🗺️PH Glossary
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51% Attack: An attack on blockchain by a group of miners controlling more than 50% of network hash rate
2x: on a double, on a double, on a double…
A
All-Time-High (ATH): The highest point (in price, in market capitalization) that a cryptocurrency has been in history.
All-Time-Low (ATL): The lowest point (in price, in market capitalization) that a cryptocurrency has been in history.
Arbitrage: A strategy where investors buy a currency in a market and sell it at a higher price in another market to gain profit.
Ask Price: The lowest price a seller is willing to accept on their sell order.
APY: Annual Percentage Yield, which is the yield/interest after a year, which includes compounding interest. Note that this is different from Annual Percentage Rate (APR), which does not take into account compounding effects.
B
Bagholder: A person who is holding a large quantity of cryptocurrency which is declining in value or becoming worthless
Basis Point: Unit of measurement used to quantify the change between two percentages
Bear Market: A market that is in a downward trend, with prices falling and investors becoming bearish.
Bearish: A term used to indicate negative sentiment towards the market or an asset, where investors believe that there will be downward price movement.
Bid Price: Value of buyers offer for a asset
Block: In the context of blockchain, block refers to the collection of transactional data or information that are bundled together in a predetermined size.
Block Confirmation: Refers to the number of confirmation a particular block has. Each block ahead of the referenced block adds one block confirmation to it.
Block Explorer: Applications or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
Block Height: A number that is used to indicate the position of a particular block within a blockchain.
Block Reward: One of the mechanisms built into a blockchain to incentivize validators.
Blockchain: A decentralized, distributed database that stores a record of all transactions that have occurred on a network.
Bloodbath: In the context of trading, the term bloodbath is commonly used to describe a market which is on a downtrend with many assets suffering from value depreciation.
Borrow: The act of obtaining digital assets from a lending platform and using them as collateral to trade or speculate on price movements. The borrower must pay interest on the borrowed assets and is responsible for returning them in full to the lending platform at the end of the loan period
Breakout: When the price of an asset moves outside of a defined range or pattern, typically by breaking out of a support or resistance area
Bull Market: A market that is in an upward trend, with prices rising and investors becoming bullish.
Bullish: A term used to indicate positive sentiment towards the market or an asset, where investors believe that there will be upward price movement.
Backwardation: a market condition where the future price of an asset is lower than its spot price
Burned Tokens: Tokens which have been sent to addresses whose private keys are not known, effectively becoming unusable.
Buy Wall: An anomalously large buy order(s) at a single price point that reflects as a "wall" in the order book.
Buy/Sell Tax: On-chain buy or sell tax rate where a percentage of the tokens bought/sold will be transferred to a set address.
Buy the F***in Dip (BTFD): An encouraging rally by asset/cryptocurrency supporters to buy during a price decline.
C
Centralized: A type of organization or network in which a small number of actors have control over the entire system.
Central Ledger: A central data repository maintained by a company or bank.
Circulating Supply: An estimated amount of coins or tokens that are currently not locked and available for public transactions.
Cold Storage: A method of storing cryptocurrency offline, in order to reduce the risk of it being stolen by hackers. This can include the use of hardware wallets or paper wallets.
Cold Wallet: A type of cryptocurrency wallet that is offline and requires physical access to certain devices, such as hardware wallets or paper wallets.
Consensus: The agreement among participants in a blockchain system on the content of the next block to be added to the blockchain.
Crypto Bubble: A speculation that the price of cryptocurrencies will rise to extremely high levels before collapsing.
Cryptocurrency: A digital currency that uses cryptographic protocols to record ownership and prevent counterfeiting.
Capitulation: A period of strong selling activity, where investors give up their positions and sell as quickly as possible
Censorship-resistance: The property of a cryptocurrency network that prevents any entity from altering transactions on it
Custody: Protective care or guardianship of an asset.
Confirmation Time: The time elapsed when a transaction is submitted to the network and the time it is recorded into a confirmed block.
Confluence: When multiple investment methods, technical indicators, or trading signals are combined to form a more reliable strategy.
Consumer Price Index (CPI): A Consumer Price Index (CPI) is a measure used to track the effects of inflation over a period of time.
Crypto Winter: The term crypto winter refers to an extended period of declining or stagnant prices and negative sentiment in the cryptocurrency market.
Cryptocurrency: A digital currency that is secured by cryptography to work as a medium of exchange within a peer-to-peer (P2P) economic system.
