When tokens of a project are sent to one or more wallets, typically during marketing campaigns (e.g. contests, giveaways, bounties) to spread awareness and when investors participate in a private or public sale. After the fundraising round, a project airdrops tokens to investors based on their financial allocation.
Note: If you receive any cryptocurrencies or NFTs in your wallet that you weren't expecting, it's most likely a scam. Don't try to sell or transfer them. If possible, ignore or hide them.
Any cryptocurrency that isn’t Bitcoin (BTC).
When altcoins outperform Bitcoin’s growth.
AMA (Ask Me Anything)
When teams of a project host an event over text, audio, and/or video to make announcements, give progress updates, and answer any questions that current & potential investors may have.
AMM (Automated Market Maker)
An autonomous mechanism that facilitates trading through a Liquidity Pool.
Automated market makers remove the need for the traditional order book model, where the exchange needs to pair buyers with sellers to execute a trade. Instead, they allow users to transact directly with the liquidity pool, completing orders almost instantly.
API (Application Programming Interface)
A set of protocols, routines, and tools that allow software applications to communicate with each other. APIs enable developers to access and manipulate data from one software system to another and build new applications on top of existing ones. In the context of crypto, APIs can be used for accessing blockchain data, trading, and developing decentralized applications.
Arbitrage in the world of cryptocurrencies is a trading strategy that exploits price differences for the same cryptocurrency across various exchanges. This practice involves purchasing the asset at a lower price on one exchange and selling it at a higher price on another, aiming to profit from the price differential. The key to successful crypto arbitrage lies in executing these buy and sell orders with great speed and simultaneity. Traders need to act swiftly and almost simultaneously to seize the opportunity before price variations erase the potential profit, and therefore the process is usually automated. Arbitrage helps align cryptocurrency prices across different exchanges and pools and enhances market efficiency within the crypto space.
ATH (All Time High)
When a cryptocurrency has reached its highest price to date on the market.
Tip: At this point, always be cautious when you are considering investing and make sure you have a dollar cost average strategy (definition below) in place.
ATL (All Time Low)
When a cryptocurrency has reached its lowest price to date on the market.
Tip: If your research indicates that the price of an asset will increase from here, it is typically seen as the best entry point for an investor to buy tokens at the lowest cost per unit.
An independent, third-party examination of a smart contract to identify vulnerabilities in the code (e.g. loopholes, backdoors, etc.). This usually provides a second layer of security for investing, staking, etc. Note: An audit does not guarantee 100% security and cannot replace doing your own research.
Crypto slang for holding tokens of a cryptocurrency.
Example: “I bought a bag of PING”
Expecting the market to trend toward negative price-action.
When the price of a specific cryptocurrency is manipulated by coordinating a collective buy (often by whales). If people believe that cryptocurrency's price is set to increase, they may purchase it when these whales are actually going to "dump it" immediately afterwards.
A technical standard for tokens created on the BNB Chain (previously named Binance Smart Chain), derived from Ethereum’s ERC-20 standard.
A file on the network which contains information/data of recent transactions that require validation. Once validated, these blocks are forever immutable on the blockchain.
Typically defined as the network where cryptocurrencies work and exist. It runs on distributed ledger technology which stores information. Those records are known as blocks, and they store information about the previous block, timestamps, and transaction data consecutively.
A tool or website that enables users to view and interact with data on a blockchain. Blockchain explorers provide information such as transaction history, block information, network statistics, and other relevant data. They allow users to search for specific transactions or addresses and can help to verify the status and authenticity of transactions. Blockchain explorers are commonly used by investors, traders, and developers to monitor network activity and perform analysis on blockchain data.
The challenge of creating the perfect balance between Decentralization, Scalability, & Security – believed to be the ultimate goal of any blockchain. It was coined by Ethereum co-founder Vitalik Buterin. Currently, most blockchains can only maximize one or two of these while having to compromise on the others.
Note: Ethereum is working to solve the trilemma with Ethereum 2.0
A mechanism or platform that enables the transfer of assets or data between two different blockchain networks or ecosystems. Bridges are commonly used to facilitate cross-chain interoperability, allowing users to move assets such as cryptocurrencies or NFTs between different blockchains that may use different protocols or have different features. Bridges can be centralized or decentralized and may involve the use of specialized tokens or smart contracts to facilitate the transfer of assets. The development of bridges is seen as a key step towards creating a more interconnected and interoperable blockchain ecosystem.
