The most detailed cryptocurrency dictionary
A
Airdrop – is one of the most common marketing activities in the crypto industry, the purpose of which is to attract attention to the project by giving away its tokens to users for free when certain conditions are met.
Automated market makers – (AMM) are smart contracts that provide liquidity in pools and allow traders to enter trades on decentralized exchanges using a special algorithm, rather than an order book.
Automated trading – (algorithmic trading, or algorithmic trading) is a type of trading that allows traders to set up instruments that work with the help of special programs and enter trades instead of a trader.
B
Bitcoin – is the world’s first digital coin, which was released in 2008. Bitcoin is a completely decentralized coin that is not controlled by any bank or authority.
Blockchain – is a continuous chain of blocks that includes all information about transactions. In contrast to regular databases, none can change or delete this information, only add a new one.
C
Centralized exchange – (CEX) is the most famous and common type of exchange in the crypto market. The main feature of such sites is that they are under the centralized management of the companies they own. Likewise, your finances are under their control. You can compare it to a bank.
Cold wallet – is a cryptocurrency wallet, which is a hardware device, such as a flash drive. A cold wallet allows you to store cryptocurrencies offline without access to the Internet and thus makes this crypto wallet one of the safest and most reliable places to store digital assets.
Commission – is a fee for exchange services, such as buying and selling digital assets on an exchange.
Compound – is a reinvestment of profits received from investments, aimed at increasing the final profit.
Copy trading – is copying trades of professional traders. The user automatically copies all positions that the selected trader opens in real-time. All trades opened by the trader are also displayed in the user’s account.
Cross-chain bridges – are decentralized applications that allow the transfer of the same asset between different blockchains.
Crypto ATMs – are cryptocurrency ATMs or terminals with which users can replenish their crypto wallet for fiat money or, conversely, exchange digital money for regular currency.
Crypto exchange – is an online platform or company through which a user can exchange cryptocurrencies for regular money or buy cryptocurrencies for, for example, rubles.
Crypto signals – are instructions from analysts on when to buy and sell cryptocurrencies. The analyst evaluates the market and sends a signal to the user about where the price of the digital coin will go in the near future.
Crypto trading – is the buying and selling of cryptocurrencies on crypto exchanges or trading platforms to make a profit.
Crypto trading bot – is an automated software that enters and exits trades instead of the trader.
Crypto wallet – is a software that gives you access to your digital assets on a blockchain using a public and private key. The cryptocurrency itself is not stored in a crypto wallet but is stored in the blockchain.
Cryptocurrency – is digital money backed by blockchain technology and protected by cryptography (the science of encryption). They differ from ordinary money in two main parameters: independence – crypto money is not tied to any bank or state in the world; virtuality – cryptocurrency exists only in the digital space, stored in an electronic wallet.
Cryptocurrency arbitrage – is a type of earnings on the difference in quotes of digital coins, which is the purchase of a cryptocurrency at a low cost on one site and its sale at a higher price already on another site.
Cryptocurrency capitalization – (market capitalization) is the total value of all coins of a digital asset, which is based on the current quotes of crypto exchanges.
Cryptocurrency listing – is the placement of a digital asset in the list of coins on a crypto exchange for its sale and purchase.
Cryptocurrency market capitalization – is the total current value of all digital assets in the crypto market.
Cryptocurrency rate aggregators – are popular services that collect and track all the necessary information about the cost of digital coins and their dynamics.
Cryptocurrency withdrawal – is the transfer of digital coins from one crypto wallet to another or the conversion of digital coins into regular money.
Custodial wallet – is a cryptocurrency wallet in which a user’s crypto assets are stored by a third party (custodian), such as a crypto exchange. This has its advantages. For example, if a user loses their password or key, they can regain access to their funds.
D
DAO – is a decentralized autonomous organization that is hosted on the blockchain and operates using smart contracts. The organization operates on the principle of collective decision-making, without a single decision-making center.
