Airdrop, a method of distributing a new cryptocurrency to a large number of users for free or in exchange for a small task, such as sharing a message on social media.
Altcoin, any cryptocurrency other than Bitcoin.
AML, short for 'anti-money laundering,' a set of laws and regulations designed to prevent the illicit use of financial systems for money laundering activities.
Atomic swap, a type of cryptocurrency trade in which two parties can exchange different cryptocurrencies without the need for a third-party exchange or intermediary.
Bear market, a market characterized by falling prices and negative investor sentiment.
Bitcoin, the first and most well-known cryptocurrency, first released in 2009.
Blockchain, a distributed, decentralized, public ledger that records cryptocurrency transactions.
Call option, an option that gives the holder the right to buy an asset at a predetermined price.
Coinmarketcap, a website that tracks the market capitalization and price of various cryptocurrencies.
Cold storage, a method of storing cryptocurrency offline, in a secure location such as a hardware wallet or a paper wallet, in order to protect it from hackers.
Cryptocurrency, a digital or virtual currency that uses cryptography for security and is not issued by any central authority, such as a government or bank.
Cryptocurrency market capitalization
Cryptocurrency market capitalization, the total value of all the cryptocurrency in circulation, calculated by multiplying the number of units of a particular cryptocurrency by its current market price.
Decentralized autonomous organization (DAO)
Decentralized autonomous organization (DAO), a type of organization that is run using smart contracts and decentralized governance, allowing it to operate without the need for traditional management structures.
Decentralized finance (DeFi)
Decentralized finance (DeFi), a financial system built on blockchain technology that allows users to access a wide range of financial services without the need for traditional intermediaries, such as banks.
Delegated proof of stake (DPoS)
Delegated proof of stake (DPoS), a type of consensus algorithm used in some cryptocurrencies, in which users vote for a group of 'witnesses' who are responsible for validating transactions and adding them to the blockchain.
Ethereum, a cryptocurrency and decentralized platform for applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference.
Exchange, a platform that allows users to buy and sell cryptocurrency using fiat currency or other cryptocurrencies.
Expiration date, the date on which an option or futures contract expires and becomes invalid.
Fiat currency, a government-issued currency, such as the US dollar or Euro, that is not backed by a physical commodity.
Forks, a split in the blockchain of a cryptocurrency, resulting in the creation of two separate versions of the cryptocurrency.
Futures contract, a legally binding agreement to buy or sell a particular asset at a predetermined price at a specific point in the future.
Gas, the amount of computational power required to perform a blockchain transaction. In the case of Ethereum blockchain, it refers to the fee paid to execute a transaction and influences the speed at which the transaction is added to the blockchain.
Genesis Block, the first block of a blockchain network, which is hardcoded into the protocol and serves as the starting point for the blockchain's ledger. It is the only block that does not reference a previous block, and its creation is a critical step in launching a new blockchain network.
Gigahash, a unit of measurement for the processing power of a cryptocurrency mining hardware. It represents one billion hash calculations per second, where a hash is a mathematical calculation that verifies and secures transactions on a blockchain network. The more gigahashes a miner has, the higher the chance of successfully mining a new block and earning the associated rewards.
Gold-Backed Currency, a type of currency that is backed by a certain amount of gold reserves held by a central bank or other financial institution. The value of the currency is linked to the current market value of gold, which provides a level of stability and confidence in the currency's purchasing power. Gold-backed currencies were commonly used in the past, but are now less prevalent due to the flexibility of fiat currencies and the high costs associated with storing and securing physical gold reserves.
Halving, a predetermined event in the cryptocurrency market in which the reward for mining a block is cut in half, resulting in a decrease in the supply of new units of the cryptocurrency.
Hash, a fixed-size string of characters that represents the output of a cryptographic function, used in cryptocurrency mining to identify valid blocks.
Hashing power, the computing power of a miner or mining pool, used to perform the calculations necessary to validate transactions and add them to the blockchain.
