Crypto Terms
Cryptocurrency is becoming more and more popular every year, and more and more people are making money from it. If you hardly know anything about crypto, and you are not familiar with words like "mining", "blockchain" or "stacking", then in this section we will deal with the basic terminology.
A
Abnormal Return
Abnormal Return is calculated by taking the difference between the actual Return of the security or portfolio and the expected return, as determined by a market index or benchmark.
Absolute Advantage
Absolute advantage refers to a country or firm's ability to produce a good or service at a lower cost than another country or firm.
Absolute Return
Absolute Return refers to the actual amount of money made or lost on an investment, regardless of the performance of a benchmark or market index.
Account Balance
An account balance refers to the amount of money held in a financial account, such as a checking or savings account.
Accounting Method
An accounting method is a itemized list of rules and procedures used to record and report financial transactions.
Ascending Channel
In technical analysis, trends are determined using trendlines, which are slopes that give a clear direction of the market trend.
Average Directional Index
The average directional index (ADX) indicator measures how strong a market trend is, using moving averages and expressions in units between 1 and 100.
B
Binance Labs
Binance Labs is the investment and innovation arm of Binance, one of the world's largest cryptocurrency exchanges.
Bitcointalk
Bitcointalk is a forum dedicated to the discussion of Bitcoin and other cryptocurrencies.
Block Time
Blockchain-based systems and networks record information (transactions) as blocks. Blocks are groups of transactions that are confirmed and then added to blockchains. When blocks are added to blockchains, all nodes on the network receive a similar copy of the block information.
Bull Trap
A bull trap is a pattern that can occur in financial markets and is often used in technical analysis to identify potential market tops and short-selling opportunities.
C
Cloud Mining
Cryptocurrency mining refers to the use of computer hardware to solve the complex mathematical equations necessary to process blockchain transactions, add transactions to blockchains, and maintain the blockchain integrity.
Cross Chain
Cross-chains are technologies that allow communication between blockchains.
Crypto Assets
Crypto assets are digital or virtual assets that use cryptography for security. A defining feature of a crypto asset is that it is difficult to counterfeit because of this security feature. A defining feature of a crypto asset, and arguably its most endearing allure, is its organic nature.
Crypto Bubble
Sometimes, cryptocurrencies may trade at prices that are way more than their intrinsic values, due to several factors. You may have heard of crypto bubbles or even a crypto burst; what is a cryptocurrency bubble?
D
Daedalus Wallet
Daedalus Wallet is an open-source, decentralized wallet for the Cardano network.
Delisting
Delisting is a term that describes the action and process of removing a stock, cryptocurrency, or digital asset from trading on an exchange. When a cryptocurrency is delisted, it is removed from the exchange so that traders can no longer trade the cryptocurrency in any form. All of its pairs are removed, and investors with the cryptocurrency in their portfolio are instructed to remove them within a timeframe. Once that period elapses, traders no longer have access to the cryptocurrency.
Dip
Cryptocurrency trading is subject to market volatility, and there are not uncommon dips or fluctuations in trading activity. What is dip in crypto? A dip in cryptocurrency trading refers to a period of time when trading activity slows down or declines in response to various factors, such as market conditions, regulatory changes, or investor sentiment.
Distributed Network
A distributed network is a computer network that connects different locations (nodes). A distributed network's nodes are not all directly connected to each other, but they can communicate with one another via a network of interconnected nodes. This network type is frequently utilized for more reliability and performance than a centralized network.
DYOR
DYOR meaning crypto stands for "Do Your Own Research." It is a common phrase used in the cryptocurrency community to encourage investors to do their own research before investing in any cryptocurrency.
F
Falling Knife
A falling knife is a term used to describe the sharp nosedive of an asset and the asset itself.
Faucet
Faucet crypto is a website or application that allows users to earn small amounts of cryptocurrencies by completing simple tasks such as solving captchas, watching ads, or playing games.
Fudding
What is fud in crypto? Fud is a strategy to influence the perception of a cryptocurrency or the crypto market by spreading negative and often misleading information.
H
Hard Cap
The term hard cap may mean different things based on the context. In cryptocurrency supply, a hard cap means the maximum supply limit of a coin programmed into its algorithm.
Higher High
A higher high occurs when successive prices of an asset close higher than previous prices.
Honeyminer
Honeyminer is a cryptocurrency mining software for blockchain mining nodes.
M
Mainnet
A crypto manner is a standalone blockchain running its network of computer nodes, technologies, protocols, and tokens, instead of running on another blockchain.
Multi Coin Wallet
Cryptocurrencies are built and deployed on blockchains using protocols that define how they are minted and used. So, while BTC (Bitcoin) is a cryptocurrency of the Bitcoin blockchain, there are other cryptocurrencies built on the blockchain. There’s also the ETH (Ether) cryptocurrency, the native token of the Ethereum blockchain network, and other cryptocurrencies built on the Ethereum blockchain.
O
Off-Chain
Off-chain in blockchain refers to transactions or other actions that take place outside the blockchain network but still leverage the security provided by the blockchain. This can include things like payment channels, state channels, and other forms of off-chain scaling solutions.
Oversold
In financial trading, "oversold" is a term used to describe a market condition in which a security or index has fallen significantly in price and is likely to rebound. This can occur when there is a high level of selling pressure and insufficient buyers, causing the price to drop below what is considered fair value.
P
Peg
A price peg is a fixed or pre-determined price at which two assets are traded or exchanged for each other. Pegs are different from floating prices determined by market factors and change regularly within a short time.
Physical Bitcoins
They are typically made of metal or plastic and have a unique code or "private key" engraved on them. This private key can be used to access the digital Bitcoin stored on the coin, allowing the holder to transfer or spend the Bitcoins as they would with regular digital Bitcoins.
S
Scamcoin
A scamcoin, sometimes called "pump and dump," is a dishonest project token created to take money off traders and investors.
Sell Wall
Sometimes, crypto traders find a large volume of sell orders at a particular price, leading to a stagnant price at that level. What is a sell wall?
Spot Market
In the context of cryptocurrency, the spot market is where digital assets such as Bitcoin, Ethereum, and others are bought and sold for fiat currencies, such as the US dollar, or other cryptocurrencies, in a decentralized and peer-to-peer manner and settled on the spot, or the same day. It is also known as the cash market or physical market. The spot market differs from the futures market, where financial instruments are bought and sold for future delivery at a fixed price.
T
Throughput in Blockchain
Blockchain throughput is defined as the rate at which a blockchain completes transactions. Transaction throughput is usually measured in transactions per second (TPS) but may also be given in TPMm (transaction per minute) and TPH (transactions per hour). This should differ from a blockchain's speed but may sometimes be used to gauge how fast a blockchain operates.
Token Swap
A token swap is the exchange of one cryptocurrency token to another between users. A cryptocurrency exchange facilitates token swaps and involves exchanging an equivalent token amount.
Total Value Locked
TVL is a commonly used term in decentralized finance, but you might be wondering what is TVL crypto?
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