Crypto terms, explained plainly

124 short definitions and a handful of guides. Every term links to the coins and charts where you will meet it, and the ones the model actually uses say so.

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A

  • The highest price a coin has ever traded at, and often the level holders watch first.

  • AltcoinBasics

    Any crypto asset other than Bitcoin; a broad label rather than a shared design.

B

  • Bitcoin's share of the total crypto market cap, used as a rough risk-appetite gauge.

C

  • The coins that exist and can be traded right now, as opposed to the total ever created.

  • The rule that decides which version of a chain's history is correct — proof of work or proof of stake.

D

  • DrawdownBasics

    The fall from a previous peak to the current low; max drawdown is the worst one on record.

F

  • ForkBasics

    A change to a blockchain's rules; a soft fork is compatible, a hard fork splits the chain.

G

  • The first block of a blockchain, the anchor every later block traces back to.

H

  • HalvingBasics

    The scheduled cut in new Bitcoin issued per block, every 210,000 blocks, roughly four years.

L

  • Layer 1Basics

    A base blockchain that settles its own transactions, such as Bitcoin, Ethereum or Solana.

  • Layer 2Basics

    A network that executes transactions cheaply and settles them on a layer 1.

M

  • Price multiplied by circulating supply: what the market says a coin is worth in total.

  • The hard ceiling on how many coins a protocol will ever create, where one exists.

P

  • PegBasics

    The target price a stablecoin or wrapped asset is meant to hold, usually $1.

  • Consensus by locking tokens to propose and attest blocks, with slashing for misbehaviour.

  • Consensus by spending compute to find a hash below a target; Bitcoin's original mechanism.

S

  • A token designed to hold a constant price, usually one US dollar, by holding reserves or collateral.

W

  • A token that represents an asset from another chain, held by a custodian or a bridge contract.