The crypto space uses a lot of specific terms that can be confusing at first. This glossary explains the most common wallet and transaction concepts in plain language.
Published September 15, 2026 · 2 min read
A wallet is software (or sometimes hardware) that manages access to cryptocurrency funds, letting you hold, send, and receive them. A seed phrase is a sequence of words that can restore access to a non-custodial wallet's funds; whoever holds it can access the funds it protects. Custodial means a third party holds the private keys controlling a wallet's funds, while non-custodial means the user alone holds them.
A stablecoin is a cryptocurrency designed to maintain a stable value by being pegged to another asset, most commonly the US dollar. De-pegging is when a stablecoin's market price moves away from the value of the currency it is meant to track. Stablecoins are often used for spending or moving value without the price swings of other cryptocurrencies.
A network is the specific blockchain a transaction is sent and confirmed on, such as TRC20, ERC20, or BEP20; the same coin can exist on multiple networks. A gas fee (or network fee) is paid to the blockchain network itself to process a transaction, separate from any fee a wallet or exchange provider charges. A confirmation signals that a blockchain transaction has been included in the network's ledger and is considered final, typically after a short wait.
KYC stands for Know Your Customer, the identity-verification process financial services, including crypto wallets, are required to carry out under anti-money-laundering regulation. Spread is the gap between the buy and sell price a service applies when converting between currencies or assets. Both are routine parts of using regulated financial tools, including wallets with card functionality like Nexus Pay.
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