Hardware wallet, a physical device that stores a user's private keys and allows them to access their cryptocurrency.
Initial coin offering (ICO)
Initial coin offering (ICO), a fundraising method in which a new cryptocurrency project sells a portion of its tokens to early supporters in exchange for fiat currency or other cryptocurrencies.
Jager, A term used as the smallest denomination of Binance Coin (BNB). One Jager is equivalent to 0.000000001 BNB and is also known as one 'gwei'. This unit is used to measure very small amounts of Binance Coin, similar to how a Satoshi is used to measure very small amounts of Bitcoin.
KYC, short for 'know your customer,' a process in which a business verifies the identity of its clients to comply with anti-money laundering and anti-terrorism financing regulations.
Leverage, the use of borrowed capital to increase the potential return on an investment.
Lightning Network, a layer 2 payment protocol that allows users to perform fast and cheap transactions on top of a blockchain, reducing the load on the blockchain and improving scalability.
Limit order, an order to buy or sell a particular asset at a specified price or better.
Liquidity, the ease with which an asset can be bought or sold on the market without affecting the asset's price.
Long position, a position in which an investor holds a particular asset with the expectation that its price will increase.
Margin call, a demand for an investor to deposit additional funds or securities to meet the minimum margin requirements for a particular position.
Margin trading, a trading strategy in which an investor borrows funds from a broker to trade a larger position than they would be able to with their own capital.
Market order, an order to buy or sell a particular asset at the best available price.
Mining, the process of verifying and adding transactions to the blockchain, for which miners are rewarded with a small amount of cryptocurrency.
Multi-sig, short for 'multi-signature,' a type of wallet that requires more than one private key to authorize a transaction.
Negative Volume Index (NVI)
Negative Volume Index (NVI), an indicator used in technical analysis to track the strength of a trend in a stock or other financial asset. The NVI is based on the theory that price trends are more reliable when accompanied by low trading volumes, and vice versa. The indicator calculates the cumulative change in a stock's price over time, adjusted for changes in trading volume. A rising NVI indicates that the stock is experiencing an upward trend with low trading volume, which is considered a bullish signal, while a falling NVI suggests a bearish trend with high trading volume.
Network, in the context of cryptocurrencies and blockchain technology, a network refers to a decentralized system that allows users to transact with each other without relying on a central authority. These networks are built on a distributed ledger that records all transactions, which is shared and synchronized across a network of computers or nodes. Nodes on the network work together to verify and validate transactions, maintain the integrity of the ledger, and ensure that the rules of the network are followed. Examples of cryptocurrency networks include the Bitcoin network, Ethereum network, and many others.
Network Latency, In the context of cryptocurrencies and blockchain technology, network latency refers to the amount of time it takes for a transaction to be transmitted across a network of computers or nodes. It is the delay or lag that occurs when information is transmitted from one node to another over a network. Network latency is a critical factor in the speed and efficiency of blockchain transactions, as delays in transmission can lead to slower confirmation times and higher transaction fees. To ensure that transactions are processed quickly and efficiently, blockchain networks often use consensus mechanisms and other techniques to optimize network latency and minimize delays.
Newb, a term used in the cryptocurrency community to refer to a new or inexperienced user who is not familiar with the technical aspects or terminology of the industry. Newbs are often characterized by their lack of understanding of basic concepts such as wallets, exchanges, private keys, and security best practices. Many online communities, forums, and social media groups exist to provide support and guidance to newbs and help them learn about the cryptocurrency ecosystem. As with any new technology or industry, it is important for newbs to do their own research and exercise caution when investing or transacting in cryptocurrencies.