BSC (Binance Smart Chain)
A side-chain developed by Binance using a new standard called BEP-20, which is compatible with ERC-20 tokens, the Ethereum Virtual Machine (EVM), and the Binance Chain. It offers cross-chain compatibility.
In crypto and blockchain, this refers to an organization, person, or group of people that internally control & execute decisions.
Every organization where governance is in the hands of a single “managing body” of decision-makers. It is the opposite of a decentralized authority.
CEX (Centralized Exchanges)
Centralized exchanges (e.g. Binance, KuCoin, Huobi) allow you to buy crypto with fiat currency, transfer money to and from your bank, leverage your crypto positions, and enable you to put in limit orders. Certain Exchanges offer many tools and features above and beyond this definition.
Note: if you hold your crypto on a CEX, you don't own your private keys and therefore don't have sole custody of your assets.
The total number of tokens/coins currently in circulation. These are the tokens that can be bought and sold on the open market.
Note1: This is something to take into consideration when researching a new token, meaning if someone has, for example, 50% of the circulating supply, it might be a red flag.
Note2: Circulating Supply = Market Cap / Price
A process by which participants in a blockchain network agree on the current state of the network. Consensus is reached through a series of rules, protocols, and algorithms that are built into the blockchain's software. These rules govern how new transactions are added to the blockchain, how the network is secured, and how participants are incentivized to maintain the network. There are several different consensus mechanisms used by various blockchain networks, including proof of work, proof of stake, and delegated proof of stake. The consensus mechanism used by a particular blockchain is one of the key factors that determines its security, scalability, and decentralization.
Simply put, the way blockchains ensure that the information provided to them is accurate and secure. Whenever anything happens on a blockchain, all data relevant to that event is saved and stored forever as part of the chain. Because blockchains run on distributed computer networks, these computers (nodes) need a method to agree on what the state of every next block will be. The most prominent of these mechanisms are Proof of Work (PoW) and Proof of Stake (PoS).
See "Smart Contract".
Short for cryptocurrency.
Dao (Decentralized Autonomous Organization)
An entity with no central authority that makes decisions by using cryptocurrencies as governance for proposals and voting. It tends to avoid the typical hierarchy seen in traditional company structures. It is regarded as one of the ‘experiments’ in decentralization that has the potential to shift the way real-world organizations and municipalities operate.
DApps (Decentralized Applications)
Applications that exist and run on a decentralized network. Advantages include increased security, anonymity for their users, and censorship resistance (due to their independence from centralized authorities). Speed and scalability tend to make up disadvantages.
DCA (Dollar Cost Averaging)
An investment strategy where an investor makes periodic purchases of an asset at different price points. This is done in order to lower their average entry or reduce their risk of losses.
Tip: This strategy can work well when you believe the price of an asset will eventually be higher than your average entry. It could fail if the asset’s value only goes down and never returns to the average entry. Like any strategy, DCA should not be used for every situation.
DDoS Attack (Distributed Denial of Service Attack)
A DDoS attack is when an attacker uses multiple systems to flood a target network or website with traffic or requests, causing it to crash or become unavailable. It is typically done with the intent of disrupting normal operations or extorting money from the target.
In crypto and blockchain, this refers to the distribution of control and decision making amongst a community, network, or organization, such as a DAO (Decentralized Autonomous Organization).
Organizations or individuals whose governance decisions are made on multiple levels by many (or all) individual participants. The opposite of centralized authority.
DeFi (Decentralized Finance)
A financial system built on decentralized blockchain technology that allows for peer-to-peer transactions without intermediaries. DeFi enables users to access financial services such as lending, borrowing, and trading in a trustless and transparent manner. DeFi protocols typically use smart contracts to automate financial transactions and are designed to be accessible to anyone with an internet connection.
DEX (Decentralized Exchanges)
Decentralized exchanges (e.g., PancakeSwap, Uniswap, Sushiswap) rely on smart contracts. They allow for basically anyone to make their coin tradable. They don’t have any entity to supervise or control your assets, making it a decentralized exchange. In other words, only you own your assets.
Used to describe cryptocurrency holders who won’t sell their assets because they believe in a project's potential growth.
When an asset or the market has experienced a short or decrease in price/value. Note: You may hear people use the phrase, “buy the dip.”