D
Dead Cat Bounce: A temporary recovery in the price of an asset after a prolonged decline, which is not indicative of a market turnaround.
Decentralized: A system that does not have a central point of failure or organization, and is not controlled by a single authority.
Decentralized Applications (dApps): Applications that run on decentralized, peer-to-peer networks such as Ethereum.
Decentralized Autonomous Organization (DAO): Open source and decentralized systems that do not require centralized operators or controllers.
Decentralized Finance (DeFi): A movement focused on building decentralized financial applications that are not controlled by a central authority and are censorship-resistant.
Decentralized Exchange (DEX): An exchange that does not require users to deposit funds to start trading and does not hold the funds for the user. Instead, users trade directly from their own wallets.
Delisting: The removal of an asset from an exchange, either as a request from the project team or as a decision made by the exchange.
Delta Neutral: Delta neutral is the construction of positions that do not react to small changes in the price of the underlying asset. No matter if the underlying asset goes up or down, the position maintains its value and neither increases or decreases in price.
Diamond Hands: A term used to describe holding a financial asset and not selling it, regardless of its volatility.
Divergence: When the market price of an asset and a technical indicator (such as RSI, Volume, MACD) move in opposite directions.
Diversification: The allocation of funds across different types of assets and jurisdictions in order to reduce overall risk.
Dollar Cost Averaging (DCA): A strategy of investing fixed dollar amounts over regular intervals of time, regardless of the price of the asset.
Degen: Cryptocurrency trading without proper research and due diligence, often seen as akin to gambling.
Delegated Proof-of-Stake (dPOS): A consensus mechanism in which selected members of a network are voted upon as delegates to validate transactions and produce blocks on a blockchain.
Derivatives: Financial instruments whose value is derived from an underlying asset or index, such as futures or options.
Derivatives Market: A market for derivatives, which are financial instruments whose value is derived from an underlying asset.
Difficulty: A measure of how difficult it is to correctly guess the solution to a new block in a blockchain.
Distributed Ledger: A ledger whose data is stored and synced across a network of nodes.
Dominance: Typically refers to the market capitalization dominance of Bitcoin.
Double Spending: The act of spending digital currencies twice, which is often carried out by unscrupulous actors on cryptocurrency exchanges.
Do Your Own Research (DYOR): Advice for investors to conduct their own research on the coins they are considering investing in.
Dump: A term used to describe a downward movement in the market, or the act of selling an individual's holdings.
Dusting Attack: A form of malicious activity in which hackers and scammers attempt to compromise the privacy of cryptocurrency users by sending small amounts of money to their wallets.
E
Emission: The rate at which new coins are released according to predetermined protocols.
Efficient Market Hypothesis (EMH): An economic theory stating financial markets reflect all available information on the price of assets at any time.
ERC-20: A standard for creating exchangeable, fungible tokens on the Ethereum blockchain.
ERC-721: A standard for creating exchangeable, non-fungible tokens on the Ethereum blockchain.
Ethereum: A decentralized computing platform and cryptocurrency that enables the creation of smart contracts.
Ethereum Name Service (ENS): A service that allows Ethereum users to find websites or send and receive funds using simple names.
Ethereum Virtual Machine (EVM): The environment in which all smart contracts on the Ethereum blockchain are executed.
F
Faucet: A site or app where users can go to receive small rewards over time.
Fauxican: Someone who is pretending to be a Hexican
Falling Knife: The act of purchasing an asset while it is rapidly declining in price, with the expectation that it will bounce back.
Fear of Missing Out (FOMO): A feeling of anxiety or regret over potentially missing out on a profitable investment opportunity. Often used to describe investors' fear of missing out on the opportunity to buy cryptocurrencies that may become profitable.
Fear, Uncertainty, and Doubt (FUD): A strategy that involves spreading false information in order to discourage people from buying a particular cryptocurrency.
Fake Out: A situation where a trader enters a position based on an anticipated price movement that quickly reverses or does not occur.
Fiat: A currency that has been established as a valid form of money, typically supported by a government regulation that declares it to be legal tender.
Finality: The assurance that completed (cryptocurrency) transactions cannot be altered, reversed, or canceled.
First-Mover Advantage (FMA): The competitive advantage of the first project to introduce a service or product into a new and unexplored market or industry.
Fiscal Policy: The policies that involve the government adjusting tax rates and how public funds are collected and used.
Flippening: One cryptocurrency overtaking another.
