Crypto Glossary 2026 » Terms Explained Simply

Crypto glossary: regulation

Term	Meaning
MiCA	Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114, the EU's crypto rulebook. See MiCA explained.
CASP	Crypto-asset service provider: a firm authorised under MiCA to provide crypto-asset services, such as an exchange.
ESMA	European Securities and Markets Authority, which publishes the interim MiCA register.
EBA	European Banking Authority, with a role in supervising significant stablecoins.
Competent authority	The national regulator that authorises and supervises a CASP.
Home Member State	The country whose regulator authorised the firm.
Passporting	Providing services in other EEA countries under one authorisation, after notification. See MiCA passporting.
LEI	Legal Entity Identifier: a 20-character code identifying a company.
White paper	A disclosure document about a crypto-asset, required in many cases under MiCA.
Travel rule	Rules on information that travels with crypto transfers. See travel rule.
DAC8	EU directive on reporting crypto transactions to tax authorities. See DAC8.
KYC	"Know your customer": identity verification. See KYC.

Term	Meaning
Order book	The list of buy and sell orders on an exchange.
Maker fee	Fee for an order that waits in the order book.
Taker fee	Fee for an order filled immediately.
Spread	Gap between buying and selling price; can include a provider margin.
Market order	Buy or sell immediately at the best available price.
Limit order	Buy or sell only at your price or better.
Slippage	Difference between expected and actual price.
DCA	Dollar-cost averaging: investing a fixed amount regularly. See DCA.
Leverage	Trading with borrowed money, multiplying gains and losses. See leverage.
Liquidation	Forced closing of a leveraged position.
SEPA	Single Euro Payments Area: euro bank transfers.

Term	Meaning
Altcoin	Any cryptocurrency other than Bitcoin.
Stablecoin	A crypto-asset designed to keep a stable value. See stablecoins.
EMT	E-money token: under MiCA, a stablecoin referencing one official currency.
ART	Asset-referenced token: under MiCA, a stablecoin referencing other values or a combination.
Satoshi	The smallest unit of bitcoin, 0.00000001 BTC.
Staking	Locking coins to help secure a proof-of-stake network in return for rewards.

Term	Meaning
Custody	Holding crypto, or the keys to it, on behalf of someone.
Self-custody	Holding your own keys in a wallet you control.
Private key	The secret that controls crypto at an address.
Seed phrase	12 or 24 words that restore a wallet. See seed phrase.
Hardware wallet	A device that keeps keys offline.
2FA	Two-factor authentication: a second login step.
Passkey	A phishing-resistant login method tied to your device.
Allow-list	A list of saved withdrawal addresses.
SIM swap	Fraudulent transfer of your phone number to another SIM.
Phishing	Fake messages or sites that steal credentials.
Proof of reserves	A report showing an exchange's holdings. See proof of reserves.

Term	Meaning
Blockchain	A shared, append-only record of transactions maintained by a network of computers.
Block	A batch of transactions added to the blockchain together.
Network fee	The fee paid to the network to process a transaction.
Confirmation	The inclusion of a transaction in a block; more confirmations mean more finality.
Block explorer	A website that shows transactions and addresses on a blockchain.
Transaction ID	A unique identifier for a blockchain transaction, useful for tracking and complaints.
Token	A crypto-asset issued on an existing blockchain rather than with its own network.
Proof of stake	A way of securing a blockchain in which participants lock up coins as a stake.

Term	Meaning
SEPA Instant	A euro transfer that usually arrives within seconds, where both banks support it.
IBAN	The international bank account number used for SEPA transfers.
Payment reference	The code an exchange uses to match your deposit to your account.
Source of funds	Where the money you deposit comes from, which exchanges may ask about.
Fiat currency	Government-issued money such as the euro.

Term	Meaning
Volatility	How much and how fast a price moves.
Drawdown	A fall from a previous high, in percent. See the drawdown calculator.
Liquidity	How easily something can be bought or sold without moving the price.
Rebalancing	Bringing a portfolio back to target shares. See the portfolio share calculator.
Break-even	The price at which a trade returns what you paid after costs.
Emergency fund	Cash kept for unexpected costs, so investments need not be sold.
Risk tolerance	Willingness to accept losses. See the risk tolerance test.

Term	Meaning
Pig butchering	A long-running scam that builds trust before steering victims to a fake platform.
Recovery scam	A follow-up scam offering to recover lost money for a fee.
Clone firm	A scam that copies a real, authorised firm's details.
Pump and dump	Hyping a small token to sell it at inflated prices.
Money mule	Someone whose account is used to move stolen money, often unknowingly.
Non-compliant entity	A firm listed by ESMA as providing crypto services without authorisation.

Term	Meaning
Crypto-asset service	One of ten activities listed in MiCA, such as custody or exchange.
Passport notification	The list of countries where an authorised firm intends to provide services.
Segregation	Keeping client assets legally and operationally separate from the firm's own.
Transitional period	The period, ending at the latest on 1 July 2026, when firms could operate under earlier national rules.
Interim register	ESMA's CSV-based register of authorised firms, white papers and non-compliant entities.

Each term links, where relevant, to a guide that explains it in context; the MiCA guide is the best starting point for regulatory terms.

What does CASP mean in the crypto glossary?

Crypto-asset service provider: a firm authorised under MiCA to provide services such as exchange or custody.

What is the difference between an EMT and an ART?

An EMT references one official currency; an ART references other values or a combination.

What is a satoshi?

The smallest unit of bitcoin, one hundred-millionth of a bitcoin.

What is the difference between custody and self-custody?

In custody, a provider holds the keys for you; in self-custody, you hold them yourself.