Crypto Glossary

Accumulation is the increase of amount an amount of a certain asset. In financial markets, accumulation typically refers to a position size in an asset that increases over multiple transactions.

Airdrop refers to a method of distribution of cryptocurrency or tokens to wallets on a particular blockchain. It is usually done for marketing purposes to incentivize the token holder to become a participant in the blockchain network.

All time high refers to the highest price that an asset has reached on an exchange. The all time high value represents the maximum price that a trader was willing to buy that asset for during that period.

Altcoin refers to any digital assets, such as a coin or token that is not Bitcoin. Because Bitcoin is the original cryptocurrency, it inspired many people to create their own digital assets as an alternative coin, hence the term ‘altcoins’

Arbitrage is the buying and selling of the same asset in different markets in order to take advantage of these price differences.

Bear market refers to a negative trend in the market prices.

Benchmark has pretty much been the buzzword for a very long time. To put it into simpler terms, benchmark is a term used to describe something that acts as a point of reference, mostly referring to numbers.

A blockchain is a decentralized block of all transactions across peer to peer networks. The blockchain contains a unique identifier to differentiate it from other blocks in the chain.

Bull market is a market behavior which indicates an uptrend.

A candlestick gives a summary of how an asset’s price behaved during the period. It may be used with any technical indicators such as candlestick patterns.

Centralized system depends on a central point of authority to make decisions and maintain the operation of the entire system.

A type of digital wallet that stores the user’s address and private key. It is similar to the key or password which unlocks safe boxes keeping private cryptocurrencies.

Custody refers to a financial institution holding client assets to prevent them from being stolen or lost. Custodians are different from banks as they can not leverage the assets they hold to their own ends.

DCA stands for Dollar-cost Averaging. In the cryptocurrency market, it is a very popular investment strategy where investors don’t invest large sums of money in their budget all at once, but rather put money into cryptocurrency little by little

The decentralized feature of cryptocurrency is one of the key features that add to the integrity of the market, making it trustworthy. When something is decentralized, it means that it is not governed and authorized by one single entity, but rather by the users themselves.

Decentralised finance (DeFi) is a system that allows financial products to be used by anyone on a public decentralized blockchain network. Banks or security companies are no longer needed in this kind of system, thus making cryptocurrency trading free of intermediaries. 

Dapps are applications that run on a secure blockchain system. Their records are kept in a decentralised system where transactions are kept in an imaginary vault, protecting them from the potential dangers and uncertainty of the mediators in a centralised landscape.

ERC-20 is one of the most important Ethereum tokens. In terms of token implementation, it has emerged as the de facto standard, and it is widely used for smart contracts on the Ethereum blockchain, especially when it comes to token implementation. The rule set for all tokens built on Ethereum, which is defined by ERC-20, also holds true.

Like a stock, an exchange-traded fund – ETF can be purchased and sold during the day. As a result, ETFs often have lower costs than other forms of investment vehicles. ETFs come in a variety of types, each with a different amount of risk.

Ether is a digital asset holder that is akin to a bond or other security. Call it the Ethereum network’s cryptocurrency. A third party is not required to handle or authorize transactions, just like cash. Apps on the decentralised Ethereum cryptocurrency network use this Ether as a kind of stimulator, according to Ethereum’s official website.

Cryptocurrency exchange refers to any mechanism that trades digital cash for other assets. To facilitate the buying and selling of these digital assets, as well as others, a cryptocurrency exchange operates similarly to a regular financial market.

FOMO, known as “fear of missing out”. This happens everywhere, even in the crypto world. Learn finance terms and keywords here.

Yield farming is a method of earning additional cryptocurrency with your existing cryptocurrency. It entails you lending your cash to others via the use of computer programs known as smart contracts, which work like magic. In exchange for your services, you receive payment in the form of cryptocurrency.

Fiat currencies are national currencies that aren’t backed by a commodity like gold or silver but instead are issued by the government. In part, the value of fiat money is determined by the public’s trust in the currency’s issuer, which is usually the government or central bank of the country in question.

Decentralized, open-source software, such as a blockchain, is the underlying power that drives cryptocurrencies like Bitcoin and Ethereum – to name a few. When a community modifies the blockchain’s protocol, such as changing the rules, a fork happens.

