Skip to content

Crypto glossary: 48 terms in plain language

By CoinRate Editorial · Updated 28 September 2026 · 9 min read

Short definitions of the words you meet when checking prices, using an exchange or sending coins. Terms are in alphabetical order.

Address
A string of letters and numbers that identifies where coins can be sent, like an account number.
Airdrop
Free tokens sent to many wallets, usually to promote a new project. Many "airdrops" are scams that ask you to connect your wallet.
Altcoin
Any cryptocurrency other than Bitcoin.
All-time high (ATH)
The highest price a coin has ever reached.
Ask price
The lowest price a seller will accept. See spread.
Bid price
The highest price a buyer will pay.
Block
A batch of transactions added to a blockchain.
Blockchain
A shared record of transactions, kept by many computers, that is very hard to change after the fact.
Bridge
A service that moves tokens from one blockchain to another.
Cold wallet
A wallet whose keys are kept offline, such as a hardware device.
Confirmation
Each new block added after your transaction's block. More confirmations mean the payment is more final.
Custodial
A service that holds your coins and keys for you, like most exchanges.
DeFi
Decentralised finance: lending, trading and other services run by smart contracts instead of a company.
Depeg
When a stablecoin trades away from its target value, such as below $1.
ERC-20
The standard for tokens on the Ethereum network. USDT on Ethereum is an ERC-20 token.
Escrow
On P2P platforms, the platform holds the seller's coins until the buyer's payment is confirmed.
Exchange
A platform where you buy and sell crypto.
Fiat
Government-issued money such as the rupee, dirham or dollar.
Gas
The unit that measures the work an Ethereum transaction needs. See our gas guide.
Gwei
One billionth of an ETH, used to price gas.
Halving
The event every 210,000 blocks that halves Bitcoin's mining reward. See the halving guide.
Hash rate
The total computing power securing a proof-of-work network like Bitcoin.
Hot wallet
A wallet connected to the internet, such as a phone app.
KYC
Know Your Customer: identity checks that regulated exchanges must carry out.
Layer 2
A network built on top of a blockchain to make transactions faster and cheaper.
Lightning Network
A layer-2 network for fast, small Bitcoin payments.
Liquidity
How easily an asset can be bought or sold without moving its price.
Market cap
A coin's price multiplied by the number of coins in circulation.
Mid-market rate
The midpoint between buy and sell prices. CoinRate shows mid-market rates.
Mining
Using computers to add blocks to a proof-of-work blockchain in return for new coins and fees.
Network fee
The fee paid to the network to process a transaction.
NFT
Non-fungible token: a token that is unique, often used for digital art or collectibles.
Order book
The list of open buy and sell orders on an exchange.
P2P
Peer-to-peer trading, where individuals buy and sell directly, usually through a platform with escrow.
Private key
The secret that controls a wallet. Anyone who has it controls the coins. Never share it.
Proof of stake
A way of securing a blockchain where validators lock up coins instead of using mining power. Ethereum uses it.
Proof of work
A way of securing a blockchain through mining. Bitcoin uses it.
Rug pull
A scam where project creators take investors' money and disappear.
Satoshi (sat)
The smallest unit of Bitcoin: 0.00000001 BTC. See What is a satoshi?
Seed phrase
A list of 12 or 24 words that can restore a wallet. Treat it like a private key.
Slippage
The difference between the price you expected and the price your trade actually filled at.
Smart contract
A program on a blockchain that runs automatically when its conditions are met.
Spread
The gap between the bid and ask prices. It is a hidden cost of trading.
Stablecoin
A token designed to hold a steady value, usually $1. See USDT vs USDC.
TDS
Tax deducted at source. In India, 1% TDS applies to many crypto sales. See the India tax guide.
Token
A digital asset issued on an existing blockchain, such as USDT on TRON.
TRC-20
The token standard on the TRON network. Widely used for USDT transfers because fees are low.
Wallet
An app or device that holds the keys to your crypto and lets you send and receive it.
About CoinRate Editorial

CoinRate Editorial writes and checks every converter page and guide on this site. We explain how crypto prices work in rupees and other currencies, and we link the sources behind every rule or tax fact. We are not financial advisers, and nothing here is investment advice. About CoinRate · Editorial policy.