Glossary

a

Absolute Advantage

An economics concept in which one party has a direct advantage in efficiency in producing/providing a specific good or service over another party.

Active Management

An investing strategy employed by fund managers aiming to outperform an index or market in order to generate profits.

Ad Hoc

A phrase of Latin origin that is used in modern English to mean "for this purpose" or "specifically for this."

Address

String of text that designates the location of a particular wallet on the blockchain. Often a hashed version of a public key.

Airdrop

The distribution of digital assets to the public, either by virtue of holding a certain other token or simply by virtue of being an active wallet address on a particular blockchain

Algorithm

A sequence of unambiguous instructions used for the purpose of solving a problem.

All or None Order (AON)

An order which once placed, must either be filled in its entirety or not at all. This prevents any partial filling of orders.

All-Time High (ATH)

The highest price of a cryptocurrency in a quote​ currency, such as a dollar, BTC, ETH, or BNB

Allocation

An allotment of tokens or equity, that may be earned, purchased, or set aside for a certain investor, team, group, organization, or other related entity.

Alpha

The first look at a product released by a team, consisting of the very first version of a primitive, basic software or product.

Altcoin

A cryptocurrency that is alternative to Bitcoin. Used to describe cryptocurrencies that are not Bitcoin.

Anti Money Laundering (AML)

A framework consisting of legal and regulatory procedures to minimize and curb the flow of funds that are generated from illegal or dubious activities.

Application Programming Interface (API)

A collection of functions and procedures that allow users to interact/communicate with the data of an application or service, such as an exchange, to execute the features of the service programmatically.

Application-Specific Integrated Circuit (ASIC)

An Integrated Circuit customized for maximum performance in a particular use, rather than general-purpose use.

Arbitrage

Buying and selling of assets over different markets in order to take advantage of differing prices on the same asset.

ASIC-resistant

An ASIC-resistant cryptocurrency has its protocol and mining algorithm configured in such a way that using ASIC machines to mine the coin is either impossible or brings no significant benefit when compared to traditional GPU mining.

Ask Price

The lowest price a seller is willing to accept on their sell order when trading an asset on an exchange.

Atomic Swap

Smart contract technology that enables the exchange of one cryptocurrency for another without using centralized intermediaries, such as exchanges.

Attack surface

Different points in software environments where an attacker can attempt to enter data or extract data.
b

Bags

The portfolio of coins and tokens one is holding. Often related to a poorly performing bag of assets that investors insist to hold.

Bear Market

A negative trend in prices of a market. It is widely used not only in the cryptocurrency space but also in the traditional markets.

Benchmark

A measurement standard which can be used to gauge the performance of a particular asset or investment portfolio.

Beta (Coefficient)

A tool used to measure the volatility of an asset in comparison to the volatility of a specific portfolio or market index.

Beta (Release)

An early version of a program for users to test and for a team to get feedback. Beta stage comes after the Alpha stage.

Bid Price

In the context of financial markets, it is the value buyers offer for an asset, such as a commodity, security, or cryptocurrency.

Bid-Ask Spread

The difference in price between the lowest asking price and highest bid price on the order book for an asset

Binance Blockchain Charity Foundation (BCF)

The world's first decentralized charity platform to advocate the concept of 'blockchain for social good'.

Binance Community Vote

When the community has the opportunity to vote for their favorite project to win a free listing on Binance.

Binance Ecosystem Fund (BEF)

An initiative by Binance to collaborate with partners who care about the blockchain/cryptocurrency ecosystem.

Binance Labs

A social impact fund and an initiative to incubate, invest, and empower blockchain and cryptocurrency entrepreneurs, projects, and communities.

Bitcoin

A cryptocurrency created by the pseudonymous developer(s) Satoshi Nakamoto. The first cryptocurrency, initially described as a "Peer-to-Peer e-cash".

Bitcoin Dominance

The ratio of Bitcoin's market capitalization versus the sum of the market capitalizations of all cryptocurrencies.

Bitcoin Pizza

The infamous Papa John's Pizza that cost Laszlo Hanyecz 10,000 Bitcoin when he offered the sum to anyone who bought a pizza for him online and ordered it to his door.

Black Swan Event

An event that is often entirely unexpected and deviates from the expected result causing widespread ramifications.

Block

A computer file that stores transaction data. These can then be arranged in a linear sequence, which will form a blockchain.

Block Explorer

An online Blockchain webpage which allows users to browse information about blocks, transactions, balances, and transaction histories.

Block Height

The number of blocks in the chain between itself and the first block on that blockchain (genesis block or block 0).

Block Reward

The sum of coins awarded by the blockchain protocol to cryptocurrency miners for each successfully mined and validated block.

Blockchain

A decentralized, digitized ledger that records transaction information about a cryptocurrency in a chronological order.

BNB

Launched by Binance after an initial coin offering that ended on July 3rd, 2017. Used for receiving exchange trading fee discounts among other utilities.

Bounty

A reward posted by a group or individual to incentivize certain work, behavior (such as referrals), or development.

