8.1[Crypto Glossary](https://wealtii.com/learn) # Crypto Glossary: 250+ Crypto & Blockchain Terms Explained By [Zayd Ahmed](https://wealtii.com/editorial-policy#zayd-ahmed), Founder & CEO, Wealtii · Published 21 October 2026 This **crypto glossary** defines 258 cryptocurrency, blockchain, DeFi, tokenization and regulation terms in plain English, from address and altcoin to zero-knowledge proof. Each entry is one to three sentences long and links to a full Learn guide where one exists. Use the A–Z jump links below to go straight to a letter range. ## A–C ### Address A string of letters and numbers that identifies where cryptocurrency can be sent on a blockchain, similar to an account number. Ethereum and BNB Smart Chain addresses start with "0x"; Bitcoin addresses usually start with "1", "3" or "bc1". ### Address Poisoning A scam in which an attacker sends a tiny or zero-value transfer from an address that looks almost identical to one you use, hoping you copy it from your transaction history by mistake. Always check the full address before sending, as covered in our [wallet security best practices](https://wealtii.com/learn/wallet-security-best-practices). ### Airdrop A free distribution of tokens to wallet addresses, used to reward early users, spread governance power or promote a new project. Fake airdrops are a common lure for phishing sites and wallet drainers. ### Algorithmic Stablecoin A stablecoin that tries to hold its peg through code-driven supply changes or a paired token rather than full reserves of cash or bonds. TerraUSD (UST) lost its peg and collapsed in May 2022, showing how fragile the design can be. ### Altcoin Any cryptocurrency other than Bitcoin. Early altcoins such as Litecoin were modified copies of Bitcoin's code; today the term covers very different networks such as Ethereum, Solana and Cardano. See the [main types of cryptocurrencies](https://wealtii.com/learn/types-of-cryptocurrencies). ### AML (Anti-Money Laundering) Laws and controls that stop criminals from disguising illegal funds as legitimate money. For crypto businesses, AML usually means identity checks (KYC), transaction monitoring and reporting suspicious activity; see [KYC, AML and legal basics for crypto investors](https://wealtii.com/learn/crypto-legal-considerations). ### AMM (Automated Market Maker) A type of decentralized exchange that prices trades with a mathematical formula applied to a liquidity pool, instead of matching buyers and sellers in an order book. Uniswap and PancakeSwap are AMMs. ### APR (Annual Percentage Rate) The yearly rate of interest or return without compounding. APR is lower than the equivalent APY whenever rewards are reinvested. ### APY (Annual Percentage Yield) The yearly rate of return including the effect of compounding. Staking and DeFi APYs are usually variable and can fall quickly. ### Arbitrage Buying an asset in one market and selling it in another to profit from a price difference. Arbitrage traders help keep prices aligned across exchanges. ### ASIC (Application-Specific Integrated Circuit) A computer chip built for a single task, such as mining Bitcoin with the SHA-256 algorithm. ASICs mine far more efficiently than general-purpose computers. ### Asset Allocation How a portfolio is divided between asset types such as crypto, stocks, gold and cash, which drives most of its risk. See [portfolio allocation strategy](https://wealtii.com/learn/portfolio-allocation-strategy) and try the [portfolio allocation calculator](https://wealtii.com/learn/portfolio-allocation-calculator). ### ATH (All-Time High) The highest price an asset has ever reached. Traders watch previous ATHs because many earlier buyers may choose to sell there. ### ATL (All-Time Low) The lowest price an asset has ever traded at, usually measured from its launch. ### Atomic Swap A peer-to-peer exchange of two cryptocurrencies on different blockchains that either completes in full or not at all, using hashed time-locked contracts. It removes the need to trust a middleman. ### Backtest A simulation of how a strategy or allocation would have performed using historical prices. A backtest is hypothetical, not actual performance, and cannot capture every real-world cost. Multi-year return figures shown for Wealtii funds are hypothetical backtests of each fund's current allocation, not actual fund performance. ### Bagholder Slang for an investor left holding an asset after its price has collapsed, often because they bought near the top. ### Bear Market A prolonged period of falling prices and pessimism, often defined in traditional markets as a drop of 20% or more from a recent high. Crypto bear markets have often been deeper than stock market downturns; compare [bull and bear markets](https://wealtii.com/learn/bull-markets-vs-bear-markets). ### Benchmark An index or asset used as a yardstick for performance, such as the S&P 500 for US stocks or Bitcoin for crypto. See how benchmarks shape [index fund investment strategies](https://wealtii.com/learn/index-fund-investment-strategies). ### BEP-20 The standard for fungible tokens on BNB Smart Chain, modelled on Ethereum's ERC-20. USDT, BTCB and WBNB on BNB Smart Chain are BEP-20 tokens, and choosing the wrong network when depositing or withdrawing is a common way to lose funds; see [what BNB Chain is](https://wealtii.com/learn/what-is-bnb-chain). ### Bitcoin (BTC) The first cryptocurrency, described in a 2008 whitepaper by the pseudonymous Satoshi Nakamoto and launched in January 2009. Its supply is capped at 21 million coins, and it is often called "digital gold"; read the [history of cryptocurrency](https://wealtii.com/learn/history-of-cryptocurrency). ### Bitcoin Dominance Bitcoin's share of the total crypto market capitalization. Rising dominance usually means money is moving into Bitcoin relative to altcoins, which makes it one of the [key crypto market indicators](https://wealtii.com/learn/key-crypto-market-indicators). ### Block A batch of transactions bundled together and added to a blockchain. Each block contains the hash of the previous block, which chains the blocks together; see [how blocks are added to a blockchain](https://wealtii.com/learn/how-blocks-are-added). ### Block Explorer A website that lets anyone search a blockchain's blocks, transactions, addresses and smart contracts. Etherscan (Ethereum) and BscScan (BNB Smart Chain) are common examples. ### Block Height The number of blocks in a chain before a given block, used as a timestamp-like reference. Bitcoin halvings happen at fixed block heights, every 210,000 blocks. ### Block Reward The newly issued coins, plus transaction fees, paid to the miner or validator that adds a block. Bitcoin's newly issued portion (the block subsidy) halves every 210,000 blocks, roughly every four years. ### Block Time The average time between new blocks on a network. Bitcoin targets about 10 minutes per block, while Ethereum produces a block every 12 seconds. ### Blockchain A shared, append-only ledger of transactions copied across many computers, where each block is cryptographically linked to the one before. The linking makes past records tamper-evident, because changing one block would mean redoing every later block and convincing the network. Start with [what blockchain is](https://wealtii.com/learn/what-is-blockchain) and [how blockchain works](https://wealtii.com/learn/how-blockchain-works). ### BNB The native coin of BNB Chain, first issued by Binance in 2017. BNB pays transaction (gas) fees on BNB Smart Chain and is the asset behind WBNB. ### BNB Smart Chain (BSC) An EVM-compatible blockchain in the BNB Chain ecosystem, launched in 2020, that offers low fees using a Proof of Staked Authority consensus run by a limited set of validators. Tokens on BSC follow the BEP-20 standard; read [how BNB Smart Chain works](https://wealtii.com/learn/what-is-bnb-chain). ### Bridge (Cross-Chain Bridge) A protocol that moves tokens between blockchains, usually by locking them on one chain and issuing a wrapped version on the other. Bridges hold large pools of assets