EIP-1559 (Ethereum Improvement Proposal)
A proposal to make Ethereum transactions more efficient. This hybrid system of ‘base fees & tips’ (vs. an auction-based fee system) was implemented in August 2021 and more evenly incentivizes miners.
ENS (Ethereum Name Service)
ENS stands for Ethereum Name Service, a decentralized naming system that maps human-readable domain names to Ethereum addresses. It allows users to use a domain name instead of a long, complicated Ethereum address to receive and send transactions on the blockchain. ENS also supports the creation of subdomains, reverse resolution, and other features.
ERC-20 (Ethereum Request for Comment, Number 20)
A technical standard for fungible tokens on the Ethereum network, allowing smart contract-enabled tokens to be created and exchanged.
Note: Many blockchains have derived their token standard from the original ERC-20 format (e.g. BEP-2).
ERC-721 Token Standard
The ERC-721 token standard is an Ethereum-based token standard used for the creation of non-fungible tokens (NFTs). Unlike ERC-20 tokens, which are interchangeable with one another, each ERC-721 token is unique and has its own identifier. NFTs created using ERC-721 can be used to represent ownership of digital or physical assets, such as artwork or collectibles. The standard defines a set of functions that must be implemented by the smart contract for the token to be ERC-721 compliant.
Etherscan is a blockchain explorer for the Ethereum network that allows users to explore and search the Ethereum blockchain for transactions, addresses, and other information related to the network. It provides real-time monitoring of the network, including blocks and transactions, as well as access to various statistics and data analytics tools. Additionally, it allows users to view smart contracts and their interactions, as well as manage their own Ethereum wallets.
Launched in 2015, Ethereum is a decentralized, open-source, Layer-1 blockchain with smart contract functionality. Ether (or ETH) is the native currency.
EVM (Ethereum Virtual Machine)
The environment in which all Ethereum accounts and smart contracts live. At any given block in the chain, Ethereum has only one state and the EVM defines the rules for computing a new valid state from block to block. Note: When other blockchains are referred to as EVM compatible, it usually means it can run on the same computing state as Ethereum (also using solidity as their coding language for smart contracts).
A financial platform to buy, sell, and transfer assets.
Fair Market Value
The price at which an asset would change hands if both parties were well informed and not pressured to trade.
Government-issued currency that isn’t backed by a commodity (e.g. gold, silver) and is typically seen as a form of legal tender in countries. These include USD, EUR, and CAD.
Refers to the potential event in which Ethereum will be worth more in market cap value than Bitcoin.
Note: There are websites that specifically track the statistics behind this potential event.
FOMO (Fear Of Missing Out)
Seen in markets when the price of an asset is increasing greatly and the trader wants to purchase solely because it may keep going up without them. When fear leads trading and investment strategies, it often leads to errors. Therefore, FOMO is a dangerous strategy for traders and investors alike.
A fork in a blockchain is a permanent divergence in the blockchain's transaction history, resulting in two or more versions of the blockchain. This can happen intentionally or unintentionally due to differences in consensus rules or network upgrades. A soft fork is backward-compatible, while a hard fork is not and requires all nodes to upgrade. A chain split occurs when a hard fork results in two separate blockchains with their own tokens.
Note: See 'Soft Fork', 'Hard Fork' and 'Node' on this glossary.
FUD (Fear - Uncertainty - Doubt)
Someone’s negative sentiment towards a project, asset, person, or the financial market. Because FUD has a history of influencing other's decisions with bias, it's always good practice to research elements that aren’t properly sourced or proven as true.
The practice of looking at a project’s fundamentals as a method to judge its future potential.
All aspects of a project, which influence its fair market value. These include: finances, experience and expertise of teams, its place in the market (alongside partners and between competitors), and future prospects.
Currencies that can be traded/exchanged with one another and all of them hold the same value amongst their total supply. Examples include Bitcoin (BTC), Ethereum (ETH), and the US Dollar (USD).
For example: 1 USD is always worth the same as another USD. 1 Bitcoin is always equal to another Bitcoin.
In a general sense, "gas" refers to the fee required to perform a certain operation or execute a certain transaction on a blockchain network. Gas is usually denominated in the native cryptocurrency of the network and is paid by the user or sender of the transaction. The amount of gas required for a transaction depends on various factors such as the complexity of the transaction, the current network congestion, and the gas price or fee rate set by the user. The purpose of gas is to prevent spamming and denial-of-service attacks on the network by making it more expensive for attackers to perform such actions.
