Glossary

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All-Time High (ATH)

Refers to the highest price point that a cryptocurrency has ever reached in its history, showcasing its peak market value.


Arbitrage

An investment strategy involving the simultaneous purchase and sale of a cryptocurrency across different exchanges to exploit price differences for profit.


Bag Holder

Investors holding onto a cryptocurrency that has significantly dropped in value, often in the hope that its price will recover to previous highs.


Capitulate

A situation where investors sell off their holdings rapidly due to loss of faith in future gains, often leading to a sharp decline in the cryptocurrency's price.


F.O.M.O. (Fear Of Missing Out)

The emotional trigger driving investors to buy into a cryptocurrency due to the fear of missing out on potential profits, often leading to irrational investment decisions.


Marketcap (Market Capitalization)

The total value of a cryptocurrency's circulating supply, calculated by multiplying the current price by the total number of coins or tokens in circulation.


Moonshot

A term used to describe a cryptocurrency with the potential for exponential growth, leading to significant returns for investors from a relatively low market value.


Price Rejection

Occurs when a cryptocurrency fails to break through a specific price level, indicating a lack of market support at that valuation.


Rug-Pull

A malicious maneuver in the cryptocurrency industry where developers abandon a project and flee with investors' funds, leaving the coin or token worthless.


Staking

The process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network, often rewarded with additional tokens or coins.


Blockchain

A digital ledger technology where transactions are recorded chronologically and publicly, serving as the backbone of most cryptocurrencies.


DeFi (Decentralized Finance)

An umbrella term for financial services on public blockchains, primarily Ethereum, that allows users to lend, borrow, or trade without traditional intermediaries.


Gas Fees

The payment made by users to compensate for the computing energy required to process and validate transactions on the blockchain network.


Halving

A predetermined event in some cryptocurrencies like Bitcoin, where the reward for mining new blocks is halved, reducing the rate at which new tokens are created.


ICO (Initial Coin Offering)

A fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin or ether. It's somewhat similar to an Initial Public Offering (IPO) for stocks.


Liquidity

The ability of a cryptocurrency to be quickly bought or sold in the market without affecting its price significantly.


NFT (Non-Fungible Token)

Unique digital assets that represent ownership of real-world items like art, music, in-game items, and videos, stored on a blockchain.


Smart Contract

A self-executing contract with the terms of the agreement directly written into lines of code, facilitating, verifying, or enforcing the negotiation or performance of a contract.


Tokenomics

The study of the economics of cryptocurrencies, focusing on the factors that influence the value and price of tokens, including supply and demand, utility, and the token distribution model.


Whale

An individual or entity that holds a large amount of a cryptocurrency, having the potential to influence market movements significantly.
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