Glossary of Cryptocurrency, Blockchain and Trading Terminology

April 7, 2024

This comprehensive glossary provided by Alvatix covers a broad spectrum of terms you'll encounter in cryptocurrency and trading environments. It's structured to provide a foundational understanding that spans from basic concepts to more advanced and specialized terms.


  • Address: A unique identifier that serves as a location for sending or receiving cryptocurrency.
  • Altcoin: Any digital currency other than Bitcoin.
  • Arbitrage: The practice of buying and selling the same asset in different markets to profit from price differences.
  • ATH (All-Time High): The highest price point a cryptocurrency has ever reached.
  • ATL (All-Time Low): The lowest price point a cryptocurrency has ever reached.


  • Bear Market: A market characterized by declining prices.
  • Bitcoin: The first and most well-known cryptocurrency, created by an unknown person or group under the pseudonym Satoshi Nakamoto.
  • Blockchain: A decentralized digital ledger that records transactions across many computers in a way that prevents alterations.
  • Breakout: A price movement beyond a defined support or resistance level, often followed by increased volatility and heavy trading volume.
  • Bull Market: A market characterized by rising prices.
  • Bull Trap: A false signal indicating that a declining trend in a stock or market has reversed and is heading upwards when, in fact, it will continue to decline.


  • Candlestick Chart: A type of financial chart used to describe price movements of a security, derivative, or currency.
  • CFD (Contract for Difference): A contract between two parties, stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time.
  • Cold Storage/Cold Wallet: A method of storing cryptocurrencies offline to protect them from hacking.
  • Consensus Algorithm: The mechanism used by a blockchain network to achieve necessary agreement on a single data value or a single state of the network.
  • Crypto: Short for cryptocurrency.
  • CT (Crypto Twitter): The community of crypto enthusiasts, traders, and commentators on X (former Twitter).


  • DAO (Decentralized Autonomous Organization): A type of organization controlled by organization members and not influenced by a central government.
  • dApp (Decentralized Application): An application that operates on a blockchain or P2P network of computers.
  • Day Trading: The practice of buying and selling financial instruments within the same trading day.
  • DeFi (Decentralized Finance): A blockchain-based form of finance that does not rely on central financial intermediaries.
  • Decentralization: The transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network.
  • DEX (Decentralized Exchange): A cryptocurrency exchange that allows for direct peer-to-peer transactions.
  • Divergence: When the price of an asset and a related indicator move in opposite directions, indicating a potential reversal.
  • Distributed Ledger Technology (DLT): A digital system for recording transactions in which the data is maintained across multiple locations.


  • ERC-20: A technical standard used for smart contracts on the Ethereum blockchain.
  • ETH: The native cryptocurrency of the Ethereum platform.
  • Equity: In trading, refers to the ownership interest in a firm through the holding of stocks.
  • Exchange: A platform where users buy, sell, or trade cryptocurrencies.
  • EIP (Ethereum Improvement Proposals): A design document providing information to the Ethereum community, or describing a new feature for Ethereum or its processes or environment.


  • Fiat: Currency that a government has declared to be legal tender, not backed by a physical commodity.
  • Fibonacci Retracement Levels: A tool used in technical analysis that indicates areas of potential support or resistance.
  • FOMO (Fear Of Missing Out): Anxiety that an exciting or interesting event may currently be happening elsewhere.
  • FUD (Fear, Uncertainty, Doubt): A strategy to influence perception by disseminating negative, dubious, or false information.
  • Fork: A change in protocol causing the blockchain to split into two separate chains, often leading to the creation of a new cryptocurrency.
  • Futures Contract: A standardized agreement to buy or sell an asset at a predetermined price at a specified time in the future.
  • Flash Loan: A type of loan in DeFi that allows borrowing without collateral, provided that the loan is repaid within the same transaction.


  • Gas Fee: The fee paid for conducting transactions on a blockchain network, notably Ethereum.
  • Genesis Block: The first block in a blockchain.
  • Going Long: Buying a cryptocurrency or a security with the expectation that its value will rise.
  • Going Short: Selling a cryptocurrency or a security not currently owned with the expectation of buying back later at a lower price.
  • Gwei: A denomination of the cryptocurrency ether (ETH), used on the Ethereum network. 1 Gwei = 0.000000001 ETH.