The term ‘gas’ refers to the unit of computing effort needed to perform certain actions on the Ethereum network. Due to the computing resources required to complete each Ethereum transaction, each transaction needs a charge. The term “gas” refers to the cost associated with completing an Ethereum payment.

The gas limit is the maximum amount of money that an Ethereum user is willing to spend in order to push a transaction across the network. A gas limit is often determined by the intricacy of the activity that a trader wants to conduct on the blockchain or the speed at which he or she wants the transaction to be completed.

At the heart of the Ethereum ecosystem, gas is the lifeblood. Gas is the common computing unit that correlates with the amount of effort required to run an operation. Each operation on Ethereum, whether it is a basic transaction, a smart contract, or even an ICO, consumes some amount of gas. Gas is used to determine the number of costs that must be paid to the network to operate.

Tokens created by developers that give token holders a way to influence the development of a protocol are referred to as governance tokens. Holders of governance tokens (known as “stakeholders”) have a wide range of options to influence project choices such as submitting or deciding on new feature ideas, and they even have the power to change the governance structure.

A Bitcoin halving process occurs after each set of 210,000 blocks has been mined, resulting in a halving of the incentives for mining bitcoin. As more blocks are mined, Bitcoin halving reduces the incentives for mining Bitcoin, ensuring that the quantity of bitcoin in circulation does not grow exponentially, which also tends to put upward pressure on the cryptocurrency’s price.

A hard fork occurs when blockchain’s protocols are dramatically changed. Let’s say there is just one cryptocurrency. With a hard fork, the coin divides in two, and from then on, all the blocks and transactions that were previously invalid become legitimate. Because of this, all developers must update their software to the current version.

Any method that translates arbitrary data of any length to a fixed-length equivalent is referred to as a hash function. When an algorithm returns results known as hash values, hash codes, hash sums, checksums, or hashes, it is referred to as a hash function. There has been recent development of payment networks using the internet, such as Bitcoin, which incorporates a hash function known as ‘hashing’ and has given new emphasis to the word.

Traditional hedge funds are an excellent choice for investors who want to minimise their risk exposure. Many investors believe that the fact that Bitcoin is growing at an exponential rate while also becoming more accessible than ever is a testament to its long-term viability. Because of the advent of cryptocurrency hedge funds, investors can now outpace the market, resulting in higher returns. Compared to investing in a cryptocurrency exchange, an ETF, or a cryptocurrency index fund, this is a significantly more complex investment strategy.

A hot wallet is an online virtual currency wallet that allows users to send and receive bitcoin. A set of private keys saved on internet-connected software is used to store and transmit currency like Bitcoin. Digital wallets for cryptocurrencies enable financial transactions in a virtual currency market by storing and protecting assets.

To investors, an initial coin offering (ICO) is like an initial public offering (IPO) in the stock market (IPO). An organisation in the process of raising money to support a new project will launch an ICO to help with the funding.

IEO is referred to as an Initial Exchange Offering and is a sort of fundraising event that is managed by a cryptocurrency exchange. The project team themselves raises funds in an Initial Coin Offering (ICO); on the other hand, with an Initial Exchange Offering (IEO), the fundraising is done by a third party using the exchange’s fundraising platform.

The public selling of stock of a firm in which shares are sold to both institutional investors and ordinary investors is referred to as an initial public offering (IPO). In the course of raising funds for an initial public offering (IPO), companies turn to one or more investment banks, who arrange for the shares to be listed on one or more stock exchanges.

Know Your Customer (KYC) compliance refers to the process of collecting certain information from customers in order to verify their identities and to comply with any regulatory requirements that may apply. It is possible that some of these requirements will include aspects such as restricting access to citizens of a specific jurisdiction. Depending on the country in question, laws and regulations frequently impose obligations on businesses to complete KYC procedures.

Short Description: The ledger is a “book” in which users of the blockchain network can write their thoughts. This ledger is made available to everyone who is a part of the cryptocurrency network. In other words, a copy of this ledger is available to all users.

