Crypto terms, without the fog.

Bitcoin is a peer-to-peer monetary network that records transfers on a public proof-of-work blockchain.

A block reward is the compensation paid to the miner or validator that produces an accepted block.

A Bitcoin halving is a scheduled reduction in the new BTC subsidy paid per mined block.

Proof of work is a consensus method that uses computational work to make block production costly and verifiable.

Mining is the process of assembling transactions and competing to add a valid proof-of-work block.

Difficulty adjustment changes the mining target so Bitcoin’s average block interval stays near its protocol goal.

A blockchain is an ordered, shared record of state changes grouped into linked blocks.

A block is a batch of network-approved transactions or state changes added to a blockchain.

A blockchain transaction is a signed instruction that asks the network to change ownership or application state.

Consensus is the process by which network participants converge on an accepted blockchain state and rule set.

A smart contract is blockchain-deployed code that executes according to predefined rules when called.

A layer 1 is a base blockchain that provides its own consensus, settlement, and native asset rules.

A layer 2 is a system built around a base blockchain to process activity with different cost or throughput trade-offs.

A rollup batches transactions and uses a base blockchain for settlement, data availability, or verification.

A crypto exchange is a service or protocol that matches, routes, or facilitates trades between digital assets and currencies.

An order book lists open buy and sell orders for an asset at different prices.

A market order asks to buy or sell immediately at the best available prices.

A limit order sets the worst acceptable price at which a trade may execute.

The spread is the difference between the best available buy price and the best available sell price.

Liquidity is the availability of buyers and sellers that lets an asset trade without large price changes.

Slippage is the difference between an expected trade price and the price or average price actually received.

Volatility describes how much and how quickly an asset’s price changes over a chosen period.

Decentralized finance is a set of blockchain applications that provide financial functions through programmable protocols.

An automated market maker uses a smart contract and pricing formula to quote swaps from available liquidity.

A liquidity pool is a smart-contract-held reserve of assets used to facilitate swaps or other protocol activity.

Impermanent loss is the relative underperformance a liquidity provider can experience compared with simply holding the deposited assets.

Yield farming is the practice of supplying assets to DeFi protocols to pursue fees, incentives, or other variable returns.

Staking is committing assets to support a proof-of-stake network or protocol under defined reward and penalty rules.

A lending protocol uses smart contracts to let users supply or borrow assets according to collateral and interest rules.

A crypto wallet manages the keys and software needed to view and authorize blockchain transactions.

A private key is a secret cryptographic value that can authorize spending from a blockchain address.

A public key is cryptographic information that helps verify signatures or derive an address, depending on the network.

A seed phrase is a human-readable backup that can recreate a wallet’s derived keys.

A hardware wallet is a dedicated device designed to keep signing operations isolated from a general-purpose computer or phone.

A software wallet is an application or browser extension that manages keys and signs transactions on a connected device.

Self-custody means the user controls the keys or signing authority needed to move the assets.

Multisignature custody requires more than one approved key or signer before a transaction can execute.

Phishing is a social-engineering attack that tricks a person into revealing secrets or approving an unsafe action.

A rug pull is a crypto project failure or scam in which insiders drain funds, abandon obligations, or remove meaningful liquidity.

KYC means identity-verification procedures used by a service to understand who its customer is.

AML refers to controls designed to prevent and detect money laundering and related financial crime.

Tax residence is the jurisdiction or jurisdictions that treat a person as resident for tax purposes under local rules.

A capital gain is generally the increase in value recognized when an asset is disposed of, subject to the relevant tax rules.

Regulatory compliance means following the laws, licensing conditions, reporting duties, and controls that apply to a service or activity.

Tokenomics describes how a token is issued, distributed, used, and changed over time.

Circulating supply is an estimate of the units currently available to the market under a provider’s methodology.

Max supply is the largest token quantity a project’s rules or documentation say can exist, if a cap is actually enforced.

A token inflation rate describes how quickly the supply increases under its issuance rules over a stated period.

A token burn removes units from practical circulation by sending them to an inaccessible address or using a protocol rule.

Vesting is a schedule that controls when allocated tokens become transferable or claimable.