Crypto words explained — a plain-English glossary
Quick answer: Blockchain is a shared online record book. A wallet is an app that holds your digital assets. An exchange is a website where you buy and sell. An NFT is a one-of-a-kind digital item. DeFi means financial services run by software instead of a bank.
Crypto conversations use a lot of jargon. This short glossary translates the words you will see on this site and in the news.
Blockchain
A blockchain is a list of transactions copied across many computers. Once something is recorded, it is hard to change — like a ledger everyone can see but no single person controls. Bitcoin and Ethereum use blockchains.
Wallet
Not a leather wallet — a phone app, website or small USB-style device that stores the keys to your digital assets. 'Hot wallet' means connected to the internet. 'Cold wallet' means kept offline for better security.
Exchange
A company website or app where you swap pounds for bitcoin or other tokens — a bit like a bureau de change, but for digital assets. In the UK, reputable exchanges register with the FCA.
Token / coin
A unit of a digital asset. 'Coin' often means the main currency of a network (like bitcoin). 'Token' can mean other assets built on the same network.
NFT
Non-fungible token — a digital certificate of ownership for a specific item (often art or collectibles). Each NFT is unique, unlike bitcoin where every coin is the same.
Mining and staking
Ways networks process transactions and reward participants. You may owe UK tax on rewards. Most beginners do not need to mine or stake to own crypto.
Frequently asked questions
What is a seed phrase?+
A list of 12–24 random words that can restore your wallet. Anyone with the phrase can take your crypto. Never share it or store it in email.