensus is a mechanism by which blockchain network participants agree on the current state of the distributed ledger without relying on a central authority.

D

DeFi: Decentralized Finance

DeFi (Decentralized Finance) is an open financial system built on blockchain that replicates banking services — lending, trading, earning yield — without banks, brokers, or any central authority.

E

ERC20

Token standard on the Ethereum network. The original and most widely supported standard for fungible tokens.

F

Fiat Currency: What It Is and How It Works

Fiat currency is government-issued money like USD, EUR, or RUB that is not backed by a physical commodity but by the issuing government.

H

Hashrate

Hashrate measures the total computational power used by miners to process and secure a proof-of-work blockchain network.

L

Liquidity

Liquidity measures how easily a cryptocurrency can be bought or sold without significantly affecting its price.

Listing

Listing is the process of adding a new cryptocurrency to a trading exchange, making it available for buying and selling.

M

Mining

Crypto mining is the process of validating transactions and adding them to the blockchain by solving complex mathematical puzzles using specialized hardware — and earning cryptocurrency rewards in return.

Mining Pool

A mining pool is a group of cryptocurrency miners who combine their computing power to solve blocks more frequently, then share the rewards proportionally based on each miner's contribution.

P

Pump and Dump

A pump and dump is a market manipulation scheme where a cryptocurrency's price is artificially inflated through misleading hype, then sold off for profit by the manipulators.

S

Satoshi

A satoshi is the smallest unit of Bitcoin, equal to 0.00000001 BTC, named after Bitcoin's pseudonymous creator Satoshi Nakamoto.

Smart Contract

A smart contract is a self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predetermined conditions are met.

Solana

A high-throughput layer-1 blockchain. Tokens (including USDT and USDC) use the SPL standard, not EVM addresses.

Staking

Staking is locking cryptocurrency in a blockchain network to help validate transactions and earn passive rewards — similar to a bank deposit, but with crypto and typically higher yields.

T

TRC20: The Token Standard of the TRON Network

Token standard on the TRON network. USDT-TRC20 is one of the cheapest and fastest ways to transfer USDT.

Crypto Glossary — 20 Terms Explained | EIDEX