# Crypto words explained — a plain-English glossary

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.

## Key facts
- You don't need to memorise these — bookmark this page and come back.
- Different apps use different words for the same thing.
- If a word is used to pressure you to invest quickly, be suspicious.

## 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.

## FAQs
### 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.

## Sources

- [FCA — Cryptoassets for consumers](https://www.fca.org.uk/consumers/cryptoassets)

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— Digital Assets UK (https://digital-assets.co.uk/basics/common-words-explained/), reviewed 2026-06-23. Source: https://www.fca.org.uk/consumers/cryptoassets