ExchangeRanking
Glossary

Crypto Glossary

35 of the most important crypto terms. Each entry has its own page with an extended definition and related terms.

Updated: Updated in 2026

A

AML
Anti-Money Laundering – procedures to prevent money laundering. read more →
AMM
Automated Market Maker – the pricing mechanism used by DEXs, based on liquidity pools. read more →
Altcoin
Any cryptocurrency other than Bitcoin. read more →

B

Bitcoin (BTC)
The first and largest cryptocurrency, launched in 2009. read more →

C

CASP
Crypto-Asset Service Provider – the licensing status for exchanges under MiCA. read more →
CEX
Centralized Exchange – a crypto exchange run by a company. read more →
Cold wallet
An offline wallet – the safest way to store crypto. read more →
Crypto tax
How profits from selling or using cryptocurrency are taxed. read more →

D

DAC8
An EU directive on the automatic exchange of tax information for crypto. read more →
DCA
Dollar-Cost Averaging – a strategy of buying a fixed amount at regular intervals. read more →
DeFi
Decentralized Finance – financial services without intermediaries. read more →
DEX
Decentralized Exchange – a peer-to-peer exchange on the blockchain. read more →

E

Ethereum (ETH)
The second-largest blockchain network – home to smart contracts and DeFi. read more →

F

Funding rate
A periodic fee exchanged between longs and shorts in perpetual contracts. read more →

G

Gas fee
A transaction fee on EVM networks (Ethereum and compatible chains). read more →

H

HODL
A strategy of holding crypto long-term without selling. read more →
Hot wallet
An online wallet – convenient, but more exposed to attacks. read more →

K

KYC
Know Your Customer – mandatory identity verification on exchanges. read more →

L

Liquidation
The forced closing of a futures position due to insufficient margin. read more →

M

Maker fee
The fee charged on a limit order that adds liquidity to the order book. read more →
MiCA
Markets in Crypto-Assets – the EU regulation governing the crypto market. read more →

N

NFT
Non-Fungible Token – a unique token representing digital ownership. read more →

P

Perpetual futures
A leveraged futures contract with no expiration date. read more →
Proof of Reserves
A public audit of an exchange's reserves using a Merkle tree. read more →
PoS (Proof of Stake)
A blockchain consensus mechanism based on staking. read more →

S

Seed phrase
12 or 24 words that serve as a backup for a wallet. read more →
SAFU
Secure Asset Fund for Users – Binance's insurance fund. read more →
Spot
The straightforward purchase of crypto with fiat or stablecoin – no leverage. read more →
Spread
The difference between the best bid and ask price. read more →
Stablecoin
A token designed to hold a stable value (usually $1 or €1). read more →
Staking
Locking up crypto on a PoS network in exchange for rewards. read more →

T

Taker fee
The fee charged on a market order that removes liquidity from the order book. read more →

U

USDT / USDC
The two largest dollar-pegged stablecoins on the market. read more →

W

Wash trading
Artificially inflating an exchange's reported trading volume. read more →
Whitelisting
A list of trusted withdrawal addresses – a key account security feature. read more →