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Explore Crypto Terms & Definitions
Bull Trap
The term given to price behaviour which gives the impression that the market may be entering a long term upward (bullish) trend but is actually just a short term correction, before resuming the downward trend.
Buy Wall
The name given to a significant volume of Bids (buy orders) at a specific price that creates the impression of a wall on the Depth Chart for a given cryptocurrency. See also Sell Wall.
Call Auction
When buyers set a maximum acceptable price to buy, and sellers set the minimum satisfactory price to sell a security on an exchange. Matching buyers and sellers in this process increases liquidity and decreases volatility.
Candlestick Chart
A type of price chart used in technical analysis. Candlestick charts display the high, low, open, and closing prices of a security for a specific period, their shape resembling a candle. See this article on crypto price charts.
CBDC
Abbreviation for Central Bank Digital Currency. This term has been applied to a hybrid type of digital currency that has been issued by a nation’s central bank. Largely inspired by elements of Stablecoin design, CBDCs enable central banks to create digital versions of existing fiat money where they retain control. Most CBDCs are still in an R&D phase, with an estimated 80% of the world’s central banks researching the subject. Read about CBDCs here.
Centralised Exchange (CEX)
A type of cryptocurrency exchange where the trading is facilitated at a central location and subject to the appropriate regulations. A CEX may operate across several jurisdictions complying with the regulations specific to each.
Change Output
The remaining difference from a Bitcoin transaction where the output exceeded the required input. This extra output is returned to the original input node via a new address and is known as Change.
Cloud Mining
Mining for cryptocurrency using rented computer equipment managed through a Cloud System. This avoids all the problems of hardware maintenance and location logisitics.
Coin Burn
Permanently removing tokens or coins from the circulating supply. Coin burning is usually done to restrict total supply and thereby control inflation.
Coinbase Transaction
The first transaction in a new block created by a miner to receive the Proof of Work reward and fees for transactions included in the block.
Burning
Burning coins is a method for taking coins out of circulation, and thereby reducing the Circulating Supply. It acts as a deflationary tool.
Byzantine General's Problem
When components of a distributed computer system - such as a blockchain - may fail and there is imperfect information as to whether a component has failed or not. First described in a 1982 paper, that describe the problem of gaining consensus through the allegory of a distributed Byzantine Army failing to agree on a battle plan due to untrustworthy sources of information .
Call Option
The right, but not the obligation, to buy a security or cryptocurrency at a given price within a given time frame. See also Put Option.
Cash & Carry Trade
A trading strategy used to profit on discrepancy between the spot price of a crypto asset and its corresponding futures price, which usually happens when asset's value is increasing. For example, if a trader noticed an asset's spot price was £8 and its corresponding futures price was £10, they would purchase at £8 and short the future price at £10. The trader would then “carry” the asset purchased at £8 until delivery in the futures market at £10. The profit would then be £10-£8/£10 = 25% Premium on the spot price with only counter party risk, assuming no other transactional costs. See also Contango.
Censorship Resistance
The quality of being resistant to change forced by external pressure. Bitcoin is censorship resistant because of the extreme cost of trying to subvert the accuracy of transactions maintained within its blockchain.
Centralised Finance (CEFI)
Offers new crypto focused loans/savings products, but within a traditional centralised framework, where users create accounts and provide credentials/KYC, as well as getting access to customer service. Compare to DEFI (Decentralised Finance).
Circulating Supply
A measure of the supply of a cryptocurrency that is in general circulation. Given lost or burned coins, this figure is hard to accurately establish. Circulating supply will function as a proportion of Total Supply.
Coin
Slang term for a cryptocurrency making them more relatable. In reality cryptocurrencies are entirely virtual and have no physical representation. Often used to distinguish cryptocurrency functioning as money rather than tokens with narrow use cases on a specific blockchain.
Coinbase
An American cryptocurrency exchange founded in 2012 by Brian Armstrong and Fred Ehrsam. As of March 2021, Coinbase is the largest cryptocurrency exchange in the US by trading volume with over 41,000,000 users.
Cold Storage
A secure method for storing cryptocurrency that by default is offline (not connected to the internet) and therefore minimises the threat of hacking. Examples are Hard Wallets or Paper Wallets.
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