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Crypto glossary

Dywidenciarz crypto glossary 2025

Clear definitions for blockchain, DeFi, security and Polish tax reporting. You will find references to real KYC processes, tax forms and risk controls used by Polish investors.

How to use this glossary

Use search or jump into thematic sections. Every term includes a definition, Polish regulatory context and related concepts useful for building your strategy.

Visible terms: 15 of 15. Filter by tags, definitions or related concepts.

Blockchain fundamentals

Core technology concepts needed to understand cryptocurrencies, blockchain networks and token mechanics.

3 terms

BlockchainCrypto

A distributed database built by adding consecutive blocks of transactions, cryptographically secured and maintained by a network of nodes.

Polish context: In Poland, blockchain operations must be reported for tax purposes and require proof of funds origin.

#technology#base-layer#transactions

Related terms:

  • Node
  • Decentralized network

NodeCrypto

A computer participating in the blockchain network that stores a copy of the ledger and verifies new blocks or transactions.

Polish context: Running a full node in Poland does not require a license, but it involves energy costs and regular upkeep.

#infrastructure#network

Related terms:

  • Blockchain
  • Proof of Stake

Reference resources:

Wallet addressCrypto

A unique identifier on the blockchain for receiving and sending cryptocurrencies, generated from a public key.

Polish context: Wallets used for PIT-38 reporting should be recorded together with transaction history and FX rates.

#wallet#digital-identity

Related terms:

  • Public key
  • Private key

Security and custody

Mechanisms that protect funds, storage strategies and procedures that minimize the risk of losing crypto assets.

3 terms

Private keyCrypto

A secret string used to sign transactions and grant full access to funds stored on a blockchain address.

Polish context: Best practice in Poland is to keep the private key offline and secure it with a backup copy.

#security#wallet

Related terms:

  • Seed phrase
  • Wallet address

Seed phraseCrypto

A list of 12 or 24 words generated by a wallet (BIP39 standard) that can restore the related private keys.

Polish context: Store the phrase physically (e.g. metal backup) and never share it with third parties.

#security#backup

Related terms:

  • Private key
  • Hardware wallet

Hardware walletCrypto

A dedicated device (e.g. Ledger, Trezor) that stores private keys in an isolated environment, protecting against malware.

Polish context: For larger crypto portfolios, choose a model with multisig support and frequent firmware updates.

#hardware#security

Related terms:

  • Seed phrase
  • Multisignature wallet

DeFi and liquidity

Terms linked to decentralized finance, staking, lending and managing token liquidity.

3 terms

StakingCrypto

Locking Proof of Stake tokens to secure the network and receive rewards paid in additional tokens.

Polish context: In Poland, staking income must be reported in PIT-38 as capital gains using the NBP FX rate from the previous day.

#DeFi#passive-income

Related terms:

  • Yield farming
  • Proof of Stake

Yield farmingCrypto

Allocating funds into DeFi protocols (liquidity pools, lending) to earn combined rewards and transaction fees.

Polish context: Requires smart-contract risk analysis and monitoring the volatility of liquidity provider (LP) tokens.

#DeFi#liquidity

Related terms:

  • Staking
  • APY

TVL (Total Value Locked)Crypto

The value of assets deposited into a DeFi protocol, used to gauge adoption and trust.

Polish context: High TVL alone does not guarantee safety—check deposit concentration and diversification of sources.

#metrics#DeFi

Related terms:

  • Yield farming
  • Smart contract risk

Polish reporting and regulation

Tax and compliance terminology for settling crypto transactions and meeting Polish KYC requirements.

3 terms

PIT-38 (cryptocurrencies)Crypto

The Polish tax return for reporting crypto gains and losses under Article 30b of the PIT Act.

Polish context: The filing covers revenue and costs converted using the average NBP FX rate from the day before the transaction.

#tax#regulation

Related terms:

  • KSeF
  • Transaction documentation

AML/KYCCrypto

Anti-money laundering and know-your-customer procedures required by Polish cryptocurrency exchanges.

Polish context: Reporting entities must comply with the AML Act of 1 March 2018 and notify transactions above EUR 15,000.

#regulation#compliance

Related terms:

  • Crypto exchange
  • Business registry

Reference resources:

KSeF (National e-Invoicing System)Crypto

The Polish platform for issuing and storing structured invoices, where crypto–fiat business transactions will need to be reported.

Polish context: The 2025 rollout of KSeF requires preparing data transfer tools or exports from exchanges into the FA(2) XML format.

#tax#reporting

Related terms:

  • PIT-38 (cryptocurrencies)
  • AML/KYC

Risk and portfolio management

Concepts that support risk analysis, diversification and managing volatility exposure in crypto portfolios.

3 terms

Reserve stablecoinCrypto

A token pegged to a fiat currency or other asset (e.g. USDT, USDC, EURC) used to protect portfolio value.

Polish context: When planning a portfolio, account for issuer risk and the possibility of redemption pauses.

#stability#portfolio-management

Related terms:

  • Diversification
  • Counterparty risk

DrawdownCrypto

The maximum decline of a portfolio from its latest peak, measuring potential capital loss.

Polish context: Crypto drawdown is tracked both in percentage terms and time needed to recover losses.

#risk#metrics

Related terms:

  • Volatility targeting
  • Reserve stablecoin

Volatility targetingCrypto

A strategy that adjusts position sizes based on market volatility to maintain a target risk level.

Polish context: In practice, crypto exposure can be adjusted using a 30-day standard deviation signal.

#risk#strategy

Related terms:

  • Drawdown
  • Rebalancing

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