Decentralized exchange – (DEX) is an alternative to a centralized exchange. On such platforms, all monetary transactions and trading take place automatically using smart contracts and decentralized applications. The user’s money is stored in their wallets, not in the wallets of the exchange.
DeFi – (decentralized finance) is a platform and application based on the blockchain. The main goal of the DeFi sector is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open-source protocols.
Deflation – is a process opposite to inflation, which is an increase in the value of a currency and a decrease in the prices of goods, services, etc.
Delisting of a cryptocurrency – is the exclusion of a digital coin from the list of cryptocurrencies of the exchange, after which the user will not be able to buy or sell it on this crypto exchange. In this case, the asset does not cease to exist, it simply becomes unavailable at a particular site.
Demo trading mode – is a simulation of trading on real quotes of digital coins but without the use of user funds. This tool is designed to test the function and practice trading skills for beginners. Also known as Paper Trading.
Desktop single-user robot – is a crypto trading bot that is installed on a PC. Entering trades using desktop single-user robots is possible only when the computer is turned on.
E
Entering cryptocurrency – is the transfer of funds to a cryptocurrency wallet or the purchase of digital coins for ordinary money.
Ethereum – is a cryptocurrency that ranks 2nd in terms of capitalization and a blockchain platform for decentralized online services (decentralized applications) based on smart contracts.
Etherscan – is a special platform that allows you to view all generated blocks in the Ethereum blockchain. In addition, the user can check the current network commission through this service, can check addresses and wallets, view transactions. Essentially, Etherscan is the public ledger of the Ethereum blockchain.
F
Farming – is a high-yield and high-risk type of investment in digital assets where an investor locks up their coins in a liquidity pool to get additional returns.
Fiat money – is paper money issued by the government. This type of money also includes virtual funds stored on simple plastic cards, Qiwi wallets, and others.
Fully automated robots – are cryptocurrency trading bots that analyze the market and open and close trades on their own.
H
Hard fork – is a way to make significant changes to the protocol code of a project created on the blockchain. Also, a hard fork can be used to launch new crypto projects or as a way to reach a consensus on new changes in the community.
HOLD – is a long-term strategy that provides a passive way of investing for a long time. In other words, investors simply buy a digital asset and wait for a long period of time for its value to rise in order to capitalize on the price difference.
Hot Wallet – is an online platform that is designed to store digital coins. Hot wallets can always be accessed from any device with Internet access.
Hybrid cryptocurrency exchanges – are cryptocurrency exchanges that combine all the advantages of decentralized and centralized exchanges. Crypto trading is carried out in the same way as on the CEX exchanges. Hybrid exchanges offer fast money transactions with low fees and provide users with high security since only the user has access to the private key.
I
ICO – (Initial Coin Offering) is a type of attraction of investments in a new project by selling a fixed amount of new digital coins. In the future, project tokens can be used to pay for platform services.
IDO – (Initial DEX Offering) is a model for attracting investments on a decentralized exchange, which is a collection of funds. In fact, this type of token sale is very similar to ICO, but the decentralized platform itself is engaged in attracting buyers.
IEO – (Initial Exchange Offering) is one of the types of token sales, similar to ICO, but the centralized exchange acts as an intermediary here.
Impermanent loss – is a temporary loss of funds that occurs due to the high volatility of digital assets when providing liquidity to the pool. The higher the volatility of the coins in the liquidity pool, the greater the losses. The non-permanent loss indicator is expressed in dollar terms and shows the loss compared to the HOLD strategy.
Inflation – is a process in which a currency depreciates and the prices of goods and services rise.
L
Landing – is the provision of loans to users and crypto exchanges. Landing is an alternative to lending in banks, but digital assets are used instead of ordinary money.
Liquidity pools – are smart contracts in which digital coins are blocked by platform users. Users are usually rewarded for providing their digital coins to the liquidity pool.
