Crypto glossary

Copy trading allows users to replicate the trades of experienced investors automatically. By using copy trading, individuals can follow market-proven strategies and potentially increase their profits with minimal effort.

Counterparty risk refers to the potential for financial loss when one party in a transaction fails to meet their contractual obligations.

Credentials verify user identities and secure transactions. These digital proofs, such as usernames, passwords, and cryptographic keys, ensure only authorized access to sensitive information and assets.

Cross-chain bridges enable the transfer of assets and information between different blockchain networks, enhancing interoperability and liquidity.

Crypto ETFs provide investors with an easy way to gain exposure to cryptocurrencies by tracking their performance without the need to directly buy and manage the digital assets.

The Crypto Fear and Greed Index is a popular tool that measures the emotional sentiment driving cryptocurrency markets.

A crypto protocol is a set of rules and procedures that ensure the secure, decentralized operation of blockchain networks.

During a crypto winter, investors often experience reduced trading volumes and lower market sentiment, leading to a challenging environment for both new and existing crypto projects.

Cryptocurrency is a form of digital currency secured by cryptography and blockchain technology to ensure secure, decentralized transactions without the need for traditional intermediaries.

Cryptography involves techniques to encrypt information, converting it into an unreadable format, and decrypt it back into a readable form, ensuring secure communication.

Custody involves the secure holding and management of assets by a third party, ensuring protection against theft and loss.

A daemon is a background program that autonomously manages essential operations in a blockchain network, ensuring seamless and secure functionality.

Danksharding is a sharding architecture that significantly boosts Ethereum's scalability by optimizing data management and transaction processing.

A dead cat bounce is a temporary recovery in the price of a declining asset, followed by a continuation of the downtrend.

DApps are blockchain-based software programs that use smart contracts to automate processes, enhancing security and transparency.

An organization that enables members to make collective decisions without centralized control.

A blockchain-based entity governed by smart contracts and community voting, eliminating the need for centralized control.

A cryptocurrency trading platform that allows users to trade digital assets directly with each other, without the need for an intermediary.

DeFi leverages blockchain technology to create an open financial system, eliminating the need for traditional banks.

A decentralized index is a financial product that tracks the performance of multiple cryptocurrencies or digital assets, providing a diversified investment option on decentralized exchanges.

Decryption is the process of converting encrypted data back into its original readable format, using a specific cryptographic key.

The vast part of the internet not indexed by traditional search engines such as Google. Deep web contains over 99% of all web content, including private databases and secure online activities.

The removal of an asset from a trading exchange due to non-compliance with listing standards or voluntary withdrawal.

Depeg occurs when a stablecoin loses its pegged value, causing it to become unstable.

A design flaw attack exploits vulnerabilities in smart contracts or decentralized markets, allowing attackers to manipulate the system and deceive users.

Diamond hands refers to investors who hold onto their assets despite market volatility, believing in the long-term potential of their investments

Difficulty refers to the complexity of the puzzles that miners must solve to validate new blocks on a blockchain.

The difficulty bomb is a mechanism in the Ethereum network that gradually increases mining difficulty to facilitate the transition from Proof of Work to Proof of Stake.

A digital signature is a secure way to validate the authenticity and integrity of digital messages and transactions.

Divergence is a financial concept where the price of a cryptocurrency moves in the opposite direction of a technical indicator.

Diversification is a risk management strategy that involves spreading investments across various assets to minimize risk.

DYOR is a golden rule in the cryptocurrency world. It encourages investors to thoroughly investigate and understand projects before investing.

A smart investment strategy that turns market ups and downs into opportunities by investing a fixed amount regularly.

Double spending is a potential issue in digital currencies where the same cryptocurrency can be spent more than once, undermining trust and reliability.

A type of cyberattack where an attacker isolates a specific node within a network, manipulating its connections to control the information it receives

The Efficient Market Hypothesis claims that market prices are always a step ahead, reflecting all available information and making it difficult for investors to consistently outperform the market.

EigenLayer is a protocol on the Ethereum blockchain that enables users to restake their ETH to support various modules and applications.

EIP-4844, or Proto-Danksharding, is an Ethereum Improvement Proposal that enhances scalability and reduces fees.

Elasticity measures how the demand or supply of an asset responds to changes in its price.

Encryption is a process that transforms readable data into an unreadable format, ensuring only authorized parties can access the information.

A global organization that promotes and accelerates the adoption of Enterprise Ethereum by establishing standards and best practices for its use in enterprise-grade applications.

An Ethereum token standard that allows for the creation and management of both fungible and non-fungible tokens within a single smart contract. ERC-1155 is ideal for applications in gaming and digital collectibles.

A technical standard on the Ethereum blockchain introduced in 2015 by Fabian Vogelsteller. By following the ERC-20 standard, developers can create fungible tokens that integrate seamlessly into the Ethereum ecosystem.

An experimental token standard on the Ethereum blockchain that combines features of fungible and non-fungible tokens.

ERC-721 is a standard on the Ethereum blockchain used to create unique, non-fungible tokens (NFTs).

A type of investment fund traded on stock exchanges, holding a variety of assets like stocks, bonds, or commodities.

Ethereum Classic is a fork of the original Ethereum blockchain. It uses proof of work to secure transactions and validate blocks.

The Ethereum Foundation is a non-profit organization dedicated to advancing the Ethereum blockchain platform and fostering a decentralized ecosystem.

The Ethereum Virtual Machine (EVM) is a decentralized supercomputer that executes smart contracts and processes transactions on the Ethereum blockchain.

An exchange is a marketplace where cryptocurrencies, stocks, and commodities are traded. It provides liquidity and facilitates transactions, ensuring smooth and stable trading activities.