Gas limit is a term used in various blockchain networks, to define the maximum amount of gas that a block can consume. The gas limit is set by the blockchain network, and it represents the maximum computational work that can be done by a block of transactions. Transactions that require more computational work (e.g., more complex smart contracts) require more gas, and therefore the gas limit determines the maximum number of transactions that can be included in a block. In summary, the gas limit is a mechanism used to prevent spamming and denial-of-service attacks on the network by limiting the amount of computational resources that can be consumed by a single block.
Gas Price / Gas Fee
The amount you’re willing to pay to execute a transaction on a blockchain. It is higher when many people are trying to execute transactions at the same time. If you aren’t in a rush to execute a transaction, it’s advisable to wait for the prices to be as low as possible.
Gwei, short for gigawei, is a denomination of Ether (ETH) cryptocurrency. It is equivalent to 0.000000001 ETH, which means that there are one billion Gwei in one ETH. Gwei is often used to measure gas prices and transaction fees on the Ethereum blockchain. The gas price is typically denominated in Gwei, and users can set the gas price they are willing to pay for their transactions to be processed on the network.
A hard fork is a permanent change to the blockchain protocol that renders previously invalid blocks and transactions valid, or vice versa. Nodes that fail to upgrade may continue to use the old protocol, resulting in a split of the blockchain into two separate chains with different rules.
A hardware wallet is a physical device designed to securely store private keys and cryptocurrencies. It provides an extra layer of security as private keys are kept offline and can be accessed only by the owner through a password or a PIN. Examples include Ledger, Trezor, and Safepal.
In the context of blockchain, a hash refers to a fixed-length alphanumeric string that represents the content of a block, a transaction, or any other piece of data. A hash function takes an input of any size and produces an output of fixed length, which is unique to the input. The output, or hash, is a one-way function that cannot be reversed, meaning that given a hash, it is impossible to determine the original input data. Hashes are used in blockchain for verifying the integrity and authenticity of data, as well as for ensuring the immutability of the blockchain.
HODL (Hold On for Dear Life)
In financial markets, this describes not selling your assets with the belief that – in the long term – you’ll be rewarded with a larger profit.
The total number of wallets currently holding a cryptocurrency.
A common scam technique that malicious project developers employ to steal people’s funds. Honeypots involve coding a token’s smart contract in such a way that buying is allowed – but selling isn’t. Once the liquidity pool fills up to the scammer’s target amount, it is immediately drained.
Note: Before making a large investment into any crypto asset, it’s a good idea to check for a honeypot by purchasing a small amount and attempting to sell it. An inability to sell is a very bad sign and most of the time is due to this scam technique.
ICO (Initial Coin Offering)
Comparable to an IPO (initial public offering), ICOs are a way for a company or project to raise funds for their future plans.
Note: Before participating in an ICO, consider the legal regulations in your region.
IL (Impermanent Loss)
Occurs in liquidity pools when the price of one or both assets fluctuates. For example, if both assets of a liquidity pair go up in value by 10%, your liquidity would be valued at 10% more (and vice versa). If only one of your assets fluctuates, there will be a shift in the amount of assets. So if one asset goes down by 10%, you’ll have 10% more of that asset (and vice versa). IL is only realized when withdrawing from the pool.
Internal transaction refers to the movement of funds or smart contract interactions within a blockchain network. It occurs when a smart contract sends funds to another smart contract or when a user initiates a transaction within a dApp or decentralized exchange (DEX). These transactions are recorded on the blockchain and are publicly visible, but they are not included in the main transaction pool and do not affect the overall network fees.
KYC (Know Your Customer)
Often required when using centralized exchanges, KYC makes you responsible for actions on your account. It's mainly used for counteracting money laundering and enables you to withdraw fiat currency into your bank account. In most cases, you must be 18+ years of age to use KYC.
Layer 1 refers to the underlying infrastructure or protocol of a blockchain network, which determines the fundamental design and functionality of the network. It includes core features such as consensus algorithms, block validation, and transaction processing. Layer 1 solutions are typically focused on improving the scalability, security, and speed of the blockchain network itself, rather than adding new features or applications.
Examples of Layer 1 blockchain networks include Bitcoin, Ethereum, and Cardano.
