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Crypto Glossary

📚 Have you been enjoying our crypto glossary? From now on, find all the terms in one place.

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📖 A 51% attack is an attempt on the blockchain integrity when a single person or group takes control over half of the network hash rate. They get enough mining power to bypass the consensus algorithm and act maliciously, i.e. commit double-spending or reverse transactions order.

Aa

📊 Active management, or investing, is the strategy aimed at making a profit from both upward and downward price trends. A fund manager trades financial assets and continuously monitors their performance, trying to exploit market inefficiencies.

🤓 An airdrop is a term in the cryptocurrency ecosystem that means the sharing of digital assets to the public. It’s usually executed through the free but limited distribution of a particular token.

🗒Allocation is the assignment of assets to be earned, bought, or reserved for a specific investor, group, or institution. The executive team of the crypto project usually decides on what amount of tokens will be divided into various project needs.

📈 All-Time High — a term relates to the highest price than an asset has reached. Bitcoin hit an ATH in mid-December 2017 during the bull-run with the price = $19 902. The concept of All-Time High may also be applied to the values of market capitalization (market cap).

💰AML is a set of rules enacted to prevent and disguise illicit activities related to valuable assets, i.e., illegal movement of funds.

🕊 An Angel investor is a person with a high net worth that provides funding for entrepreneurs or start-ups in order to expand his own wealth.

💻 API (Application Programming Interface) is a software intermediary that allows applications to share information with each other. With APIs, developers can use ready-made functionality without the need to build it themselves.

🤓 APY (annual percentage yield) is the total return rate earned in one year if the interest is compounded. The more often interest is compounded, the better the return.

🧮 Arbitrage is the simultaneous buying and selling of an asset with the goal to profit from a difference in price between markets.

⚙️ ASIC (application-specific integrated circuit) is special hardware designed to mine specific cryptocurrencies. In brief, mining is a process of verifying transactions to be added to the blockchain. The coins that cannot be issued this way are known as ASIC-resistant.

📂 Asset management is the term applied to any way of managing assets, both by individuals and businesses. These assets can be either physical (real estate, precious metals) or non-physical (trademarks, cryptos). Managing financial assets is ensuring they are handled efficiently.

Atomic swap is a smart contract-based technology that allows exchanging cryptos without turning to a third-party. It enables trading assets that circulate on different blockchains. The main advantage is the absence of necessity to use private keys.

🧮Auction is the sale of something through a bidding process. The seller sets the starting price, and those willing to buy the item offer competing bids until one of them comes up with a price no one wants to outbid. They are declared the highest bidder and can make a purchase.

Bb

💰Bag holder is an investor retaining an asset that is going down in price and is unlikely to recover its value. Such people keep their investment for a long period until it goes worthless. Someone may become a bag holder simply not knowing the asset is underperforming.

🤓 A bear market is a term that reflects a negative rend in the prices on the market. It reflects a powerful market downtrend of dropping prices for a short time. The term is used for both cryptocurrency and traditional markets, including stocks, bonds, commodities, and real estate.

🐻 A bear trap is an incorrect signal about a reversal of a rising price trend. Bear traps can trick traders into taking long positions while waiting for the price movements that do not occur.

📉 Bid-ask price is the difference between the sell order (lowest asking price) and the buy order (highest bid price). It’s either created by a trader to monetize their services or shaped by the difference between the limit orders set by traders on the open market.

👻 Bitconnect (BCC) is a cryptocurrency that was popular in 2017. The company behind this coin was suspected of Ponzi fraud and closed its doors in January 2018.

⚖️ Bitcoin Dominance refers to the ratio between the market capitalization of Bitcoin to the rest of the cryptocurrencies in the market. Market cap reflects the relative size of a crypto and is calculated by multiplying the price of a certain coin by its circulating supply.

🍕‘Bitcoin Pizza’ refers to the first known purchase of tangible goods with Bitcoin that happened on May 22, 2010. Two pizzas were bought for 10.000 BTC, which was equivalent to ~ 41 USD. In 2017, the transaction was worth $200,000,000, and May 22 was named a Bitcoin Pizza Day.

🤓 Bollinger Bands is a technical analysis tool to measure the current market rate deviations. They spot the moments of high or low volatility of a market. The BB consist of two sidelong bands representing the price floating range and a middle line representing the average value.

🎁Bounty means the distribution of rewards for performing certain actions, i.e., social media activity, coding, translation, and so on. A bounty program is usually held during the ICO stage and is aimed at promoting the project.

🧠 A brain wallet refers to the concept of storing funds in one’s own mind by memorizing a seed phrase, generated by the wallet software.

🖥️ BFA (brute force attack) is a cyberattack on a password or PIN. The automated script tries as many different combinations as possible until the right one is found. The longer the targeted password, the more variations will need to be tested.

🤓 A bull market is a term that means a positive trend in the prices on the market. It reflects a powerful market uptrend of increasing rates for a short time. The term is applied for both cryptocurrency and traditional markets, including stocks, bonds, commodities, and real estate.

🐂 A bull trap is an inaccurate signal referring to a declining trend that reverses and heads upwards when, in reality, the security will continue to decline.