and have been the target of several of the largest crypto hacks. ### BTCB (Binance-Peg BTC) A BEP-20 token on BNB Chain issued by Binance, with each token backed by Bitcoin held by Binance. BTCB lets Bitcoin be used in BNB Smart Chain apps but adds custodial risk, because its value depends on Binance holding and honoring the BTC backing; see [what BTCB is](https://wealtii.com/learn/what-is-btcb). ### Bull Market A sustained period of rising prices and optimism. Crypto bull markets have often been fast and speculative, which is why many investors study [crypto market cycles](https://wealtii.com/learn/crypto-market-cycles). ### Burn (Token Burn) Permanently removing tokens from circulation by sending them to an address no one controls. Burns reduce supply, one of the levers covered in [tokenomics and supply and demand](https://wealtii.com/learn/tokenomics-supply-and-demand). ### BFT (Byzantine Fault Tolerance) A system's ability to keep reaching agreement even when some participants fail or act maliciously. Most proof-of-stake blockchains use BFT-style consensus protocols. ### Candlestick Chart A price chart in which each candle shows an asset's open, high, low and close for one period. Learn to read them in [how to read crypto charts](https://wealtii.com/learn/reading-cryptocurrency-charts). ### Capital Gains Tax (CGT) Tax charged on the profit when you sell, swap or spend an asset for more than you paid. Many countries treat crypto disposals, including crypto-to-crypto swaps, as taxable events; see [how crypto is taxed](https://wealtii.com/learn/crypto-taxation-basics). ### Capitulation A phase of heavy, panic-driven selling when many investors give up and sell at a loss, often near the end of a downturn. Capitulation is only obvious in hindsight; see [whether you can time the crypto market](https://wealtii.com/learn/market-cycles-and-timing). ### Cardano (ADA) A proof-of-stake blockchain launched in 2017 that uses the Ouroboros consensus protocol and a research-driven development process. ADA is its native coin. ### CARF (Crypto-Asset Reporting Framework) An OECD standard, agreed in 2022, under which crypto service providers collect customer and transaction data and report it to tax authorities, which then exchange it across borders. Dozens of jurisdictions, including the EU (through DAC8) and the UK, began collecting data from 1 January 2026, with first exchanges due in 2027; see [crypto tax rules by country](https://wealtii.com/learn/crypto-tax-jurisdictions). ### CBDC (Central Bank Digital Currency) A digital form of a country's fiat currency issued directly by its central bank. Unlike most cryptocurrencies, a CBDC is centrally controlled; China's e-CNY is one of the largest pilots, and CBDCs feature in many [future crypto trends](https://wealtii.com/learn/crypto-future-trends). ### CEX (Centralized Exchange) A crypto exchange run by a company, such as Coinbase, Kraken or Binance, that holds customers' funds and matches their orders. CEXs usually require identity verification; compare routes in [how to buy cryptocurrency](https://wealtii.com/learn/how-to-buy-cryptocurrency). ### Chainlink (LINK) A decentralized oracle network that delivers off-chain data, such as asset prices, to smart contracts. LINK is used to pay and incentivize the node operators who supply that data. ### Circulating Supply The number of coins or tokens currently available to trade, excluding locked, unvested or burned tokens. Market capitalization is calculated from circulating supply. ### Cold Storage / Cold Wallet Keeping private keys on a device or medium that stays offline, such as a hardware wallet or a metal seed-phrase backup. Cold storage protects keys from online hacking; compare [hot vs cold wallets](https://wealtii.com/learn/hot-wallet-vs-cold-wallet). ### Collateral Assets pledged to secure a loan or leveraged position. In DeFi lending, collateral is usually worth more than the loan and is sold automatically (liquidated) if its value falls too far. ### Confirmation The inclusion of a transaction in a block; each later block adds one more confirmation. More confirmations make reversal less likely, which is why platforms wait for a set number before crediting deposits (Wealtii waits for 12 on BNB Smart Chain). ### Consensus Mechanism The rules a decentralized network uses to agree on which transactions are valid and in what order. The best-known types are Proof of Work and Proof of Stake; see [blockchain consensus mechanisms](https://wealtii.com/learn/blockchain-consensus-mechanisms). ### Correlation A measure from -1 to +1 of how closely two assets move together. Crypto's correlation with stocks has risen at times, which reduces diversification; see [crypto's correlation with the stock market](https://wealtii.com/learn/correlation-with-stock-market). ### Cost Basis The original value of an asset for tax purposes, usually the purchase price plus fees. Your gain or loss is the sale proceeds minus the cost basis, which is why [crypto record keeping](https://wealtii.com/learn/crypto-record-keeping) matters. ### Counterparty Risk The risk that the other party in an arrangement, such as an exchange, lender, custodian or token issuer, fails to meet its obligations. Wrapped and pegged tokens such as BTCB carry counterparty risk to their issuer; see [crypto insurance and protection](https://wealtii.com/learn/crypto-insurance-and-protection). ### Cryptocurrency A digital currency secured by cryptography and recorded on a blockchain, usually without a central issuer. Bitcoin was the first; start with [what cryptocurrency is](https://wealtii.com/learn/what-is-cryptocurrency). ### Cryptography The science of securing information with mathematics. Blockchains use hash functions and public-key (asymmetric) cryptography so that only the holder of a private key can authorize spending. ### Custodial A service, such as an exchange or investment platform, that holds the private keys and controls assets on the user's behalf. Custody is convenient but means trusting the custodian, hence the saying "not your keys, not your coins"; see [crypto wallets explained](https://wealtii.com/learn/crypto-wallets-explained). ↑ Back to the A–Z index ## D–F ### DAC8 The EU's eighth Directive on Administrative Cooperation (Council Directive (EU) 2023/2226), which applies the OECD's CARF in the EU. Since 1 January 2026, crypto-asset service providers must collect EU users' transaction data for reporting to tax authorities, with the first reports due by 30 September 2027. ### DApp (Decentralized Application) An application whose core logic runs in smart contracts on a blockchain rather than on a company's servers. Users connect to dApps with a crypto wallet such as MetaMask. ### DAO (Decentralized Autonomous Organization) An organization governed by rules in smart contracts, where members, usually governance-token holders, vote on proposals such as upgrades and treasury spending. See [governance and DAOs](https://wealtii.com/learn/governance-and-daos). ### DCA (Dollar-Cost Averaging) Investing a fixed amount at regular intervals, such as $100 a month, regardless of price. DCA spreads purchases over time and reduces the risk of investing everything at a peak; see [dollar-cost averaging explained](https://wealtii.com/learn/dollar-cost-averaging). ### Decentralization Spreading control over a network across many independent participants rather than one company or government. Decentralization is what lets blockchains resist censorship and single-party control; see [decentralization explained](https://wealtii.com/learn/decentralization-explained). ### DeFi (Decentralized Finance) Financial services such as lending, borrowing and trading built from smart contracts on public blockchains, without banks or brokers in the middle. DeFi carries smart contract, oracle and liquidity risks; see [DeFi basics](https://wealtii.com/learn/defi-basics). ### Degen Slang (from "degenerate") for a trader who takes very high-risk bets on new tokens or leveraged positions, often with little research. ### DPoS (Delegated Proof of Stake) A variant of Proof of Stake in which token holders vote for a small number of delegates who produce blocks. TRON uses DPoS with 27 elected Super Representatives. ### Depeg When a stablecoin or pegged token trades meaningfully away from its target value, such as a dollar stablecoin falling below $1. Depegs can be brief or, as with TerraUSD in 2022, permanent. ### Derivatives Financial contracts whose value comes from an underlying asset, such as futures, options and perpetual swaps on Bitcoin. Crypto derivatives often allow high leverage. ### DEX (Decentralized Exchange) A marketplace where users trade tokens straight from their own wallets through smart contracts, without handing custody to an intermediary. Uniswap and PancakeSwap are well-known DEXs. ### DEX Aggregator A service that compares prices across many DEXs and liquidity pools, then routes or splits a trade to get the best available quote after fees. Wealtii executes fund purchases and sales on-chain through DEX aggregators, so market price impact and slippage can apply. ### Diamond Hands / Paper Hands Slang for holding an investment through big price swings (diamond hands) versus selling at the first sign of trouble (paper hands). ### DLT (Distributed Ledger Technology) The umbrella term for databases that are shared and synchronized across many participants. Every blockchain is a DLT, but not every DLT is a blockchain; see [real-world blockchain use cases](https://wealtii.com/learn/blockchain-real-world-use-cases). ### Diversification Spreading money across different assets so that one asset's fall has less effect on the whole portfolio. Index funds diversify by design; see the [benefits of crypto index funds](https://wealtii.com/learn/benefits-of-crypto-index-funds) and [combining Bitcoin and gold](https://wealtii.com/learn/invest-in-bitcoin-and-gold-together). ### Double Spending The risk of spending the same digital money twice. Blockchains prevent it by having the network agree on a single transaction history, the problem Bitcoin solved in 2009; see [how cryptocurrency works](https://wealtii.com/learn/how-cryptocurrency-works). ### Drawdown The fall from an asset's or portfolio's peak value to a later low, usually shown as a percentage. Maximum drawdown is a core measure in [crypto risk management](https://wealtii.com/learn/risk-management-crypto). ### Dust / Dusting Attack Dust is an amount of crypto too small to be worth moving after fees. A dusting attack sends dust to many addresses to track how their owners move funds or to bait them into scams. ### DYOR (Do Your Own Research) A reminder to check a project's team, code, tokenomics and sources yourself rather than relying on social-media hype. Start with reliable [crypto news and information sources](https://wealtii.com/learn/crypto-news-and-information-sources). ### ERC-20 The standard interface for fungible tokens on Ethereum, defining functions such as transfer and balanceOf. Most Ethereum tokens follow it, and BNB Smart Chain's BEP-20 standard is modelled on it. ### ERC-721 The Ethereum standard for non-fungible tokens (NFTs), in which every token has a unique ID and can represent a distinct item. ### ETF (Exchange-Traded Fund) A fund that trades on a stock exchange like a share and usually tracks an index, commodity or basket of assets. See how a crypto [index fund compares with an ETF](https://wealtii.com/learn/digital-asset-index-fund-vs-etf). ### Ethereum (ETH) A programmable blockchain launched in 2015 that runs smart contracts and decentralized applications; ether (ETH) is its native currency and pays for gas. Ethereum moved from Proof of Work to Proof of Stake in September 2022 (the Merge). ### EVM (Ethereum Virtual Machine) The computing environment that executes smart contracts on Ethereum. "EVM-compatible" chains such as BNB Smart Chain and Arbitrum can run the same contract code; see [the Ethereum Virtual Machine explained](https://wealtii.com/learn/ethereum-virtual-machine-evm). ### Exchange A marketplace for buying, selling or swapping crypto. It can be centralized (a CEX, where a company holds your funds) or decentralized (a DEX, where you trade from your own wallet). ### Expense Ratio A fund's yearly operating costs expressed as a percentage of its assets; 0.25% means $2.50 a year for every $1,000 invested. It is a key comparison point when [comparing crypto index funds](https://wealtii.com/learn/best-crypto-index-funds), and Wealtii's current charges are listed on its [fees page](https://wealtii.com/fees). ### Farming (Yield Farming) Moving crypto between DeFi protocols to earn rewards, often paid in newly issued governance tokens. Yields can be high but come with smart contract, impermanent-loss and token-price risk. ### FATF (Financial Action Task Force) The intergovernmental body, founded in 1989, that sets global anti-money-laundering standards. Its rules for virtual asset service providers include the Travel Rule. ### Fear & Greed Index A sentiment gauge that scores crypto market mood from 0 (extreme fear) to 100 (extreme greed) using inputs such as volatility, momentum and social media. See the [crypto Fear & Greed Index explained](https://wealtii.com/learn/crypto-fear-and-greed-index). ### Fiat Government-issued money, such as the US dollar, euro or British pound, whose value rests on law and trust in the issuer rather than on a physical commodity. How each country treats crypto alongside its fiat currency varies; see the [legal status of crypto by country](https://wealtii.com/learn/legal-status-of-cryptocurrencies). ### Finality The point at which a blockchain transaction can no longer be reversed. Bitcoin offers probabilistic finality that strengthens with each confirmation, while many proof-of-stake chains reach explicit finality after a set number of blocks. ### Flash Loan An uncollateralized DeFi loan that must be borrowed and repaid within a single transaction, or the whole transaction is reversed. Flash loans enable arbitrage but have also been used in protocol exploits. ### FOMO (Fear Of Missing Out) The urge to buy after a price has already risen sharply because others seem to be profiting. FOMO is a common cause of buying near a top; see [avoiding FOMO and panic selling](https://wealtii.com/learn/avoiding-fomo-and-panic-selling). ### Fork (Hard / Soft) A change to a blockchain's protocol rules. A soft fork tightens the rules and stays backward-compatible; a hard fork changes them so that non-upgraded nodes reject new blocks, and the chain splits only if part of the community keeps running the old rules, as with Bitcoin Cash in 2017. ### Fractional Ownership Owning part of an asset, such as 0.001 BTC or a fraction of a tokenized share. It lets investors start with small amounts; see [investing in crypto from $10](https://wealtii.com/learn/invest-in-crypto-from-10-dollars). ### FUD (Fear, Uncertainty and Doubt) Negative, often exaggerated or false information that spreads fear about an asset or the market. Learn to read [crypto community sentiment](https://wealtii.com/learn/crypto-community-and-social-sentiment) critically. ### Fungibility The property of units being interchangeable, like one dollar for another. Most cryptocurrencies are fungible; NFTs are not. ### Futures Contracts to buy or sell an asset at a set price on a future date. Bitcoin futures trade on traditional exchanges such as CME, and perpetual futures with no expiry are common on crypto exchanges. ↑ Back to the A–Z index ## G–I ### Gas The fee paid to process a transaction or run a smart contract on Ethereum and other EVM chains. Gas is paid in the network's native coin (ETH on Ethereum, BNB on BNB Smart Chain), priced in gwei, and rises when the network is busy. ### Genesis Block The first block of a blockchain. Bitcoin's genesis block was mined on 3 January 2009. ### GENIUS Act The Guiding and Establishing National Innovation for U.S. Stablecoins Act, the US federal law for payment stablecoins signed on 18 July 2025. It requires issuers to back stablecoins 1:1 with high-quality liquid