Layer 2, also known as L2, refers to a secondary protocol or framework built on top of a primary blockchain such as Ethereum, to enhance its scalability and performance. L2 solutions aim to reduce the load on the main chain by allowing off-chain transactions to be processed before being settled on the main chain, resulting in faster and cheaper transactions.
Examples of L2 solutions include state channels, sidechains, and rollups, such as Arbitrum, Optimism, etc.
Note: See "Layer 1" and "Blockchain" in this Glossary, for more details.
Limit Order / Limit Buy or Sell
A type of order placed on a cryptocurrency exchange to buy or sell an asset at a specified price or better. When a trader places a limit order, they are specifying the maximum or minimum price they are willing to pay or receive for an asset. If the market price of the asset reaches the specified price, the limit order will be executed automatically. Limit orders allow traders to set specific entry and exit points for their trades, and can be used to manage risk and maximize profits. They are a common tool used by traders to execute trades in volatile markets.
An asset’s ability to be quickly traded or converted to cash without an excessive impact on its price. Markets with high activity and plenty of buy and sell orders are considered liquid, while those with fewer orders on the book and smaller volumes are called illiquid.
Note: In crypto, we sometimes say liquidity when we talk about Liquidity Pools.
A collection of funds (i.e., tokens or coins) that are locked in a smart contract that facilitates trading without the need of matching buy/sell orders. This removes the need to pair buys with sells to trigger transactions. Instead, automated market makers (AMMs) use these pools to enable one-way trades directly with the liquidity pool directly – eliminating the need for a counterparty.
Mainnet is the official, production-ready blockchain network of a particular cryptocurrency or blockchain project, where real transactions occur and the network is fully operational. Mainnet is in contrast to testnets, which are used for testing and experimentation purposes before launching on the mainnet.
Market Order / Market Buy or Sell
A type of order placed on a cryptocurrency exchange to buy or sell an asset at the best available price in the current market. Market orders are executed immediately, and the trader accepts the current market price for the asset. When a trader places a market order, they are indicating that they want to buy or sell the asset as quickly as possible, without waiting for a specific price. Market orders are used when traders want to enter or exit a position quickly, and are willing to accept the current market price. They are a common tool used by traders to execute trades in highly liquid markets.
The ratio of buys to sells in a given period: Buy pressure (green) indicates there is more buying and less selling happening. Sell pressure (red) indicates there is more selling and less buying happening.
The total number of tokens/coins that will ever be created.
MCAP (Market Cap / Market Capitalization)
The total capitalization of a cryptocurrency’s price. This is the primary way to rank the relative size of a cryptocurrency and its relative share value in national currency.
Note: MCAP = Price of Asset x Circulating Token (ie. shares available for purchase on the open market).
Typically used to describe cryptocurrencies that are inspired by some form of internet meme or pop culture. Shiba (SHIB) and Dogecoin (DOGE) are considered two pioneers in this genre of crypto that popularized the term “meme coin.”
A process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created with the incentive of rewarding those who mined them.
When the price of an asset increases by a very large percentage. There is no specific percentage used to define this amount, but it has been used to describe an asset increasing anywhere from 100% to 10000%.
Multising (Multi-Signature Wallet)
Multisignature (multisig) wallets require multiple users to sign off on transactions, increasing security. The wallet is controlled by a group, and a minimum number of signatures is required to approve transactions. For example, a 3-of-5 multisig requires signatures from at least three out of five members to approve transactions.
NFT (Non-Fungible Token)
The opposite of a fungible token, meaning that one NFT is not worth the same as another NFT. These operate as digital assets, holding specific data on the blockchain to differentiate them from each other through characteristics, features, and utilities. NFTs are typically developed using one of two smart contract token standards: ERC-721 or ERC-1155.
Node (Full Node)
In blockchain, a node is a computer or device that is connected to the blockchain network and is responsible for verifying and validating transactions and maintaining a copy of the blockchain ledger. A full node is a node that has downloaded the entire blockchain ledger and independently verifies all transactions on the network. It also relays information to other nodes on the network and contributes to the overall security and decentralization of the blockchain network.
On-Ramp / Off-Ramp
On-ramp and off-ramp refer to the process of converting fiat currency (government-issued currency) into cryptocurrency and vice versa. An on-ramp is the process of purchasing cryptocurrency using fiat currency, while an off-ramp is the process of converting cryptocurrency into fiat currency.