Furu: Usually a charlatan who is attempting to be an expert or highly acknowledged in a certain field, in this case cryptocurrency
Frontrun: The act of intercepting a large buy order on an automated market maker (AMM) in order to purchase the assets and resell them back to the buyer before the order is executed on the blockchain.
Fully Diluted Valuation (FDV): The market capitalization if the maximum supply of a coin is in circulation. Calculated by multiplying the current price by the max supply.
Fungibility: The property of an asset in which its individual units are indistinguishable from each other in terms of value and functionality.
Futures Contract: A standardized version of a forward contract, used as a legal agreement to buy or sell an asset in the future at an agreed upon price and date.
Full Node: A computer that verifies the rules built into the protocols of a particular cryptocurrency.
Fundamental Analysis (FA): The evaluation of an asset based on its underlying characteristics and traits, in an effort to determine its intrinsic value.
FOMC: Federal Open Market Committee
Forced Liquidation: The forced closure of a trader's leveraged position due to it not meeting the necessary margin requirements.
G
Goblin Town: A term used to describe the market's persistent downtrend, synonymous with "bear market".
Gas: A unit of measurement of the computational effort in conducting transactions or smart contracts on Ethereum blockchain.
Gas Limit: A term refers to the maximum amount of units of gas user's willingness to spend on a transaction on Ethereum blockchain.
Gas Price: A term refers to the amount of price a user is willing to pay for a transaction on Ethereum blockchain.
Gwei: A unit of Ethereum's native currency, ether, used to pay for transactions on the Ethereum network.
H
Halving: When the block reward of a crypto asset, such as bitcoin, drops to one-half of what it was before; this is used to create a decaying rate of issuance to arrive at an eventual finite supply of a crypto asset.
Hash Rate: The speed at which a computer or mining hardware is able to
Hedge: Hedging is a risk management strategy in place to offset losses in investments by taking an opposite position in a related asset
Helicopter money: Term used for a large sum of new money that is printed
Health factor: Represents the ratio between total collateral multiplied by the liquidation threshold, and the borrowed principal.
Honeypot: The form of a fake wallet or a phishing website that appears to be a legitimate exchange or wallet service, but is actually designed to steal users' private keys, passwords, or other sensitive information.
HODL: A typo of 'Hold' originating from bitcointalk that has also been retrofitted to be an acronym for Hold on for Dear Life - to maintain ownership of coins and not sell.
High-Frequency Trading (HFT): A type of algorithmic trading that involves the execution of a large number of orders in fractions of a second.
I
Immutability: The inability to change or be changed. One of the core features behind Bitcoin and blockchain technology.
Index: A financial instrument used to track the price value of a given asset or basket of assets.
Interoperability: A concept of allowing blockchains to be compatible with each other and build upon each other's features and use-cases.
Isolated Margin: The margin balance allocated to a position. Traders can manage risk by restricting the amount allocated to each position.
Issuance: The generation of a new cryptocurrency which occurs in a variety of different ways, depending on parameters specified by the creators.
J
Judas candle: A red bearish candle followed by a long bullish reversal candle.
K
Know Your Customer (KYC): A standard procedure in the finance industry which allows companies to identify their customer and comply with KYC and AML laws
L
Latency: The time between submitting a transaction to a network and the first confirmation of acceptance by the network.
Ledger: A record of all transactions that have occurred on a network. In the context of cryptocurrency, a ledger can refer to either a physical book that records transactions, or a digital record of transactions stored on a network
Leverage: Multiply your exposure to a financial asset without additional investment capital
Listing: The addition of an asset to an exchange either as a request from the project team or as a decision made by the exchange.
Liquidation Bonus: The bonus received by liquidators to incentivise the purchase of specific collateral that has a health factor below 1. The Liquidation Bonus is specified per collateral and expressed in percentage points.
Liquidity: The ability to sell or buy any given asset without causing significant fluctuations in the market price for that asset.
M
Maintenance margin: Amount that must be avalable in order to keep a margin position open
Market capitalization (market cap): In Crypto, market cap is measured by multiplication of the circulating supply of tokens or currency and its current price.
Market Maker: A participant of the market who creates buy and sell orders.
Market Order / Market Buy / Market Sell: A market order is a buy or sell order of stocks or cryptocurrency at the best price available in the current market as soon as possible.
Market Taker: A participant of the market who buys and sells from currently existing orders.
Margin Call: A margin call takes place when an investor's margin account falls below the required amount to stay afloat.
Margin Trading: It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade.
Metaverse: The Metaverse is a virtual space where users are able to interact with each other in a computer generated environment.
