Crypto Glossary
Plain-English definitions of the cryptocurrency, blockchain and trading terms you will meet as you learn.
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Layer 0
Layer 0 is the network structure that runs underneath a blockchain system. It includes elements such as the protocol, connectivity, hardware and miners…
Layer 1
Layer 1 is the base protocol layer of a blockchain: the main network that processes transactions and records them on its own ledger, using its own…
Layer 2
Layer 2 refers to scaling solutions built on top of a Layer 1 blockchain. They process transactions away from the main chain and then settle the results…
Liquid Staking
Liquid staking allows users to stake their tokens and still use them in the DeFi ecosystem. When you stake through a liquid staking protocol, you receive…
Liquidation / Liquidation
Liquidation means converting an asset or a cryptocurrency into fiat money or its equivalent. For example, selling coins for dollars or euros, or for a…
Liquidation Wave
A liquidation wave happens when liquidation transactions pile up one after another and cause sudden, sharp price changes.
Liquidity
Liquidity is the ease of converting an asset into cash, or into another asset, quickly and without noticeably moving its price.