Crypto Glossary
45 cryptocurrency and blockchain terms defined. From AML to ZK-SNARK — learn the language of crypto. Key cryptocurrency and blockchain terms explained — from DeFi to zero-knowledge proofs.
A
AML (Anti-Money Laundering)
Regulations requiring financial institutions to monitor transactions and report suspicious activity. Many centralized crypto exchanges enforce AML checks, requiring users to provide identity documents. CoinExchange.Cash operates without AML requirements.
Arbitrator
A neutral third party who resolves disputes in P2P trades. In CoinExchange.Cash's 2-of-3 multisig escrow, the platform arbitrator holds the third key and can side with either the buyer or seller to release funds.
Aztec Network
A privacy-focused Layer 2 network on Ethereum using ZK-SNARKs to enable private transactions. CXCash, the native privacy coin of CoinExchange.Cash, is built on Aztec Network.
B
Blockchain
A distributed, immutable digital ledger that records transactions across many computers. Each block contains a set of transactions and a cryptographic hash linking it to the previous block.
BTC (Bitcoin)
The first and most widely known cryptocurrency, created by Satoshi Nakamoto in 2009. Bitcoin uses Proof of Work consensus and has a fixed supply of 21 million coins.
C
CEX (Centralized Exchange)
A cryptocurrency exchange operated by a company that holds users' funds. Examples include Coinbase, Binance, and Kraken. CEXs typically require KYC and hold custody of user funds.
Cold Wallet
A cryptocurrency wallet that is not connected to the internet, such as a hardware wallet (Ledger, Trezor). Used for long-term storage of large amounts.
Custodial
A service that holds and controls users' private keys and funds on their behalf. The opposite of non-custodial.
CXCash
The native privacy cryptocurrency of CoinExchange.Cash, built on Aztec Network using ZK-SNARK technology. CXCash transactions are fully private — sender, receiver, and amount are all hidden on-chain.
D
DApp (Decentralized Application)
An application that runs on a blockchain network rather than a centralized server. DApps interact with smart contracts and are typically accessed through a web browser with a wallet extension.
DeFi (Decentralized Finance)
Financial services built on blockchain smart contracts without traditional intermediaries. DeFi includes lending, borrowing, trading, and yield farming protocols.
DEX (Decentralized Exchange)
A cryptocurrency exchange that operates on a blockchain without a central authority. Trades are executed via smart contracts. Examples: Uniswap, PancakeSwap, CoinExchange.Cash.
E
Escrow
A mechanism where a third party holds funds during a transaction until both parties fulfill their obligations. CoinExchange.Cash uses 2-of-3 multisig smart contract escrow to protect every P2P trade.
ETH (Ethereum)
The second-largest cryptocurrency by market cap. Ethereum is a smart contract platform that enables DeFi, NFTs, and DApps. It transitioned from Proof of Work to Proof of Stake in 2022.
EVM (Ethereum Virtual Machine)
The runtime environment for executing smart contracts on Ethereum and EVM-compatible chains (Base, Arbitrum, Polygon, etc.). CoinExchange.Cash deploys escrow contracts on multiple EVM chains.
F
Fiat Currency
Government-issued currency like USD, EUR, GBP, or AUD. Not backed by a physical commodity. Used to buy cryptocurrency on exchanges.
G
Gas
The fee paid for executing transactions on a blockchain. Gas fees vary by network congestion. Ethereum gas is typically higher than Layer 2s like Base or Arbitrum.
H
HODL
"Hold On for Dear Life" — a strategy of holding cryptocurrency long-term regardless of price volatility.
Hot Wallet
A cryptocurrency wallet connected to the internet, typically used for frequent trading. Examples include MetaMask, Trust Wallet, and Phantom.
K
KYC (Know Your Customer)
Identity verification requirements where users must provide government-issued ID, selfies, proof of address, and sometimes income verification. CoinExchange.Cash operates without KYC — no identity verification of any kind.
L
Layer 1 (L1)
The base blockchain network (e.g., Bitcoin, Ethereum, Solana). Layer 1s process and finalize transactions directly on the main chain.