reserves such as cash and short-term Treasuries, publish monthly reserve reports and not pay interest to holders; see [crypto regulations explained](https://wealtii.com/learn/crypto-regulations-explained). ### Gnosis Safe (Safe) A widely used smart-contract wallet, now branded Safe, that executes a transaction only after a set number of its owners sign (M-of-N). Wealtii holds fund assets 1:1 in a Gnosis Safe 3-of-3 multi-signature vault on BNB Smart Chain whose holdings anyone can check; see [how to verify Wealtii's reserves](https://wealtii.com/learn/how-to-verify-wealtii-reserves). ### Governance Token A token that gives holders voting rights over a protocol or DAO, such as decisions on upgrades, fees and treasury spending. ### Gwei A small denomination of ether equal to one billionth of an ETH (0.000000001 ETH), used to quote gas prices. ### Halving The pre-programmed 50% cut in Bitcoin's block subsidy every 210,000 blocks, roughly every four years. The April 2024 halving reduced the subsidy from 6.25 to 3.125 BTC per block; past halvings were followed by price rallies, a pattern that may not repeat (see [Bitcoin halving explained](https://wealtii.com/learn/bitcoin-halving-explained)). ### Hard Fork A protocol upgrade that makes previously invalid blocks or transactions valid, so every node must upgrade to follow the new chain. If some participants refuse, the chain splits into two networks, as with Ethereum and Ethereum Classic in 2016. ### Hardware Wallet A small physical device, such as a Ledger or Trezor, that keeps private keys offline and signs transactions inside the device. Hardware wallets are a popular form of cold storage. ### Hash The fixed-length output of a hash function, a one-way calculation that turns any data into a unique-looking fingerprint. Blockchains use hashes, such as SHA-256 in Bitcoin, to link blocks and detect tampering. ### Hash Rate The total computing power securing a Proof of Work network, measured in hashes per second. A higher hash rate makes a majority (51%) attack more expensive. ### HD Wallet (Hierarchical Deterministic Wallet) A wallet that derives an unlimited number of keys and addresses from a single seed (standards BIP-32 and BIP-39), so one backup restores them all. ### HODL Slang for holding crypto long term instead of trading, from a misspelling of "hold" in a 2013 BitcoinTalk forum post; it was later backronymed as "hold on for dear life". Compare [long-term vs short-term strategies](https://wealtii.com/learn/long-term-vs-short-term-strategies). ### Hot Wallet A wallet whose keys sit on an internet-connected device, such as a mobile app or browser extension. Hot wallets are convenient for frequent use but more exposed to hacking than cold storage. ### Howey Test The US Supreme Court test (SEC v. W.J. Howey Co., 1946) for whether something is an investment contract and therefore a security: an investment of money in a common enterprise with an expectation of profit from the efforts of others. US regulators have applied it to many token sales. ### ICO (Initial Coin Offering) A fundraising method in which a project sells new tokens directly to the public, popular in 2017. Many ICOs were later treated as unregistered securities offerings or turned out to be scams. ### IDO / IEO (Initial DEX / Exchange Offering) Token launches run through a decentralized exchange (IDO) or through a centralized exchange that vets and hosts the sale (IEO). They largely replaced ICOs, but early-stage tokens remain highly speculative. ### Immutability The property that confirmed blockchain records are extremely difficult to change or delete. It is what makes a blockchain a reliable shared record, one of the core [benefits of blockchain](https://wealtii.com/learn/blockchain-benefits). ### Impermanent Loss The shortfall a liquidity provider suffers compared with simply holding the two tokens, caused by their relative prices changing. It becomes permanent if you withdraw while the prices have diverged. ### Index A rules-based basket of assets used to measure a market or strategy, such as the S&P 500 or a top-10 crypto index. Compare tracking an index with [buying individual coins](https://wealtii.com/learn/index-fund-vs-buying-individual-crypto). ### Index Fund (Crypto) A fund that holds a basket of digital assets according to set rules, giving diversified exposure in a single investment. Start with [what a crypto index fund is](https://wealtii.com/learn/what-are-index-funds), then read the [beginner's guide to crypto index funds](https://wealtii.com/learn/crypto-index-fund-for-beginners). ### Inflation (Token Emissions) The rate at which new coins or tokens are created, which dilutes existing holders unless demand grows. Bitcoin's issuance falls with each halving, while many proof-of-stake networks issue new coins as staking rewards. ### Interoperability The ability of different blockchains to exchange data and assets with one another. Bridges, wrapped tokens and cross-chain messaging protocols are the main tools. ↑ Back to the A–Z index ## J–L ### JOMO (Joy Of Missing Out) The opposite of FOMO: contentment at staying out of a hyped trade and sticking to your plan. ### JSON-RPC The standard request format wallets and apps use to talk to blockchain nodes, for example to read balances or broadcast transactions. An "RPC endpoint" is the node address a wallet connects to. ### KYC (Know Your Customer) Identity checks that financial and crypto businesses run to confirm who their customers are, typically using an ID document, proof of address and a selfie. KYC is a core part of AML rules; see [KYC and legal basics](https://wealtii.com/learn/crypto-legal-considerations). ### KYC Tiers Graduated verification levels in which higher deposit and withdrawal limits require more identity checks. On Wealtii, no ID documents are needed to start — verify your email and invest up to $10,000 in total; ID verification unlocks up to $100,000 per day, and enhanced verification removes the platform limit. ### KYT (Know Your Transaction) Ongoing monitoring of blockchain transactions for links to sanctioned addresses, hacks or other illicit activity. Crypto businesses use KYT alongside KYC. ### Layer 0 Infrastructure that lets separate blockchains be built on shared foundations and communicate, such as Polkadot's relay chain or the Cosmos IBC protocol. ### Layer 1 (L1) A base blockchain that settles transactions on its own ledger and secures itself with its own consensus, such as Bitcoin, Ethereum, BNB Smart Chain or Solana. Compare [Layer 1 vs Layer 2](https://wealtii.com/learn/layer-1-vs-layer-2). ### Layer 2 (L2) A network built on top of a Layer 1 that processes transactions more cheaply and quickly, then settles the results back on the L1. Rollups such as Arbitrum and Optimism, and Bitcoin's Lightning Network, are examples; see [Layer 2 solutions explained](https://wealtii.com/learn/layer-2-solutions-explained). ### Ledger 1) A record of transactions; a blockchain is a distributed digital ledger. 