The cryptocurrency industry is infamous for its dense jargon and unique slang. Understanding the terminology is the first step to confidently navigating the space. This section covers essential terms from S to U.
Satoshi (Sat)
The smallest measurable unit of a Bitcoin. One Bitcoin can be divided into 100 million Satoshis. Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.
Seed Phrase (Recovery Phrase)
A sequence of 12 or 24 random words generated by your crypto wallet when you set it up. It acts as the master password that can recover your private keys and your funds if you lose your device. It must be kept entirely offline and never shared.
Slippage
The difference between the expected price of a trade and the price at which the trade is actually executed. High slippage occurs in low-liquidity markets or during periods of extreme volatility.
Smart Contract
Self-executing computer code deployed on a blockchain. The code contains the rules of an agreement; when the conditions are met, the contract automatically executes the transaction without requiring a human intermediary.
Stablecoin
A cryptocurrency designed to have a stable price, typically by being pegged 1:1 to a fiat currency like the US Dollar. Examples include USDC and USDT. They are used to escape crypto volatility without moving back into traditional banking.
Staking
Locking up your cryptocurrency as collateral to help secure a Proof of Stake blockchain network. In exchange for providing this security service, you receive staking rewards (yield).
Tokenomics
A portmanteau of "token" and "economics." It refers to the economic design of a cryptocurrency — its total supply, inflation rate, distribution schedule, and utility. Good tokenomics are essential for long-term value accrual.
TPS (Transactions Per Second)
A metric used to measure the processing speed of a blockchain network. Bitcoin processes roughly 7 TPS; Solana claims upwards of 50,000 TPS; Visa handles about 24,000 TPS.
TVL (Total Value Locked)
The total fiat value of all cryptocurrency assets deposited into a specific DeFi protocol. It is the standard metric for assessing the size, health, and market share of a DeFi project.