AMM - Automated Market Maker
An AMM is a protocol that uses mathematical formulas to price assets while providing and maintaining liquidity. This is different from an Order Book on a traditional exchange where pricing is done on an algorithm.learn more
Because any market responds to price signals, a group of investors with deep pockets can arrange to sell an asset. This creates a selling pressure, which is when a bear trap is triggered, ending with those same investors buying the asset at a discount.learn more
AMM - Automated Market Maker
An AMM is a protocol that uses mathematical formulas to price assets while providing and maintaining liquidity. This is different from an Order Book on a traditional exchange where pricing is done on an algorithm.
Because any market responds to price signals, a group of investors with deep pockets can arrange to sell an asset. This creates a selling pressure, which is when a bear trap is triggered, ending with those same investors buying the asset at a discount.
BEP-20 is a coding template for creating tokens on the Binance Smart Chain (BSC) blockchain.
For blockchain to be a trustless and secure network, computers powering it must be incentivized. These computers are miners, and the rewards they receive for securing the network are called block rewards.
Bonding curve is a mathematical model describing that an increase in a token's supply is accompanied by an increase in its price.
A Bubble indicates an asset's price has risen to a point where it is probably too high for the perceived intrinsic value and thus overinflated.
Opposite to the bear trap, a bull trap is based on the market signal fooling traders that the asset's downturn is over, making them buy more. When it doesn't pan out, traders are triggered to abandon their long positions, lest they risk losses.
When traders want to enter the market, they look at buy and sell walls to figure out the market mood. If there are more buyers than sellers, this will create a buy wall, indicating positive market sentiment.
Candlestick charts are graphs used in the tracking of prices for certain assets over time. They offer four different points of information for a time period; the opening price, the price high, the price low, and the closing price.
CEX - Centralized Exchange
A CEX is a centralised exchange run by a 3rd party organisation that facilitates the buying, holding, exchanging, and trading of crypto. A CEX is designed to be simple to use and in most cases makes the exchange to and from fiat currencies pretty easy and straightforward.
Circulating supply is the best approximation of the number of coins or tokens currently active in the crypto market and in the hands of the general public.
Crypto coin burn is when crypto coins or tokens are permanently and intentionally removed from circulation in order to help elevate the price by decreasing supply.
A consensus mechanism is a way of validating transactions and maintaining the integrity of a blockchain. It is there to stop a cryptocurrency from being manipulated or defrauded.
Usually following a dramatic rise in price, a correction occurs when the price of an asset drops by at least 10 percent.
Crypto Mining Rig
Cryptocurrencies are created (mined) by solving complicated mathematical calculations. Powerful, dedicated hardware, called a crypto mining rig, is used in the process.
When blockchain developers need funds prior to ICO (Initial Coin Offering), they offer a crypto presale of the project's tokens. Usually priced low, if the project is successful, these tokens would later net the interested parties a hefty return on investment.
Crypto Trading Bot
Just as aimbots automate aiming in video games, crypto trading bots automate cryptocurrency trading. In both cases, the workload is offloaded to computer scripts.
In essence, a cryptoasset can be defined as a digital asset that employs cryptographic technologies in order to operate and function. Most notably, cryptocurrencies.
dApps - Decentralized Applications
Decentralized Applications - dApps - represent a friendly interface that allows users to access software built on blockchain. Specifically, on a blockchain that is capable of running smart contracts.
DeFi degens are people who base their trades on either silly or malicious reasons. These can range from pump-and-dump schemes to buying coins because they like the memes behind it.
Digital commodities are blockchain-powered assets, gaining value based on their utility and demand.
DYCO - Dynamic Coin Offering
Dynamic Coin Offering (DYCO) avoids volatility issues when funding blockchain projects by having the tokens backed by the US dollar for the duration of the first 16 months.
DYOR - Do Your Own Research
Do Your Own Research is a common term in the cryptocurrency space that is made into the DYOR acronym. It is intended to persuade people not to take everything they hear as truth.
ELI5 - Explain Like I'm Five
ELI5 is an acronym that many will see in the cryptocurrency space as there are many complex and technical concepts that people want explained to them. Instead of keeping it technical, people prefer to have the concept explained to them like they are a five year old child.
ERC-20 tokens are specifically created to work on the Ethereum blockchain platform. ERC-20 is a common standard that allows ERC-20 smart contract tokens to be easily created, shared, exchanged, and transferred to a compatible crypto wallet.
FUD - Fear, Uncertainty and Doubt
Fud, which stands for Fear, Uncertainty and Doubt has inevitably and unsurprisingly made its way into daily crypto speak. As a knowledgeable crypto investor, it is well worth understanding what fud is, what is behind it, what to look out for and importantly, and how to pick up on possible fud as it could well save you a pretty penny!
When looking to perform a transaction on Ethereum, there is a fee, and this fee is measured in what Gas. Gas is therefore the pricing value required to successfully conduct a transaction or execute a contract on the Ethereum blockchain.
The first block of a blockchain after it launches on a mainnet - independent blockchain computer network. As such, it is the only data block without a preceding block, yielding a mining reward that is not spendable.
Gold-backed crypto is a derivative-based digital asset and type of stablecoin whose value is matched to and supposedly backed by a certain value in gold measured in grams or troy ounces.
Gwei is a term used in determining the cost of a transaction with Ethereum. It is the denomination for defining a gas fee.
A cryptocurrency halving is an important step in its development where the rewards from mining new blocks are cut in half to affect the supply and inflation rates.