2) Ledger, a well-known brand of hardware wallet. ### Lending (Crypto Lending) Lending crypto to borrowers through a company or DeFi protocol in return for interest. Several centralized crypto lenders, including Celsius and BlockFi, went bankrupt in 2022, leaving customers unable to withdraw. ### Leverage Using borrowed money to increase the size of a position, which magnifies both gains and losses. Highly leveraged crypto positions can be wiped out by small price moves. ### Lightning Network A Layer 2 payment network for Bitcoin that uses payment channels to send small, fast and cheap payments off-chain, settling on the Bitcoin blockchain when channels close. ### Limit Order An order to buy or sell only at a set price or better. Unlike a market order, a limit order may never fill. ### Liquid Staking Staking through a protocol that gives you a tradable token representing your staked coins and rewards, such as stETH from Lido. It adds smart contract and depeg risk on top of normal staking risk. ### Liquidation The forced closing of a leveraged or borrowed position when its collateral falls below the required level. On exchanges and in DeFi it happens automatically, and the trader loses some or all of the collateral. ### Liquidity How easily an asset can be bought or sold without moving its price. Bitcoin is highly liquid, while small tokens can be very illiquid, one of the [causes of crypto volatility](https://wealtii.com/learn/what-causes-crypto-volatility). ### Liquidity Pool A pot of two or more tokens locked in a smart contract that traders swap against on a DEX. Pools replace the order book used by centralized exchanges. ### Liquidity Provider (LP) Someone who deposits tokens into a liquidity pool and earns a share of its trading fees, in return for taking on impermanent-loss and smart contract risk. ### Lock-Up Period A time during which invested or staked funds cannot be withdrawn or sold. Check for lock-ups and exit penalties before you invest in any product. ### Long Position A bet that an asset's price will rise, usually by buying and holding it. The opposite is a short position. ↑ Back to the A–Z index ## M–O ### Mainnet The live version of a blockchain where transactions move real assets, as opposed to a testnet used for development. ### Majority Attack (51% Attack) An attack in which one party controls more than half of a network's mining power or stake and uses it to reorder or reverse recent transactions, for example to double-spend. It is very costly on large networks but has hit several smaller Proof of Work coins. ### Margin Trading Trading with funds borrowed from an exchange against your own deposit (the margin). It enables leverage and carries liquidation risk. ### Market Cap (Capitalization) The price of one coin multiplied by its circulating supply. Market cap is a better guide to a network's size than the coin price alone; see [market cap vs token price](https://wealtii.com/learn/market-cap-vs-token-price). ### Market Order An order to buy or sell immediately at the best available price. It fills fast but can suffer slippage in thin markets. ### Max Supply The maximum number of coins that can ever exist, such as 21 million for Bitcoin. Some assets, including ETH, have no fixed maximum. ### Mempool (Memory Pool) The waiting area of unconfirmed transactions that each node holds until a miner or validator includes them in a block. Paying a higher fee usually moves a transaction up the queue. ### Merge (The Merge) Ethereum's switch from Proof of Work to Proof of Stake on 15 September 2022. It ended ETH mining and sharply reduced the network's energy use. ### Merkle Tree A data structure that combines many transaction hashes into a single root hash, so anyone can prove a transaction is in a block without downloading the whole block. Proof-of-reserves reports often use Merkle trees. ### MetaMask A widely used self-custody software wallet (browser extension and mobile app) for Ethereum and EVM-compatible networks such as BNB Smart Chain. See [how to set up a crypto wallet](https://wealtii.com/learn/how-to-set-up-a-crypto-wallet). ### MEV (Maximal Extractable Value) Profit that block producers or bots capture by reordering, inserting or excluding transactions in a block, for example by front-running large DEX trades. MEV is one reason actual trade prices can be worse than quoted. ### MiCA (Markets in Crypto-Assets Regulation) The EU's crypto framework, Regulation (EU) 2023/1114. Its stablecoin rules have applied since 30 June 2024 and the rest since 30 December 2024, requiring crypto-asset service providers (CASPs) to be authorized, with transitional arrangements for existing firms ending by 1 July 2026 at the latest; see [how crypto is regulated](https://wealtii.com/learn/crypto-regulations-explained). ### Mining The Proof of Work process in which computers race to find a valid hash for the next block; the winner adds the block and earns the block reward. See [proof of work vs proof of stake](https://wealtii.com/learn/consensus-mechanisms-pow-pos). ### Mint (Minting) Creating new tokens or NFTs on a blockchain, for example when a stablecoin issuer issues tokens against newly deposited reserves. ### Moon Slang for a very large price rise ("to the moon"). Posts promising that a coin will "moon" are a common sign of hype. ### Multi-Signature (Multi-Sig) A wallet setup that needs several private keys to approve a transaction, written as M-of-N (for example 2-of-3). It protects against one lost or stolen key and is used by funds, companies and DAOs; see [what a multi-sig wallet is](https://wealtii.com/learn/what-is-multi-sig-wallet). ### NAV (Net Asset Value) The value of a fund's assets minus its liabilities; NAV per unit is that figure divided by the number of units or shares outstanding. It shows what each unit of a fund is worth at current market prices. ### NEAR Protocol (NEAR) A proof-of-stake Layer 1 blockchain that uses sharding to scale and supports human-readable account names. NEAR is its native token. ### NFT (Non-Fungible Token) A unique token on a blockchain that records ownership of a specific item, such as digital art, a collectible or a ticket. See the [NFT overview](https://wealtii.com/learn/nfts-overview). ### NGMI (Not Gonna Make It) Slang, the opposite of WAGMI, used to mock a decision seen as foolish. ### Node A computer that runs a blockchain's software, keeps a copy of the ledger and relays transactions. Full nodes check every block against the network's rules and reject invalid ones. ### Nonce A "number used once". In Bitcoin mining it is the value miners change while searching for a valid block hash; in Ethereum it counts an account's transactions to prevent replays. ### Non-Custodial A wallet or service where you alone hold the private keys. You have full control, but no one can recover your funds if you lose the seed phrase; see [how to choose a crypto wallet](https://wealtii.com/learn/how-to-choose-a-crypto-wallet). ### Off-Chain Activity that happens outside the main blockchain, such as Layer 2 execution or trades recorded in an exchange's own database, with only final results settled on-chain. ### Off-Ramp A service that converts crypto back into fiat currency and sends it to a bank account or card. Wealtii pays out USDT to an external BEP-20 wallet; cashing out to a bank is done through third-party services. ### On-Chain Transactions and data recorded directly on a blockchain, where they are publicly visible and can be independently verified. ### On-Chain Analysis Studying public blockchain data, such as exchange flows, active addresses and whale movements, to gauge market behavior. It complements the methods in [fundamental vs technical analysis](https://wealtii.com/learn/fundamental-vs-technical-analysis). ### On-Ramp A service that lets you buy crypto with a card or bank transfer. Third-party on-ramp providers such as Transak and Banxa charge their own fees, run their own identity checks and vary by country; see [ways to buy cryptocurrency](https://wealtii.com/learn/how-to-buy-cryptocurrency). ### Ondo Global Markets Ondo Finance's platform, launched in 2025, that issues tokenized US stocks and ETFs with an "on" suffix, such as NVDAon or SPYon, backed by the underlying securities. The tokens give economic exposure but no shareholder voting rights, and Ondo restricts them for US persons; see [Ondo tokenized stocks explained](https://wealtii.com/learn/ondo-tokenized-stocks-explained). ### Oracle A service that feeds external data, such as asset prices or event results, into smart contracts. Chainlink is a widely used oracle network. ### Order Book The list of open buy (bid) and sell (ask) orders for an asset on an exchange. The gap between the best bid and the best ask is the spread. ### OTC (Over-The-Counter) Trading large amounts of crypto directly between two parties or through a dealer rather than on a public exchange, to avoid moving the market price. ↑ Back to the A–Z index ## P–R ### Paper Wallet A printed copy of a private key and address, often as QR codes. Paper wallets are now generally discouraged because they are easily