Glossary

What is a 51% Attack? A 51% attack occurs when a malicious actor or group gains control of over 50% of a blockchain network’s total mining or hashing power. This majority control allows them to disrupt the blockchain’s integrity by manipulating transaction records, altering the order of transactions, or preventing new transactions from being confirmed.…

What is an Airdrop? An airdrop in cryptocurrency refers to the free distribution of tokens or coins to specific individuals, typically as part of a promotional effort by a blockchain project. This strategy aims to increase awareness, foster adoption, and reward participants, much like offering free samples in traditional marketing but executed digitally through blockchain…

What is an Altcoin? An altcoin is any cryptocurrency other than Bitcoin. The term “altcoin” blends “alternative” and “coin,” signifying coins that serve as alternatives to Bitcoin. While Bitcoin was the first cryptocurrency and remains the most widely recognized, there are many altcoins that offer diverse features, improvements, and use cases that distinguish them within…

What is an Automated Market Maker (AMM)? An Automated Market Maker (AMM) is a type of decentralized exchange (DEX) that enables cryptocurrency trading without relying on a middleman or traditional order book. Instead of matching buyers with sellers, AMMs utilize liquidity pools—collections of tokens contributed by users. These pools operate through smart contracts that automatically…

What is Arbitrage in Cryptocurrency? Arbitrage in cryptocurrency is a trading strategy that involves exploiting price differences for the same digital asset across multiple exchanges. By buying the asset at a lower price on one platform and selling it at a higher price on another, traders can profit from the temporary disparity. These price gaps…

What is ATH in Cryptocurrency? ATH, or All-Time High, refers to the highest price a cryptocurrency has ever achieved in its trading history. It serves as a key indicator of an asset’s market performance and signifies a peak in its value. This milestone often results in increased attention from traders and investors, reflecting strong demand,…

What is ATL in Cryptocurrency? ATL, or All-Time Low, refers to the lowest price a cryptocurrency has ever reached since its inception. It represents the bottom of an asset’s trading history, marking the least amount of value it has held in the market. This milestone can offer insights into the cryptocurrency’s historical performance and market…

What is a “Bag” in Cryptocurrency? In cryptocurrency, a “bag” refers to holding a substantial amount of a particular digital asset, typically with the intent of achieving long-term gains. The term is subjective, as what constitutes a “bag” varies depending on individual financial circumstances and the asset’s value. Essentially, it represents a significant portion of…

What is a Bear Market in Cryptocurrency? A bear market is a prolonged period of declining prices in the cryptocurrency market, typically defined by a drop of 20% or more from recent highs. It is characterized by widespread pessimism, reduced trading activity, and decreasing asset values across the board. Bear markets can last weeks, months,…