Glossary

All the terms from the world of Cryptocurrencies that help you understand the topics better and allow you to start trading with confidence.

AML

Anti-Money Laundering (AML) regulations are designed to prevent illegal activities and financial crimes in centralised exchanges.

AMM

Automated Market Makers (AMMs) are smart contracts in decentralized exchanges, facilitating liquidity and trade execution.

API

APIs (Application Programming Interfaces) streamline the development of applications and web services by integrating functionalities.

APR

The Annual Percentage Rate (APR) is the yearly interest rate earned on an investment or charged on a loan, expressed as a percentage.

APY

APY (Annual Percentage Yield) in DeFi indicates the annual percentage return earned or paid on an investment or loan.

ASIC

ASICs are specialized devices designed for mining specific cryptocurrencies, offering enhanced efficiency in computational tasks.

ATH and ATL

ATH (All-Time High) and ATL (All-Time Low) represent a cryptocurrency's highest and lowest historical price points.

Account Model

In the Ethereum blockchain, the Account Model represents user accounts with associated wallet addresses, forming the decentralised ledger.

Aggregator

An Aggregator collects and presents similar content or services from various sources, exemplified by platforms like Yearn Finance.

Airdrop

An Airdrop is a method of distributing new cryptocurrencies to the market, often for free or as a reward to community members.

Algorithm

An algorithm is a set of procedures or rules designed to perform specific tasks or solve problems integral to software development.

Altcoin

Altcoins are cryptocurrencies launched after Bitcoin, offering alternative blockchain-based solutions and functionalities.

Arbitrage

Arbitrage is the simultaneous buying and selling of assets in different markets to profit from price disparities.

Audit

An Audit in software development is a thorough review process to ensure the correct and secure functioning of the software.

Average True Range (ATR)

The Average True Range (ATR) is an essential technical analysis indicator for investors seeking to measure market volatility.

Bear Market

A Bear Market is a phase in the market characterized by declining asset prices and typically reflecting widespread pessimism.

Bear Trap

A Bear Trap occurs in a bullish market, presenting a temporary downward price movement that can mislead investors.

Benchmark

A Benchmark is a standard or point of reference against which the performance of a financial instrument or market can be measured.

Bid and Ask

In trading, 'Bid' and 'Ask' represent the prices at which buyers and sellers are willing to trade an asset in the order book.

Bitcoin

Bitcoin is the first and most enduring cryptocurrency, introducing blockchain technology as a revolutionary digital ledger system.

Bitcoin Dominance

Bitcoin Dominance measures the proportion of Bitcoin's market capitalisation in relation to the total market cap of all cryptocurrencies.

Black Swan Event

A Black Swan Event is unpredictable with potentially severe consequences, often radically changing the status quo.

Block

A Block is a collection of encrypted transactions, which, linked with other blocks, forms the entire structure of a blockchain.

Block Height

Block Height refers to the total number of blocks in a blockchain, counted from the genesis block to the most recent block.

Blockchain

Blockchain technology, based on cryptography, enables the decentralized and uncensored execution of transactions across various sectors.

Blockchain Explorer

Blockchain Explorer is a software tool that enables users to view all transactions and exchanged data on a specific blockchain.

Bonding

Bonding is the process of locking up cryptocurrencies as a commitment to participate in network activities and receive benefits.

Bonds

Bonds are debt securities issued by governments or institutions to raise funds for various financial purposes.

Break-Even point

The Break-even point is the financial state where total revenues equal total expenses, indicating neither profit nor loss.

Breakout

A Breakout in trading occurs when the price surpasses a defined resistance or support level, leading to increased volatility and activity.

Bridge

A Bridge in blockchain technology enables the transfer and interaction of assets across diverse blockchain platforms.

Bull Market

A Bull Market is a period where prices consistently rise, often driven by investor confidence and economic optimism.

Bull Run

A Bull Run is a market phase marked by a sustained upward price trend, often reflecting widespread positive sentiment among investors.

Bull Trap

A Bull Trap is a deceptive upward price movement in a bearish market, giving the false impression of a market recovery.

Buy Wall and Sell Wall

Buy Wall and Sell Wall represent significant purchase or sale demands at a specific price in cryptocurrency trading.

CPI

The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Capital gain

Capital gain is the profit earned from selling an asset at a higher price than its purchase cost, commonly realised in stock markets.

Cashback

Cashback is a reward program where a portion of the amount spent on a transaction is returned to the spender.

CeFi

CeFi, or Centralised Finance, is the centralised alternative to DeFi, offering traditional finance-like services on blockchain.

Central Bank

The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.

Circulating Supply

Circulating Supply refers to the number of cryptocurrency tokens or coins actively available for trading in the market.

Coin

A Coin is a primary form of cryptocurrency that operates independently on its blockchain, serving various transactional purposes.

Coin Burning

Coin Burning is a method to permanently remove cryptocurrency units from circulation, potentially increasing scarcity and value.