Layer 2 (L2)
A secondary network built on top of a Layer 1 to improve scalability and reduce fees. Examples: Base, Arbitrum, Optimism, Polygon, Lightning Network (for Bitcoin).
Liquidity
The ease with which an asset can be bought or sold without significantly affecting its price. Higher liquidity means tighter spreads and faster execution.
LTV (Loan-to-Value)
The ratio of a loan amount to the value of the collateral. In CoinExchange.Cash's P2P lending, if the LTV ratio exceeds 95%, the collateral is automatically liquidated.
M
Mempool
The waiting area for unconfirmed transactions on a blockchain. Transactions sit in the mempool until a miner or validator includes them in a block.
Multisig (Multi-Signature)
A security mechanism requiring multiple cryptographic signatures to authorize a transaction. CoinExchange.Cash uses 2-of-3 multisig escrow: buyer, seller, and arbitrator each hold one key, and any two can release funds.
N
Non-Custodial
A service that does not hold or control users' private keys or funds. CoinExchange.Cash is non-custodial — your keys never leave your wallet.
Nullifier
In privacy cryptocurrencies, a unique value that prevents double-spending of private notes without revealing which note was spent. Used in ZK-SNARK systems like Aztec and Zcash.
O
On-Ramp
A service that converts fiat currency to cryptocurrency. CoinExchange.Cash offers P2P on-ramp (trade with individuals) and instant on-ramp (via MoonPay, Ramp, Transak, etc.).
P
P2P (Peer-to-Peer)
Direct trading between two individuals without a centralized intermediary. Buyers and sellers negotiate terms, and an escrow mechanism protects both parties.
Proof of Stake (PoS)
A consensus mechanism where validators stake (lock up) cryptocurrency to participate in block production. Used by Ethereum, Solana, Cardano, and others.
Proof of Work (PoW)
A consensus mechanism where miners compete to solve cryptographic puzzles to produce blocks. Used by Bitcoin and Litecoin. Energy-intensive but battle-tested.
Private Key
A secret cryptographic key that gives you control over your cryptocurrency. Anyone with your private key can spend your funds. Never share your private key.
Public Key
A cryptographic key derived from your private key that serves as your blockchain address. You can share your public key freely — others use it to send you crypto.
S
Seed Phrase
A 12 or 24-word recovery phrase that can regenerate your private key and restore access to your wallet. Store it offline and never share it.
Slippage
The difference between the expected price of a trade and the actual execution price. High slippage occurs in low-liquidity markets or during high volatility.
Smart Contract
Self-executing code deployed on a blockchain that automatically enforces the terms of an agreement. CoinExchange.Cash's escrow is a smart contract.
Stablecoin
A cryptocurrency pegged to a stable asset (usually USD). Examples: USDT (Tether), USDC (Circle), DAI (MakerDAO). Used to avoid crypto volatility.
U
UTXO (Unspent Transaction Output)
A model for tracking cryptocurrency balances used by Bitcoin, Litecoin, and privacy coins. Each UTXO represents an unspent "coin" that can be used as input for a new transaction.
W
WalletConnect
An open protocol for connecting cryptocurrency wallets to DApps. CoinExchange.Cash uses WalletConnect (Reown) to support 60+ wallets.
Web3
The decentralized internet paradigm built on blockchain technology. Web3 applications interact with smart contracts and give users control over their data and assets.
Whale
An individual or entity that holds a very large amount of cryptocurrency, capable of moving markets with a single trade.
Y
Yield Farming
Providing liquidity or staking cryptocurrency in DeFi protocols to earn rewards. Returns can be high but carry smart contract risk.
Z
Zero-Knowledge Proof
A cryptographic method that allows one party to prove they know a value without revealing the value itself. Used in ZK-SNARKs for privacy transactions.
ZK-SNARK
Zero-Knowledge Succinct Non-interactive Argument of Knowledge. A type of zero-knowledge proof used by Aztec Network and CXCash to enable fully private cryptocurrency transactions where sender, receiver, and amount are all hidden.
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