1. Blockchain
What it is
Blockchain is the foundational technology behind cryptocurrencies: a public, decentralized ledger that records transactions across many computers. Its distributed nature makes records difficult to alter, providing transparency and security that power digital currencies.
2. Wallet (Hot & Cold Wallets)
Why it matters
A crypto wallet stores, sends, and receives digital assets. Hot wallets are online and convenient for frequent trading. Cold wallets are offline hardware devices that offer stronger protection against hacks. Choosing the right wallet balances convenience and security.
3. Private Key
Investor takeaways
A private key is a secret code that proves ownership of crypto funds. Anyone who holds the private key can move the assets, so protecting it is critical. The mantra in crypto is: “Not your keys, not your coins.”
4. Exchange (Centralized vs. Decentralized)
Which to pick
Exchanges are platforms for buying and selling cryptocurrencies. Centralized exchanges (CEX) offer familiar interfaces and custodial services. Decentralized exchanges (DEX) enable peer-to-peer trades without intermediaries, increasing privacy and control but sometimes reducing convenience.
5. Market Cap
How it’s used
Market capitalization equals a coin’s price multiplied by the number of coins in circulation. Large market caps often indicate relative stability; small caps can present rapid growth opportunities along with higher risk.
6. Altcoin
Short definition
Any cryptocurrency other than Bitcoin is called an altcoin. Altcoins—like Ethereum, Solana, and Cardano—attempt to solve Bitcoin’s limitations and can be used to diversify a portfolio.
7. DeFi (Decentralized Finance)
Opportunities & risks
DeFi brings financial services to blockchains—lending, yield farming, and decentralized exchanges—removing traditional intermediaries. DeFi can deliver higher returns but also introduces risks like smart-contract bugs and protocol exploits.
8. NFT (Non-Fungible Token)
What makes it unique
NFTs are one-of-a-kind digital tokens representing ownership of digital or physical items (art, music, virtual land). Unlike cryptocurrencies, NFTs are non-fungible—each token is distinct and cannot be exchanged one-to-one for another.
