A
Address – A unique string of characters used to send and receive cryptocurrency. Similar to a bank account number.
Anti-Money Laundering (AML) – Laws and regulations aimed at preventing the use of crypto or fiat for illicit activities.
Ask Price – The price at which a seller is willing to sell a cryptocurrency.
B
Bear Market – A prolonged decline in cryptocurrency prices, often leading to market pessimism.
Bid Price – The price a buyer is willing to pay for a cryptocurrency.
Bitcoin (BTC) – The first and most well-known cryptocurrency, created by Satoshi Nakamoto.
Blockchain – A decentralized, immutable digital ledger that records cryptocurrency transactions.
Bull Market – A period when crypto prices are rising, leading to optimism and buying.
C
Centralized Exchange (CEX) – A platform (e.g., Binance, Coinbase) that facilitates crypto trading through an intermediary. Read more about this on our EQX blog post.
Coin – A digital asset that operates on its own blockchain (e.g., Bitcoin, Ethereum).
Cold Storage – A secure way to store crypto offline, protecting it from hacks.
Cold Wallet – A wallet that stores crypto offline, like a hardware device.
Confirmation Time – The time it takes for a crypto transaction to be verified and added to the blockchain.
Copy Trading – A strategy where beginners copy the trades of experienced investors.
Cross-Chain Bridge – A tool that allows users to transfer crypto between different blockchains.
Cryptocurrency – A digital form of money that operates on a blockchain.
Custody – The responsibility of holding and securing cryptocurrency.
D
Decentralized Autonomous Cooperative (DAC) – A cooperative organization governed by smart contracts and blockchain voting.
Decentralized Autonomous Organization (DAO) – A blockchain-based group where members vote on decisions using tokens.
Decentralized Exchange (DEX) – A trading platform that enables direct peer-to-peer crypto transactions without intermediaries (e.g. Uniswap). Read more about this on our EQX blog post
Decentralized Finance (DeFi) – Financial services (lending, borrowing, trading) that run on blockchain without banks.
Delisting – Removing a cryptocurrency from an exchange, making it unavailable for trading.
Digital Signature – A unique code that proves the authenticity of a crypto transaction.
E
Ethereum (ETH) – A leading blockchain network that supports smart contracts and decentralized applications (dApps).
Exchange – A platform where users buy, sell, and trade cryptocurrencies.
F
Fiat Currency – Government-issued money like USD, EUR, or NGN that is not backed by a physical commodity.
Forex – Foreign exchange market where different national currencies are traded.
Fungibility – The ability of a digital asset to be exchanged for another of the same type (e.g., 1 BTC = 1 BTC).
Futures Contract – An agreement to buy or sell an asset at a predetermined price on a specified future date.
G
Gas – A fee required to process transactions on blockchain networks like Ethereum.
H
Hash – A unique string of characters used to identify blockchain transactions and blocks.
Hash Rate – The speed at which a blockchain network processes transactions, measured in hashes per second.
High-Frequency Trading (HFT) – Automated trading using algorithms to execute a large number of trades in milliseconds.
HODL – A term for long-term cryptocurrency holding, originally from a misspelling of "hold."
Hot Wallet – A wallet that is connected to the internet, making it easy to use but less secure.
I
Index – A collection of cryptocurrencies grouped together to measure the market’s performance.
Index Fund – A fund that tracks a specific cryptocurrency index, enabling diversified investment.
K
Know Your Business (KYB) – A compliance process that verifies a business’s identity before it can trade on an exchange.
Know Your Customer (KYC) – A verification process requiring users to submit personal identification before trading.
L
Lightning Network – A layer-2 solution for Bitcoin that enables faster and cheaper transactions.
Limit Order – A type of order that sets a specific price at which a trader wants to buy or sell crypto.
Liquidity – The ease with which a cryptocurrency can be bought or sold in the market without significantly affecting its price.
Liquidity Provider – A person or entity that supplies crypto to a trading platform to improve market liquidity.
Listing – The process of adding a new cryptocurrency to an exchange for trading.
M
Mainnet – The live, fully operational version of a blockchain.
Mainnet Swap – Moving tokens from a test or temporary blockchain to a fully developed mainnet.
Maker – A trader who places an order that adds liquidity to the market, typically getting lower fees.
Market Maker – A trader or entity that provides liquidity by placing buy and sell orders on an exchange.
