Glossary

Get familiar with the terminology.

A
Absolute Advantage

Absolute Advantage
What Is Absolute Advantage? Absolute advantage is an economic concept that explains how one party—a country, business, or individual—can produce a good or service more efficiently than another. It means being better at making something using fewer resources, less time,…

Active Management
What Is Active Management? Active management is an investment strategy in which a portfolio manager or investor regularly decides to buy or sell assets. The goal is to outperform the market or a specific benchmark. This approach contrasts with passive…

Allocation
What Is Allocation in Crypto? Allocation in crypto refers to how assets or tokens are distributed or assigned. This can involve investment funds, project token supplies, or personal portfolio management. It is key in financial planning, project development, and investor…

Altcoin
What Is an Altcoin? An altcoin is any cryptocurrency other than Bitcoin. The word comes from "alternative" and "coin." It refers to all digital assets developed after Bitcoin, offering different features, use cases, or improvements. There are thousands of altcoins…
B

Bear Market
What Is a Bear Market? A bear market is a period when asset prices fall steadily over time. It reflects negative investor sentiment and widespread pessimism. In crypto, this often means a drop of 20% or more in the value…
BEP-20

BEP-20
What Is BEP-20? BEP-20 is a token standard used on the BNB Smart Chain (formerly Binance Smart Chain). It defines how tokens behave on the network, including their transfer, who owns them, and how they interact with smart contracts. The…
Bid Price

Bid Price
What Is a Bid Price? The bid price is the highest price a buyer will pay for an asset at a given time. In trading, this could be a stock, cryptocurrency, or commodity. It is a key part of any…

Bitcoin Pizza
What Is Bitcoin Pizza? Bitcoin Pizza refers to the legendary first known real-world transaction using Bitcoin, where a programmer named Laszlo Hanyecz paid 10,000 BTC for two pizzas on May 22, 2010. At the time, this amount of Bitcoin was…
Bitcoin Pizza

Black Swan Event
What Is a Black Swan Event in Crypto? A Black Swan event is a rare and unpredictable event that significantly impacts financial markets. In crypto, it refers to events that catch investors off guard and cause extreme price swings or…

Bull Market
What Is a Bull Market? A bull market is a period when asset prices, such as stocks or cryptocurrencies, are rising steadily. It reflects optimism, growing investor confidence, and strong demand across markets. This trend typically lasts for months or…
C

Capitulation
What Is Capitulation in Crypto? In capitulation, investors surrender to market losses and sell their assets, often out of panic. It's marked by a sharp drop in price, heavy trading volume, and overwhelming fear. In crypto markets, this often signals the…

Centralized
What Does Centralized Mean in Crypto? In crypto, centralized refers to a system or service controlled by a single entity or group. This control includes decision-making power, access to user data, and authority over operations. Centralized systems are the opposite…

Cold Storage
What Is Cold Storage in Crypto? Cold storage is a method of storing cryptocurrencies offline. It keeps private keys from the Internet, reducing the risk of hacking or unauthorized access. Long-term holders and institutions widely use this storage method to…
Crypto Winter

Crypto Winter
What Is a Crypto Winter? Crypto winter refers to a long period of falling prices and low investor confidence in the cryptocurrency market. During this time, most digital assets lose value, trading volume drops, and public interest fades. It's similar…
D
Dead Cat Bounce

Dead Cat Bounce
What Is a Dead Cat Bounce? A Dead Cat Bounce is a temporary recovery in the price of a declining asset, such as a stock or cryptocurrency, that is followed by a continued downward trend. This short-lived rebound can mislead…
Death Cross

Death Cross
What Is a Death Cross? A Death Cross is a bearish chart pattern. It occurs when a short-term moving average crosses below a long-term moving average. Most traders use the 50-day and 200-day moving averages for this pattern. The Death…
Decryption

Decryption
What Is Decryption in Crypto? Decryption is, in essence, the process of converting encoded data back into its original form. Therefore, it allows authorized users to read information that was previously protected through encryption. This crucial process not only helps…

Deep Web
Understanding the Deep Web The internet has multiple layers. Most users only interact with the surface layer—the one searchable on Google or Bing. But beneath it lies a much larger portion that remains hidden unless accessed directly. This hidden layer…
Diamond Hands