A list of all buy and sell orders for a particular cryptocurrency or token on a specific exchange. The order book typically displays the quantity of the asset being bought or sold, the price at which the trade will be executed, and the total value of the trade. The order book is constantly updated in real-time as new orders are placed and filled, allowing traders to see the current market depth and make informed decisions about when to buy or sell. The order book is an important tool for traders and is used to determine market sentiment and overall demand for a particular asset.
Trade between one cryptocurrency and another (e.g. the trading pair PING and BNB).
In crypto communities, used to describe someone who sells at a loss out of fear. This likely happens when people are over-invested, have a lack of investment strategy, or are easily influenced by others' decisions.
PoW (Proof of Work)
A consensus mechanism that requires network participants (i.e. nodes) to perform resource-intensive calculations for the opportunity to be chosen to write information to the next block in a blockchain. A considerable amount of work is required to carry out these calculations, but very little to verify them. It’s nearly impossible for bad actors to tamper with the blockchain’s data.
A mechanism that rewards token holders by automatically giving them a “cut” of every transaction. Automatic reflections are one method for project developers to incentivize longer-term holders. They tax a percentage of every token transaction and automatically redistribute it back to all investors based on the percentage of the total supply held.
Renounced Contract Ownership
The practice of relinquishing control over a token’s smart contract in an effort to gain investors’ trust. While renounced ownership ensures that a project’s code will remain unchanged in the future, it doesn’t guarantee that a project isn’t a rug pull or honeypot. It’s important to remember that code can’t be changed or patched for vulnerabilities or bugs, nor adjusted to fulfill necessary listing requirements on most exchanges.
Risk / Reward
Risk/reward is a concept used to evaluate the potential return of an investment relative to the potential loss that could be incurred. In general, the greater the potential reward, the greater the potential risk. Investors or traders will often consider the risk/reward ratio when making investment decisions, which measures the potential profit of an investment compared to the potential loss. A higher risk/reward ratio means a greater potential profit compared to the potential loss, while a lower risk/reward ratio means a smaller potential profit compared to the potential loss.
ROI (Return Of Investment)
The calculated amount of profit you receive on a trade or investment. For example, if you invest $100 and end up with $1000, your ROI is $900 or 1000%. The common formula used to calculate this is: Net Income / Cost of Investment x 100.
RPC (Remote Procedure Call)
RPC is a protocol used to communicate between a client and a server. In the context of blockchain, it is commonly used to connect a client application to a remote node, allowing the client to interact with the blockchain network. RPC requests can be made using a variety of programming languages and APIs.
The most widespread way investors can be scammed. As the name implies, rug pulls drain a token’s liquidity pool without warning. This instantly crashes the price and destroys the project.
Satoshi Nakamoto is the pseudonym used by the unknown person or group of people who created Bitcoin and authored its original white paper in 2008. Despite widespread curiosity about their true identity, Satoshi's real identity remains unknown. Satoshi is considered to be a pioneer in the field of decentralized digital currencies and blockchain technology.
The smallest unit of Bitcoin (BTC). 1 SAT = 0.00000001 BTC
Simply put, it’s the measure of the overall attitude the market has towards a project. Sentiment analysis involves gathering data from a diverse group of online sources and introducing it to a deep-learning algorithm to accurately identify the feelings and attitudes people have towards any given project.
Enthusiastically promoting a cryptocurrency or project. Social media influencers and celebrities are occasionally paid to shill a specific crypto or project.
Describes a cryptocurrency which has no objective value or use-case. Trading with “shitcoins” has been compared to gambling.
A call to action for buying or selling an asset that’s typically given by a trading group or trusted individual.
The difference in price that occurs between the time an order is placed and when it is filled. This is the reason you have to be careful with slippage. In busy markets, prices can fluctuate wildly and – in some cases – high slippage might be your friend. Other times, you may end up not getting the desired deal on the token you’re buying.
A self-executing computer program that runs on the blockchain and allows actions to take place, based on predetermined factors. They allow different parties to engage in trusted, permissionless, and anonymous agreements/transactions on the blockchain, without the need for centralized authorities. Smart contracts are used for proxy wallets to staking pools, swap routers, tokenomics functions, NFTs, and more.