Margin Trading – Trading with borrowed funds to increase potential profits (and risks).
Market Order – An order to buy or sell crypto immediately at the best available price.
Mining – The process of validating blockchain transactions using computational power, earning rewards in return.
Moon – A slang term for when a cryptocurrency’s price surges significantly.
N
Net Asset Value (NAV) – The total value of an investment portfolio minus liabilities.
Net Returns – The profit or loss on an investment after fees and expenses.
Non-fungible Token (NFT) – A unique digital asset representing ownership of art, music, or collectibles on the blockchain.
Non-Serviceable Countries – Countries where an exchange does not operate due to legal or regulatory reasons.
O
OCO Order (One-Cancels-the-Other) – A trading order where two orders are placed, and when one executes, the other is canceled.
Off-chain – Transactions that occur outside the blockchain to improve speed and reduce costs.
On-chain – Transactions recorded directly on the blockchain, ensuring security and transparency.
P
Peer-to-Peer (P2P) – Direct crypto transactions between users without a middleman.
Phishing – A scam where hackers try to steal login details by tricking users into clicking fake links.
Private Key – A secret code that allows users to access and control their crypto.
Proof of Assets (PoA) – A system proving that an exchange holds the crypto it claims to hold.
Proof of Liabilities (PoL) – A system proving an exchange’s financial obligations to users.
Proof of Profits (PoP) – A way for businesses to show their earnings transparently.
Proof of Reserves (PoR) – A method to verify that an exchange holds sufficient crypto to cover customer deposits. EQX reports Proof of Reserves in real-time. Read more about this on our EQX blog.
Proof of Solvency (PoS) – A financial audit to ensure an exchange can meet its obligations.
Proof of Transparency (PoT) – A system ensuring that all financial details of an exchange are openly available.
Public Key – A wallet address that others can use to send you crypto.
Pump and Dump – A scam where traders artificially inflate a coin’s price and then sell at a high, leaving others with losses.
R
Realized (capital) Gains and Losses – The profit or loss made when selling crypto.
Recession – A period of economic decline that can impact crypto markets.
Restricted Countries – Countries where crypto trading is limited or banned by law.
Rug Pull – A scam where developers abandon a project after taking investor funds.
S
Satoshi – The smallest unit of Bitcoin, equal to 0.00000001 BTC.
Security Exchange Commission (SEC) – The U.S. regulator that oversees securities, including some crypto assets.
Security Audit – A review of a blockchain project’s code to check for vulnerabilities.
Serviceable Countries – Countries where an exchange legally operates and provides services.
Smart Contract – Self-executing code that automates transactions on the blockchain.
Stablecoin – A cryptocurrency designed to maintain a stable value by being pegged to an asset like the U.S. dollar.
Staking – Locking crypto to help validate blockchain transactions and earn rewards.
Staking Pool – A group of people combining their crypto to maximize staking rewards.
T
Taker – A trader who executes an order immediately at the best available price, reducing liquidity.
Testnet – A blockchain used for testing new features before launching on the main network.
Token – A digital asset created on a blockchain, often used for transactions or utility.
Tokenization – The process of converting real-world assets into digital tokens on a blockchain.
Tokenomics – The economic model and rules governing a cryptocurrency.
TradFi (Traditional Finance) – The conventional financial system, including banks and stocks.
Trading Pairs – Crypto pairs available for exchange (e.g., BTC/USDT).
Transaction – The transfer of crypto from one wallet to another, recorded on the blockchain.
U
Unrealized (capital) Gains and Losses – Profits or losses on unsold crypto holdings.
User Interface (UI) – The visual layout of an app or exchange.
Utility Token – A token that grants access to a product or service within a crypto platform.
V
Verification – The process of confirming a user’s identity before allowing trading.
Volatility – The degree of variation in cryptocurrency prices over time, indicating market stability or risk.
Volume – The total amount of a cryptocurrency traded in a given time.
W
Wallet – A tool (software or hardware) for storing and managing cryptocurrencies.
Wash Trading – A market manipulation tactic where a trader creates fake trading activity.
Web3 – The decentralized version of the internet built on blockchain technology.
Whale – A trader or investor with a large amount of crypto who can influence prices.
Whitelist – A list of approved users or addresses for specific crypto-related activities.
Z
Zero-Knowledge Proofs (ZKP) – A cryptographic method that allows verification of information without disclosing the actual data.