damaged and awkward to spend from; see [types of crypto wallets](https://wealtii.com/learn/types-of-crypto-wallets). ### PAXG (PAX Gold) A gold-backed token issued by Paxos, with each token backed by one fine troy ounce of a London Good Delivery gold bar held in professional vaults. Compare it with Tether Gold in [XAUT vs PAXG](https://wealtii.com/learn/xaut-vs-paxg). ### Peer-to-Peer (P2P) Direct exchange between two parties without a central intermediary. Bitcoin was designed as a peer-to-peer electronic cash system. ### Permissioned Blockchain A blockchain where only approved participants can validate transactions or read data, often used by companies and consortiums. Public blockchains such as Bitcoin are permissionless; see [types of blockchains](https://wealtii.com/learn/types-of-blockchains). ### Perpetual Futures (Perps) Futures contracts with no expiry date, kept close to the spot price by periodic funding payments between long and short traders. They are widely traded on crypto exchanges and often use high leverage. ### Phishing Fake emails, messages, websites or ads that impersonate trusted brands to steal passwords, 2FA codes or seed phrases. Learn the warning signs in [recognizing phishing attacks](https://wealtii.com/learn/recognizing-phishing-attacks). ### Pig Butchering A long-con investment scam in which a stranger builds trust over weeks, often through dating apps or "wrong number" messages, then steers the victim to a fake crypto trading platform. See [common crypto scams](https://wealtii.com/learn/common-crypto-scams). ### Ponzi Scheme A fraud that pays earlier investors with money from new investors rather than real profits, and collapses when new money dries up. Promises of high, steady returns are a classic sign; see [crypto scam warning signs](https://wealtii.com/learn/crypto-scams-and-red-flags). ### Portfolio The full collection of investments a person or fund holds. A good portfolio starts from clear [investment goals](https://wealtii.com/learn/setting-investment-goals). ### Private Key A secret 256-bit number that proves ownership of a crypto address and signs its transactions. Anyone with the private key controls the funds, so it must never be shared; see [private keys and seed phrases](https://wealtii.com/learn/private-keys-and-seed-phrases). ### Proof of Reserves Evidence that a custodian holds the assets it owes customers, often a published list of on-chain addresses or a Merkle-tree attestation. It shows assets but not necessarily liabilities; see [proof of reserves explained](https://wealtii.com/learn/proof-of-reserves-explained) and [how to check Wealtii's vault on-chain](https://wealtii.com/learn/how-to-verify-wealtii-reserves). ### Proof of Stake (PoS) A consensus mechanism in which validators lock up (stake) coins as collateral for the right to propose and attest to blocks, and misbehavior can be punished by slashing. It uses far less energy than Proof of Work, and Ethereum has used it since 2022. ### Proof of Staked Authority (PoSA) The consensus used by BNB Smart Chain, in which a limited set of validators, selected by the amount of BNB staked to them, take turns producing blocks. It enables fast blocks and low fees at the cost of fewer validators than more decentralized chains. ### Proof of Work (PoW) The consensus mechanism used by Bitcoin, in which miners spend computing power to find a valid block hash. It is very secure on large networks but energy-intensive; see [PoW vs PoS compared](https://wealtii.com/learn/consensus-mechanisms-pow-pos). ### Protocol The set of rules that defines how a blockchain or application works, such as Bitcoin's consensus rules or a DeFi lending protocol's smart contracts. ### Public Blockchain A permissionless blockchain that anyone can read, transact on and help validate, such as Bitcoin, Ethereum and BNB Smart Chain. ### Public Key The key mathematically derived from a private key that others use to verify your signatures. Your wallet address is derived from it, and both can be shared freely. ### Pump and Dump A manipulation scheme in which a group hypes a thinly traded token to push its price up, then sells to the buyers it attracted. It is illegal in many jurisdictions and leaves late buyers with heavy losses. ### Quorum The minimum participation needed for a DAO or governance vote to be valid, usually set as a share of all voting tokens. ### Rebalancing Buying and selling holdings to bring a portfolio back to its target weights after prices move. Funds may rebalance on a schedule or when weights drift past a threshold; see [how crypto index funds work](https://wealtii.com/learn/how-crypto-index-funds-work). ### Redemption Exchanging a fund unit or asset-backed token for its underlying value, such as redeeming a stablecoin with its issuer for dollars. ### Rehypothecation When a custodian reuses client assets, for example by lending them out or pledging them as collateral. It can earn the custodian income but puts client assets at risk if the borrower fails. ### Rekt Slang (from "wrecked") for suffering a heavy loss, often after a leveraged position is liquidated. ### ROI (Return on Investment) Net profit divided by the cost of an investment, shown as a percentage. Model long-term scenarios with the [crypto growth calculator](https://wealtii.com/learn/crypto-growth-calculator). ### Rollup A Layer 2 that executes transactions off-chain and posts compressed data back to the Layer 1. Optimistic rollups assume transactions are valid unless challenged, while ZK-rollups prove validity with zero-knowledge proofs. ### RSI (Relative Strength Index) A momentum indicator from 0 to 100; readings above 70 are often read as overbought and below 30 as oversold. It is one of the tools covered in [reading cryptocurrency charts](https://wealtii.com/learn/reading-cryptocurrency-charts). ### Rug Pull A scam in which a project's developers abandon it and take investors' money, often by draining a DEX liquidity pool or minting hidden tokens. See other [types of crypto scams](https://wealtii.com/learn/common-crypto-scams). ### RWA (Real-World Assets) Traditional assets such as gold, government bonds, real estate or stocks represented as tokens on a blockchain. See [real-world asset tokenization](https://wealtii.com/learn/real-world-asset-tokenization). ↑ Back to the A–Z index ## S–U ### Satoshi (Sat) The smallest unit of Bitcoin, 0.00000001 BTC, so one bitcoin equals 100 million sats. It is named after Bitcoin's pseudonymous creator, Satoshi Nakamoto. ### Scalability Trilemma The idea that a blockchain struggles to maximize decentralization, security and scalability at the same time. See [the blockchain scalability trilemma](https://wealtii.com/learn/blockchain-scalability-trilemma). ### Security Token A token that represents a financial security, such as a share, bond or fund unit, and is subject to securities law. ### Seed Phrase (Recovery Phrase) A list of 12 to 24 words, usually generated under the BIP-39 standard, that can restore every key in a wallet. Anyone who has it controls the funds, so keep it offline; see [how to store a recovery phrase](https://wealtii.com/learn/safe-storage-of-recovery-phrases). ### Self-Custody Holding your own private keys in a non-custodial wallet instead of leaving assets with an exchange or platform. You gain control and take full responsibility for backups; compare [crypto storage options](https://wealtii.com/learn/how-to-store-crypto-safely). ### Sharding Splitting a blockchain's data or processing across parallel segments (shards) so the network can handle more transactions. NEAR Protocol uses sharding. ### Shill Promoting a token, often without disclosing that you own it or are paid to promote it. ### Short Position A bet that an asset's price will fall, usually by borrowing and selling it or by using derivatives. Losses on a short can exceed the original stake if the price rises sharply. ### Sidechain A separate blockchain with its own consensus that is linked to a main chain by a two-way bridge. Unlike a rollup, a sidechain does not inherit