Moritz: He is known for his trading strategies (though he never trades), philanthropy and incredible humility. Moritz Is the single largest holder of WISE. Moritz is usually at least 1 step ahead of RH. Never go full Moritz
Money Printer Go Brrr: A meme made to describe the US Federal Reserve printing an excessive amount of money to support the traditional financial market to avert the stock market crash in 2020
Moon: "Moon" or "To the moon" is a crypto slang that describes an exclamation when the cryptocurrencies prices are rising, and when it hits the peak, the coin is said to be "mooning".
Multisignal (multi-signature): They are wallets that require more than one key for transactions to be authorized.
O
Order book: A list of orders for a particular asset that are being managed by an exchange.
Off-chain: Transactions occurring outside the blockchain and executed instantly.
Open/Close: The price at which a cryptocurrency opens at a specific time period (e.g. start of the day) and the price at which a cryptocurrency closes at a specific time period (e.g. end of the day).
Oracles: Services that verify real-world data and provide it to blockchains or smart contracts.
Over The Counter (OTC): The process of trading cryptocurrencies outside of exchanges and directly between two parties.
P
Passive Management: An investing strategy that tracks an existing economic index rather than relying on active market exposure.
Peer-to-Peer (P2P): A connection between two or more computers that share workload or resources without relying on a centralized server.
Pegged Currency: A currency whose price is designed to remain the same as a designated asset (e.g. 1 USDC is pegged to 1 USD). Also known as a stablecoin.
Perpetual contract: A perpetual contract is a crypto futures contract without an expiry date thus can be held indefintley
Phishing: A malicious attack in which a bad actor tries to obtain a user's credentials in order to gain unauthorized access to their account.
PRC-20: A standard for creating exchangeable, fungible tokens on the Pulse blockchain.
Ponzi Scheme: A scam in which new investors' funds are used to pay returns promised to previous investors. Do not invest in these.
Price Action: The price movements of a financial asset over time. When plotted on a chart, it can be used by traders to identify trade setups.
Private Sale: An early stage investment round for strategic investors with a large amount of investible funds.
Proof of Stake (PoS): A consensus algorithm that assigns block validation based on the coins or tokens locked in by the validator.
Proof of Work (PoW): A consensus algorithm in which a block is validated through mathematical hashing.
Portfolio: A collection of all your current cryptocurrency holdings
Phatty: An aggregated read-only wallet that helps you track your portfolio cross-chain.
Pump and Dump Scheme: A market manipulation method of driving up the price of an asset before profiting by driving it back down.
R
Real Market Player: Someone who is just a real market player
Rekt: A slang term for "wrecked," typically used to describe bad trades that result in losses.
Relative Strength Index (RSI): A popular technical indicator used to analyze financial markets by charting the current and historical closing prices to evaluate overbought/oversold conditions. RSI oscillates between 0 and 100, with values less than 30 indicating oversold conditions and values greater than 70 indicating overbought conditions.
Revenue Sharing: The distribution of revenue generated to stakeholders or contributories
Risk Management: Process of identifying potential risks in your investments
ROI: Short for "Return on Investment," the ratio between the net profit and cost of investing.
Rug Pull: The sudden removal of liquidity, which often leads to asset prices crashing due to a lack of liquidity to absorb buy/sell orders.
Resistance: A term in technical analysis (TA) used to describe a price that is increasing and finds resistance, typically compared with previous highs.
Roadmap: A business planning technique that outlines the short- and long-term goals of a company within a flexible estimated timeline.
Revenue Sharing: The distribution of revenue generated to stakeholders or contributories
Richard Heart: The founder of Hex.com, a cryptocurrency ‘the world's first high-interest blockchain certificate of deposit’ and PulseChain, a proof-of-stake (PoS) fork of Ethereum. Raised $27m to charity to save your life. Has the world's largest diamond, multiple sports cars and mult-million watch collection. Called the top on the day. Its been in profit every single day expect one day when we had that judas candle
S
SAFU: A cryptocurrency term for "safe”.
Scalp: Opening a position with the intent to close a profit in a short timeframe
Securities and Exchange Commission (SEC): An independent governmental agency responsible for regulating securities markets.
Security Audit: A systematic analysis to evaluate how secure a system, smart contract, or blockchain is against attacks or technical failures.
Sell Wall: A very large limit sell order or an accumulation of sell orders at the same price level on an order book for an asset.
Sentiment: The overall attitude of a community towards a cryptocurrency or within investors towards a certain financial market.
