Glossary A-Z
A
AI Token
A cryptocurrency that leverages artificial intelligence for various applications.
Airdrop
Distribution of cryptocurrency tokens for free to multiple wallet addresses.
Altcoin
An alternative coin, any cryptocurrency other than Bitcoin.
AML
Regulations and practices aimed at preventing money laundering and financial crime.
AMM
A decentralized protocol that enables the automatic trading of cryptocurrencies by providing liquidity and setting prices based on market demand.
Arbitrage
The practice of taking advantage of price discrepancies across markets by buying low in one market and selling high in another.
B
Base & Quote Currency
Components of a trading pair, where the base currency is the asset being bought or sold for the second asset, known as the quote currency.
Bear Market
A market trend associated with a decline in prices, pessimistic investor sentiment, and market stagnation.
Bitcoin Miner
A participant in the Bitcoin network who validates transactions and adds them to the blockchain.
Blockchain
A distrubuted digital ledger that records transactions across a network of computers to ensure immutability.
Bull Market
A market trend associated with a sustained increase in prices and optimistic market sentiment.
Burning
The process of permanently removing a coin or token from circulation.
C
CEX
A cryptocurrency trading platform that relies on a central authority to store user funds, oversee transactions, and ensure fair trading.
Chart Patterns
Formations on a price chart that signal potential market movements.
Circulating Supply
The total amount of a cryptocurrency that is currently available for trading in the market.
Consensus Mechanism
A method used by decentralized networks to agree on the current state of the blockchain.
D
dApp
A decentralized application that runs on a blockchain or peer-to-peer network without central control.
DeFi
A financial ecosystem built on blockchain technology that enables peer-to-peer transactions and services without traditional intermediaries.
Depeg
An event when an asset's value is uncoupled from its reference point.
Derivatives
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.
DEX
A peer-to-peer platform that allows users to trade cryptocurrencies directly with each other, without the need for a central authority or intermediary.
Diamond Hands
A metaphor describing an investor's unwavering commitment to hold an asset despite market volatility.
Difficulty Adjustment
A mechanism that regulates the mining difficulty in cryptocurrency networks.
Dump
A rapid decline in the price of an asset, typically caused by a large sell-off or negative market sentiment.
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
The total value of a cryptocurrency assuming all tokens are in circulation, calculated by multiplying the token's current price by its maximum supply.
Fiat Currency
A government-issued currency that has value solely because the government declares it to be legal tender, rather than being backed by a physical commodity.
FOMO
An emotional reaction to the prospect of missing out on a potentially rewarding experience or an investment opportunity, often influencing investment decisions.
FUD
Rapidly spreading negative information, often unfounded, affecting objective perception and commonly observed in the crypto space.
Futures
Financial contracts obligating parties to buy or sell an asset at a predetermined future date and price.
H
Hard Fork
A significant change to a blockchain protocol that is not backward compatible, resulting in a split of the blockchain.
Hashrate
A measure of computational power used in cryptocurrency mining based on the number of hashes a miner can generate in a second.
Hedge Position
An investment strategy used to reduce potential losses.
HODL
A slang term that refers to holding onto your assets instead of selling despite price fluctuations.
I
ICO
A fundraising method in which new cryptocurrency projects sell tokens directly to investors.
IEO
A fundraising method where new tokens are sold directly through a cryptocurrency exchange.
Impermanent Loss
A temporary loss liquidity providers face when asset prices in a pool changes compared to just holding the asset.
L
Leverage Trading
A financial strategy that allows to control larger positions with less initial capital through borrowing or derivatives.
Limit Order
A type of order to buy or sell a cryptocurrency at a specified price or better.
Liquidation
Forced closure of a trader's position due to insufficient funds to prevent causing losses to the broker.
Liquidity Mining
A process of providing 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.
Liquidity
The ability to buy or sell an asset quickly and at a stable price, due to sufficient market demand and supply.
Long Position
An investment strategy where an investor buys an asset with the expectation that its price will rise.
M
Maker/Taker
A trading fee model that differentiates between liquidity providers (makers) and liquidity removers (takers).
Market Capitalization
The total market value of an asset, calculated by multiplying its current price by its circulating supply.
Market Order
A type of order to buy or sell a cryptocurrency immediately at the best available price.
Matching Engine
The software component of a trading platform that matches orders based on factors like price and quantity, and executes trades.
Max Supply
The maximum number of coins that will ever exist for a cryptocurrency.
Meme Coins
Cryptocurrencies inspired by internet memes, often characterized by their community-driven nature and volatility.
Mercenary Liquidity
Capital that is easily moved between different markets or platforms for profit.
Minting
The process of issuing a new token on a blockchain and adding it into circulation.
N
P
Paper Hands
A slang term used to describe investors who sell their assets at the first sign of a price decline.
Perpetuals
Derivative contracts that allow traders to speculate on the price of an underlying asset without an expiration date.
Proof of Stake (PoS)
A consensus mechanism that allows users to validate transactions based on the number of coins they hold.
Proof of Work (PoW)
A consensus mechanism that secures the network by demanding increased computational power to create blocks.
Pump and Dump
A a market manipulation scheme that involves inflating the price of a cryptocurrency for profit.
Pump
A rapid increase in the price of an asset, often driven by heightened demand or speculative trading.
R
S
Satoshi
The smallest unit of Bitcoin, equal to 0.00000001 BTC.
Short Selling
A trading strategy that speculates on the decline in a an asset's price and involves selling a borrowed asset to rebuy it at a lower price.
Slippage
The difference between expected and actual transaction prices in cryptocurrency trading.
Soft Fork
A backward-compatible upgrade to a blockchain protocol.
Spot Long Position
A trading strategy where an investor buys an asset for immediate delivery and settlement, expecting its price to rise.
Spread
The difference between the best buying and selling prices of an asset.
Stablecoin
A cryptocurrency pegged to a stable asset, minimizing price volatility.
Support Level
A price point where a cryptocurrency tends to stop falling and may rebound.
Sybil Airdrop Hunters
Malicious actors exploiting multiple identities to claim cryptocurrency airdrops.
T
Technical Analysis
A method of forecasting future price movements by analyzing market data.
Token
A digital asset created on an existing blockchain, usually via smart contracts, representing an asset or utility.
Tokenomics
The economic principles governing a cryptocurrency token, which determine 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 pair of two assets that represents the value of one cryptocurrency against another, such as BTC/USDT.
Trading Volume
The total amount of assets traded in a given timeframe, sometimes expressed as the fiat value of the amount.
TVL
The total value of assets staked or lent in a DeFi protocol or all DeFi protocols of a blockchain.