Cold Staking

Cold Staking involves securing cryptocurrency in a cold wallet, not connected to the internet, for staking purposes to enhance security.

Cold Wallet

Wallets that are not connected to the internet.

Commercial Bank

Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.

Consensus Mechanism

A Consensus Mechanism is a decentralised method for validating transactions on a blockchain, crucial for maintaining network integrity.

Crowdfunding

Crowdfunding is an online method of raising funds, allowing broad participation from various individuals or groups.

Crypto Lending

Crypto Lending involves providing loan services using cryptocurrencies on centralized or decentralised platforms.

Cryptocurrency

Cryptocurrency is a digital or virtual currency using cryptography for security, operating on a decentralised blockchain system.

Cryptography

Cryptography, a crucial component of secure communication, is the study and application of techniques for protecting information.

Custodial Wallet

A Custodial wallet is a cryptocurrency wallet where third parties maintain custody of the owner's private keys.

Custody

Custody in cryptocurrency involves managing a wallet by oneself, ensuring control over the associated private key.

DAO

A Decentralised Autonomous Organisation (DAO) operates on blockchain principles, automating governance and decision-making.

DApp

DApp, or Decentralised Application, allows users to interact with blockchain-based services in a distributed network environment.

DEX

A Decentralized Exchange (DEX) facilitates cryptocurrency trading without intermediaries, directly utilising blockchain technology.

DLT

Distributed Ledger Technologies (DLT) are based on a decentralised and immutable ledger of transactions, shared across a network.

DNS

The Domain Name System (DNS) is a hierarchical structure that maps domain names to their corresponding IP addresses on the internet.

DYOR

Do Your Own Research (DYOR) emphasizes the importance of independent research and not solely relying on a single information source.

Database

A Database is a systematically organised collection of data, stored and accessed electronically, used across various industries.

DeFi

Decentralised Finance (DeFi) comprises financial solutions based on blockchain technology, operating in a decentralised manner.

Decentralised

A system is called Decentralised when it is governed by consensus among participants without a central authority or hierarchy.

Default

Default occurs when an entity fails to meet its debt obligations, potentially leading to bankruptcy or other financial repercussions.

Deficit

A Deficit in economics signifies a situation where expenses exceed revenues, resulting in a state of financial loss.

Delegated Proof-of-Stake

Delegated Proof-of-Stake is a system where stakeholders transfer their staking power to trusted validators who maintain the network.

Delisting

Delisting is the removal of a cryptocurrency from an exchange's offerings, often due to non-compliance or poor performance.

Diversification

Diversification in investment involves strategically including various assets with different characteristics to reduce portfolio risk.

Dividend

A Dividend is a share of profit distributed to shareholders of a company, usually paid periodically as a return on investment.

DoS

A Denial of Service (DoS) is a cyber attack aimed at making a network or service unavailable, disrupting normal operations.

Double Spending

Double Spending is a risk in digital payment systems, where the same amount might be fraudulently spent twice without proper safeguards.

Dovish

Dovish monetary policy is characterised by low-interest rates and higher employment levels, aiming to stimulate and foster economic growth.

Drawdown

Drawdown is a financial indicator measuring the decline from an asset's peak to its lowest point over a specified period, reflecting risk.

FOMO

Fear Of Missing Out (FOMO) in trading and cryptocurrency contexts refers to the anxiety of missing profitable opportunities.

FUD

FUD (Fear, Uncertainty, and Doubt) describes a general sense of negativity or pessimism in the market, potentially affecting prices.

Fakeout

A Fakeout in the market occurs when the actual price trend diverges from investor expectations, leading to mistaken trading decisions.

Fan Token

Fan Tokens are specialised utility tokens that enable sports teams to engage and interact with their fan base.

Fee

A Fee is a charge incurred for executing financial transactions, often seen in trading, banking, and service provisions.

Fiat Currency

Fiat Currency is government-issued legal tender, not backed by physical commodities, serving as the standard medium of exchange.

FinTech

FinTech combines finance and technology, where companies innovate in financial services using advanced technological solutions.

Financial Bubble

A Financial Bubble is an economic cycle characterised by the rapid escalation of asset prices beyond their intrinsic values.

Financial Instrument

A Financial Instrument is a tool or asset used in financial markets for investment, trading, or funding activities, like stocks or bonds.

Financial Market

The Financial Market is a structured space for trading financial securities, including stocks, bonds, and other investment vehicles.

Floor price

The Floor price is the lowest price at which an asset, such as an NFT or stock, is currently available for purchase on the market.

Forex

The Forex (Foreign Exchange) Market is a global platform for trading fiat currencies, operating 24/7 with high liquidity.

Fungibility

Fungibility is the characteristic of assets that are interchangeable and divisible into smaller units for ease of exchange.

Futures Contract

A Futures Contract is an agreement to buy or sell an asset at a predetermined price at a specified future date (hedging or speculation).