🧱 A buy wall is a healthy trend for crypto. It is the result of one or a number of big buy orders that are put in an order book and have the same price. When this occurs to a healthy coin, the orders to buy are filled quickly.

Cc

🕯 A candlestick is a tool for financial market analysis. It’s a visual depiction of the asset price behavior. It allows traders to represent the open, high, low, and closing prices within a particular time slot.

🏦 Central Bank is a financial institution that supervises and implements a country’s monetary policy. It issues fiat currency and determines interest rates, thus managing a nation’s money supply. Primarily, the organization strives to create a sound currency system.

⚡ Centralization is the type of power distribution within an organization where a handful of individuals practices planning and management. As opposed to a centralized system, a decentralized one includes no single authority in charge of decision-making.

☁️ Cloud mining means mining with remote processing power from companies located in areas with low electricity costs.

📊 CFTC (Commodity Futures Trading Commission) is a US regulatory entity supervising the derivatives market that includes futures, swaps, and options. The organization aims to promote a financially stable and transparent market, as well as to protect the rights of its participants.

👛 Cold storage is the way of holding cryptos offline to ensure their safety. There are hardware and paper cold wallets. A hardware one goes online when it’s connected to another device, while a paper one represents a piece of paper with public and private keys printed on it.

💸Collateral is a crypto asset put in pledge to borrow a different cryptocurrency or token. For example, you can provide $ETH and get $DAI. Usually, the collateral value exceeds the loan being taken, which helps to keep the system stable.

🗒CPI stands for Consumer Price Index and is used to track changes in prices for consumer goods and services. CPI is calculated by dividing the market basket value of the current year by the value of the same basket in the base year, all of it multiplied by 100.

Dd

🤖 A DAO is a decentralized autonomous organization, where everything is automated and based on “open-source” computer programming code. DAOs don’t have any human staff and are immutable and censorship-resistant.

📉 Dash FastPass is a Dash ecosystem for traders and users. It includes partner services to provide a better user experience. The ecosystem allows completing deposits or withdrawals in minutes and providing information and analysis on the trading ecosystem’s newest trends.

🙀 Dead Cat Bounce is a term that refers to a short-term price recovery before a major crash.

🕸 Deep Web is a hidden part of the World Wide Web which consists of pages not indexed by common web search engines like Google, Bing, or Yahoo. They require either a specific authentication method or a direct URL and cover over 99% of the whole WWW.

💣Difficulty bomb refers to the increased level of mining difficulty so that it takes more time to mine a new block on the Ethereum blockchain. It is required to keep the network secure, as the more miners set to work, the easier it would be to guess the puzzle.

💼 Diversification is the strategy aimed at reducing the probability of significant losses through the acquisition of a wide range of assets, either within a single or different classes. The high-performance assets are meant to neutralize those with negative returns.

💣 A distributed denial-of-service (DDoS) attack is an attempt to bring down a website by flooding it with traffic from multiple sources.

🔄 Divergence happens when an indicator and the price of a currency are moving in opposite directions. They are used to monitor a market trend, and if it is getting weaker, it may lead to a consolidation period or a trend reversal.

🔎DYOR (Do Your Own Research) is the acronym used to incentivize investors to properly study the info on crypto assets before acquiring them. DYOR has gained popularity because an increasing number of projects are appearing and not all of them are trustworthy.

Ff

🔪 Falling knife is a term referring to the purchase of assets that are experiencing a swift decline in price. Traders buying such assets, or “catching the knife”, assume that the value will reach its bottom shortly and hope to benefit from the next price rise.

🚰 A faucet is a website that gives out small amounts of free assets in order to get crypto beginners started.

👀 FOMO stands for the “Fear Of Missing Out” and describes the anxiety about failing to benefit from something. In terms of trading, FOMO refers to the fear of missing out on a profitable investment or trading opportunity. Such a feeling is common when an asset price goes up.

💵 Fiat currency is a national currency issued by a government or central bank. Most modern currencies (USD, RUB, EUR, UAH, etc.) are fiat.

🤸‍♀️ Flippening is a potential future event where an altcoin’s market cap surpasses Bitcoin’s market cap. It will make this altcoin the most ‘valuable’ cryptocurrency.

🧾Forced liquidation is the automatic selling of funds on the margin balance happening when the trader’s position becomes adverse. The assets are converted into cash equivalents to make up for the losses. The liquidation price depends on the leverage size.

📋FUD is an acronym for “Fear, uncertainty, and doubt” that refers to the spread of questionable info about some business, i.e., crypto project. The term also denotes traders’ negative sentiment when an asset price gradually goes down or is expected to do so.

👨‍🏫 Fundamental analysis is a method applied to financial markets to assess the intrinsic asset value. It includes market capitalization, industry health, company management and reputation rate as well as other quantitative and qualitative factors.

Hh

🔍 HODLing is the refusal to sell one’s assets, no matter their market performance or volatility level. The acronym stands for “Hold On for Dear Life” and is often used during the bear market or prolonged price slumps.

