KEYTAKEAWAYS
- Understanding core Crypto Terms like CEX, DEX, and staking helps beginners navigate the blockchain world with confidence and clarity.
- Token standards such as ERC-20, TRC-20, and SPL define how assets move across major chains like Ethereum, TRON, and Solana.
- Cultural terms like HODL, FUD, and DYOR reflect the emotional and community-driven nature of crypto investing.
CONTENT
Master 18 essential Crypto Terms that every Web3 newcomer should know—covering exchanges, wallets, DeFi, token standards, and crypto culture in one complete guide.
The crypto space is filled with a wide range of specialized terminology that can feel overwhelming for newcomers. If you’re just stepping into this fast-paced world, these terms might seem like a foreign language. Without understanding them, reading crypto news, navigating NFT communities, or making informed decisions becomes significantly harder.
To help you get started, we’ve compiled 18 must-know Crypto Terms that are essential for anyone looking to engage with the blockchain ecosystem. These terms cover everything from basic trading concepts to popular Web3 slang and industry jargon.
Whether you’re a beginner investor or simply curious about how Web3 works, learning these Crypto Terms will dramatically improve your understanding and confidence in participating in the crypto space.
>>> More to read: Key Crypto Terms You Need to Know
CRYPTO TERMS | BEGINNER’S GUIDE
✅ Centralized Exchange (CEX)
A Centralized Exchange is managed by a third-party organization that facilitates crypto trading—much like a stock exchange for digital assets. It offers a user-friendly and secure entry point for beginners. Examples include Binance, FTX, and others.
✅ Decentralized Exchange (DEX)
Unlike CEXs, a Decentralized Exchange operates without intermediaries. It uses smart contracts to match trades directly between users’ wallets, requiring more technical know-how. Examples include Uniswap and Sushiswap.
>>> Read more: Choosing the Right Cryptocurrency Exchange: CEX vs DEX
✅ KYC (Know Your Customer)
KYC is a verification process that centralized platforms require to confirm user identities. This involves submitting ID documents and proof of address, helping platforms comply with regulations and prevent money laundering.
>>> Read more: What is KYC in Crypto & Why Does It Matter?
✅ ICO (Initial Coin Offering)
An ICO is the crypto equivalent of an IPO (Initial Public Offering). It allows a project to raise capital by issuing its token to early investors, typically through a centralized platform.
>>> Read more: What Is ICO? A Beginner’s Guide
✅ Hot Wallet
A Hot Wallet is a blockchain wallet that’s actively connected to the internet. While it’s highly convenient for everyday use, it also comes with a higher risk of hacking. Examples include MetaMask and imToken.
✅ Cold Wallet
A Cold Wallet stores private keys offline, making it significantly safer from online attacks. It’s ideal for long-term storage but can be less convenient for frequent transactions. Examples include Ledger and imKey.
>>> More to read: Crypto Cold Wallet vs. Hot Wallet: What’s the Difference
Crypto Terms | Blockchain Standards
✅ ERC-20
ERC-20 is the most widely adopted token standard on the Ethereum blockchain. It defines a set of rules for fungible tokens via smart contracts, making token transfers, tracking, and integration across DeFi platforms seamless and reliable.
>>> Read more: Understanding ERC-20 | A Guide to ERC-20 Tokens
✅ TRC-20
TRC-20 is a token standard on the TRON blockchain, designed for fungible assets similar to ERC-20. Due to TRON’s significantly lower gas fees, many users prefer transferring stablecoins like USDT using TRC-20, especially for cross-border or high-frequency transactions.
>>> Read more: Understanding TRC-20 | How Does It Work
✅ SPL
SPL (Solana Program Library) is the token standard used on the Solana blockchain. Like ERC-20, SPL defines how fungible tokens operate, but it benefits from Solana’s ultra-fast transaction speed and low fees—making it popular in GameFi, DeFi, and NFT ecosystems.
CRYPTO TERMS | DEFI ESSENTIALS
✅ Yield Farming
Also known as liquidity mining, this practice involves users providing liquidity to DeFi platforms in exchange for rewards. By depositing crypto assets into a liquidity pool, users help facilitate decentralized trading and are incentivized through token rewards.
>>> Read more: What is Yield Farming?
✅ AMM (Automated Market Maker)
An AMM is a protocol used by decentralized exchanges (DEXs) to enable trading without a traditional order book. Instead, it uses mathematical formulas to determine asset prices. For example, Uniswap uses the X × Y = K formula, where X and Y represent token balances, and K is a constant representing total liquidity.
>>> Read more: What is AMM & How Does It Work?
✅ Rug Pull
A Rug Pull refers to a type of exit scam where project creators drain liquidity or funds and disappear, leaving investors with worthless tokens. It’s a common risk in poorly audited or low-TVL projects.
>>> Read more: Crypto Scam | Rug Pull Explained
✅ TVL (Total Value Locked)
TVL measures the total amount of funds locked within a DeFi protocol. It serves as a key indicator of a platform’s credibility and activity level. Projects with low TVL are often viewed as riskier and more susceptible to rug pulls.
>>> Read more: What is TVL? Everything You Need to Know
✅ Stake / Staking
Staking involves locking up crypto assets to support a network or DeFi protocol, typically in exchange for rewards. It is conceptually similar to Proof-of-Stake (PoS) consensus mechanisms and encourages user participation and long-term commitment.
>>> Read more: What Is Crypto Staking? Overview
CRYPTO TERMS | CULTURE & COMMUNITY SLANG
✅ DYOR (Do Your Own Research)
DYOR is a common disclaimer in the crypto space, urging individuals to conduct independent research before investing. It reflects the decentralized nature of crypto and reminds users not to blindly follow hype or influencers.
>>> Read more: What is DYOR? A Beginner’s Guide
✅ HODL
Originally a misspelling of “hold,” HODL has evolved into a meme and mindset that promotes long-term holding of crypto assets, regardless of market volatility. It reflects the belief that enduring the ups and downs leads to better returns.
>>> Read more: What is HODL? | A Long-Term Holding Strategy
✅ FOMO (Fear of Missing Out)
FOMO describes the anxiety that investors feel when they believe others are gaining profits and they are being left behind. This often leads to impulsive and emotionally driven investment decisions.
>>> Read more: What is FOMO in Crypto?
✅ FUD (Fear, Uncertainty, and Doubt)
FUD refers to negative sentiment driven by fear, uncertainty, or doubt—whether based on real events or rumors. It often causes panic selling and short-term volatility in the market.
>>> Read more: What is FUD in Crypto?
By mastering these essential Crypto Terms, you’ll not only understand the language of the crypto world but also gain the confidence to explore, invest, and participate in the Web3 ecosystem with clarity.