Market Cap

Market Cap denotes the total market value of all circulating coins or tokens of a particular cryptocurrency.

Market Maker

Market Makers are intermediaries who buy and sell large quantities of an asset to facilitate its liquidity and ensure market depth.

Market Mover

A Market Mover is a factor or event capable of significantly influencing a financial market's direction and price levels.

Market Order

A Market Order is executed instantly at the next available best market price for buying or selling cryptocurrencies.

Market Trend

Market Trend signifies the prevailing direction of financial markets, identified over a substantial duration for investment analysis.

Metadata

Metadata is a type of data that provides essential information about other data, enhancing its context, usability, and organisation.

Metaverse

The Metaverse is a digital platform offering immersive, shared experiences in a virtual online environment, often integrating blockchain.

Mining

Mining involves solving complex cryptographic challenges to create new blocks on a blockchain, earning cryptocurrency rewards.

Mining Pool

A Mining Pool is a collective that combines multiple miners' computational power to enhance cryptocurrency mining efficiency.

Mining difficulty

Mining difficulty reflects the complexity of the cryptographic problems that must be solved to mine a block in networks like Bitcoin.

Minting

Minting is the process of creating and registering new digital assets, such as tokens or NFTs, on a blockchain.

Modularity

Modularity in software development focuses on creating flexible systems by segmenting components for easier management and adaptation.

Moon

The term 'Moon' describes a rapid and significant surge in a cryptocurrency's price, indicating bullish market sentiment.

Multisig Wallet

A Multisig (Multi-signature) wallet requires multiple private keys to authorize cryptocurrency transactions, enhancing security.

Mutual Funds

Mutual Funds pool capital from multiple investors to invest collectively in diversified portfolios of assets.

P2P

Peer-to-peer (P2P) networks facilitate direct user data exchange, bypassing the need for centralised intermediaries.

Pair

In trading, a Pair involves two currencies exchanged against each other, commonly seen on cryptocurrency and forex exchanges.

Prediction Market

Prediction markets are exchange-traded platforms that predict the outcomes of future events, reflecting market sentiment and speculations.

Price action

Price action refers to the movement and behaviour of a financial instrument's price over time, used for predictive analysis in trading.

Private Key

A Private Key is a unique secure cryptographic code granting access to a cryptocurrency wallet and is associated with a public key.

Proof-of-Stake

Proof-of-Stake is a blockchain consensus method where validators stake their cryptocurrencies to participate in network governance.

Proof-of-Work

Proof-of-work is a blockchain consensus mechanism relying on miners' computational power to validate transactions and create blocks.

Public Key

A Public Key is a unique cryptographic code for identifying a blockchain cryptocurrency wallet and is associted with a private kwy..

Pump&Dump

Pump&Dump is a manipulative market strategy that artificially inflates cryptocurrency prices for the benefit of the initiators.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Pure Proof-of-Stake

Pure Proof-of-Stake is a consensus model where validators are selected randomly and anonymously, using Verifiable Random Functions (VRF).

SEC

The SEC (Securities and Exchange Commission) is a U.S. government agency responsible for regulating and overseeing the securities markets.

Satoshi Nakamoto

Satoshi Nakamoto, the pseudonymous creator(s) of Bitcoin, remains a mystery with no known true identity and no current online presence.

Scarcity

Scarcity defines the limited availability of an asset, directly influencing its market demand and perceived value.

Seed phrase

A Seed Phrase is a series of 12 or 24 words used to recover access to a cryptocurrency wallet, acting as a backup tool.

Shard

In blockchain, Shard refers to a network subdivision that enhances transaction processing efficiency and overall network scalability.

Slippage

Slippage is the variation between a trade's expected and executed price, often occurring in fast-moving or illiquid markets.

Smart Contract

A Smart Contract is a digital contract with terms automatically executed by the blockchain when predetermined conditions are met.

Stablecoin

Stablecoins are cryptocurrencies whose value is pegged to stable assets like fiat currencies or precious metals, aiming to reduce volatility.

Stake

The Stake represents the total cryptocurrency users are currently staking within a blockchain network to gain rewards.

Staking

Staking involves holding cryptocurrencies in a digital wallet to support network operations and earning rewards for participation.

Staking Derivative

Staking Derivatives are financial products derived from staking, with values dependent on the performance of staked tokens and network reward

Staking Pool

A Staking Pool combines the cryptocurrencies of several individuals to increase collective staking power and potential rewards.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.

Stop Order

A Stop Order is a conditional trade tool in markets, allowing investors to buy or sell assets when prices reach a set level.

Structured data

Structured data refers to information that is highly organised in a way that is easily searchable and algorithmically manageable.

Supply and demand

Supply and demand are fundamental economic forces determining the price and availability of goods and services in the market.

Support and resistance

Support and Resistance are technical analysis tools identifying price levels where an asset's price trend may pause or reverse.

Swap

Swap is the exchange of one crypto token for another via a decentralised platform, enabling seamless asset conversion.