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Terms

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.

Free tokens given out by projects, usually to promote adoption or reward users.

Any cryptocurrency that is not Bitcoin. Examples include Ethereum, Solana, and Cardano.

Anti-Money Laundering. Regulations that require exchanges to monitor and report suspicious activity.

A permission you grant a smart contract to spend your tokens. Revoke approvals you no longer need to reduce risk.

Annual Percentage Yield. The rate of return you earn on staking or lending, shown yearly.

All-Time High. The highest price a coin has ever reached.

All-Time Low. The lowest price a coin has ever reached.

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.

A tool to move assets from one blockchain to another (e.g., Ethereum → Arbitrum). Always verify the official bridge.

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.

Decentralized Autonomous Organization. An online community with rules written into smart contracts.

Decentralized Application. Apps that run on a blockchain, not on one company’s server. Think of Uniswap or OpenSea.

Investing the same amount regularly, no matter the price — to smooth out market ups and downs and reduce emotional trading.

Decentralized Finance. Financial tools like lending, borrowing, and trading without banks.

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.

Exchange-Traded Fund. A basket of assets (like stocks, bonds, or Bitcoin) that trades on traditional stock exchanges.

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.

Fear of Missing Out. The urge to buy when prices are rising fast.

Fear, Uncertainty, Doubt. Negative news or rumors that cause panic selling.

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 small payment to use a blockchain, like paying a toll on a highway.

When Bitcoin mining rewards are cut in half every 4 years, reducing new supply.

A physical device (like Ledger or Trezor) that stores your private keys offline.

The computing power securing a Proof of Work blockchain like Bitcoin.

Crypto slang for holding coins long-term, no matter the market ups and downs.

A wallet connected to the internet (e.g., phone/desktop wallet). Convenient but less secure than cold storage.

Initial Coin Offering. A fundraising method where new tokens are sold to investors.

Initial DEX Offering. A fundraising method on decentralized exchanges.

Know Your Customer. The ID check most exchanges require before you can trade.

An exchange feature where users stake coins (like BNB, USDT) to farm newly launched tokens.

Base blockchains like Bitcoin, Ethereum, Solana. The foundation layer.

Scaling solutions built on top of Layer 1 (like Polygon) to make transactions faster and cheaper.

Borrowing money to trade bigger. Increases both risk and reward.

An order to buy or sell crypto at a specific price you choose.

When your leveraged position is closed automatically because losses got too big.

A pool of tokens locked in a smart contract to enable trading on decentralized exchanges.

The live production network where real-value transactions happen.

Fees for adding (maker) or removing (taker) liquidity on an exchange. Maker is often cheaper.

The total value of a coin = price × circulating supply.

An order that buys/sells immediately at the best available price.

An extra identifier required for deposits on some networks (e.g., XRP tag, XLM memo).

A popular browser wallet for Ethereum and EVM tokens.

Multi-Factor or Two-Factor Authentication. Adds a second step to prevent account takeovers.

Using computers to secure a blockchain and earn new coins.

Multi-Party Computation wallet where a private key is split across parties/devices and never assembled in one place.

A wallet that requires multiple signatures to approve transactions — improves security and governance.

Non-fungible token. A unique digital collectible tracked on a blockchain.

Passwordless login using device-based cryptographic keys (WebAuthn).

Tricks to steal your credentials or seed phrase via fake sites or emails.

The cryptographic key derived from your private key; used to verify signatures.

When a project’s creators vanish with investor funds.

A phone-number hijack to intercept SMS codes. Use app-based 2FA or passkeys instead.

The difference between expected and actual trade price due to market moves.

Buying or selling crypto for immediate settlement at market prices.

A crypto token pegged to a stable asset like USD (e.g., USDT, USDC).

Locking coins to help run a blockchain and earn rewards.

An order that automatically sells if price drops to your set level.

An order that automatically sells at your target price to lock in gains.

A sandbox network for testing dApps and transactions with valueless tokens.

Coins run on their own blockchain; tokens are built on another blockchain.

How much of a coin was traded in the last 24 hours.

Your wallet doesn’t hold coins, but the private keys to access them.

The next version of the internet where users own their data and money.

Someone who owns huge amounts of crypto and can move markets.

Earning rewards by lending or staking crypto across different platforms.

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.

Step 1

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.
Step 2

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.
Step 3

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.
Step 4

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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