Node, in the context of cryptocurrencies and blockchain technology, a node refers to a computer or device that participates in the network by running a copy of the blockchain software. Nodes are responsible for validating transactions, maintaining the integrity of the blockchain, and ensuring that the rules of the network are followed. Each node has a copy of the entire blockchain ledger and communicates with other nodes to verify and update the ledger. There are different types of nodes, including full nodes, light nodes, and mining nodes, each with different roles and responsibilities. Nodes are an essential part of the decentralized network architecture that enables cryptocurrencies to function without relying on a central authority.
Non-Custodial, in the context of cryptocurrencies and blockchain technology, non-custodial refers to a system or service that allows users to have full control over their digital assets without relying on a third-party custodian. A non-custodial system or service does not hold or manage users' private keys or digital assets, but instead provides users with direct access and control over their assets. This provides users with greater security, privacy, and control over their assets, as they are not vulnerable to the risks associated with centralized custodianship. Non-custodial wallets, decentralized exchanges, and other blockchain-based services are examples of non-custodial systems that enable users to manage their assets independently.
Non-Fungible Token (NFT)
Non-Fungible Token (NFT), a type of digital token that represents a unique asset or item, such as a piece of art, a collectible, or a game item. Unlike fungible tokens such as cryptocurrencies, NFTs are not interchangeable and have unique properties and attributes that distinguish them from one another. NFTs are created using blockchain technology, which provides a secure and transparent way to verify ownership and authenticity of the underlying asset. Each NFT contains a unique digital signature that is recorded on the blockchain, making it impossible to duplicate or counterfeit. NFTs have gained popularity in recent years as a way to create and trade digital art and other unique digital assets.
Option, a financial derivative that gives the holder the right, but not the obligation, to buy or sell a particular asset at a predetermined price at a specific point in the future.
Order book, a record of all outstanding buy and sell orders for a particular asset, showing the price and quantity of each order.
Orphan block, a block that is not added to the main blockchain because it was based on a chain of blocks that was later abandoned in favor of a different chain.
Over-the-counter (OTC), a type of trading that occurs outside of traditional exchanges, typically involving large trades between institutional investors.
Paper wallet, a physical copy of a user's private and public keys that can be stored offline as a means of cold storage.
Peer-to-peer (P2P), a decentralized network structure where each node in the network can act as both a client and a server, allowing users to transact directly with each other without the need for a central authority.
Premium, the price of an option, paid by the holder to the seller.
Private key, a secret piece of data used to access and spend a cryptocurrency, consisting of a long string of characters.
Proof of stake (PoS)
Proof of stake (PoS), a type of consensus algorithm used in some cryptocurrencies, in which the likelihood of a node adding the next block to the blockchain is proportional to the amount of cryptocurrency it holds.
Proof of work (PoW)
Proof of work (PoW), a type of consensus algorithm used in some cryptocurrencies, in which miners compete to solve a complex mathematical problem in order to validate transactions and add them to the blockchain.
Put option, an option that gives the holder the right to sell an asset at a predetermined price.
Public key, a piece of data that corresponds to a private key and is used to receive cryptocurrency.
Radio Frequency Identification (RFID)
Radio Frequency Identification (RFID), a technology that uses radio waves to wirelessly identify and track objects or people. RFID systems consist of a reader or scanner device that emits radio waves and a tag or transponder attached to the object being tracked. When the tag comes within range of the reader, it responds with a unique identification code, allowing the object to be located and tracked. RFID technology is widely used in various industries, such as supply chain management, retail, transportation, and logistics, to improve efficiency, accuracy, and security. In the context of blockchain technology, RFID can be used to provide secure and transparent tracking and verification of physical assets, such as goods and products, throughout the supply chain.
Rage-quit, a slang term used to describe the act of abruptly leaving or quitting a game, discussion, or activity out of frustration or anger. The term originated from the gaming community, where players who become frustrated or angry with a game might quit in a fit of rage. The act of rage-quitting is often seen as immature or disrespectful, and may result in negative consequences such as losing progress or damaging relationships with other players or participants.
