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Vocabulary

This section defines key terms and concepts commonly used in trading and cryptocurrency.

Marketcap (CAP)​

Market capitalization, or market cap, is the total value of all the tokens of a particular cryptocurrency that are currently in circulation. It is calculated by multiplying the current price of a single token by the total number of tokens in circulation. Market cap provides a snapshot of a cryptocurrency's relative size and market significance.

Fully Diluted Marketcap (FDV)​

The fully diluted market cap assumes that all of a cryptocurrency's total token supply is issued and in circulation. This differs from the regular market cap, which only considers the current circulating supply.

Marketcap Rank (RANK)​

Market cap rank refers to the position of a cryptocurrency relative to others based on its market cap. It is a ranking system that orders assets from highest to lowest market cap.

Time Period Abbreviations (WTD, MTD, QTD, YTD)​

Several abbreviations are used to represent different time frames: WTD (Week to Date): The period from the start of the current week (usually Monday) to the current day. MTD (Month to Date): The period from the start of the current month to the current day. QTD (Quarter to Date): The period from the start of the current quarter (3 months, e.g. Q1 is Jan-Mar) to the current day. YTD (Year to Date): The period from the start of the current calendar year (Jan 1) to the current day.

Simple Moving Average (SMA)​

A Simple Moving Average (SMA) is an arithmetic moving average calculated by adding recent prices and dividing by the number of time periods. It helps smooth out price volatility and can be used to identify trends.

Trading Above Simple Moving Average 10 (ADMA-10)​

When the current price is trading above its SMA-10, it indicates a short-term uptrend and is considered a bullish signal. Conversely, when price falls below the SMA-10, it suggests a downtrend and is seen as bearish.

Trading Above Simple Moving Average 50 (ADMA-50)​

When the current price is trading above its 50-day SMA, it indicates an intermediate-term uptrend and is considered a bullish signal. This suggests that the price has been trending higher over the past 2-3 months and that buying pressure is increasing.

Shakeout​

A shakeout is a situation where many traders or investors exit their positions, often due to false signals or market panic, causing a sharp price decline. This typically weeds out less committed holders, leaving the asset primarily with more dedicated investors.

Upcoming Catalyst​

An upcoming catalyst is an anticipated event or news that is expected to significantly impact an asset's price, such as product launches, partnerships, or other announcements.

Liquid Assets​

In cryptocurrency, liquid assets are digital tokens or coins that can be rapidly converted into cash or other cryptocurrencies with minimal impact on their market price.

Decentralized Exchange (DEX)​

A decentralized exchange is a type of cryptocurrency exchange that operates without a central authority, allowing users to trade directly with one another through smart contracts. DEXs typically provide greater privacy and control over funds compared to centralized exchanges.

Centralized Exchange (CEX)​

A centralized exchange is a platform operated by a company that facilitates cryptocurrency trading, holding custody of user funds and maintaining an order book. CEXs typically offer higher liquidity and user-friendly interfaces but require users to trust the exchange with their assets.

Decentralized Finance (DeFi)​

DeFi refers to financial services and applications built on blockchain technology that aim to recreate traditional financial systems without centralized intermediaries. This includes lending, borrowing, trading, and asset management services that operate through smart contracts.

Layer 1 (L1)​

Layer 1 refers to the base blockchain protocol, such as Ethereum, Bitcoin, or Solana, that handles the consensus mechanism, security, and transaction validation. L1 blockchains are the foundation upon which other applications and scaling solutions are built.

Layer 2 (L2)​

Layer 2 refers to scaling solutions built on top of Layer 1 blockchains to improve transaction throughput, reduce fees, and enhance overall performance. Examples include Arbitrum, Optimism, and Polygon, which process transactions off the main chain while inheriting the security of the underlying L1.

Zero-Knowledge Rollup (ZK)​

A Zero-Knowledge Rollup is a Layer 2 scaling solution that uses zero-knowledge proofs to validate transactions off-chain before submitting compressed data to the main blockchain. ZK rollups offer improved scalability while maintaining security and reducing transaction costs.

Optimistic Rollup​

An Optimistic Rollup is a Layer 2 scaling solution that assumes transactions are valid by default and only runs computations in case of disputes. This approach allows for greater throughput on the main chain while maintaining security through a challenge period.

Non-Fungible Token (NFT)​

Non-Fungible Tokens are unique digital assets that represent ownership of a specific item or piece of content on the blockchain. Unlike cryptocurrencies, each NFT has distinct properties and cannot be exchanged on a one-to-one basis with another token.

Total Value Locked (TVL)​

Total Value Locked refers to the total amount of cryptocurrency assets deposited in a DeFi protocol. TVL is a key metric for measuring the adoption and growth of DeFi platforms and services.

All-Time High (ATH)​

All-Time High refers to the highest price that a cryptocurrency has ever reached since its inception. ATH is an important reference point for investors to gauge potential future performance and market cycles.

All-Time Low (ATL)​

All-Time Low refers to the lowest price that a cryptocurrency has ever reached since its inception. ATL can provide insight into a token's price floor and historical support levels.

Real World Assets (RWA)​

Real World Assets refers to the tokenization of physical assets like real estate, commodities, or art on the blockchain. RWA projects aim to bring traditional assets into the digital realm, increasing liquidity and accessibility.

Proof of Stake (POS)​

Proof of Stake is a consensus mechanism where validators are selected to create new blocks based on the number of coins they hold and are willing to "stake" as collateral. POS is more energy-efficient than Proof of Work and is used by blockchains like Ethereum 2.0, Cardano, and Solana.

Proof of Work (POW)​

Proof of Work is a consensus mechanism where miners compete to solve complex mathematical puzzles to validate transactions and create new blocks. POW is used by Bitcoin and was Ethereum's original consensus mechanism before transitioning to Proof of Stake.

Artificial Intelligence (AI)​

In the context of cryptocurrency, AI refers to projects that leverage artificial intelligence technologies for various applications on the blockchain. These may include predictive analytics, automated trading, content generation, or decentralized AI computation networks.

Account Abstraction (AA)​

Account Abstraction is a blockchain development concept that aims to improve user experience by allowing smart contracts to function as user accounts. This enables features like social recovery, batched transactions, and sponsored gas fees, making blockchain interactions more user-friendly.

Decentralized Physical Infrastructure Networks (DePIN)​

DePIN refers to projects that use blockchain technology to coordinate and incentivize the creation of real-world infrastructure networks. Examples include decentralized wireless networks, storage solutions, and computing resources that are owned and operated by community members.

Liquid Restaking Token (LRT)​

Liquid Restaking Tokens are tokens received when staking assets in protocols that allow for the restaking of already staked assets. LRTs enable users to maintain liquidity while still earning staking rewards, effectively allowing the same capital to be deployed multiple times.

Social Finance (SoFi)​

Social Finance refers to cryptocurrency projects that combine social media elements with financial applications. These platforms may include social trading, content monetization, or community-driven investment decisions.