Leverage is a loan made by a broker on a stock exchange during margin trading in order to increase the amount of money available for use in the deal. With leverage, we are referring to the amount by which a trader’s position and, consequently, profits have increased as a result of the loan. It is also referred to as the amount of debt that a company borrows in order to fund assets. In order to boost their purchasing power in the market, investors employ the usage of leverage.

A limit order allows you to establish your own price for either buying or selling an asset. Your order will be executed if the market hits the price you specified as your limit. Nevertheless, if the market does not reach the limit price that you have set, your order will not be fulfilled.

A line chart is a graphical representation of the price history of a certain digital asset. In this chart style, just the closing prices of securities are used and they are shown over time. Price charts may be used for any time period, but line charts, which are most often used to depict day-to-day price changes, are the most common kind of chart.

The total dollar value of all the shares of a company’s stock — or, in the case of Bitcoin or another cryptocurrency, the total dollar value of all the coins that have been minted — is known as the market capitalization (or market cap). When it comes to cryptocurrency, market capitalization is derived by multiplying the total number of coins that have been mined by the current price of a single coin.

If you want to buy or sell stocks, bonds, or other assets at the best available price in the current financial market, you can place a market order with your broker using the terms “buy” and “sell.”

Cryptocurrency mining, also known as crypto mining, is the process by which transactions for various forms of cryptocurrency are confirmed and recorded in the blockchain digital ledger. Cryptocurrency mining, also known as cryptocoin mining, altcoin mining, or Bitcoin mining (for the most prominent form of cryptocurrency, Bitcoin), has gained in popularity as a topic of curiosity and as a source of income as cryptocurrency usage has increased significantly over the previous decade.

Miner’s reward refers to the transaction in which miners are compensated with Bitcoin in exchange for creating a new block of blocks through mining. Bitcoin can only be obtained by mining, and when it is discovered, it is distributed to the miners who were successful in their efforts as a reward.

Investors and market analysts may use a moving average to help them predict the direction of a trend in the stock market. Averages can be calculated in a variety of ways, including by adding up all of the data points for financial security over a specified time period and dividing the total by the number of data points in the security. Due to the fact that new price data is obtained on a regular basis, this average is referred to by the term “moving average.”

Cryptocurrency networks are peer-to-peer payment networks that are based on a cryptographic protocol that allows users to send and receive money. Users send and receive Bitcoins, altcoins, or other cryptocurrency by broadcasting digitally signed messages to the network using cryptocurrency wallet software, which is available for free download on the internet. During the transaction process, transactions are recorded onto a distributed, replicated public database known as the blockchain, with consensus established via the use of a proof-of-work method known as mining.

In a telecommunications network, a node is an intersection or connecting point. A node may also imply any system or physical equipment that is connected to a network and can perform certain activities like data creation, transmission, or reception. When talking about protocol layers, the description of a node depends on the layer it is attached to.

NFTs or Non-fungible Tokens are tokens that can be used to indicate ownership of one-of-a-kind goods, such as artwork. The ability to tokenize things such as art, valuables, and even real estate is provided by them. At any given time, they can only have one legitimate owner, and they’re protected by the Ethereum blockchain, which means that no one can amend the record of ownership or create a new NFT by copying and pasting an existing one.

Open source software refers to a software application or platform that has source code that is easily accessible and that may be updated or expanded by anybody who wishes to do so. Open-source access provides users of a software program the ability to correct broken connections, improve the design, or make improvements to the original code that was distributed with the software.

OTC, which stands for Over-the-Counter, is a method of trading stocks, bonds, derivatives, and currencies in both the cryptocurrency and fiat markets that is becoming increasingly popular. Currency exchange trading typically includes three parties: buyers, sellers, and the exchange itself. Buyers set the bids and sellers set the requests (which acts as the market maker). OTC trading eliminates the need for an intermediary (the exchange), allowing buyers and sellers to communicate directly with one another.

Overbought is a word used to describe a situation in which a security is thought to be trading at a price that is higher than its inherent or fair worth. A security’s price being overbought generally refers to recent or short-term volatility in the price of the security, and it indicates that the market expects the price to correct itself shortly. This view is frequently formed as a result of the technical study of the security’s price history, although fundamental analysis can also be used to form this belief. A stock that has been overbought may be an excellent candidate for a sell-side opportunity.