Raiden Network, a layer-two scaling solution for Ethereum blockchain that aims to improve transaction speeds and reduce fees. The Raiden Network uses off-chain payment channels to enable faster and more efficient transfers of Ether and ERC-20 tokens. By conducting transactions off-chain, the network can significantly increase the throughput and scalability of the Ethereum blockchain. The Raiden Network also supports atomic swaps, which allow for trustless exchange of different assets without the need for a centralized exchange. The network is named after the Japanese god of thunder and lightning, Raiden.
Rank, in the context of cryptocurrencies, rank refers to the position of a particular cryptocurrency in terms of market capitalization, trading volume, or other key metrics. Market capitalization rank is one of the most common ways to rank cryptocurrencies, and is determined by multiplying the current price of the cryptocurrency by the total number of coins or tokens in circulation. The resulting number represents the total value of the cryptocurrency, and is used to rank it against other cryptocurrencies in the market. Trading volume rank, on the other hand, is determined by the amount of trading activity or liquidity of the cryptocurrency, and is often used as an indicator of market demand and investor sentiment.
Ransomware, a type of malicious software (malware) that is designed to encrypt or lock a victim's computer files or entire system, making them inaccessible until a ransom is paid to the attacker. Ransomware attacks typically involve the attacker demanding payment in cryptocurrency, such as Bitcoin, in exchange for a decryption key or password that will unlock the victim's files. Ransomware can be spread through various methods, including phishing emails, drive-by downloads, or software vulnerabilities. Ransomware attacks can have devastating consequences for individuals, businesses, and organizations, and can result in significant financial and reputational damage. Preventative measures such as regular software updates, antivirus software, and data backups can help mitigate the risk of a ransomware attack.
Satoshi Nakamoto, the pseudonym used by the unknown person or group of individuals who created Bitcoin and authored the original Bitcoin white paper in 2008. Satoshi Nakamoto's true identity remains a mystery, and the name is widely believed to be a pseudonym or group pseudonym. Satoshi Nakamoto is credited with designing and implementing the first blockchain and launching the Bitcoin network in 2009. Satoshi's contributions to the development of blockchain and cryptocurrency have had a profound impact on the financial and technological landscape, and have inspired the creation of numerous other cryptocurrencies and blockchain-based projects.
Seed phrase, a sequence of words that can be used to restore access to a cryptocurrency wallet, typically consisting of 12-24 words.
Short position, a position in which an investor sells an asset they do not own, with the expectation that its price will decline.
Short selling, a trading strategy in which an investor sells an asset they do not own, with the expectation that the price will decline, allowing them to buy the asset back at a lower price and profit from the difference.
Smart contract, a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
Soft fork, a fork that is backward compatible and results in the creation of a new version of the same cryptocurrency.
Stablecoin, a cryptocurrency that is pegged to a stable asset, such as the US dollar, in order to minimize price volatility.
Stop loss order
Stop loss order, an order to sell a particular asset when it reaches a certain price, used to minimize losses in the event of a price decline.
Strike price, the predetermined price at which an option holder has the right to buy or sell an asset.
Take profit order
Take profit order, an order to sell a particular asset when it reaches a certain price, used to lock in profits.
Underlying asset, the asset that an option or futures contract is based on.
Volatility, the rate at which the price of an asset fluctuates over time.
Wallet, a software program that stores a user's private and public keys and allows them to send and receive cryptocurrency.
Whale, a term used to describe a large holder of a particular cryptocurrency.
Yield Curve, a graphical representation of the relationship between the yields on different types of bonds with different maturities. The yield curve plots the yields of bonds with similar credit quality but different maturities on the y-axis, against the time to maturity on the x-axis. Typically, longer-term bonds have higher yields than shorter-term bonds to compensate investors for the increased risk associated with holding longer-term investments. A normal yield curve slopes upward, with longer-term bond yields higher than shorter-term bond yields. An inverted yield curve, on the other hand, slopes downward, with shorter-term bond yields higher than longer-term bond yields, and is often seen as a signal of an impending recession. Yield curves can provide valuable insights into the expectations of investors about future economic conditions and interest rates.