Diamond Hands
Diamond Hands is a term that has gained prominence in the investment world, particularly within cryptocurrency and stock trading communities. It symbolizes an investor's steadfast commitment to holding onto their assets, regardless of market volatility or downturns. This term embodies…

Difficulty
What Is the Difficulty in Crypto Mining? In blockchain, difficulty refers to how hard it is to solve the cryptographic puzzle required to validate a new block. It's a core feature of Proof-of-Work (PoW) systems like Bitcoin. This mechanism ensures…
F
Fakeout

Fakeout
What Is a Fakeout in Trading? A fakeout is a false signal that misleads traders into thinking a price will break out in one direction, only to reverse soon after. It often occurs near support or resistance levels. This pattern…
Falling Knife

Falling Knife
What Is a Falling Knife in Trading? A falling knife refers to a rapid and sharp drop in the price of an asset, often within a short time frame. The term is used to warn traders against buying during a…
G
Golden Cross

Golden Cross
What Is a Golden Cross? A golden cross is a bullish technical indicator that signals the potential for a strong upward price trend. It occurs when a short-term moving average—typically the 50—day—crosses above a long-term moving average, most commonly the…
Gwei

Gwei
What Is Gwei in Crypto? Gwei is a small unit of the cryptocurrency Ether (ETH). It measures gas fees on the Ethereum network, which are what you pay to perform transactions or run smart contracts. This unit helps keep numbers…
H
Hard Cap

Hard Cap
What Is a Hard Cap in Crypto? In crypto fundraising, a hard cap limits how much a project intends to raise. It represents the maximum number of tokens sold or the total funds the team will accept. Once this limit…
I

Interoperability
What Is Blockchain Interoperability? Blockchain interoperability refers to the ability of different blockchain networks to communicate and share data or assets. It allows decentralized platforms to interact across chains—something early blockchains couldn't do natively. This concept supports a more connected,…

IOU
What Is an IOU in Crypto? An IOU stands for "I Owe You." It's a written acknowledgment of debt between two parties. In crypto, an IOU is a digital or informal promise to repay a specific amount of a cryptocurrency…
L
Latency

Latency
What Is Latency in Crypto Trading? Latency is the delay between a user's action and the system's response. In crypto trading, it means the time it takes for an exchange to send, process, and confirm a trade order. Lower latency…

Limit Order
Understanding the Limit Order Strategy A limit order is a type of trading instruction that lets you set the price you want to buy or sell an asset. It gives you control over execution price rather than speed, making it…
Liquidity Provider

Liquidity Provider
What Is a Liquidity Provider in Crypto? A liquidity provider (LP) is a user or entity that supplies tokens to a trading platform or decentralized exchange (DEX). By doing so, they help other users buy and sell assets more easily,…
M
Mainnet

Mainnet
What Is a Mainnet in Crypto? A mainnet is a fully developed and live blockchain network. It is where real transactions take place and hold actual value. Unlike a testnet used for testing, the mainnet is the real-world environment. This…

Margin Trading
What Is Margin Trading in Crypto? Margin trading is a strategy that allows traders to borrow funds to increase their position size. It lets you trade with more capital than you actually own. This can boost both profits and losses.…

Market Capitalization
What Is Market Capitalization? Market capitalization—often shortened to market cap—measures a cryptocurrency's total value. It's calculated by multiplying the current price of one unit by the total supply of that coin or token. This metric helps investors quickly compare the…
Mining Farm

Mining Farm
What Is a Mining Farm? A mining farm is a facility where multiple computers work together to mine cryptocurrencies like Bitcoin. These computers, called miners, solve complex math problems to validate transactions on the blockchain. In return, they earn rewards…
Minting

Minting
What Is Minting in Crypto? Minting refers to the process of creating new digital assets on a blockchain. These assets can include cryptocurrencies, NFTs, and stablecoins. Once minted, the blockchain records them permanently. This process makes each asset secure, traceable,…
N
NGMI