  • Halving: An event in some cryptocurrencies that cuts the reward for mining new blocks in half, occurring approximately every four years for Bitcoin.
  • Hard Fork: A radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. This requires all nodes or users to upgrade to the latest version of the protocol software.
  • Hash Rate: The total computational power used to process transactions and mine new blocks on a blockchain.
  • Hedge: An investment to reduce the risk of adverse price movements in an asset.
  • HODL: Originally a typo for "hold," it has come to mean "hold on for dear life," referring to a strategy of keeping one's investment in a cryptocurrency long-term rather than selling it.


  • ICO (Initial Coin Offering): A type of fundraising using cryptocurrencies, a means of raising capital for early-stage companies.
  • ICO (Initial Coin Offering) Cap: The maximum amount of capital that a project intends to raise in its ICO.
  • Impermanent Loss: Refers to the temporary loss of funds occasionally experienced by liquidity providers because of volatility in a trading pair.
  • Interoperability: The ability of different blockchain systems to communicate and interact with each other.


  • JOMO (Joy Of Missing Out): The feeling of contentment when avoiding investments not suited to one's risk profile.


  • KYC (Know Your Customer): The process of a business identifying and verifying the identity of its clients, a common practice in exchanges and trading platforms.


  • Layer 1: Refers to the base level of a blockchain architecture, e.g., the Ethereum blockchain itself.
  • Layer 2: Refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal is to solve the transaction speed and scaling issues.
  • Ledger: A physical or digital log used to record transactions in an orderly fashion.
  • Leverage: The use of borrowed funds to increase one's trading position beyond what would be available from their cash balance alone.
  • Limit Order: An order to buy or sell a cryptocurrency at a specific price or better.
  • Liquidity: The ease with which an asset, or security, can be converted into ready cash without affecting its market price.
  • Liquidity Pool: In the context of DeFi, it refers to a collection of funds locked in a smart contract.


  • Market Cap (Market Capitalization): The total value of all coins in circulation multiplied by the current price.
  • Market Order: An order to buy or sell a cryptocurrency immediately at the best available current price.
  • Mining: The process of using computer hardware to do mathematical calculations for the blockchain to confirm transactions and increase security.
  • Moving Average (MA): A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations.
  • Margin Trading: The practice of borrowing funds to amplify trade sizes, allowing traders to access greater sums of capital. This can lead to higher profits but also greater risks.


  • Node: A computer connected to the blockchain network that supports the network through validation and relaying of transactions.
  • Non-Fungible Token (NFT): A unique digital identifier that cannot be copied, substituted, or subdivided, recorded in a blockchain, and used to certify authenticity and ownership.
  • Nonce: A value that varies with each transaction to ensure that each transaction is unique for cryptographic purposes.


  • Overbought: A term used in technical analysis indicating that an asset may be overvalued and due for a corrective pullback.
  • Oversold: A term used in technical analysis indicating that an asset may be undervalued and due for a rebound.
  • Oracles: Third-party services that fetch and verify real-world data and submit it to blockchain systems to trigger smart contracts when pre-defined conditions are met.
  • Over-the-Counter (OTC): Trading done directly between two parties, without the supervision of an exchange.
  • On-Chain Governance: A system for managing and implementing changes to cryptocurrency blockchains. In this system, rules for instituting changes are encoded into the blockchain protocol.


  • Paper Wallet: A form of cold storage where a private key is printed onto paper.
  • PoS (Proof of Stake): A consensus mechanism where block validators are selected based on the quantity of cryptocurrency they hold and are willing to "stake" or lock up as collateral.
  • PoW (Proof of Work): A consensus mechanism that requires a participating computer to solve a difficult mathematical problem in order to add a new block to the blockchain.
  • Pump and Dump: A manipulative scheme that attempts to boost the price of a stock or security through false or misleading statements.
  • Private Key: A secret key that is used to sign transactions, providing mathematical proof that they have come from the owner of the wallet.
  • Public Key: A cryptographic code that allows a user to receive cryptocurrencies into his or her account.


  • Resistance Level: A price level where selling is thought to be strong enough to prevent the price from rising further.
  • Rekt: Slang for "wrecked", referring to a significant financial loss in cryptocurrency trading.
  • ROI (Return on Investment): A measure used to evaluate the efficiency or profitability of an investment.
  • RSI (Relative Strength Index): A momentum oscillator used in technical analysis that measures the speed and change of price movements.