Break-Even Point (BEP)

The point where the total costs of an operation is equivalent to its current value or revenue.

Breakeven Multiple

The multiple of the current price by which an asset needs to appreciate in order to reach its previous all-time high.

BUIDL

Originally derived from HODL, a term referring to keeping your heads down and focusing on building your product.

Bull Market

A positive trend in prices of a market. It is widely used not only in the cryptocurrency space but also in the traditional markets.

Buy Wall

A single huge buy order or the composition of multiple large buy orders at the same price in the order book of a particular market.
c

Candidate Block

A temporary block created by a mining node (miner) to add to the blockchain to receive the block rewards.

Candlestick

A graph representation of price action that displays the open, close, high, and low points within a certain period.

Capitulation

A period of strong selling activity, where investors give up their positions and sell their holdings as quickly as possible.

Central Bank

A financial institution that acts as a monetary authority and manages a states currency, interest rates, and money supply.

Central Processing Unit (CPU)

The part of a computer responsible for interpreting instructions of computer programs and executing operations.

Cipher

A method for encrypting and decrypting messages. These can be divided into symmetric or asymmetric, according to their key model.

Circulating Supply

The best approximate number of cryptocurrency coins or tokens that are publicly available and circulating in the market.

Cloud

In computer science, a shared pool of resources, which are made available to multiple users through the Internet.

Coin

A cryptocurrency or digital cash that is independent of any other platform, which is used as an exchange of value.

Collateral

Pledging something of value against a loan to guarantee that the person taking the loan will complete repayment.

Commodity Futures Trading Commission (CFTC)

US-based agency responsible for regulating the derivatives markets, which includes options, swaps, and futures contracts.

Confirmation Time

The time elapsed when a transaction is submitted to the network and the time it is recorded into a confirmed block.

Confluence

When multiple investment methods, technical indicators, or trading signals are combined to form a more reliable strategy.

Credentials

Personal information. Examples include username, password, email address, qualifications and many more.

Cryptocurrency

A digital currency that is secured by cryptography to work as a medium of exchange within a peer-to-peer (P2P) economic system.

Cryptography

The science of using mathematical theories and computation in order to encrypt and decrypt information.

Custody

Ownership of one's funds or assets; in crypto, holding custody of a wallet and its assets also means holding the private keys and the responsibility of keeping funds safe.
d

Daemon

A process operating in the background waiting for a specific event or condition in order to be activated.

Dead Cat Bounce

A brief recovery in the price of a declining asset that is shortly followed by a continuation of the downtrend.

Decentralized Application (DApp)

Applications that run on a P2P network of computers rather than one central computer. This allows the software to run on the internet without being controlled by a single entity.

Decentralized Autonomous Cooperative (DAC)

An organization that is controlled by shareholders rather than a central authority.

Decentralized Autonomous Organization (DAO)

A system of hard-coded rules that define which actions a decentralized organization will take.

Decentralized Exchange (DEX)

An exchange which does not require users to deposit funds to start trading and does not hold the funds for the user. Instead, users trade directly from their own wallets.

Decentralized Finance (DeFi)

The ecosystem comprised of decentralized financial applications developed on top of blockchain networks.

Decryption

The act of reverting an encryption process so that unreadable data (ciphertext) can be converted into readable data (plaintext).

Deep Web

The part of the web that is somehow hidden, i.e., not indexed by Google and other traditional web search engines.

Delisting

The removal of an asset from an exchange either as a request from the project team or as a decision made by the exchange.

Design Flaw Attack

An attack in which a malicious user purposely creates a smart-contract, decentralized market, or other software with knowledge of certain flaws in order to trick individuals interacting within the permissionless environment.

Difficulty Bomb

A significant increase in mining difficulty for a proof-of-work coin. This term is often used in reference to Ethereum's exponentially increasing difficulty.

Divergence

When the market price of an asset and a technical indicator (e.g. RSI, Volume, MACD) are heading in opposite directions.

Diversification

The allocation of funds across different types of assets and jurisdictions in order to reduce the overall risks.

Do Your Own Research (DYOR)

A valuable piece of advice. It's always wise to research a coin or token yourself instead of following what others say.

Dollar Cost Averaging (DCA)

Investing fixed dollar amounts over regular periods of time regardless of the price of the asset.

Double Spending

When a given amount of coins are spent more than once. Usually as a result of a race attack or a 51% attack.
f

Falling Knife

Refers to the action of purchasing an asset while it is rapidly declining in price under the expectation that it will bounce.

Fear Of Missing Out (FOMO)

The feeling of fear and anxiety that you might be missing out on a potentially profitable opportunity.

Fear, Uncertainty and Doubt (FUD)

A marketing strategy used to spread fear and insecurity among customers, traders, or investors.

Fiat

Money that a government has declared to be legal tender.

Fill Or Kill Order (FOK)

A buy or sell order which must be executed immediately in its entirety or else it will be cancelled.