NGMI
What Does NGMI Mean? NGMI stands for "Not Gonna Make It." In cryptocurrency, this term describes behaviors or decisions seen as misguided, impulsive, or poorly informed. It's often used when someone acts in a way that appears to go against…
O
Order Book

Order Book
What Is an Order Book in Crypto? An order book is a crucial tool that displays active buy and sell requests for a specific trading pair. Consequently, it helps traders analyze real-time price trends, liquidity, and potential entry points. Moreover, crypto…
P
Paper Wallet

Paper Wallet
What Is a Paper Wallet? A paper wallet is a physical printout of your cryptocurrency's public and private keys. By using a paper wallet, you gain complete control over your crypto, as it keeps your keys entirely offline. Moreover, many people consider…
Private Key

Private Key
What Is a Private Key in Crypto? A private key is a secret code that gives you complete control over your cryptocurrency. It proves ownership and lets you sign transactions on the blockchain. Anyone with access to it can move…
R

Rekt
What Does Rekt Mean in Crypto? Rekt is internet slang for "wrecked." In crypto, it describes a trader or investor who suffers heavy losses. It usually refers to losing most or all of an investment due to a bad trade,…

Roadmap
What Is a Roadmap in Crypto? A crypto roadmap is a strategic plan that outlines a blockchain project's goals, development phases, and future direction. It shows what the team plans to build and when they aim to complete key milestones. It serves…

Rug Pull
What Is a Rug Pull in Crypto? A rug pull is a type of scam in the cryptocurrency space. It happens when developers suddenly withdraw all liquidity or funds from a project, leaving investors with worthless tokens. This tactic is…
S
Satoshi Nakamoto

Satoshi Nakamoto
Who Is Satoshi Nakamoto? The mysterious creator of Bitcoin uses the name Satoshi Nakamoto. No one knows for sure if it refers to one person or a group. What is certain is that Satoshi introduced the world to the first decentralized…
Seed Phrase

Seed Phrase
What Is a Seed Phrase in Crypto? A Seed Phrase, a recovery or mnemonic phrase, is a list of 12 to 24 randomly generated words. It serves as the master key to your crypto wallet. You can use the phrase…

Sharding
What Is Sharding in Blockchain? Sharding is a technique for enhancing blockchain performance and scalability. It divides the network into smaller, manageable sections called "shards." Each part handles its own transactions and operations rather than having every node process everything.…
Snapshot

Snapshot
What Is a Snapshot in Crypto? A snapshot captures the exact state of a blockchain at a specific block height. It records wallet balances, token holdings, or governance power at that moment. This process often determines eligibility for airdrops, forks,…

Solidity
What Is Solidity? Solidity is a high-level programming language for writing smart contracts on Ethereum and other blockchain platforms. It is similar in style to JavaScript and is designed specifically for creating decentralized applications (dApps). Developers use it to define…
Stagflation

Stagflation
What Is Stagflation? Stagflation is an economic condition in which high inflation exists alongside slow or negative economic growth and rising unemployment. Usually, inflation and economic slowdown don't happen together. But both hit at once during stagflation, making it a…
T
Testnet

Testnet
What Is a Testnet in Crypto? A testnet is a blockchain network used for testing. It allows developers to build and experiment without using tangible assets. Testnets mimic the behavior of a mainnet but have no real-world value. They are…

Ticker Symbol
What Is a Ticker Symbol in Crypto? A ticker symbol is a short code used to identify a cryptocurrency or token on trading platforms. It usually consists of three to five uppercase letters. For example, BTC represents Bitcoin, and ETH…
TradFi

TradFi
What Is TradFi? TradFi stands for Traditional Finance. It refers to the established financial system, including banks, stock markets, insurance companies, and central banks. This system has existed for decades and is highly regulated. In contrast to crypto or DeFi…
U
Unit of Account

Unit of Account
What Is a Unit of Account? A Unit of Account is one of the three fundamental functions of money. It refers to the ability of money to consistently measure and compare the value of goods, services, or financial assets. In…
W
Weak Hands

Weak Hands
What Are Weak Hands in Crypto? Weak hands are investors who sell their assets quickly under pressure. These traders often react emotionally to market drops, fear, or uncertainty. They tend to lack long-term conviction and exit positions at the first…