DeFi & Crypto Glossary

Breaking down simple-to-understand crypto lingo

DeFi Slate Family:

The crypto world is ours to grab by the horns.

But there is one fundamental barrier that is making it increasingly harder day in and day out.

Complexity.

We feel smart by using big words and tough to understand concepts in DeFi.

This is a huge obstacle for new investors to get over.

We must simplify the complex. We must prioritize convenience and ease of use over returns and cool lingo.

We invite you to peruse through the crypto and DeFi glossary for a quick primer on some important crypto terms!

Enjoy!

DeFi Slate Team

2018 The Year of the Altcoins - Blox

Altcoin: cryptocurrency that is an alternative to Bitcoin, basically any other cryptocurrency

Address: A string of text that designates the location of a particular wallet on the blockchain

ATH: The all time high value of a asset

ATL: The all time low value of a asset

Bags: A poorly performing portfolio of coins and tokens that one is holding

Breakout: when the price of an asset moves outside of the resistance area and goes up

Bull market: A term used to describe markets that are upward trending

Bear market: A term used to describe markets that are downward trending

Blockchain: decentralized, digital ledger that records transaction information about a cryptocurrency in chronological order

CeFi: short for Centralized Finance, the traditional financial system that we’ve been using for thousands of years and we’re just realizing now that it’s pretty bad

Coin: cryptocurrency that is independent of any other platform, which is used as an exchange of value

Cryptocurrency: A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operates independently of a central bank

DeFi: Short for Decentralized Finance

dApps: an abbreviation for decentralized applications, run on a peer-to-peer network of computers rather than one central computer

DEX’s: Decentralized exchanges, peer-to-peer exchanges that allows users to buy and sell crypto without a central intermediary present

DYOR: Acronym for “do your own research”, often encouraged to people who are going to blindly follow the hype of a asset

Decentralized Autonomous Cooperative (DAC): organization that’s controlled by shareholders rather than a central authority

Decentralization Autonomous Organization (DAO): System of hard-coded rules that define with actions a decentralized organization will take

Decryption: reverting an encryption process so unreadable date can be translated into readable, plain text

Dead Cat Bounce: Brief recovery in the price of a declining asset that is shortly followed by a downward trend, sometimes tricks investors into buying more

Dollar Cost Averaging: Investing fixed dollar amounts over regular periods of time, regardless of the price of the asset or how the market is doing

Dump: a term used to describe selling all or a large quantity of one’s cryptocurrencies

Ethereum (ETH): decentralized open source blockchain featuring smart contract functionality and is a very popular platform for DeFi applications due to it’s design

Fear of Missing Out (FOMO): feeling of fear or anxiety of missing out on a high profit opportunity

Fear, Uncertainty, and Doubt (FUD): a tactic used by others to spread fear and insecurity among customers, traders, or investors and make them sell

Gas: the pricing employed on the ETH blockchain to calculate smart contract operation costs and transaction fees

HODL: bitcoin talk for “hold”, or “Hold on for dear life”, keeping ownership of your assets and not selling

Initial Coin Offering (ICO): fundraising method in which new projects will sell their cryptocurrency to investors

Interoperability: allowing blockchains to be compatible with each other and build upon each other’s features and use-cases like lego pieces

Listing: the addition of an asset to an exchange

Liquidity: how easily it can be bought and sold without affecting the overall market price

Market Capitalization (MCAP): total number of coins in supply multiplied by the price

Margin trading: trading using borrowed funds, recommended for highly experienced investors

Mining: verification of transactions on a blockchain network, in which transactions are added as entries into the blockchain ledger, can earn cryptocurrency this way without buying it

Moon: an expression used to state that the value of a cryptocurrency is going to soar

Node: communicate with each other on the blockchain to ensure the security and integrity of the system

Peer-to-Peer (P2P): When 2 or more computers are connected and share workload or resources without relying on a centralized server

Pump and dump: strategy used by whales to drive the price of an asset up and create hype which drives the price even more, then they sell

Resistance: term used in technical analysis to describe when a price can’t get over a certain value over a period of time

Shit coin: a cryptocurrency that is considered shit. Doesn’t have a future and it’s value is nothing

Smart contracts: Automated contracts that trigger certain actions when predetermined conditions are met. Condition C needs to be met before money can be transferred from A to B.

Stablecoin: A cryptocurrency whose value is pegged to the US dollar and maintains a stable value

Support: term used in technical analysis for when a price that is decreasing finds “support” and doesn’t go down as much

Tokens: these are different from coins, they’re digital units issued on a blockchain, can hold value or be redeemed for assets

Technical Analysis (TA): method of forecasting the direction of prices through study and past market behavior

Trustless: No single entity has authority over the system and consensus is achieved between participants who do not have to trust each other

Total supply: refers to the total amount of coins of that cryptocurrency in circulation or locked somewhere else

User interface (UI): the interface where interactions between humans and machines occur, establishes how a user can interact with a machine

Volatility: describes how frequent the price shifts of an asset can be, how frequent the ups and downs are

Volume: measurement of the number of individual units of an asset that exchanged hands in a market during a given time

Whale: An individual or organization that holds a large amount of BTC or any cryptocurrency which allows them to impact the markets

Wallet: Used to send and receive cryptocurrencies, stores your crypto as well

Yield Farming: The act of leveraging DeFi protocols and products to generate high return rates

DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. Please refer to our blog for more on mitigating your downside when using these protocols!


Subscribe to the DeFi Slate Newsletter & join dozens of crypto enthusiasts:

🌐Check Us Out On Twitter: https://www.twitter.com/defislate

🎥Podcast: https://www.youtube.com/playlist?list=PLT6WMYRb-Et52mkedghH8bzxKpbCNj6ta