The most comprehensive crypto glossary for Beginner level

The most comprehensive crypto glossary out there.

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H

HODL

“Hodl” is originally a spelling mistake made by a user on BitcoinTalk, where the user actually meant to say they are “holding” Bitcoin. The misspelling evolved into a slang in the cryptocurrency community, which now means investors hold on to their cryptocurrency regardless of the price, and eventually became an acronym for “hold on for dear life.”

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Level: Beginner

Hardware wallet

A non-custodial cryptocurrency wallet, which typically looks like a USB drive. You connect a hardware wallet to your computer in order to move funds in and out to exchanges or decentralized applications. A hardware wallet is regarded as the most secure way to store your cryptocurrency because it stays offline, unlike software or browser wallets.

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Level: Beginner

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Roadmap

A strategic plan of a business project that defines a goal or desired outcome and includes key steps or milestones required to achieve them. The roadmap for launching a blockchain project must start with a clear understanding of the benefits that you can reap, with approximate dates of releases.

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Level: Beginner

H

Hard peg

A fixed currency rate that is applied to maintain a currency’s value against another currency. In the world of cryptocurrencies, a hard peg is most usually used for stablecoins, which keeps their value fixed against a national (fiat) currency like the US Dollar or the Euro, in an effort to facilitate cryptocurrency trading in a more practical fashion.

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Level: Beginner

R

Rich list

A common term used to describe the top accounts holding the most amount of coins of any blockchain.

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Level: Beginner

Reverse indicator

A cryptocurrency traders term that is used to describe a trader who always makes mistakes in predicting price movements.

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Level: Beginner

Revenue-share tokens

These tokens entitle their holders to a portion of the revenue or fees generated on or through the host platform. Such revenues can be distributed on-chain periodically or through a mechanism called buy and burn. The last one is about removing tokens from the circulating supply to increase the perceived value of the remaining ones.

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Level: Beginner

Reporting

Institutional investment reporting is the process by which analysis tools are used to generate reports and collect other data to track various aspects of a portfolio's performance. Dedicated reporting tools enable institutional investment firms to analyze profit and loss (P&L) data, performance data, position size, type of entry, and exposure.

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Level: Beginner

Rekt

In the world of blockchain and cryptocurrencies, rekt is used to describe serious financial losses caused by a failed trade or investment. Often used to describe unsuccessful trading or someone who got liquidated after losing a high leverage trade.

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Level: Beginner

Regulatory compliance

The process of ensuring that a business complies with certain guidelines imposed by government agencies such as the Securities and Exchange Commission (SEC) in the United States. These guidelines are designed to protect investors, ensure consumer confidence, promote transparency, efficiency, and fairness in markets, and reduce financial crime and systemic risk.

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Level: Beginner

Recurring buy

A function that allows automating the purchase of cryptocurrency. It is a dollar value averaging (DCA) investment strategy that allows users to choose the asset, the amount, and frequency of the purchases.

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Level: Beginner

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Halving

In mineable cryptocurrencies, miners get rewarded in the form of new coins as a return for the resources they spend to validate transactions. Halving is the drop in these new coin rewards by 50%, which is aimed to reduce inflation in the network’s coin supply.

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Level: Beginner

Hacker

A hacker is generally a malicious actor who utilizes their software coding skills to break into computer systems or networks to steal or modify data such as personal information, identification, and digital funds stored online.

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Level: Beginner

Hack

The process of using computer software to access and manipulate another entity’s computer system or software without the user’s consent and authorization. The purpose of a hack is most usually ill-intentioned, such as stealing a user’s personal information, identification, and funds that are stored in the digital environment, or performing an action in the user’s computer system, browser, or any form of digital account, which would be harmful for the user.

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Level: Beginner

G

Greater fool theory

Burton Malkiel first discussed the greater fool theory, which says that as an investor, you can buy stocks that are clearly overvalued and still make money. According to him, people are generally drawn to assets whose prices are rising because of biases in human behavior. This problem is exacerbated by the herd mentality, in which stories of immediate success by others tend to spur others to follow suit. A "greater fool" is always available to purchase an asset, the theory suggests.

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Level: Beginner

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