Finality

The assurance or guarantee that completed (cryptocurrency) transactions cannot be altered, reversed or canceled.

First-Mover Advantage (FMA)

The competitive advantage of the first project to bring a service or product into a new and unexplored market or industry.

Flappening

The name to describe the moment when Litecoin (LTC) surpassed Bitcoin Cash (BCH) in terms of market capitalization

Flippening

The name to describe the moment when/if Ethereum (ETH) surpasses Bitcoin (BTC) in terms of market capitalization

Forced Liquidation

When a broker forcibly liquidates an investors position as a result of their position falling below the margin requirement.

Formal Verification

Using mathematically rigorous proofs to ensure certain properties of cryptographic algorithms and blockchain mechanisms

Full Node

A computer that fully implements the entirety of rules of an underlying blockchain network and completely validates transactions and blocks on a blockchain.

Fundamental Analysis (FA)

Evaluating an asset based on its underlying characteristics and traits as an effort towards arriving at an intrinsic value of the asset.

Fungibility

The property of an asset whose individual units are indistinguishable from each other in terms of value and functionality.

Futures Contract

A standardized version of forward contracts that are used as a legal agreement to buy or sell an asset in the future at an agreed upon price and date.
m

Mainnet

A blockchain protocol which is fully developed and deployed where transactions are being broadcasted, verified, and recorded.

Mainnet Swap

When a coin migrates from a third party platform such as Ethereum or other token to a native on-chain token on their mainnet.

Maker

You become a “maker” when you place an order and it does not trade immediately, so your order stays in the order book and waits for someone else to fill/match with it later.

Malware

Any software program or code that is created to infiltrate and intentionally cause damage to computer systems and networks.

Margin Trading

Trading using borrowed funds - note: this is a high risk strategy and should only be done by experienced investors.

Market Capitalization

The total trading value of a given coin - calculated by the product of the supply of the coin by the current price.

Market Momentum

The ability of a certain market to maintain a continuous increase or decrease in price within a particular timeframe.

Market Order

When a taker picks the best available bid or ask for a cryptocurrency, taking the price and quantity available on the order book.

Masternode

Nodes on a network that often require a minimum amount of a given coin staked in order to access staking rewards.

Maximum Supply

Refers to the maximum number of coins or tokens that will be ever created for a given cryptocurrency.

Merged Mining

The act of mining two or more cryptocurrencies at the same time, without sacrificing overall mining performance

Merkle Tree

A way of organizing and structuring large amounts of data to make it more straightforward to process. A hash-based data structure.

Metadata

Data that includes information about other data, such as information about features of a specific transaction.

Mining

The verification of transactions on a blockchain network, in which transactions are added as entries into the blockchain ledger.

Mining Farm

A collection of many miners, often in a warehouse or large data center devoted to mining cryptocurrencies

Moon

A colloquial expression used to describe a cryptocurrency or other asset that is experiencing a strong upward market trend.

Multisignature

Wallet which requires another party to authorize a transaction before it is broadcasted to the network.
s

Satoshi Nakamoto

The pseudonym of the creator or creators of the bitcoin protocol and whitepaper.

Secure Asset Fund for Users (SAFU)

Secure Asset Fund for Users is an emergency insurance fund. On the 3rd of July, 2018, Binance announced the Secure Asset Fund for Users.

Securities and Exchange Commission (SEC)

An independent governmental agency responsible for regulating securities markets.

Security Audit

A systematic analysis to evaluate how safe a system, smart contract, or blockchain is agaisnt attacks or technical failures.

Segregated Witness (SegWit)

A process where the transaction signatures are separated from bitcoin transactions. Allowing more transactions to fit within one block.

Sell Wall

A very large limit sell order or a cumulation of sell orders at the same price level on an order book for an asset.

Sentiment

The overall attitude of a community in regards to a cryptocurrency or within investors towards a certain financial market.

Sharpe Ratio

A ratio created in 1966 that investors and economists use to assess the potential return of investment (ROI).

Smart Contract

Automated contracts that trigger certain action when predetermined conditions are met. It works like 'If…then' conditions as for instance, it needs condition C met before money can be transferred from A to B.

Snapshot

The ability to record the state of a blockchain ledger, storage device, or computer system at a specific point in time.

Source Code

Computer code, which is responsible for defining how software will function based on a list of instructions and statements.

Stablecoin

A type of cryptocurrency that is designed to maintain a stable value, rather than experiencing significant price changes.

Staking Pool

A pool where stakeholders combine their staking power to increase their chance of successfully validating a new block.

State Channel

A two-way communication channel between two users or nodes on a network, or between a user and a service.

Store of Value

A commodity, asset or currency that can be saved, retrieved and exchanged at a future date, without suffering depreciation.

Supercomputer

A computer or virtual machine that operates at the highest level of currently possible computing power.

Supply Chain

A network of people and businesses involved in creating and distributing a particular product or serving a particular customer.

Support

A term in Technical Analysis (TA). When a price that is decreasing finds 'support'. Usually compared with lows.