the main chain's security. ### SIM Swap A fraud in which a criminal convinces a mobile carrier to move your phone number to their SIM card, then intercepts your SMS codes. Using an authenticator app instead of SMS for [two-factor authentication](https://wealtii.com/learn/two-factor-authentication-crypto) reduces this risk. ### Slashing A penalty in Proof of Stake networks that destroys part of a validator's stake for breaking the rules, such as signing two conflicting blocks. ### Slippage The difference between the expected price of a trade and the price at which it actually executes. It grows with trade size, low liquidity and volatility, and DEX users set a maximum slippage tolerance to limit it. ### Smart Contract A program stored on a blockchain that runs automatically when its conditions are met, without a trusted intermediary. Bugs in the code can be exploited and transactions cannot be undone; see [smart contracts explained](https://wealtii.com/learn/smart-contracts-explained). ### Smart Contract Audit A security review of a smart contract's code by specialists looking for bugs and vulnerabilities. An audit reduces risk but does not prove that a contract is bug-free. ### Soft Fork A backward-compatible protocol upgrade that tightens the rules, so non-upgraded nodes still accept new blocks. Bitcoin's SegWit (2017) and Taproot (2021) upgrades were soft forks. ### Solana (SOL) A high-throughput proof-of-stake Layer 1 blockchain that also uses a timekeeping technique called Proof of History to order transactions. SOL pays its network fees and is used for staking. ### Spot ETF An exchange-traded fund that holds the actual asset, such as bitcoin, rather than futures contracts. US spot bitcoin ETFs began trading in January 2024 and spot ether ETFs in July 2024, and generic listing standards approved by the SEC in September 2025 opened the way for spot ETFs on other crypto assets. ### Stablecoin A cryptocurrency designed to hold a steady value, usually $1, typically backed by cash and short-term government debt. USDT is the best-known example, and stablecoins can still depeg if their reserves or issuer fail. ### Staking Locking up coins to help secure a Proof of Stake network in exchange for rewards. Stakers face price risk, lock-up periods and possible slashing; see [staking and yield explained](https://wealtii.com/learn/staking-and-yield-generation). ### Support and Resistance Price levels where buying (support) or selling (resistance) has repeatedly halted a move, used in technical analysis. They describe tendencies, not rules. ### Swap Exchanging one token directly for another, usually through a DEX or DEX aggregator, in a single transaction. In many countries a crypto-to-crypto swap is a taxable disposal. ### Sybil Attack Creating many fake identities or wallets to gain outsized influence, for example to farm airdrops or sway votes. Proof of Work and Proof of Stake make Sybil attacks on consensus costly. ### Testnet A copy of a blockchain that uses tokens with no real value, so developers can test applications without risking real funds. ### Token A digital asset issued by a smart contract on an existing blockchain, such as a BEP-20 or ERC-20 token, as opposed to a coin native to its own chain. Tokens can represent currencies, governance rights or real-world assets. ### Token Approval (Allowance) Permission you give a smart contract to spend tokens from your wallet. Unlimited approvals to malicious contracts are a common way wallets are drained, so revoke approvals you no longer use; see [wallet security habits](https://wealtii.com/learn/wallet-security-best-practices). ### Tokenization Representing ownership of an asset, such as gold, a share or a bond, as a token on a blockchain so it can be held and transferred digitally. It is one of the main [real-world blockchain use cases](https://wealtii.com/learn/blockchain-real-world-use-cases). ### Tokenized Gold Tokens backed by physical gold held in vaults, such as XAUT and PAXG, where each token represents one troy ounce. Learn [what tokenized gold is](https://wealtii.com/learn/what-is-tokenized-gold) and how it compares with [owning physical gold](https://wealtii.com/learn/tokenized-gold-vs-physical-gold). ### Tokenized Stock A blockchain token that tracks the price of a listed share or ETF and is backed by the underlying security. Holders usually get economic exposure but no shareholder voting rights; see [tokenized stocks explained](https://wealtii.com/learn/tokenized-stocks-explained). ### Tokenomics The economic design of a token: its supply, issuance schedule, distribution, vesting and uses. Weak tokenomics, such as large insider allocations, can weigh on price; see [how tokenomics affects price](https://wealtii.com/learn/tokenomics-supply-and-demand). ### TPS (Transactions Per Second) A measure of how many transactions a blockchain can process. Advertised peak TPS figures often differ from real-world throughput; see [blockchain limitations](https://wealtii.com/learn/blockchain-limitations). ### Tracking Error How much a fund's returns deviate from the index or target allocation it aims to follow, caused by fees, trading costs and timing. Lower tracking error means closer tracking. ### Transaction Hash (TxID) The unique identifier of a blockchain transaction. Paste it into a block explorer to check the transaction's status and details. ### Travel Rule The FATF requirement that crypto service providers pass sender and recipient information along with transfers, mirroring rules for bank wires. In the EU it has applied to crypto transfers between providers since 30 December 2024. ### TRON (TRX) A blockchain founded by Justin Sun, running its own mainnet since 2018, that uses Delegated Proof of Stake and is widely used for USDT stablecoin transfers. TRX pays for network resources. ### Trustless Describes a system where users don't need to trust a counterparty because rules are enforced by code and consensus. In practice, users still trust the software and the people who wrote it. ### TVL (Total Value Locked) The total value of assets deposited in a DeFi protocol or blockchain. TVL is a rough gauge of a protocol's size and rises and falls with token prices. ### Two-Factor Authentication (2FA) A login method that requires a second proof, such as a code from an authenticator app, in addition to your password. Authenticator-app (TOTP) codes are stronger than SMS codes, which can be intercepted through a SIM swap. ### Unrealized Gain or Loss The paper profit or loss on an asset you still hold, which usually becomes taxable only when you sell or swap it. See [when and how to take profits](https://wealtii.com/learn/when-and-how-to-take-profits) and [crypto tax optimization strategies](https://wealtii.com/learn/crypto-tax-optimization-strategies). ### USDT (Tether) The best-known US dollar stablecoin, issued by Tether and circulating on many blockchains, including Ethereum and TRON; a BEP-20 version is used on BNB Smart Chain. Wealtii deposits and withdrawals use USDT on BNB Smart Chain. ### Utility Token A token used to access or pay for a product or network, such as for fees or services, rather than representing an ownership stake. ### UTXO (Unspent Transaction Output) The accounting model Bitcoin uses, in which a balance is the sum of unspent outputs from earlier transactions. Ethereum instead uses an account-balance model. ↑ Back to the A–Z index ## V–Z ### Validator A participant in a Proof of Stake network who stakes coins to propose and attest to blocks, earning rewards and risking slashing. Validators play the role that miners play in Proof of Work. ### VASP (Virtual Asset Service Provider) The FATF term for businesses that exchange, transfer or hold crypto on behalf of others, which are expected to follow AML rules such as KYC and the Travel Rule. The EU equivalent under MiCA is a CASP (crypto-asset service provider). ### Vault A wallet or smart contract set up to hold assets with extra controls, such as multi-signature approval or withdrawal delays. ### Vesting A schedule that