A soft fork is a change to the blockchain protocol that is backward-compatible with previous versions. Nodes that have not upgraded can still participate in the network. Soft forks are implemented by tightening or clarifying the rules of the protocol. However, they may still result in the creation of a new network if some nodes reject the change.
Solidity is a high-level programming language used for developing smart contracts on the Ethereum blockchain. It is statically typed and supports inheritance, libraries, and complex user-defined types. Solidity code is compiled into bytecode that runs on the Ethereum Virtual Machine (EVM).
Note: See "EVM" in this glossary to learn more about it.
TA (Technical Analysis)
The practice of looking for patterns and trends by analyzing charts and market data with the express goal of discovering investment opportunities. A host of indicators and tools exist for investors to make market predictions. Crypto’s volatility and unpredictability mean that it’s wise to combine technical analysis with fundamental analysis.
A built-in, mandatory fee on token transactions is often a part of some projects’ tokenomics models. It funds elements like product development, marketing, and holder rewards (e.g. reflections). Tax is often the only available revenue source during the early developmental stages of many projects.
Testnet is a blockchain network that allows developers to experiment with new features or test applications without using real cryptocurrency or affecting the main network. Transactions on a testnet are usually free and the network is separate from the main blockchain, allowing developers to test and refine their code before deploying it on the main network. Testnets can also be used to simulate real-world network conditions and to identify bugs and vulnerabilities.
Popular testnets include Ropsten, Rinkeby, and Kovan for Ethereum and Testnet for Bitcoin.
The internal economic structure of a crypto token. Every crypto token is created with a series of outlines and rules for where its Supply will be distributed and how it will be managed. Certain amounts of tokens can be allocated to various wallets for different uses and a TAX structure could be defined. These rules are coded into the Smart Contracts that govern these tokens and may sometimes be subject to changes by the project developers unless contract ownership is renounced.
Note: Understanding a project’s tokenomics is an essential part of researching any project and mustn’t be overlooked. Equipped with this knowledge you’ll be able to make much more calm, informed, and ultimately profitable trading and investment decisions.
A group of cryptocurrency tokens that share the same technical characteristic (e.g. ERC-20, ERC-721, BEP-20).
The total number of tokens/coins that have already been created.
TVL (Total Value Locked)
Total Value Locked (TVL) refers to the total amount of assets that are locked into a specific decentralized finance (DeFi) protocol. It is an important metric that is used to track the popularity and adoption of a DeFi protocol. The TVL is calculated by adding up the total value of all the assets that have been deposited or staked in the protocol. As the TVL of a DeFi protocol grows, it is generally seen as an indication of the protocol's success and potential for growth. However, it is important to note that TVL is not the only metric that should be considered when evaluating a DeFi protocol's success.
TXN HASH (Transaction Hash)
Sometimes referred to as a transaction ID, it is the unique set of characters given to every transaction that is verified and added onto the blockchain. Typically seen on block explorers (such as ‘Etherscan’ or ‘BscScan’), they are an easy way to prove a transfer in peer-to-peer transactions.
Typically refers to the act of buying, selling, transferring, or signing anything on the blockchain, exchange, or marketplace.
A validator is a network participant that is responsible for verifying the correctness of transactions and adding them to the blockchain. Validators ensure consensus through a variety of consensus mechanisms, including Proof-of-Stake (PoS) and Proof-of-Work (PoW). Validators are incentivized to behave honestly, as they risk losing their stake if they act maliciously. Validators are rewarded the native tokens of the network they participate in. In some networks, validators can also participate in governance voting and play role in shaping the configuration of the network.
The price fluctuation range of an asset between two points in time.
The combined value of all transactions over a 24-hour period. In technical analysis, volume is one of the most important indicators of trends.
Someone with a large amount of crypto assets or a high percentage of a token supply (e.g. owning 1%+ of total or circulating token supply). Whales are considered individuals who can greatly impact the price of an asset if they were to sell their outstanding shares.
When Lambo / Wen Lambo
A comedic way to refer to a point when holders become rich enough to afford a Lamborghini.
Friendly note: Purchasing a sports car is typically a poor investment.
An important document released by a crypto project that gives investors technical information about its concept as well as a roadmap for how it plans to grow. If a project doesn’t have a whitepaper (or has a poorly-written one), it should be considered a red flag.
A hacking attack occurs when malicious participants own more than 51% of a blockchain network. This kind of manipulation is more likely on insufficiently distributed or decentralized blockchain networks.