Glossary
139 terms to sharpen your crypto trading knowledge
Maker
A maker is a trader who adds liquidity to the market by placing orders that rest on the order book, typically earning lower fees from exchanges as an incentive for improving market depth.
Margin Trading
Margin trading allows traders to borrow funds from an exchange to open positions larger than their own capital, amplifying both potential profits and potential losses through leverage.
Market Capitalization
Market capitalization is the total value of a cryptocurrency, calculated by multiplying its current price by the circulating supply, and is used to compare the relative size of different assets.
Market Momentum
Market momentum measures the rate of change in an asset's price, helping traders gauge the strength of a trend and anticipate whether it is likely to continue or reverse.
Market Order
A market order executes a trade immediately at the best available price, prioritizing speed of execution over the certainty of achieving a specific price point.
Masternode
A masternode is a specialized blockchain node that provides advanced network services such as instant transactions and governance, earning its operator a share of block rewards in return.
Mining
Crypto mining is the process of validating blockchain transactions by solving cryptographic puzzles, earning miners newly created cryptocurrency as a reward for securing the network.
Multisignature
Multisignature (multisig) is a security feature requiring multiple private keys to authorize a cryptocurrency transaction, preventing any single point of failure from compromising funds.
Node
Blockchain nodes are computers that connect to a network to validate and relay transactions, collectively maintaining the integrity and decentralization of the blockchain without any central authority.
Non-fungible Tokens (NFTs)
NFTs are unique blockchain-based tokens that represent ownership of a one-of-a-kind digital or physical asset, distinguishing them from fungible cryptocurrencies that are interchangeable.
Nonce
A nonce is a number that miners repeatedly adjust during the mining process to find a block hash that satisfies the network's difficulty target, making proof-of-work computationally intensive.
Off-chain
Off-chain refers to transactions or processes that occur outside the main blockchain but are ultimately settled or anchored to it, enabling faster and cheaper activity than on-chain processing alone.
One Cancels the Other Order (OCO)
An OCO order lets traders place two linked orders simultaneously — such as a take-profit and a stop-loss — so that when one executes, the other is automatically cancelled.
Order Book
An order book is a live record of all outstanding buy and sell orders on an exchange for a given trading pair, displaying the prices and quantities that market participants are willing to transact at.
Paper Wallet
A paper wallet is a physical document containing a public address and private key for a cryptocurrency, kept entirely offline as a form of cold storage.
Peer-to-peer
Peer-to-peer (P2P) refers to a network model where participants interact directly with one another without a central authority, forming the architectural foundation of Bitcoin and many cryptocurrency exchanges.
Pegged Currency
Pegged currencies are cryptocurrencies designed to maintain a stable value by being tied to an external asset like the US dollar, providing price stability in an otherwise volatile market.
Price Action
Price action is the study of how a cryptocurrency's price moves over time, used by traders to identify trends, patterns, and key levels that inform entry and exit decisions.
Private Key
A private key is a secret cryptographic string that proves ownership of a cryptocurrency wallet and authorizes outgoing transactions — whoever holds it controls the funds.
Proof of Authority (PoA)
Proof of Authority (PoA) is a consensus mechanism that relies on a small group of pre-approved, publicly identified validators to confirm transactions, prioritizing speed and efficiency over decentralization.
Proof of Stake (PoS)
Proof of Stake (PoS) is a consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they have staked as collateral, rather than through computational work.
Proof of Work (PoW)
Proof of Work (PoW) is a consensus mechanism where miners compete to solve complex mathematical puzzles to validate transactions and earn block rewards, forming the foundation of Bitcoin's security.
Public Key
A public key is a cryptographic string derived from your private key that serves as your shareable address on the blockchain, allowing others to send you cryptocurrency securely.
Pump and Dump
A pump and dump is a scam where coordinated buyers artificially inflate an asset's price, then sell en masse, leaving other investors with significant losses.
Race attack
A race attack is a double-spend attempt where an attacker broadcasts two conflicting transactions simultaneously, hoping one cancels a payment to a merchant before it is confirmed on the blockchain.
Rekt
"Rekt" is crypto slang for suffering a major financial loss — typically from a bad trade, a liquidated position, or a failed investment — derived from the word "wrecked."
Resistance
Resistance is a price level in technical analysis where selling pressure tends to prevent an asset from moving higher, acting as a ceiling that the price repeatedly struggles to break through.
Routing Attack
A routing attack, or BGP hijacking, manipulates internet routing protocols to redirect traffic — in crypto, this can be used to intercept transactions, steal credentials, or partition a blockchain network.
Rug pull
A rug pull is a crypto scam where project developers abruptly drain a project's funds or liquidity, abandoning investors and leaving them with worthless tokens.
Satoshi Nakomoto
Satoshi Nakamoto is the pseudonymous creator of Bitcoin, who published the foundational white paper in 2008 and launched the network in 2009 before disappearing from public view around 2010.