Hard cap is a hard-coded limit placed on a token's supply when it is launched.
The hash power or hash rate is the combined computing power of a cryptocurrency network or the computational power use of a mining rig on a crypto network that is solving cryptocurrency Proof of Work hashing algorithms.
IDO - Initial Dex Offering
An initial DEX offering (IDO) is a decentralised fundraising and bootstrapping method for crypto startups that is growing in popularity. It is in some ways a natural successor to the initial coin offering (ICO) or the initial exchange offering (IEO) that have been hugely popular in recent years.
The term Lambo refers to the luxury supercar maker, Lamborghini. Its association with the crypto community refers to people using the car as a measure of successful, expected, and rapid growth in their investment to a point where they can buy a Lambo.
In the crypto sphere, ledger or DLT (Distributed Ledger Technology) is a way of storing information across multiple locations and accessible by multiple participants. This distributed but unified database is the Ledger.
Leverage trading in crypto makes it possible to trade a larger amount of crypto without the need to have the full amount of funds required to execute the trade. It is a risky way of trading and very much a double-edged sword that can multiply both profits and losses.
The Lightning Network is a Layer Two protocol that is aimed at solving scaling issues in blockchain by allowing transactions to happen much quicker with the same security as on-chain transactions.
To make up for the lack of centralized institutions on the blockchain, crypto market participants are incentivized to provide liquidity. As a reward, they gain interest rate, thus becoming yield farmers.
A mainnet is an independent and live blockchain that carries out the task of transferring digital currency from senders to receivers via its own network and using its own unique technology and protocol.
With cryptocurrencies, there are often set amounts of coins that will ever be minted, this is known as the max supply.
Cryptocurrency mining can be accomplished on a large scale, using multiple mining rigs and machines - these operations are known as cryptocurrency mining farms.
Cryptocurrency mining is an operation best undertaken with multiple miners, or as an organisation. Mining pools are arrangements where multiple miners pool their resources together to increase profitability.
As the first blockchain consensus deployed in Bitcoin (BTC), Nakamoto Consensus ensures that blockchain's data blocks - transactions - are verified as true across all the nodes on the blockchain network.
Non-fungible tokens or NFT is any content stored on a blockchain. This makes it attain key features of cryptocurrencies - traceability and security.
When people enter the market, they do so to either buy or sell an asset. An order book is a record of all the buys and sells in a given time frame.
When the asset's price is higher than its worth, it is overbought.
A crypto can be considered oversold if a large amount of selling has pushed the price down over a period of time but in fact, the price does not reflect the true value, meaning the crypto could actually be undervalued and likely to go up.
The price impact represents the change in the price of an asset depending on how, usually a large, trade moves the market. Single trades have the possibility of affecting price and this is known as the trade's price impact.
Pump and Dump
Taking advantage of people's fear of not missing out, a coordinated group of investors misleadingly inflate an asset's price. When other traders buy in, raising the price further, the original investors start selling, thus creating a pump and dump scheme.
A rug pull is when a crypto project creates a huge amount of hype leading to lots of people buying in. Once a sufficient level of liquidity has been reached, the people behind the project pull the rug and abandon the project leaving behind worthless tokens.
SATS - Satoshi
Sats stands for Satoshis, the smallest unit of bitcoin (BTC) recorded on the blockchain. One Satoshi (sat) is equal to 0.00000001 BTC or one hundred millionth of a Bitcoin.
Not to be confused with shitcoins, these are cryptocurrencies launched with the goal of attracting investors only to be sold for massive profits in a short time.
A type of Proof-of-Work (PoW) algorithm that is more memory intensive. It was unsuccessfully used by Litecoin developers to make mining less dependent on ASIC machines.
SEC - Securities and Exchange Commission
Securities and Exchange Commission is purportedly an independent regulatory US agency in charge of protecting investors when they enter the market.
Traditional securities are commonplace in investing, but they have received a blockchain boost through security tokens which operate as a digital form of these traditional financial tools.
Seed phrase is a phrase consisting of 12–24 words that can recover your crypto funds.
A large limit order is placed at the desired cryptocurrency price to sell those coins when the price reaches the desired level.
Not necessarily scamcoins, shitcoins are called so because they don't bring anything new to the cryptocurrency table. By copycatting existing coins and lacking a clear purpose, they also lack long-term sustainability.
A blockchain operates as a single, long chain where all transactions happen. However, this can lead to issues and thus a sidechain off the main one can come in to alleviate problems.
In volatile markets, where price changes can happen drastically and rapidly, traders often have to take a different price than what they requested and this is known as slippage.
When a new project launches its token with an ICO they will often set a target amount they want to raise as the minimum point.
Just like video games are coded with a programming language, so are blockchains. Specifically, Solidity is used to develop Ethereum's smart contracts.
Tokenized fiat money. Investors who don't want to worry about crypto volatility tend to buy tokens that are pegged to fiat currency in a 1:1 value ratio, enabling them to quickly enter or exit the market.
Staking in crypto allows cryptocurrency holders to earn a passive income by staking their coins in a proof of stake (PoS) network to help verify blockchain transactions in exchange for a reward.
People navigate the world best when they use shortcuts. Ticker symbols represent an asset in its short form for easier trading, such as Bitcoin - BTC or Tesla - TSLA.
TVL - Total Value Locked
The TVL represents the entire number and value of assets that are being staked in a protocol. Often used in DeFi.