Gypsy dances share similarities, but there is no one single "gypsy" dance. The Roma culture it hails from has a large variety of folk dances.
The 1963 James Bond film "From Russia With Love" portrays a gypsy camp where a woman seduces men with dance. Gypsy women don't typically dance to entice men. Men and women in the Roma culture dance as a social activity.
The glittery two-piece "cabaret costume" of belly dance is commonly identified with gypsy dance, but it is not a traditional gypsy costume. The costume was created for the performance of belly dances in nightclubs and Hollywood films.
Belly dance troupes who claim to perform "gypsy" dances often balance a sword on the head while dancing. This practice is not part of the Roma dance tradition.
Gypsies are often portrayed dancing with tambourines, though these are not common in gypsy dances. Roma-based dances do use hand-held instruments, such as wooden spoons, which make noise to accompany the dance.