Skip to main content

Glossary

Updated over 4 months ago

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.

Did this answer your question?