The Words of Crypto

Time to understand the language of blockchain, DeFi, NFT and Web3.

Web3

The next evolution of the internet built on blockchain technology, enabling decentralized applications, user-owned data, and peer-to-peer interactions without relying on centralized intermediaries.

An altcoin is any cryptocurrency other than Bitcoin. The term combines "alternative" and "coin" and includes thousands of digital assets like Ethereum, Solana, BNB, and XRP, each designed with different use cases and technologies.

Bitcoin

Bitcoin (BTC) is the first and most widely recognized cryptocurrency, created in 2009 by the pseudonymous Satoshi Nakamoto as a decentralized peer-to-peer digital currency that operates without banks or governments.

Blockchain

A blockchain is a decentralized, distributed digital ledger that records transactions across a network of computers, making the data transparent, secure, and nearly impossible to alter.

Cold Wallet

A cold wallet stores your private keys completely offline, making it immune to remote hacks. It is the most secure method for storing large amounts of cryptocurrency long-term.

Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on a decentralized blockchain network, enabling peer-to-peer transactions without intermediaries like banks.

dApp

A dApp (decentralized application) runs on a blockchain using smart contracts instead of a central server — giving users direct control without a company in the middle

DeFi (Decentralized Finance)

DeFi, short for Decentralized Finance, is a financial ecosystem built on blockchain technology that replaces traditional intermediaries like banks and brokers with smart contracts, enabling open, permissionless lending, borrowing, trading, and earning.

DEX

A DEX (decentralized exchange) lets you trade cryptocurrency directly from your wallet using smart contracts — no company holds your funds or requires an account.

Ethereum

Ethereum (ETH) is a decentralized blockchain platform that enables smart contracts and decentralized applications (dApps), serving as the foundation for DeFi, NFTs, and much of the Web3 ecosystem.

Gas Fees

Gas fees are payments made to blockchain validators for processing transactions. On Ethereum, fees are paid in ETH and vary based on network demand.

Hot Wallet

A hot wallet is a crypto wallet that stays connected to the internet. It offers fast access and easy transactions, making it ideal for everyday crypto use.

NFT (Non-Fungible Token)

A unique digital asset stored on a blockchain that cannot be replicated or exchanged on a one-to-one basis. NFTs represent ownership of digital items like art, music, collectibles, and in-game assets.

Non-Custodial Wallet

A non-custodial wallet gives you full ownership of your private keys. No company can access, freeze, or lose your funds — you are your own bank.

Private Key

A private key is a secret cryptographic code that gives you full control of your cryptocurrency. Anyone with access to your private key controls your funds.

Public Key

A public key is your shareable blockchain identifier derived from your private key. Share it to receive crypto — it cannot be used to access or move your funds.

Seed Phrase

A sequence of 12 to 24 randomly generated words that serves as the master key to your crypto wallet. Anyone with your seed phrase can access your funds, so it must be kept offline and private.

Smart Contract

A smart contract is self-executing code stored on a blockchain that automatically enforces agreement terms when predefined conditions are met — no intermediaries needed.

Staking

Staking is the process of locking up cryptocurrency in a blockchain network to help validate transactions and secure the network, earning rewards in return. It is a core feature of Proof of Stake blockchains.