When the price of an asset has fallen and there is the prospect of a price rebound, the asset is said to be in an oversold situation. Being oversold does not imply that a price rally will take place soon, or at all for that matter. Technical indicators indicate when market conditions have deteriorated to the point of being oversold or overbought. The price levels that are used in these indicators are determined by where the price is now situated about previous values. Fundamentals can also be used to identify whether or not an asset has deviated from its usual metrics, and if so, whether or not it has become oversold as a result of the deviation.

The only purpose of a private key is to prove to others that you are the owner of a specific cryptocurrency address. If you gain control of a private key, you will have the ability to conduct a transaction and spend the funds associated with that address. A private key is something that you should never share with another person or entity; the name of the key serves as a hint that it should never be shared.

Proof-of-stake, on the other hand, is reliant on validators to keep the coin running. Proof-of-stake models need token owners to put their tokens up as collateral. In exchange, individuals receive control over the token in proportion to the amount of money they have invested. Most of the time, these token stakers gain greater ownership in the token over time as a result of network fees, freshly created tokens, or other similar incentive mechanisms.

The algorithm that is used in blockchain to confirm transactions and produce new blocks is known as Proof-of-Work. Mining in PoW is an attempt to win on the network by completing transactions and getting rewarded. Users in a network use digital tokens to communicate with each other. All transactions are recorded on a decentralized ledger called the blockchain. Additionally, confirmation of transactions should be obtained and block arrangements should be made.

Users can receive cryptocurrency into their accounts by using a public key, which is a sort of cryptographic code in and of itself. It is necessary to have both a public key and a private key to ensure the security of the crypto-economic system in which we currently live.

In the digital world, a QR code is a sort of barcode that can be read quickly by a digital device and that encodes information as an array of pixels in a square-shaped grid of pixels. A QR code is a barcode that may be used to monitor information about items along a supply chain. Because many smartphones now come equipped with QR scanners, QR codes are also widely utilized in marketing and advertising efforts. Recent research has revealed that they were important in tracing coronavirus exposure and preventing the virus’s spread in the first place.

Using mathematical computations and number crunching to identify trading opportunities, quantitative trading strategies rely on quantitative analysis. In quantitative analysis, as the main inputs to mathematical models, price and volume are two of the more common data inputs. For most financial institutions and hedge funds, quantitative trading (trading using quantitative strategies) tends to be employed for transactions involving thousands of shares or other securities. While quantitative trading is frequently employed by retail investors, it is becoming more commonplace for institutional investors as well.

When it comes to directional price movements, the Relative Strength Index (RSI) is a well-versed momentum-based oscillator that can be used to assess both the speed and the size of price movements. Essentially, when shown on a graph, the RSI gives a visual means of monitoring both the present and past strengths and weaknesses of a certain market. The strength or weakness of a security is determined by the closing prices throughout the course of a defined trading period, resulting in a dependable statistic for determining changes in price and momentum. Because of the prevalence of cash-settled instruments and leveraged financial products (the whole area of derivatives), the relative strength index has shown to be a reliable predictor of price changes in the financial markets.

STO (security token offering) is an abbreviation for security token offering, which is a contract to invest in an underlying investment asset such as stocks, bonds, mutual funds, and real estate investment trusts. The goal is to connect blockchain technology with the needs of regulated securities markets in order to increase the liquidity of assets while also increasing the availability of funding. STOs are generally the issue of digital tokens in a blockchain ecosystem in the form of regulated securities, with the tokens being traded on the stock market. With the use of automation and smart contracts, the blockchain ecosystem helps achieve the securities regulation objectives of disclosure, fairness, and market integrity, while also fostering innovation and efficiency.

In the case of smart contracts, the parameters of the agreement between buyer and seller are spelled out in coded words, rather than in plain text. It is the distributed and decentralized code and agreements that make up the distributed and decentralized blockchain network as a whole that are responsible for its overall structure. Each transaction is logged, and it is not possible to reverse it.

Stablecoins are cryptocurrencies whose price is tied to a different class of assets, like fiat currencies or gold, to keep the price stable. A benefit of cryptocurrencies such as Bitcoin and Ether is that they are not dependent on a third party to transfer payments, which opens the technology to anyone around the globe. A downside, however, is that cryptocurrency prices are highly volatile and unpredictable.