  • Satoshi: The smallest unit of the bitcoin cryptocurrency, named after Satoshi Nakamoto, the creator of Bitcoin. It is one hundred millionth of a bitcoin (0.00000001 BTC).
  • Scalping: A trading strategy that attempts to profit from small price changes, with a fast buy/sell cycle.
  • Sharding: A scalability solution that involves dividing the blockchain network into several smaller component networks (called shards) capable of processing transactions in parallel.
  • Smart Contract: Contracts that are programmed to automatically execute, control, or document legally relevant events according to the terms of a contract or an agreement.
  • Stablecoin: A cryptocurrency that is pegged to another stable asset, like the U.S. dollar, to combat volatility.
  • Staking: Participating in a network's operation by locking up tokens to receive rewards, commonly in PoS blockchain networks.
  • Stop-Loss Order: An order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position.


  • Technical Analysis: A trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.
  • Token: A representation of a particular asset or utility, that resides on top of another blockchain.
  • Tokenomics: The study of the supply and demand characteristics of cryptocurrencies. It includes topics such as token distribution methods, token burn schedules, and incentives for various stakeholders.
  • Trading Volume: The total number of shares or contracts traded for a specific cryptocurrency or market during a specified period.
  • Trend Line: A straight line that connects two or more price points and then extends into the future to act as a line of support or resistance.


  • Utility Token: A type of cryptocurrency that is issued in order to fund the development of the cryptocurrency's platform or a specific project, and that can later be used to purchase a good or service offered by the issuer of the cryptocurrency.


  • Validator: A participant in a blockchain network who is responsible for verifying transactions and maintaining the ledger's integrity.
  • Volatility: The rate at which the price of a security increases or decreases for a given set of returns. Volatility is often measured by the standard deviation of the return of an investment.


  • Wallet: A digital wallet that allows users to store and manage their cryptocurrency addresses. A cryptocurrency wallet can be hardware-based or web-based.
  • Whale: An individual or entity that holds a large amount of cryptocurrency, capable of influencing market movements with their trades.
  • Whipsaw: A condition where a security's price is moving in one direction but then quickly moves in the opposite direction.
  • Wrapped Tokens: Cryptocurrencies that are pegged to the value of another cryptocurrency but can operate on a different blockchain, enabling cross-chain transactions.


  • Xenocurrency: A term used in the context of international finance to describe currencies that are traded outside of their domestic markets. In the context of cryptocurrencies, it could be applied to describe digital currencies and assets that operate globally, beyond national jurisdictions.


  • Yield: The earnings generated and realized on an investment over a particular period of time, expressed as a percentage.
  • Yield Farming: A practice in DeFi that allows cryptocurrency holders to lock up their holdings, which in turn provides them with rewards.


  • Zero-Knowledge Proof: A method by which one party (the prover) can prove to another party (the verifier) that they know a value x, without conveying any information apart from the fact that they know the value x.

About Alvatix

Alvatix leverages Artificial Intelligence (AI) and Machine Learning (ML) to analyze market data, sentiment and more to offer AI-powered crypto trading tools and strategies.

Alvatix is actively engaged in educating the community through weekly market analysis and providing insights such as on mastering market liquidity, the ETH ETF trajectory, and global macroeconomics. This underscores Alvatix's dedication to innovation, education, and its mission of democratizing wealth through AI trading technology.

You can access our platform with the free trading signals here. Our automated trading bots have been released for a select group, read more about its performance here.


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*Disclaimer: This article is for informational purposes only and is not intended as financial or investment advice. Alvatix and its services are tools for crypto trading, and users should conduct their own due diligence and consult with a financial advisor before making investment decisions. Past performance of Alvatix's trading strategies is not indicative of future results.

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Alvatix provides a range of AI-driven cryptocurrency trading tools and strategies, including signals and automated bots designed to accommodate diverse financial objectives and levels of expertise.

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With the power of over 40 AI-driven predictive models, we expertly process an immense 15TB+ of data daily. We monitor over 120 blockchains and more than 1 million labeled wallets. With the integration of comprehensive exchange data dating back to 2020 and the incorporation of 50+ technical indicators, Alvatix delivers precise trading signals and effective strategies. This makes it an invaluable asset for traders in the fast-paced crypto market.

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