Yield Farming, a practice in decentralized finance (DeFi) that involves earning a return on cryptocurrency holdings by providing liquidity to a DeFi protocol. Yield farming typically involves depositing cryptocurrency into a DeFi platform, such as a decentralized exchange or a liquidity pool, in exchange for rewards in the form of additional tokens or fees. These rewards can be earned by providing liquidity to the platform, which helps to facilitate trades and improve the efficiency of the DeFi ecosystem. Yield farming has become increasingly popular in the cryptocurrency space as a way to earn passive income on cryptocurrency holdings, and has led to the development of new DeFi protocols and financial instruments. However, yield farming can also be associated with higher risks, such as impermanent loss and smart contract vulnerabilities. Investors should carefully consider the risks and rewards of yield farming before participating in these activities.
Yield Sensitivity, The degree to which the price of a fixed-income security, such as a bond, is affected by changes in interest rates. Yield sensitivity is also known as duration and is a measure of the bond's price sensitivity to changes in interest rates. The longer the duration of the bond, the more sensitive its price is to changes in interest rates. This is because the future cash flows of the bond, which are used to calculate its present value, are discounted at the prevailing interest rate. When interest rates rise, the present value of future cash flows decreases, leading to a decline in the bond's price. Conversely, when interest rates fall, the present value of future cash flows increases, leading to an increase in the bond's price. Yield sensitivity is an important consideration for fixed-income investors as it can affect the value of their investments and the overall performance of their portfolios.
YTD, stands for 'Year-to-Date' and refers to the period from the beginning of the current year to the current date. YTD is often used in financial reporting to describe the performance of an investment or financial instrument over the current year-to-date period. For example, the YTD return of a stock would reflect the percentage change in the stock's price from the first trading day of the current year to the current date. YTD figures are useful for tracking the performance of investments over the course of a year and can be compared to other benchmarks or indexes to evaluate performance.
Zero Confirmation Transaction
Zero Confirmation Transaction, a cryptocurrency transaction that has been broadcast to the network but has not yet been confirmed by a miner or added to a block in the blockchain. Zero confirmation transactions are also known as unconfirmed transactions and can occur when a sender sends cryptocurrency to a recipient without waiting for the transaction to be verified by a miner. Zero confirmation transactions are faster than confirmed transactions and can be useful for small transactions or in situations where speed is important. However, zero confirmation transactions are also associated with a higher risk of fraud, as they can be subject to double-spending attacks, where a malicious actor attempts to spend the same cryptocurrency twice before the transaction is confirmed. Merchants and other recipients of cryptocurrency payments should take this risk into consideration when accepting zero confirmation transactions and may require additional verification or security measures to mitigate the risk of fraud.
Zero Knowledge Proof
Zero Knowledge Proof, a cryptographic protocol that allows one party to prove to another party that they know a piece of information, without revealing the information itself. Zero knowledge proofs are designed to provide privacy and security in digital communications by allowing parties to verify information without disclosing sensitive data. This is achieved by using complex mathematical algorithms that allow the party providing proof to generate a unique cryptographic code, or proof, that can be verified by the other party without revealing any additional information beyond the fact that the code is valid. Zero knowledge proofs are used in a variety of applications, including digital currencies, authentication systems, and secure data sharing. They are particularly useful in situations where parties need to prove their identity or authenticate their credentials without disclosing sensitive information.
Zk-SNARKs, stands for 'Zero-Knowledge Succinct Non-Interactive Argument of Knowledge' and refers to a type of zero-knowledge proof that allows one party to prove to another party that they have certain knowledge, without revealing the knowledge itself. Zk-SNARKs are used in various blockchain applications, such as cryptocurrencies, to enhance privacy and security.