Bitcoin Trading

Cryptocurrency Dictionary

cryptocurrency glossary

Swing Trading

A parabolic movement of an asset results in a »runaway »condition. Overnight position is a term which is used in relation to trades left open until the following trading day on international financial, currency, and commodity futures markets. An order is an investor’s or trader’s instruction to a broker, brokerage firm or exchange to purchase or sell an asset on the investor/trader’s behalf. These order instructions will affect the investor’s profit or loss on the transaction and, in some cases, determine whether the order is executed at all. 1) Net position is the amount of currency bought or sold that hasn’t been offset by opposite transactions. Liquidity is a market’s feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset’s price. Liquidity is about how big the trade-off is between the speed of the sale and the price it can be sold for.

Decentralized

The Halvening is the date, time, and block at which Bitcoin’s miner subsidy/block reward is halved. This usually causes a supply shock in the market and is a main driver of market impulse movements. The flippening is the idea that at some point Ethereum’s market capitalization, and overall blockchain dominance, will overtake Bitcoin’s. Technical analysis is financial market analysis that uses patterns in market data to identify cryptocurrency glossary trends and make predictions. It is the use of past price information to identify trends, areas of supply & demand, and profitable trade setups. They are taking the price that is asked by the limit buyer or seller. Systems trading is following an algorithmic set of rules for reacting to market conditions such that, when conditions are met and rules followed, has been shown to be statistically profitable over time.

Making good investments requires expert knowledge, and cryptocurrency is even more complicated than the average financial market. Anyone hoping to make money in the crypto game, or even start getting involved in cryptocurrency glossary cryptocurrency, needs to read up. Here’s a list of definitions that will help you understand the basics about cryptocurrency. Confused by all the lingo surrounding cryptocurrencies like Bitcoin and Etherium?

Whales are traders with massive amounts of the currency being traded. They are able to sell and buy in quantities large enough to manipulate the market price in the short term. Wash trading is the process of buying and selling to oneself in order to artificially inflate trading volume and the give the appearance of increased market participants.

Shitcoin is a negative colloquialism used to denote the true value of a cryptocurrency. Initially used in reference to any coin that is not Bitcoin, the term has evolved over time to mean a cryptocurrency that the speaker ultimately believes to be worthless. SHA-256 is an encryption hashing algorithm used by Bitcoin and other PoW cryptocurrencies encryption. SegWit is an implemented Bitcoin soft fork designed to reduce data usage and cryptocurrency glossary enable new scaling features such as Lightning Network by changing the way data is organized on Bitcoin’s blockchain. SAFU is an emergency insurance fund used by cryptocurrency exchanges. On the 3rd of July, 2018, Binance announced the Secure Asset Fund for Users « To protect the future interests of all users, Binance will create a Secure Asset Fund for Users « . SAFU is now a poularized crypto slang term meaning funds are « SAFE ».

Bear Market

cryptocurrency glossary

Dust Transactions

Resistance is an area of a specific asset or market that price has difficulty rising above. Areas of price that have acted as resistance, once overcome, can act as future support and vice versa. Range refers to the difference between an asset’s low and high price for a particular trading period. A rally is a period of sustained increases in the price of a specific asset, asset class or an entire market. A protocol is basically a foundational layer of code that tells something how to function. It’s the program that forms the software basis of any given network.

cryptocurrency glossary

A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies, and cash equivalents, as well as their fund counterparts, including cryptocurrency glossary mutual, exchange-traded, and closed funds. A portfolio can also consist of non-publicly tradable securities, like real estate, art, and private investments.

Decentralized Autonomous Organization (dao)

  • Yet the mechanisms they incorporate to minimize price volatility make them a more useful medium of exchange, enabling a broad range of economic activity.
  • These validators are selected through some type of network governance mechanism — for example, by a token-weighted vote per user account.
  • The attackers would be able to prevent new transactions from gaining confirmations, allowing them to halt payments between some or all users.
  • They would also be able to reverse transactions that were completed while they were in control of the network, meaning they could double-spend coins.
  • Because they’re deployed on top of blockchains, stablecoins retain the advantages of cryptocurrencies — digital, global, easily transferable, and decentralized.
  • DPoS is a type of consensus that limit the number of validators who can add blocks to the blockchain.

Unpermissioned Ledger – Any public blockchain; users need no permission for access. Transparency – The ability to see transactions done using a public address, but without revealing the user’s true identity. Transaction Fee – The fee that is given to a miner who was involved in approving a successful transaction on the blockchain.

Derivative – A financial contract between at least two parties, which derives its value from the underlying cryptocurrency asset. Deflation – Deflation occurs when demand for a certain cryptocurrency decreases and its value or price is reduced. Coinbase– A cryptocurrency exchange that allows cryptocurrency glossary the exchange of regular money for cryptocurrency. Coinbase is renowned for its software, which gives businesses the option of accepting payment in the form of cryptocurrency. Cold Wallet – Any cryptocurrency wallet that is not currently connected to the internet, i.e. in cold storage.

I like bourbon, playing tennis with my wife, and playing guitar while she sings (sometimes I’ll join in). « Fear Of Missing Out. » An emotion experienced by those who haven’t bought any cryptocurrency and see prices continually rising. A currency that is usually backed by a government or group and whose value is tied to the investing cryptocurrency glossary public’s confidence in the government that backs it. The United States dollar changed from a fixed currency to fiat in the 1970’s. Cryptocurrencies are fiat currencies that are not backed by any government — their value is determined by those who trade them and the confidence that the value will increase over time.

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