Cryptocurrency Glossary
Explore key cryptocurrency, tax and investing terms and definitions
GameFi
GameFi blends gaming and decentralized finance, offering players rewards in cryptocurrency or NFTs. By integrating play-to-earn models, blockchain ownership, and token economies, GameFi can turn gaming into a lucrative and innovative experience.
Gas fees
Gas fees are payments for executing transactions or smart contracts on a blockchain, compensating validators for their work. Varying by blockchain and transaction complexity, they incentivize security while deterring spam but can rise significantly during network congestion.
Gwei
Gwei is a unit of measurement for gas prices on the Ethereum network, representing one billionth of an Ether (0.000000001 ETH). It's used to calculate transaction fees paid to validators for processing and confirming transactions.
Hard Cap
A hard cap is the maximum limit on a cryptocurrency's total supply or the fundraising limit in an ICO or IDO. It ensures scarcity, prevents inflation, and protects investor confidence in a project's tokenomics.
Hardware Wallet
A hardware wallet is a physical device that securely stores private keys offline, protecting cryptocurrencies from hacks and malware. Popular models like Ledger and Trezor provide maximum security for long-term crypto storage.
Hash Rate
Hash rate measures the computational power used for mining cryptocurrencies like Bitcoin. Expressed in hashes per second, it
HIFO
HIFO (Highest In, First Out) is a crypto accounting method that assumes the most expensive assets are sold first, often used to minimize taxable gains in volatile markets.
HODL
HODL, meaning
Hot Wallet
A hot wallet is an internet-connected cryptocurrency wallet used for quick and frequent transactions. While convenient and beginner-friendly, it comes with security risks, making it ideal for small holdings and daily use.
Hyperliquid
Hyperliquid is a high-performance Layer‑1 blockchain and decentralized exchange (DEX) built specifically for trading, featuring a fully on‑chain order book, sub‑second finality, and support for perpetual futures with low fees.
Impermanent Loss
Impermanent loss is the temporary reduction in value that liquidity providers (LPs) face when token prices change in an AMM. It happens because liquidity pools rebalance token ratios, causing LPs to end up with fewer valuable assets.
Initial Coin Offering
An Initial Coin Offering (ICO) is a fundraising method where blockchain projects sell new crypto tokens to investors. While ICOs offer high-reward opportunities, they also come with risks of scams and regulatory uncertainty.
Isolated Margin
Isolated margin is a margin trading method where risk is limited to a single trade. Unlike cross margin, only the allocated funds are at risk, making it ideal for short-term, high-leverage trades while protecting the rest of your balance.
KYC
KYC (Know Your Customer) in crypto is a process to verify user identities, ensuring compliance with regulations and preventing fraud. It involves collecting personal data, such as IDs and proof of address, and is essential for safe and trusted cryptocurrency trading.
Layer 1 Blockchain
A Layer 1 blockchain is the main blockchain network that processes transactions and secures the ecosystem. Examples include Bitcoin, Ethereum, and Solana, each offering different consensus mechanisms, smart contracts, and scalability solutions.