Liquidity provider – is an investor who has locked their digital assets in a liquidity pool.
Long – is a strategy that involves buying a cryptocurrency cheaper and reselling it at a higher price.
M
Mining – is the extraction of cryptocurrency with the help of special powerful equipment by solving complex data decryption tasks.
N
NFT token – (non-fungible token) is a non-fungible token, which is a digital entry in the blockchain registry and allows you to own a unique item in the digital space. NFTs cannot be exchanged or exchanged. Non-fungible tokens can be items such as photos, videos, gifs, paintings, music, and any other content.
Non-custodial wallet – is a decentralized wallet that allows a user to independently manage their funds without the participation of third parties. When a user creates this crypto wallet, he receives a file with private keys and a mnemonic phrase with which he can access his funds.
P
Paper wallet – is a type of cold crypto wallet, which is a sheet of paper with a printed seed phrase and/or a closed (private) key. It is a type of cold crypto wallet, which is a sheet of paper with a printed seed phrase and/or a closed (private) key.
Phishing – is a type of scam where attackers pose as a trusted service in the online space and try to obtain users’ personal information (such as username, password, bank card number, etc.) using email campaigns or messages on social networks.
Phishing site – is a fake platform that completely copies the real site. The difference can be one letter or character of the address of the actual site. When a user enters personal data on such a site, such as bank details, scammers gain access to his confidential information.
Private key – is an alphanumeric password designed to access a cryptocurrency wallet and/or conduct transactions.
Public key – is the address of your cryptocurrency wallet, to which all users have access.
Pump & Dump – is a scam to manipulate the prices of crypto assets. First, the value of the coin is artificially inflated in order to sell “dump” to inexperienced traders as expensive as possible, and then the price of the coin drops sharply and traders lose their funds.
S
SEED phrase – is a set of words consisting of 12-24 words, with which the user can restore access to his crypto wallet. An analog of a code word for a bank account.
Semi-automated robots – are crypto trading bots that provide information to the trader about possible profitable trades but do not open orders themselves.
Short – is a trading strategy that involves opening a deal on credit when the value of a coin falls. A trader sells a coin in order to buy it cheaper after a while and earn on the difference in price. Thus, when traders want to make a profit by reducing the value of a digital coin, they open short trades.
Signal bot – is a signal to buy or sell a cryptocurrency at a certain price. The time and balance of the purchase of digital assets can be determined by both the trading bot and the user himself.
Smart contract – is a computer program that runs on a blockchain network and controls the execution of an agreement between two or more parties.
Stablecoin – is a digital asset whose value is pegged to fiat money (dollar, euro) or commodities (gold, oil).
Staking – is the receipt of passive income by simply storing cryptocurrencies on a smart contract, and is an alternative to mining.
Stop Loss – is a tool whose purpose is to minimize losses during trading when the value of an asset falls.
T
Take Profit – (TP) is a protective order that helps the trader to take profit when it reaches the set level.
Tokensale – is an initial sale of new startup coins at a price below the market price.
Trading leverage – is a loan of funds to increase the amount of one transaction by 2 or more times in order to obtain a higher income.
Trailing Stop Loss – (TSL) is a dynamic Stop Loss order that is able to follow price changes. In simple words, if the price rises, then the Stop Loss value will grow along with it by the same percentage.
Trailing Take Profit – (TTP) is a dynamically changing order designed to maximize profits. In simple words, this is the addition of an additional percentage to the Take Profit level.
Transactions – are monetary transactions that include the transfer, withdrawal, and deposit of funds to the account.
Two-factor authentication – is an additional layer of security that protects user accounts from being hacked. Even if attackers find out the account password, they will not be able to access it.
Tx Hash – is a hash or transaction identifier (TxID). It consists of alphanumeric characters and is a unique number to identify each transaction and look it up on the blockchain. Every transaction associated with a cryptocurrency has this identifier.