Crypto Terms — explained simply.
Plain-English explanations for the most important crypto concepts. No hype, no jargon — just clarity.
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Quick, friendly definitions you can actually use.
A type of DEX that uses liquidity pools and formulas (like x*y=k) instead of order books to set prices.
A permission you grant a smart contract to spend your tokens. Revoke approvals you no longer need to reduce risk.
An app like Google Authenticator or Authy that generates time-based one-time codes (TOTP) for 2FA.
The first and most well-known cryptocurrency, launched in 2009. Often called digital gold because of its limited supply and store-of-value role.
Imagine a shared notebook everyone can see and add to — but no one can erase. Every entry stays forever. That’s why it’s transparent and hard to fake.
An offline wallet (e.g., hardware wallet) that keeps your private keys off the internet for better security.
A feature where you automatically copy the trades of experienced traders. Useful for beginners, but risky if the trader makes bad calls.
A wallet where a third party (exchange) holds your keys. Easier to use, but you don’t fully control the funds.
Investing the same amount regularly, no matter the price — to smooth out market ups and downs and reduce emotional trading.
Financial contracts like futures or options whose value comes from an underlying asset (e.g., Bitcoin). Used for speculation or hedging.
An investment product where you deposit one coin and earn yield based on two assets (e.g., BTC or USDT). Higher returns, but you may get paid in either asset depending on market price.
A blockchain that allows not just transactions but also apps and smart contracts. It’s like a giant computer that anyone can use.
A place to trade crypto. CEX = centralized exchange (like Binance). DEX = decentralized exchange (like Uniswap).
A savings product offered by exchanges where you deposit crypto and earn daily interest. Funds are not locked, so you can withdraw anytime.
Periodic payments between long and short perpetual futures traders to keep prices close to the spot market.
Trading contracts that agree to buy/sell crypto at a future date and price. Allows leverage, but carries high risk of liquidation.
A wallet connected to the internet (e.g., phone/desktop wallet). Convenient but less secure than cold storage.
An exchange feature where users stake coins (like BNB, USDT) to farm newly launched tokens.
A pool of tokens locked in a smart contract to enable trading on decentralized exchanges.
Fees for adding (maker) or removing (taker) liquidity on an exchange. Maker is often cheaper.
Multi-Party Computation wallet where a private key is split across parties/devices and never assembled in one place.
An optional extra word on top of your seed phrase that creates a hidden wallet.
An independent audit showing that an exchange holds enough assets to cover deposits.
A system where validators lock coins to secure the blockchain and earn rewards.
A second verification step that protects your account even if your password leaks.
Lanzo’s Crypto 4-Step Starter Pack
A beginner-friendly crypto starter pack: buy a little, self-custody, protect your backup, and learn the basics.
Buy a small amount of crypto
Open an account and buy a tiny amount (50 €) to learn the flow.
- Stick to major coins (BTC/ETH/XRP) at first.
- Enable 2FA on your account.
Move to a wallet
Own your keys from day one. Use a Ledger for self-custody.
- Write the 24-word recovery phrase on paper during setup.
- Never store the phrase in the cloud or as a photo.
Protect your recovery phrase & device
Upgrade from paper to a fire/water-resistant metal backup and store the device safely.
- Keep the metal backup separately from the device.
- Consider a simple fireproof envelope or safe.
Learn & practice safely
Read Lanzo’s guides and Crypto Terms to avoid common mistakes. Practice with tiny amounts.
- Always test a small withdrawal first.
- Double-check addresses and memos/tags.
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