🔥Hot Wallet is a wallet accessible via the network connection. Hot Wallets are more prone to online attacks and are not as secure as Cold Wallets.

Ii

✨ ICO (Initial Coin Offering) is the fundraising held at an early development stage of a cryptocurrency project. Investors provide some popular crypto or even fiat to get the equivalent number of newly issued tokens that increase in value if the project becomes successful.

📊 Index is the measure of the value of something relative to its past value or a certain standard. An index represents an average figure for individual prices and makes a useful financial tool that helps track the asset performance. Each index is formed following specific rules.

Kk

🙋‍♂️KYC (Know Your Client) is a customer identity verification used for operations in the international finance field. KYC prevents corruption, terrorist financing, money laundering, and makes users’ accounts safer.

Ll

🌊Liquidity pool consists of tokens locked in a smart contract and is meant to facilitate trading through liquidity provision. Such a pool can be viewed as storage where market players pull their assets to ensure liquidity to everyone willing to acquire these assets.

Мм

🤓 A maker is a person who places an order that will not be executed instantly but will remain in the order book and wait for someone else’s order to match it later.

💵 Market capitalization, or market cap, is a term that refers to the total market value. The market cap for ETH, for instance, is the whole number of currency in circulation multiplied by its price. The indicator may provide an insight into the size and performance of an asset.

🚨 MACD (Moving Average Convergence/Divergence) is a trading indicator used in technical analysis. It shows the relationship between two moving averages of a security’s price.

Nn

✨ NFT (non-fungible token) is the representation of a digital or real-world asset in the form of a token. NFTs are unique and cannot be interchanged with one another, functioning as proof of authenticity within the network and serving as crypto-collectibles.

🖥 A node is any computer that connects to network and has a complete or abbreviated copy of blockchain. Nodes can act as a communication point that may perform different functions.

Oo

🤝 OTC (Over The Counter) means off-exchange trading between two parties, without the supervision of exchange or any third party.

Pp

🧾 A paper wallet is an offline cold storage method of saving cryptocurrency. It usually involves printing the private key onto a piece of paper. Such a wallet is considered an extremely secure way to keep one’s funds safe from cyber-attacks, malware, etc.

🐠 Phishing is a common cyber-attack technique used in an attempt to acquire sensitive information (usernames, passwords, credit card details, etc.). Targets are usually contacted by email, telephone, or text by someone posing as an actual institution or person.

👨‍💻Ponzi scheme is a fraudulent investment activity. It involves paying to earlier investors with money got from fresh investors. Usually, these are represented as investment management plans, where parties think that the profit they will get is a result of the reasonable investment.

⚡Privacy coin is a cryptocurrency that allows performing untraceable transactions, protecting users’ identity. Such a coin may also hide the amount of crypto assets traded and kept in a digital wallet. Some examples of privacy coins are DASH, XMR, and ZEC.

Rr

📈Resistance is the selling pressure that prevents an asset price from rising higher. The resistance level is a sort of ‘ceiling’ that occurs when Sell Orders outnumber Buy Orders. The ability to draw resistance lines can help identify when the reversal will take place.

🗺 A roadmap is a strategic plan with a goal and the major milestones needed to reach it. In crypto, it’s common to share the roadmap publicly to give insight into the upcoming features.

Ss

Segregated Witness (SegWit) — implemented soft fork change in the transaction format of Bitcoin. Its main goal is to provide protection from transaction malleability and increase block capacity by separating the witness from the list of inputs.

💡 A sell wall is one large sell order or a number of sell orders at one price in an order book. It prevents the market price from going up until the entire sell volume is complete.

🤓 Sentiment is a term used to denote traders’ emotions as to the market state, i.e. the next price move. It is a subjective feeling not directly related to the asset performance but indicating the overall mood of the market players that may influence the trend.

🗣 The term shilling/pumping is used when someone advertises a cryptocurrency trying to get more exposure for it at all costs.

Тт

🤓 A taker is a person who places an order immediately matching the corresponding order in an order book.

🔬 Tokenomics is the study behind the allocation of tokens that outlines their main features and uses cases. Tokenomics is aimed at incentivizing investors to buy a token by presenting the info on its supply, ways of distribution, and the privileges its holders will have.

🚀‘To the moon’ is a phrase usually used when an asset’s value is skyrocketing. If a coin is “mooning,” that means that the price has hit a peak.

🖥 TOR (The Onion Router) is a network that enables the routing and consists of thousands of proxy servers run by volunteers.

🤖 A trading bot is an algorithm that trades for a user on an exchange. Both professionals and amateurs use them.

💶 TVL stands for total value locked and refers to the number of funds stored in a particular decentralized project, like DEX or DApp. TVL can serve as an indicator of success in DeFi, although it doesn’t provide a complete picture of the situation.

Ww

📄Whitepaper is a document that contains info on the crypto asset about to be launched. It features the problem the project strives to solve and the way it’s going to do so. Besides, a whitepaper includes a detailed description of the product, its architecture, and use cases.

Yy

🏄🏻‍♂️ YABC (Yet Another Bitcoin Company) is a term indicating that there’s nothing special about a project which is just trying to surf the Bitcoin-wave.

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