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Crypto Trading Glossary for Beginners

~1 min read · Last updated: 2026-07-31

General definitions of terms you will often see on crypto trading platforms — not specific to any provider listed on this site.

Minimum depositFees / spreadLeverageHot wallet / cold wallet2FA (two-factor authentication)Demo accountCopy tradingWithdrawal

Minimum deposit

The smallest amount a platform requires you to fund your account with before you can start trading. This can vary between providers and may change over time — always confirm the current figure on the provider's own site.

Fees / spread

The cost of using a platform or executing a trade. A "spread" is the difference between the buy and sell price of an asset; some platforms also charge separate fees on deposits, withdrawals, or trades.

Leverage

Borrowed capital that lets you open a larger position than your own deposit alone would allow. Leverage increases both potential gains and potential losses, and can result in losing more than your initial deposit.

Hot wallet / cold wallet

A "hot" wallet is connected to the internet (more convenient, generally considered higher risk); a "cold" wallet is kept offline (less convenient, generally considered lower risk for long-term storage).

2FA (two-factor authentication)

An extra security step beyond a password — typically a one-time code from an app or SMS — used to help prevent unauthorized access to an account.

Demo account

A practice account, usually funded with simulated (not real) money, that lets you try a platform's tools before depositing real funds.

Copy trading

A feature that lets you automatically mirror the trades of another user or strategy. It does not remove risk — the underlying trades can still lose money.

Withdrawal

The process of moving funds out of a trading platform back to a bank account or personal wallet. Terms, minimums, and processing times vary by provider — review these before depositing.

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