A–Z reference

Crypto glossary

A plain-English dictionary of the crypto terms you’ll actually run into — defined for Australians, with links to fuller guides where we have them. 52 terms and counting.

#

2FA (two-factor authentication): A second security step on top of your password — usually a code from an authenticator app — that makes an account far harder to break into. Use an app rather than SMS where possible. Learn more →

A

Address: A string of characters (like a bank account number) that you share to receive crypto. Each coin has its own address format, and sending to the wrong one usually means the funds are lost.
Airdrop: A free distribution of tokens to wallets, often to promote a new project. In Australia, airdropped tokens are generally taxed as income at the value received.
Altcoin: Any cryptocurrency that isn’t Bitcoin — short for “alternative coin.” Altcoins range from large networks like Ethereum to tiny, highly speculative tokens. Learn more →
AML (anti-money-laundering): Laws requiring exchanges to verify customers and monitor transactions to prevent money laundering. AUSTRAC enforces these rules for Australian crypto exchanges. Learn more →
ASIC: The Australian Securities and Investments Commission — the corporate and financial-services regulator. It oversees financial products and pursues crypto scams and misconduct. Learn more →
AUSTRAC: Australia’s financial-crime regulator. Any business exchanging AUD for crypto must be registered with AUSTRAC as a digital currency exchange (DCE). Learn more →

B

Bear market: A prolonged period of falling prices and negative sentiment. The opposite of a bull market.
Bitcoin (BTC): The first and largest cryptocurrency, launched in 2009. Its supply is capped at 21 million coins, and it’s often described as “digital gold.” Learn more →
Blockchain: A shared, tamper-evident digital ledger copied across many computers, recording transactions in linked “blocks.” It’s the technology underneath every cryptocurrency. Learn more →
Bull market: A prolonged period of rising prices and optimism. The opposite of a bear market.

C

CGT (capital gains tax): The tax on the profit when you dispose of an asset. The ATO treats crypto as a CGT asset, and holding more than 12 months may earn an individual a 50% discount. Learn more →
Cold wallet / cold storage: A wallet that keeps your private keys offline — usually a hardware device — away from hackers. The safest option for larger, longer-term holdings. Learn more →
Custodial wallet: A wallet where a third party (like an exchange) holds your private keys for you. Convenient, but you’re trusting them not to be hacked, frozen or fail.

D

DCA (dollar-cost averaging): Investing a fixed amount at regular intervals rather than all at once, to smooth out your average price and remove the stress of timing the market. Learn more →
DeFi (decentralised finance): Financial services — lending, trading, earning yield — that run on smart contracts instead of banks. Powerful but high-risk, with no customer support or deposit guarantee. Learn more →
DEX (decentralised exchange): An exchange that lets you swap tokens directly from your wallet via smart contracts, with no company holding your funds. Uniswap is the best-known example.

E

Ethereum (ETH): The largest smart-contract platform, and the home of most DeFi, stablecoins and NFTs. Its coin, Ether, pays for using the network. Learn more →

F

Fiat: Government-issued currency like the Australian dollar. “On-ramp” and “off-ramp” refer to converting between fiat and crypto.
Fork: A change to a blockchain’s rules. A “hard fork” can split one chain into two separate coins.
FUD: Slang for “fear, uncertainty and doubt” — negative sentiment or news, sometimes spread deliberately to drive a price down.

G

Gas fee: The fee paid to a network (most famously Ethereum) to process a transaction. Gas rises and falls with how busy the network is. Learn more →

H

Halving: The roughly four-yearly event where Bitcoin’s block reward is cut in half, slowing the creation of new coins. Central to Bitcoin’s capped supply. Learn more →
Hardware wallet: A small physical device that stores your private keys offline and signs transactions on the device itself — the gold standard for self-custody. Learn more →
Hot wallet: A software wallet (phone or browser app) that stays connected to the internet. Convenient for small amounts, but more exposed to hacks than a cold wallet.

K

KYC (know your customer): The identity-verification step — licence or passport — that compliant exchanges require by law before you can trade.

L

Limit order: An order to buy or sell at a specific price you set, which fills only when the market reaches it. Contrast with a market order.
Liquidity: How easily an asset can be bought or sold without moving its price. High liquidity means tighter spreads and faster fills.

M

Market cap: The total value of a coin — its price multiplied by the number of coins in circulation. Used to compare the relative size of cryptocurrencies.
Market order: An order to buy or sell immediately at the best available price. Fast, but you pay the current spread.
Meme coin: A coin driven mostly by community and hype rather than a clear use — like Dogecoin or Shiba Inu. Among the most speculative assets in crypto.
Mining: The process by which proof-of-work networks like Bitcoin verify transactions and create new coins, using computing power to solve puzzles. Learn more →

N

NFT (non-fungible token): A unique digital certificate of ownership recorded on a blockchain — used for art, collectibles and more. Highly speculative and often illiquid. Learn more →
Node: A computer that runs a blockchain’s software and keeps a copy of the ledger, helping to validate and relay transactions across the network.

P

Private key: The secret code that proves ownership of your crypto and authorises spending. Whoever holds it controls the coins — never share it.
Proof of stake: A way of securing a blockchain where participants lock up (“stake”) coins to validate transactions and earn rewards, instead of mining. Used by Ethereum and others. Learn more →
Proof of work: The original consensus method, used by Bitcoin, where miners compete to solve puzzles to add blocks and earn rewards. Energy-intensive but highly secure. Learn more →
Public key: The shareable counterpart to your private key, from which your receiving address is derived. Safe to share; the private key is not.

R

Rug pull: A scam where developers hype a project, take investors’ money, then abandon it — common in DeFi and new tokens. Learn more →

S

Satoshi: The smallest unit of Bitcoin — one hundred-millionth of a BTC. Named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
Seed phrase (recovery phrase): A list of 12 or 24 words that acts as the master backup for a self-custody wallet. Anyone with it controls your crypto — store it offline and never share it. Learn more →
Smart contract: Code on a blockchain that runs automatically when its conditions are met, with no middleman. The building block of DeFi, NFTs and stablecoins. Learn more →
Spot trading: Buying or selling the actual asset for immediate settlement, as opposed to leveraged or derivatives trading.
Spread: The gap between an exchange’s buy and sell price. It’s a hidden cost on top of the trading fee, and can be larger than the fee itself on “instant buy” flows. Learn more →
Stablecoin: A cryptocurrency designed to hold a steady value, usually pegged to the US dollar (like USDC or USDT). Used to move value without volatility — but still a taxable CGT asset. Learn more →
Staking: Locking up a proof-of-stake coin to help secure its network and earn rewards. Rewards carry price and lock-up risk, and are taxed as income in Australia. Learn more →

T

Taker / maker fee: Trading fees based on how your order interacts with the market: a “taker” removes liquidity (a market order), a “maker” adds it (a resting limit order), often at a lower fee. Learn more →
Token: A digital asset built on an existing blockchain (often Ethereum), as opposed to a coin that has its own chain. Tokens can represent utility, governance or value.

V

Volatility: How sharply and quickly a price moves. Crypto is highly volatile — double-digit daily swings are normal, so only invest what you can afford to lose.

W

Wallet: Software or hardware that stores the private keys controlling your crypto. Wallets don’t hold coins — the coins live on the blockchain; the wallet holds the keys. Learn more →
Whale: A holder with a very large amount of a cryptocurrency, whose trades can move the market.
Whitepaper: A document a crypto project publishes to explain its purpose, technology and tokenomics. Reading it is a basic step in researching a coin before buying.

Want the fuller picture? Browse our learning centre, or start with what cryptocurrency is.