Blockchain Basics
Fundamental concepts of blockchain technology
Trading Terms
Essential terminology for crypto trading
Security Terms
Wallet security and protection concepts
Technical Analysis
Chart analysis and market indicators
Altcoin
Blockchain
Any cryptocurrency other than Bitcoin. The term combines "alternative" and "coin" to describe cryptocurrencies that are alternatives to Bitcoin.
Example: Ethereum (ETH), Litecoin (LTC), and Ripple (XRP) are all considered altcoins.
ATH (All-Time High)
Trading
The highest historical price level that a cryptocurrency has ever reached since its inception.
Example: "Bitcoin reached its ATH of $69,000 in November 2021."
Blockchain
Blockchain
A distributed digital ledger that records transactions across multiple computers in a way that makes the history unalterable. Each block contains a cryptographic hash of the previous block.
Example: Bitcoin's blockchain records all BTC transactions since its creation.
Block Reward
Mining
The amount of cryptocurrency awarded to miners for successfully adding a new block to the blockchain.
Example: Bitcoin's block reward started at 50 BTC and halves approximately every four years.
Cold Wallet
Wallets
A cryptocurrency wallet that is not connected to the internet, providing enhanced security for storing digital assets.
Example: Hardware wallets like Ledger and Trezor are considered cold wallets.
Cryptocurrency Exchange
Trading
A platform that allows users to buy, sell, and trade cryptocurrencies. Exchanges can be centralized (CEX) or decentralized (DEX).
Example: Binance, Coinbase, and Kraken are popular cryptocurrency exchanges.
DeFi (Decentralized Finance)
DeFi
Financial applications built on blockchain technology that operate without central intermediaries like banks or brokerages.
Example: Uniswap (decentralized exchange) and Aave (lending platform) are DeFi applications.
Private Key
Wallets
A secret alphanumeric code that allows you to access and control your cryptocurrency holdings. It should never be shared with anyone.
Example: "Keep your private key secure - anyone with it can access your funds."
Public Address
Wallets
A cryptographic hash of a public key that serves as your receiving address for cryptocurrency transactions.
Example: "Send Bitcoin to this public address: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa"
Fiat Currency
Trading
Government-issued currency that is not backed by a physical commodity like gold. Examples include USD, EUR, and JPY.
Example: "You can buy Bitcoin with fiat currency like US dollars on most exchanges."
FOMO (Fear Of Missing Out)
Trading
A psychological phenomenon where investors make impulsive decisions based on the fear of missing potential gains.
Example: "Many investors bought at the peak due to FOMO during the bull market."
Gas Fee
DeFi
The transaction fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain.
Example: "Ethereum gas fees can spike during periods of high network congestion."
Hard Fork
Blockchain
A radical change to a blockchain's protocol that makes previously invalid blocks/transactions valid, often resulting in two separate chains.
Example: "Bitcoin Cash resulted from a hard fork of the Bitcoin blockchain."
Hot Wallet
Wallets
A cryptocurrency wallet that is connected to the internet, making it convenient for frequent transactions but less secure than cold wallets.
Example: Exchange wallets and mobile wallets are typically hot wallets.
ICO (Initial Coin Offering)
Trading
A fundraising method where new cryptocurrency projects sell their underlying tokens in exchange for established cryptocurrencies.
Example: "Ethereum raised funds through an ICO in 2014."
Layer 2
DeFi
A secondary framework or protocol built on top of an existing blockchain to improve scalability and transaction speed.
Example: "Lightning Network is a Layer 2 solution for Bitcoin."
Mining
Mining
The process of validating transactions and adding them to the blockchain, typically rewarded with cryptocurrency.
Example: "Bitcoin mining requires specialized hardware called ASICs."
Node
Blockchain
Any computer that connects to a blockchain network and helps maintain the network by validating and relaying transactions.
Example: "Running a full node helps decentralize the Bitcoin network."
Proof of Stake (PoS)
DeFi
A consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to "stake" as collateral.
Example: "Ethereum transitioned from Proof of Work to Proof of Stake in 2022."
Proof of Work (PoW)
Mining
A consensus mechanism that requires miners to solve complex mathematical problems to validate transactions and create new blocks.
Example: "Bitcoin uses Proof of Work to secure its network."
Seed Phrase
Security
A list of 12-24 words that can be used to recover access to a cryptocurrency wallet. Also known as a recovery phrase or mnemonic phrase.
Example: "Write down your seed phrase and store it in a secure location - never digitally."
Stablecoin
Trading
A type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the US dollar.
Example: "USDT (Tether) and USDC are popular stablecoins pegged to the US dollar."
Token
Trading
A digital asset built on top of an existing blockchain. Tokens can represent assets, utility, or governance rights.
Example: "ERC-20 tokens are built on the Ethereum blockchain."
Wallet
Wallets
A digital tool that allows users to store, send, and receive cryptocurrencies. Wallets don't actually store coins but rather private keys.
Example: "Choose a wallet that matches your security needs and technical expertise."