Crypto has its own language. This glossary explains key blockchain and trading terms in plain English to help Australians navigate crypto with Elbaite.
Airdrop
Free crypto tokens distributed to wallet addresses, often as a promotional reward.
Altcoin
Any cryptocurrency that is not Bitcoin. Examples include Ethereum, Solana and Polygon.
ASIC (Application-Specific Integrated Circuit)
A specialised mining machine designed for a single purpose, such as mining Bitcoin.
ATH (All-Time High)
The highest price a cryptocurrency has ever reached.
Bear Market
A prolonged downtrend in crypto or financial markets, marked by pessimism and falling prices.
Bitcoin (BTC)
The first and most widely held cryptocurrency. Often referred to as digital gold.
Block
A group of verified transactions added to a blockchain.
Blockchain
A decentralised digital ledger that records transactions across a network of computers.
Burn (Token Burn)
The permanent removal of tokens from circulation, reducing supply.
Cold Wallet
An offline wallet that stores crypto private keys without internet access. Ideal for long-term holders.
Consensus Mechanism
A method blockchains use to validate transactions (e.g. Proof of Work, Proof of Stake).
Cryptography
The mathematical foundation of blockchain security. Ensures privacy, data integrity and verification.
Custodial Wallet
A wallet controlled by a third party, like an exchange. Elbaite prioritises non-custodial alternatives.
DAO (Decentralised Autonomous Organisation)
A blockchain-based organisation governed by smart contracts and community voting.
DApp (Decentralised Application)
An app built on a blockchain that runs without central servers.
DCA (Dollar Cost Averaging)
A strategy where you invest fixed amounts regularly, regardless of market price.
DeFi (Decentralised Finance)
Blockchain-based financial tools that let users lend, borrow and trade without banks.
DYOR (Do Your Own Research)
A core principle in crypto investing. Always verify project claims before buying in.
Ethereum (ETH)
A major blockchain supporting smart contracts, tokens and decentralised apps.
Exchange
A platform for buying and selling crypto. Elbaite offers both peer-to-peer and on-exchange trading.
Fiat
Government-issued currency like the Australian dollar.
Fork
A change to a blockchain’s rules. Can result in a new cryptocurrency.
FOMO (Fear of Missing Out)
An emotional driver behind panic buying during market spikes.
Gas Fees
Fees paid to validators for executing transactions on networks like Ethereum.
Genesis Block
The very first block in a blockchain’s history.
HODL
Crypto slang for “hold.” Encourages long-term holding despite volatility.
Hot Wallet
A wallet connected to the internet. Suitable for frequent use but less secure than cold wallets.
ICO (Initial Coin Offering)
A method for new projects to raise funds by selling tokens before launch.
Immutable
A core blockchain trait - once data is recorded, it can’t be changed.
KYC (Know Your Customer)
A legal identity check required on regulated exchanges like Elbaite.
Layer 1
A base blockchain network, like Bitcoin or Ethereum.
Layer 2
A secondary system built on top of a Layer 1 blockchain to reduce congestion and fees (e.g. Lightning Network, Arbitrum).
Ledger
A record of all crypto transactions, stored securely on the blockchain.
Liquidity
How easily an asset can be traded without affecting its price.
Liquidity Pool
Funds locked in a smart contract that facilitate trading on decentralised exchanges.
Market Cap
A metric showing the total value of a cryptocurrency. Calculated as price × circulating supply.
Merkle Tree
A structure used in blockchains to verify data efficiently and securely.
Mining
The process of validating Proof of Work transactions by solving cryptographic problems.
NFT (Non-Fungible Token)
A unique digital asset (like art or tickets) stored on a blockchain.
Node
A device that stores a copy of the blockchain and helps maintain the network.
On-Chain
Activity that happens directly on the blockchain, visible and verifiable.
OTC (Over-the-Counter)
Private, large-volume crypto trades facilitated by brokers. Offered through ElbaitePrivate.
Peer-to-Peer (P2P)
Trading directly between users without intermediaries. Enabled on Elbaite via self-custody.
Private Key
A secret code used to access and control your crypto. Never share this.
Public Address
A wallet’s receive address, similar to a bank account number.
QR Code
A scannable image that contains your crypto address for faster transactions.
Rekt
Slang for severe losses due to market crashes or bad trades.
Satoshi
The smallest unit of Bitcoin, equal to 0.00000001 BTC.
Seed Phrase
A 12- or 24-word phrase that recovers your wallet. Must be kept offline and secure.
Self-Custody
When you control your own keys and assets - the standard model at Elbaite.
Smart Contract
Code that automatically executes agreements on blockchain when conditions are met.
Stablecoin
A crypto token tied to the value of a stable asset (e.g. AUD or USD).
Token
A digital asset built on a blockchain that may serve as currency, access or equity.
Trading Pair
Two assets you can exchange (e.g. BTC/AUD).
TVL (Total Value Locked)
The total funds locked into a DeFi platform - a measure of usage and trust.
Validator
A Proof of Stake participant who confirms blocks in exchange for rewards.
Volatility
How much a crypto asset's price swings. High volatility can mean higher risk and reward.
Zero-Knowledge Proof
A cryptographic method where one party proves they know a value without revealing it.
The Elbaite Advantage for Australian Investors
Elbaite is Australia’s full-service crypto exchange built for secure, self-directed investing. Since 2017, we’ve helped Australians trade crypto with confidence through:
Whether you’re decoding your first transaction or diversifying your portfolio, Elbaite gives you the freedom to invest your way - with security you can trust.
Conclusion: Speak Crypto, Store Securely
Understanding crypto terms is the foundation of smart investing. With Elbaite, you get both the knowledge and the tools to trade securely from day one. Start with Elbaite today and experience self-custody crypto, explained and empowered for Australians.
Founded in Melbourne, Australia in 2017, Elbaite set out to make cryptocurrency investing safer and more transparent for Australians. Buy crypto and diverisify your portfolio with digital assets like Bitcoin.
"I have been a user of the Elbaite service for a long time and I keep coming back to use this service on a regular basis. An extra couple of stars should be added for the service personnel. Problems are resolved quickly and the patience exhibited by these people is legendary."
Andre - Elbaite Client
Elbaite Pty Ltd ACN:
623 185 875
Elbaite Pty Ltd is a registered DCE with AUSTRAC:
DCE 100593224-001
We acknowledge the Wurundjeri people of the Kulin Nation, the Traditional Custodians of the land we work on, as well as the Traditional Owners of country throughout Australia. We pay respects to people, communities and elders past, present and emerging.
Elbaite is a member of:
Elbaite Pty Ltd (ACN 623 185 875) operates a digital currency exchange registered with AUSTRAC. Please note that digital asset prices can be volatile. We will never ask for the private keys to your digital currency wallet. Elbaite is not liable for any losses you may incur, and you are solely responsible for your investment decisions. Before deciding if our services are right for you, take into consideration your own financial situation & needs and/or obtain professional financial or taxation advice from a licensed provider. Elbaite does not provide financial advice and Elbaite does not have any affiliation with external traders, advisors or trading platforms.