releases tokens to founders, team members or early investors over time. Large unlocks can add selling pressure, so check vesting schedules before buying. ### Volatility How sharply and frequently an asset's price swings, usually measured as the standard deviation of returns. Crypto is far more volatile than stocks or bonds; see [understanding market volatility](https://wealtii.com/learn/understanding-market-volatility). ### Volume (Trading Volume) The total value or number of units traded over a period, usually 24 hours. Unusually high volume on a little-known exchange can be a sign of wash trading. ### WAGMI Short for "We're All Gonna Make It", a community rallying cry expressing optimism about crypto's long-term success. It is a mood, not an investment thesis. ### Wallet Software or hardware that stores the private keys used to access and send crypto; the coins themselves stay on the blockchain. Compare options in [crypto wallets explained](https://wealtii.com/learn/crypto-wallets-explained). ### Wallet Drainer Malicious code, usually behind a fake website or airdrop, that tricks you into signing approvals that empty your wallet. If it happens, follow [what to do if your crypto is hacked](https://wealtii.com/learn/what-to-do-if-hacked). ### Wash Trading Buying and selling the same asset to oneself to fake trading volume or prices. It is illegal in regulated markets and has been common on unregulated exchanges and NFT marketplaces. ### WBNB (Wrapped BNB) A BEP-20 token backed 1:1 by BNB, so BNB can be used in smart contracts that expect the BEP-20 standard. It can be unwrapped back to BNB at any time through its contract. ### Web3 The idea of an internet built on public blockchains, where users own their assets and data through tokens and wallets. Web1 was read-only, Web2 is read-write on company-owned platforms, and Web3 adds ownership; see [what Web3 is](https://wealtii.com/learn/what-is-web3). ### Weighting How much of an index or fund each asset makes up. Common methods include weighting by market capitalization, equal weighting and fixed target allocations; Wealtii funds use fixed target allocations with position caps. Compare [types of crypto index funds](https://wealtii.com/learn/types-of-crypto-index-funds). ### Whale A person or entity holding a very large amount of a cryptocurrency, whose trades can move the price. Many traders track whale wallets with on-chain analysis. ### Whitepaper A document that explains a project's purpose, technology and tokenomics, usually published before launch. Satoshi Nakamoto's Bitcoin whitepaper was released on 31 October 2008. ### Wrapped Token A token that represents another asset, such as a coin from a different chain, backed 1:1 by a custodian or smart contract. Examples include WBTC on Ethereum and BTCB and WBNB on BNB Smart Chain; see [how BTCB works](https://wealtii.com/learn/what-is-btcb). ### XAUT (Tether Gold) A gold-backed token issued by Tether through TG Commodities, where each token represents one troy fine ounce of gold on a London Good Delivery bar. Wealtii's Growth and Balanced funds hold XAUT; compare it in [Tether Gold vs PAX Gold](https://wealtii.com/learn/xaut-vs-paxg). ### XRP The native asset of the XRP Ledger, a payments-focused blockchain launched in 2012 whose creators went on to found the company now called Ripple. The XRP Ledger reaches consensus through trusted validators rather than mining or staking. ### Yield The income an investment produces, such as staking rewards, lending interest or liquidity-pool fees, usually shown as an APY. Higher crypto yields almost always mean higher risk. ### Zcash (ZEC) A cryptocurrency launched in 2016 that uses zero-knowledge proofs (zk-SNARKs) to offer optional shielded transactions that hide the sender, recipient and amount. ### Zero-Knowledge Proof (ZK Proof) A cryptographic method that proves a statement is true without revealing the underlying data. It powers privacy coins such as Zcash and ZK-rollups that scale Ethereum. ### zk-SNARK Short for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge, a compact type of zero-knowledge proof that is quick to verify. Zcash and many ZK-rollups use zk-SNARKs. ↑ Back to the A–Z index ## How do these terms apply to Wealtii funds? Wealtii's three funds — the [Wealtii Digital Asset Core Index Fund](https://wealtii.com/funds/wealtii-digital-asset-core-index-fund), the [Wealtii Tech & Digital Asset Growth Fund](https://wealtii.com/funds/wealtii-tech-digital-asset-growth-fund) and the [Wealtii Multi-Asset Balanced Allocation Fund](https://wealtii.com/funds/wealtii-multi-asset-balanced-allocation-fund) — use fixed target allocations with position caps, and the Growth and Balanced funds also hold tokenized stocks and ETFs (Ondo Global Markets tokens) and tokenized gold (XAUT). Fund assets are held 1:1 in a Gnosis Safe 3-of-3 multi-signature vault on BNB Smart Chain that anyone can check on BscScan via the [transparency page](https://wealtii.com/transparency), and they are not lent, staked or rehypothecated. Wealtii is not regulated; read its [regulatory status](https://wealtii.com/regulatory-status), see [how the Wealtii platform works](https://wealtii.com/learn/wealtii-platform-overview), or compare the funds in [which Wealtii fund is right for me](https://wealtii.com/learn/which-wealtii-fund-is-right-for-me). ## Frequently Asked Questions ### What is the difference between a coin and a token? A coin is the native asset of its own blockchain and pays that network's fees, such as BTC on Bitcoin or BNB on BNB Smart Chain. A token is issued by a smart contract on an existing blockchain, such as the BEP-20 versions of USDT and BTCB on BNB Smart Chain or ERC-20 tokens on Ethereum. ### Which crypto terms should beginners learn first? Start with blockchain, wallet, private key, seed phrase, custodial versus non-custodial, exchange, stablecoin, gas fee and volatility. Together they explain where your crypto lives, who controls it, how you buy it and what it costs to move. If you plan to invest for the long term, add diversification, index fund and dollar-cost averaging. ### What does "not your keys, not your coins" mean? It means that if someone else holds the private keys to your crypto, such as an exchange or another custodial platform, you depend on that company to give it back. Self-custody removes that dependency but makes you fully responsible for protecting your seed phrase. ### Are tokenized stocks the same as owning shares? No. Tokenized stocks such as Ondo Global Markets tokens track the price of a share or ETF and are backed by the underlying security, but holders get economic exposure rather than direct ownership and have no shareholder voting rights. Availability is restricted in some jurisdictions, including for US persons. ## Sources & References 1. [NIST IR 8202 — Blockchain Technology Overview (Yaga et al., 2018)](https://csrc.nist.gov/pubs/ir/8202/final) (accessed 21 Oct 2026) 2. [ethereum.org — Ethereum Glossary](https://ethereum.org/en/glossary/) (accessed 21 Oct 2026) 3. [bitcoin.org — Bitcoin Vocabulary](https://bitcoin.org/en/vocabulary) (accessed 21 Oct 2026) 4. [ESMA — Markets in Crypto-Assets Regulation (MiCA)](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica) (accessed 21 Oct 2026) Disclaimer: This glossary is for educational purposes only and does not constitute financial, investment, tax or legal advice. Definitions are simplified, digital assets are volatile and you can lose some or all of the money you invest. Wealtii is not regulated by any financial authority. Tax and legal rules change frequently and differ by country. This article is general information, not tax or legal advice — consult a qualified professional in your jurisdiction. ## Further reading from official sources - [NIST: Blockchain Technology Overview](https://csrc.nist.gov/pubs/ir/8202/final) - [Bitcoin white paper](https://bitcoin.org/bitcoin.pdf) [Zayd Ahmed](https://wealtii.com/editorial-policy#zayd-ahmed) Founder & CEO, Wealtii Computer Science Engineer | 5+ Years in DeFi & Digital Assets