Staking is an omnibus word that refers to the process of committing your Bitcoin holdings to a cryptocurrency system in exchange for incentives. Staking enables users to contribute to network security by protecting their tokens. As a result, users are rewarded with native tokens for safeguarding the network. The more crypto-assets you commit, the greater the benefits. Because the incentives are dispersed on-chain, the process of earning them is entirely automated. All that is required is to stake them. This implies that your crypto-assets will continue to grow while you sleep.

Based on market data, technical analysis is a technique or approach that may be used to anticipate the likely future price movement of security (such as a stock or a currency pair). For technical analysis to be valid, it must be supported by the notion that the collective actions – buying and selling – of all participants in the market accurately reflect all relevant information about a traded security and, as a result, consistently assign a fair market value to the security in question.

In the blockchain world, tokens (also known as crypto tokens) are units of value that blockchain-based companies or projects create on top of existing blockchain networks to represent their worth. Even though they frequently have a high degree of interoperability with the cryptocurrencies on that network, they are a completely separate digital asset class.

The total supply refers to the entire quantity of cryptocurrency that has previously been produced, mined, or issued as of the time of writing. The total supply comprises coins that have been pre-mined, coins that have been locked, and coins that have been lost. However, it does not contain coins that have been burned.

The blockchain network is made up of a large number of transaction blocks that are organized chronologically. Transaction blocks are used to store each transaction that has occurred over some time. In the case of Bitcoin, a transaction block contains a record of every transaction that has taken place in the previous 10 minutes. Furthermore, each transaction block is aware of the transaction blocks that came before it. If you are attempting to track the transaction history of a certain Bitcoin, this makes searching across the ledger much easier.

A utility token is more versatile than a coin. While utility tokens certainly have value, they cannot be called money in the same way that coins are. Utility tokens may offer investors value in a variety of ways. They provide people with early access to a new product or service. Typically, a technology firm creates a digital product or service and launches an initial coin offering (ICO) (Initial Coin Offering). The firm offers utility tokens during the ICO. Investors can purchase these tokens and use them as a form of payment on the issuing company’s platform.

In terms of trading, volatility is a measure of the pace at which the price of an asset fluctuates over a certain time. It reflects the degree to which a security’s price movements are accompanied by a risk of loss. Investors and traders analyze the volatility of security to examine historical changes in the price of a security to anticipate future movements in the price of a security.

The number of units exchanged in a market within a certain period is referred to as the volume of the trading volume. When an asset changes hands, it is counted as the number of individual units of the asset that changed hands during that period. Each transaction involves the exchange of money between a buyer and a seller. They register the transaction when they agree on a certain price, which is done through the facilitating exchange. The trade volume is calculated based on the information provided.

A cryptocurrency wallet is software that enables cryptocurrency users to store and retrieve their digital assets on a computer or mobile device. In the same way that traditional currency is used, you do not need a wallet to spend your cash, although keeping it all in one location is undoubtedly beneficial. The user can store cryptocurrency, such as bitcoin, in a cryptocurrency wallet and then utilize it to conduct transactions from that point forward.

The whales, in essence, refer to people or companies that hold large amounts of cryptocurrency. You might wonder how large it is. Well, large enough to pretty much flip the value of one currency upside down. They are so influential that they can increase the volatility of the market, decrease its liquidity, or even both.

A whitepaper report is a convincing, authoritative, in-depth study on a specific issue that identifies problems and proposes solutions to them. Whitepapers are produced by marketers in order to educate their target audience about a certain topic or to explain and promote a specific technique. They’re guides to sophisticated problem-solving techniques. Whitepapers, which typically require at least an email address to download (and often more information than that), are excellent tools for acquiring leads since they are so easy to create.

Year to date (YTD) refers to the period of time beginning the first day of the current calendar year or fiscal year up to the current date. YTD information is useful for analyzing business trends over time or comparing performance data to competitors or peers in the same industry.

Ziplock is a fixed-term earnings account that allows you to have higher rates on crypto such as ZMT.

ZMT is a ERC-20 token custodised on BitGo created and governed by Zipmex, a digital assets exchange and investment platform. ZMT is designed to be used mainly within the Zipmex ecosystem.