DCA FINANCE / GLOSSARY
Cryptocurrency glossary — page 2
Understand your money. Check the numbers. Build your plan.
DCA FINANCE / GLOSSARY
DEX (Decentralized Exchange)
A cryptocurrency exchange without intermediaries. Trading happens directly between users via smart contracts: Uniswap, SushiSwap.
DCA FINANCE / GLOSSARY
Ethereum (ETH)
The second-largest cryptocurrency and smart contract platform, created by Vitalik Buterin in 2015.
DCA FINANCE / GLOSSARY
FOMO (Fear Of Missing Out)
The fear of missing an opportunity — an emotion that drives investors to buy at peak prices.
DCA FINANCE / GLOSSARY
Fork
A blockchain split into two versions. Can be soft fork or hard fork. Leads to creation of new cryptocurrencies.
DCA FINANCE / GLOSSARY
FUD (Fear, Uncertainty, Doubt)
Spreading negative information to manipulate market prices through fear, uncertainty, and doubt.
DCA FINANCE / GLOSSARY
Futures
Derivative contracts to buy or sell cryptocurrency at a predetermined price in the future. Allow trading with leverage and opening short positions.
DCA FINANCE / GLOSSARY
Gas
Transaction fee for executing operations on the Ethereum network. Measured in Gwei and depends on network congestion.
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Governance Token
A cryptocurrency that grants voting rights in managing a decentralized protocol or DAO.
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Halving
A Bitcoin event where miner rewards are cut in half every 210,000 blocks (approximately every 4 years).
DCA FINANCE / GLOSSARY
Hashrate
The computational power of a blockchain network, measured in hashes per second.
DCA FINANCE / GLOSSARY
HODL
Crypto slang for holding cryptocurrency long-term without selling during market downturns.
DCA FINANCE / GLOSSARY
Hot Wallet
A cryptocurrency wallet constantly connected to the internet. Convenient for frequent transactions but less secure than cold storage.
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ICO (Initial Coin Offering)
A fundraising method for crypto projects by selling tokens to investors before product launch.
DCA FINANCE / GLOSSARY
Impermanent Loss
Temporary losses when providing liquidity in DeFi, occurring due to changes in the price ratio of assets in the pool.
DCA FINANCE / GLOSSARY
KYC (Know Your Customer)
Identity verification procedure on crypto exchanges. Requires providing documents to confirm your identity.
DCA FINANCE / GLOSSARY
Layer 2 (L2)
Scaling solutions on top of the main blockchain. Provide fast and cheap transactions: Arbitrum, Optimism, Base.
DCA FINANCE / GLOSSARY
Leverage
Borrowed funds to increase position size. Multiplies both profits and losses. High-risk instrument.
DCA FINANCE / GLOSSARY
Liquidation
Forced position closure on an exchange when losses reach the collateral amount. Occurs when trading with leverage.