The most comprehensive crypto glossary for Intermediate level

The most comprehensive crypto glossary out there.

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Scareware

A malware tactic that makes users believe they need to download or buy malicious, sometimes useless, software. Scareware uses social engineering, most often triggered by pop-up ads, to take advantage of people’s fear by persuading them to install fake antivirus software.

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Level: Intermediate

V

Vendor

The term is used to describe fintech service providers as they work with financial service firms. Blockchain vendors are companies that provide services to other startups or businesses aiming to use blockchain.

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Level: Intermediate

Venture capital

A form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

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Level: Intermediate

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Scalping

A trading style that specializes in making a profit from small price changes with reselling. Scalping requires a trader to have a strict exit strategy because one big loss can wipe out the many small profits.

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Level: Intermediate

Scalability

A change in size or scale to handle a network’s increasing load of transactions, as well as increasing the number of nodes. A system with good scalability can process more transactions per second than other existing systems by changing its consensus mechanism and adjusting some of the parameters.

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Level: Intermediate

Sandwich attack

Involves “sandwiching” a user's transactions in between two attacker's transactions. Two attacker orders are before and after the users' order (hence the name sandwich), generating a loss for the user and gain for the attacker. Sandwich attacks typically take place on decentralized exchanges (DEXs) and result in price manipulation.

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Level: Intermediate

R

RSI (relative strength index)

RSI is an oscillator that calculates high and low bands between two opposite prices. Basically, it estimates the size and speed of price variation. Traditionally, RSI estimates the change in the price of a cryptocurrency over a 14-period default time frame. It can also be measured in weeks, days, hours, or even minutes.

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Level: Intermediate

Royalties (NFT)

The right of the owner of a patent or intellectual property to receive payment of a sum of money from anyone who uses the asset for commercial purposes. When the NFT is sold and the transaction is confirmed on the blockchain, the new owner receives a digital confirmation of the purchase.

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Level: Intermediate

Roth IRA

A Roth IRA is a special IRA where you pay taxes on the money that goes into your account and then all subsequent withdrawals are tax-deductible. There is not a specific Internal Revenue Service (IRS) account designed for cryptocurrencies. Thus, when investors refer to crypto or Bitcoin IRA they mean a portfolio that includes Bitcoin or other digital currencies.

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Level: Intermediate

Robo advisor

Digital platforms that provide automated algorithmic investment services with minimal human oversight. They are best for simple investing and are not the best options for more complex matters such as real estate planning.

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Level: Intermediate

H

Hyperledger Foundation

An umbrella project for popular open-source blockchains in order to bring their collaborative effort for distributed ledger development. While Bitcoin and Etherum operate on public, permissionless blockchains, the Hyperledger Foundation seeks to develop private and permissioned enterprise blockchains.

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Level: Intermediate

Hybrid Blockchain

A combination of both a public and a private blockchain. A hybrid blockchain typically involves a main public chain, supplemented by private side-chains that are connected to the main chain.

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Level: Intermediate

Howey test

A test used by the U.S. Securities and Exchange Commission (SEC) to determine whether an asset qualifies as a security. There are four elements to the Howey test. If the four elements are met, it is legally considered a security and is regulated as such.

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Level: Intermediate

Horizontal Scalability

Adding more nodes to a blockchain network in order to increase its transaction per second capacity.

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Level: Intermediate

High-Frequency Trading

Automated market trading strategy that deploys a set of algorithms to buy and sell a large quantity of cryptocurrency orders in fractions of seconds.

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Level: Intermediate

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