Crypto Exchange Glossary
Plain-English definitions of the terms you'll see across CryptoCodes referral guides.
- Referral code
- A short identifier attached to a signup that links the new account to an existing user. Using a referral code typically unlocks a larger welcome bonus or a permanent fee discount.
- Reflink
- A referral link — the URL version of a referral code. Opening a reflink pre-fills the referral field at signup so the bonus is credited automatically.
- CEX (centralized exchange)
- A custodial crypto exchange that holds user funds, runs an internal order book, and usually requires KYC. Examples: Binance, OKX, Coinbase, Kraken, Bybit.
- DEX (decentralized exchange)
- A non-custodial exchange where trades settle on-chain. Users keep funds in their own self-custody wallet and there is no KYC at protocol level. Examples: Hyperliquid, dYdX, ApeX Omni.
- Maker fee
- The fee charged when your order adds liquidity to the order book (a resting limit order that isn't filled immediately).
- Taker fee
- The fee charged when your order removes liquidity (a market order or a limit order that fills immediately against an existing order).
- Spot trading
- Buying or selling a crypto asset for immediate delivery, settled in full at the current market price.
- Perpetual (perp)
- A futures contract with no expiry date. Traders pay or receive a periodic funding rate to keep the perp price anchored to spot.
- Funding rate
- A periodic payment exchanged between long and short perpetual positions to keep the contract price close to the underlying spot price.
- KYC (Know Your Customer)
- Identity verification required by most centralized exchanges before users can deposit fiat, trade large amounts, or withdraw. DEXs do not require KYC.
- Self-custody wallet
- A wallet where the user controls the private keys (e.g. MetaMask, Phantom, Rabby). Required to use a DEX.
- Welcome bonus
- A one-time reward credited to a new account that signs up with a referral code and completes qualifying activity (deposit, trade, KYC).
- Fee rebate
- A permanent discount on trading fees applied to the referred account — common on DEXs where it's tied to the wallet address.
- Leverage
- Borrowed exposure that lets a trader control a position larger than their collateral. 10x leverage means $1,000 of collateral controls $10,000 of notional exposure.
- Liquidation
- Forced closure of a leveraged position when its margin falls below the maintenance threshold.
- Order book
- The live list of buy and sell orders for a market, sorted by price. Deeper books mean tighter spreads and lower slippage.
- Slippage
- The difference between the expected price of a trade and the actual executed price, caused by limited order book depth.
- Launchpad / IEO
- Exchange-hosted token sales where users can subscribe to new projects before they list publicly.
- MiCA
- Markets in Crypto-Assets — the EU regulation governing crypto exchanges operating in the European Union.