Glossary A-Z
A
AI Token
A cryptocurrency that leverages artificial intelligence for various applications.
Airdrop
Airdrop refers to the distribution of cryptocurrency tokens for free to multiple wallet addresses.
AML
Regulations and practices aimed at preventing money laundering and financial crime.
Arbitrage
Arbitrage is the practice of taking advantage of price discrepancies across markets to earn profits by buying low in one market and selling high in another.
B
Bear Market
A market trend associated with a decline in prices, pessimistic investor sentiment, and market stagnation.
Bitcoin Miner
A Bitcoin miner is a participant in the Bitcoin network who validates transactions and adds them to the blockchain.
Blockchain
Blockchain is a decentralized and distributed digital ledger that records transactions across multiple computers to ensure transparency, security, and immutability.
Bull Market
A market trend associated with a sustained increase in prices and optimistic market sentiment.
C
CEX
A cryptocurrency trading platform that relies on a central authority to store user funds, oversee transactions, and ensure fair trading.
Chart Patterns
Chart patterns are formations on a price chart that signal potential market movements.
Circulating Supply
Circulating supply refers to the total amount of a cryptocurrency that is currently available for trading in the market.
D
dApp
A decentralized application that runs on a blockchain or peer-to-peer network without central control.
Depeg
Depeg refers to the event when an asset's value is uncoupled from its reference point.
Derivatives
Derivatives are financial instruments whose value is derived from the value of an underlying asset, most commonly used to bet on price movement without actually owning the asset.
Diamond Hands
Diamond hands refer to an investor's unwavering commitment to hold assets despite market volatility.
Difficulty Adjustment
Difficulty adjustment is a mechanism that regulates the mining difficulty in cryptocurrency networks.
E
ERC-1155 Token
An Ethereum token standard that allows a single smart contract to manage multiple token types, both fungible and non-fungible.
ERC-20 Token
A token standard for creating and managing fungible tokens on the Ethereum blockchain.
ERC-721 Token
A token standard that introduced non-fungible tokens (NFTs) to the Ethereum blockchain.
ETF
A type of investment fund that is traded on a stock exchange, allowing investors to gain exposure to a broad range of assets, including Bitcoin, without holding the underlying assets.
F
FDV
FDV stands for Fully Diluted Valuation, a metric for assessing the potential market cap of a cryptocurrency.
FOMO
FOMO, or Fear of Missing Out, is an emotional reaction to the prospect of missing out on a potentially rewarding experience or an investment opportunity, often influencing investment decisions.
FUD
FUD stands for Fear, Uncertainty, and Doubt, and refers to negative information, often unfounded, affecting objective perception and commonly observed in the crypto space.
Futures
Futures are financial contracts obligating parties to buy or sell an asset at a predetermined future date and price.
H
Hard Fork
A hard fork is a significant change to a blockchain protocol that is not backward compatible, resulting in a split of the blockchain.
Hashrate
Hashrate is a measure of computational power used in cryptocurrency mining, typically measured in hashes per second, based on the number of hashes a miner can generate in a second.
Hedge Position
A hedge position is an investment strategy used to reduce potential losses.
HODL
HODL is a slang term in cryptocurrency that means to hold onto your assets instead of selling despite price fluctuations.
I
ICO
An Initial Coin Offering (ICO) is a fundraising method in which new cryptocurrency projects sell tokens to investors.
IEO
An IEO (Initial Exchange Offering) is a fundraising method where new tokens are sold directly through a cryptocurrency exchange.
Impermanent Loss
Impermanent loss occurs when the value of assets in a liquidity pool changes compared to holding them.
L
Leverage Trading
Leverage trading allows investors to control larger positions with less initial capital through borrowing or derivatives.
Limit Order
A limit order is a type of order to buy or sell a cryptocurrency at a specified price or better.
Liquidation
Liquidation refers to the process of closing a trader's position due to insufficient margin.
Liquidity Mining
Liquidity mining is a process where users provide liquidity to decentralized finance applications in exchange for rewards.
Liquidity Pool
A liquidity pool is a collection of funds locked in a smart contract to facilitate trading on decentralized exchanges.
Long Position
A long position refers to the buying of an asset with the expectation that its price will rise.
M
Market Order
A market order is a type of order to buy or sell a cryptocurrency immediately at the best available price.
Max Supply
Max supply refers to the maximum number of coins that will ever exist for a cryptocurrency.
Meme Coins
Meme coins are cryptocurrencies inspired by internet memes, often characterized by their community-driven nature and volatility.
Mercenary Liquidity
Mercenary liquidity refers to capital that is easily moved between different markets or platforms for profit.
N
P
Paper Hands
Paper hands refer to investors who sell their assets at the first sign of a price decline.
Perpetuals
Perpetuals are derivative contracts that allow traders to speculate on the price of an underlying asset without an expiration date.
Proof of Stake (PoS)
Proof of Stake (PoS) is a consensus mechanism that allows users to validate transactions based on the number of coins they hold.
Proof of Work (PoW)
Proof of Work (PoW) is a consensus algorithm used in blockchain technology to validate transactions and produce new blocks.
Pump and Dump
A pump and dump is a scheme that involves inflating the price of a cryptocurrency for profit.
S
Short Selling
Short selling is a trading strategy that speculates on the decline in a stock or asset's price.
Slippage
Slippage refers to the difference between expected and actual transaction prices in cryptocurrency trading.
Soft Fork
A soft fork is a backward-compatible upgrade to a blockchain protocol.
Spot Long Position
A spot long position is a trading strategy where an investor buys an asset expecting its price to rise.
Spread
Spread refers to the difference between the best buying and selling prices of an asset.
Stablecoin
Stablecoins are cryptocurrencies pegged to stable assets, minimizing price volatility.
Support Level
A support level is a price point where a cryptocurrency tends to stop falling and may rebound.
Sybil Airdrop Hunters
Sybil airdrop hunters exploit multiple identities to claim cryptocurrency airdrops.
T
Technical Analysis
Technical analysis involves analyzing market data to forecast future price movements in cryptocurrency.
Token
A digital asset created on an existing blockchain, usually via smart contracts, representing an asset or utility.
Tokenomics
Tokenomics is the economic principles governing a cryptocurrency token. It determines all aspects of a token's creation, distribution, supply management, and incentive structures.
Total Supply
The total amount of coins that have been issued, but not removed from circulation.
Trading Pair
A trading pair is a pair of two assets that represents the value of one cryptocurrency against another, such as BTC/USDT.
Trading Volume
Trading volume refers to the total amount of assets traded in a given timeframe, sometimes expressed as the fiat value of the amount.
TVL
Total Value Locked (TVL) measures the total value of assets staked or lent in a DeFi protocol or all DeFi protocols of a blockchain.