Crypto glossary

Speak crypto with confidence

Clear, security-first definitions for the terms you see in Ledger Live, dApps, staking dashboards, and hardware wallet setup flows.

Security-firstLedger + DeFi contextBeginner friendly

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Filter mentally—each term includes a category tag for quick scanning.

CoreSecurityDeviceDeFiStakingNFT

Address

Core

A public identifier on a blockchain where assets can be sent or received. Always verify on your Ledger device screen before using.

App (Ledger)

Device

Asset-specific application installed on your Ledger device that enables signing for a given blockchain (e.g., Ethereum app, Bitcoin app).

Backup (Recovery Phrase)

Security

The 24-word seed generated on your Ledger. It can recreate all your keys. Never store digitally or share it.

Blind signing

Security

Approving a transaction you cannot fully read. High risk—avoid when possible and only sign what you understand.

Blockchain

Core

Distributed ledger recording transactions in blocks linked cryptographically. Ledger devices sign transactions; the chain enforces consensus.

Bridge

DeFi

A protocol moving assets between chains. Bridges carry smart-contract and operational risk; use hardware signing and small tests.

Checksum

Security

Integrity verification string/hash for downloads. Compare the published checksum of Ledger Live with your downloaded file to confirm authenticity.

Cold storage

Security

Keeping private keys offline (e.g., Ledger hardware wallet) to reduce online attack surface. Keys never leave the secure element.

DApp

DeFi

Decentralized application interacting with smart contracts. Connect via trusted URLs and confirm all actions on-device.

Delegate / Validator

Staking

In PoS, you delegate stake to validators to secure the network and earn rewards. Choose reputable validators; monitor uptime and commission.

DeFi

DeFi

Decentralized finance: smart-contract-based financial apps. Use hardware signing, limit approvals, and verify contract addresses.

Derivation path

Core

Hierarchical path (e.g., BIP44) used to derive keys/addresses from your 24-word seed. Ledger follows standards per chain.

Firmware

Device

System software on your Ledger device. Keep it updated via Ledger Live to receive security fixes and features.

Gas

Core

Fee paid to execute transactions on networks like Ethereum. Always leave extra ETH for gas when moving tokens or revoking approvals.

Genuine check

Security

Ledger Live attestation that verifies your device secure element authenticity. If it fails, stop and contact support.

Hardware wallet

Core

Physical device that stores private keys offline and signs transactions securely. Examples: Ledger Nano X, Nano S Plus.

Hot wallet

Security

Software wallet connected to the internet. Higher risk than hardware wallets; good for small, everyday amounts.

Ledger Live

Device

Official Ledger desktop/mobile app for managing accounts, installing apps, and running genuine checks.

MEV

DeFi

Maximal Extractable Value: profit captured by reordering or inserting transactions. Protect by using reputable RPCs and careful signing.

Memo / Destination tag

Core

Additional identifier required for some assets (XRP, XLM, ATOM on exchanges). Always include if requested.

Multisig

Security

Wallet requiring multiple signatures to authorize a transaction. Increases security but adds operational complexity.

NFT

NFT

Non-fungible token. When minting or trading, verify contracts and avoid blind signing; use a dedicated wallet with limited funds.

Nonce

Core

Transaction sequence number on account-based chains like Ethereum. Helps prevent replay and ordering issues.

On-device confirmation

Security

Reviewing and approving details on the Ledger screen. Always rely on the device screen over the computer/phone display.

Phishing

Security

Fraud attempts to trick you into revealing secrets or signing malicious transactions. Type URLs manually and never share your 24 words.

PIN

Security

Code that unlocks your Ledger. If entered incorrectly too many times, the device resets and requires the recovery phrase.

Private key

Core

Secret cryptographic key that controls assets. Derived from your 24-word seed; never exposed by Ledger devices.

RPC

DeFi

Endpoint your wallet uses to communicate with a blockchain. Use reputable providers to reduce risk of tampering or downtime.

Secure element

Device

Tamper-resistant chip in Ledger devices that stores keys and performs signing. Keys never leave the secure element.

Seed phrase (24 words)

Security

Human-readable backup that can recreate all private keys. Never type, photo, or share it. Store two physical copies securely.

Self-custody

Core

You control your keys and recovery phrase—no third-party custodian. Responsibility for security rests with you.

Slashing

Staking

Penalty in PoS if a validator misbehaves. Delegate to reputable validators to reduce slashing risk.

Smart contract

DeFi

Code on-chain that executes when conditions are met. Interact only with audited or reputable contracts; avoid blind signing.

Stablecoin

Core

Token pegged to a reference (e.g., USD). Still subject to smart contract and issuer risk—use reputable issuers and hardware signing.

Staking

Staking

Locking assets in PoS networks to secure the chain and earn rewards. Keys stay offline when using Ledger; delegate via trusted flows.

Test transaction

Security

Small initial send to ensure the address and flow work before moving larger amounts.

TVL

DeFi

Total Value Locked in a DeFi protocol. A metric for scale but not a safety guarantee.

WalletConnect

DeFi

Protocol to connect wallets to dApps via QR or deep link. Verify session details and sign only what you understand.

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