Sharpe Ratio: A ratio created in 1966 that investors and economists use to assess the potential return on investment (ROI).
Smart Contract: Automated contracts that trigger certain actions when predetermined conditions are met. They work like "If...then" conditions, such as requiring condition C to be met before money can be transferred from A to B.
Snapshot: The ability to record the state of a blockchain ledger, storage device, or computer system at a specific point in time.
Spread: Difference in price between the buy(bid) and sell (ask)
Spot: Spot price is the current value of an underlying asset
Stablecoin: A type of cryptocurrency that is designed to maintain a stable value, rather than experiencing significant price changes.
Staking: In crypto, staking is the incentive model of locking up crypto holdings in order to obtain rewards or earn interest.
Staking Pool: A pool where stakeholders combine their staking power to increase their chance of successfully validating a new block.
Store of Value: A commodity, asset, or currency that can be saved, retrieved, and exchanged at a future date without suffering depreciation.
Support: In technical analysis (TA), support refers to a price level at which demand for an asset is thought to be strong enough to prevent the price from declining further.
Stable rate: A loan with a stable rate behaves like a fixed rate loan in the short term, but the rates can be rebalanced following sudden market changes in the medium/long term.
T
Technical analysis: The study of historical price and volume data in order to identify patterns and trends that can be used to make investment decisions.
aker: Someone who places an order that is immediately matched with an existing order on the order book.
Tank: A strong negative financial performance of a particular asset, adopted from traditional financial markets.
Ticker: The trading symbol or shortened name (usually in capital letters) that refers to a coin on a trading platform. For example: BNB
Token: Digital units issued on a blockchain that can hold value or be redeemed for assets.
Token Lockup: The time during which tokens or coins are not allowed to be transferred or traded.
T-Shares:T-Shares means trillion shares. A user’s HEX and stake days are ultimately converted to shares. When calculating a user’s portion of day’s inflation + penalty payments, they receive an amount equal to their stake’s Shares / Total shares in existence on that day.
Total Supply: The number of coins or tokens that currently exist and are either in circulation or locked in some way.
Transaction ID (TXID): A unique string of characters that labels each transaction on the blockchain.
Transactions Per Second (TPS): The number of transactions that a blockchain network is capable of processing per second.
Trustless: A system in which no single entity has authority and consensus is achieved between participants who do not need to trust each other.
Token Burn: An event in which tokens are permanently and verifiably removed from circulation.
Total Value Locked (TVL): The number of assets that are currently staked in a protocol or the total quantity of underlying funds that a decentralized finance (DeFi) protocol has secured.
Trading Volume: The amount of cryptocurrency that has been traded in the past 24 hours.
Transaction Fee: A payment to the network for recording a transaction on the blockchain.
Testnet: A staging area for experimenting with new blockchain features, short for "test network."
U
Utility Token: cryptocurrency tokens with specific utilities on a network besides being used as medium of exchange and investment vehicle.
V
Volatility: How quickly and how much the price of an asset changes. Calculated in terms of standard deviations in the annual return of an asset over a set period of time
Volume: A measurement of the number of individual units of an asset that changed hands in a market during a given time.
Validator: A block-signing participant of a Proof of Stake blockchain network, who have significant tokens staked on the network.
W
Wallet: A software program that stores a user's private and public keys, and allows them to send and receive cryptocurrency.
Wen Lambo: An expression used by investors to ask when the value of their investment could buy them a Lamborghini
Wen Moon: An expression used by investors to ask when the price of a coin would hit a peak
Whitelist: A list of allowed or trusted individuals, computer programs, or cryptocurrency addresses in relation to a service or event.
Wick: A line found on a candlestick chart that indicates where the price of an asset is fluctuating in relation to its opening and closing prices.
Win Rate: In financial markets, the win rate (or win ratio) is a metric that indicates how profitable a trader might be.
Wrapped Ether (WETH): An ERC-20 token representing Ether at a 1:1 ratio. It allows users to trade ETH for ERC-20 tokens on decentralized platforms.
Y
Yield: interest earned from an investment through staking or providing liqudity
Yield farming: The act of using liquidity in decentralized finance (DeFi) protocols to earn a return on one's capital, typically through providing liquidity
YTD: Acronym for Year-to-date
Z
Zero-knowledge proof: A method of proving that something is true without revealing any additional information about it. In the context of cryptocurrency, a zero-knowledge proof can be used to verify that a transaction is valid without revealing the details of the transaction.
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