Glossary

What Is a Cryptocurrency? A cryptocurrency is a type of digital currency that uses cryptography to secure transactions, control the creation of new units, and ensure the decentralized operation of its underlying network. Unlike traditional currencies issued by governments (fiat), cryptocurrencies operate on decentralized systems, often powered by blockchain technology. The Origins of Cryptocurrency The…

What is a DAO? A DAO, or Decentralized Autonomous Organization, is a blockchain-based organization that operates without a centralized authority. Instead, it relies on rules encoded in smart contracts to manage decisions and operations. Members participate collectively in governance, often through the use of governance tokens that grant voting rights. This decentralized approach ensures transparency,…

What is Dollar-Cost Averaging (DCA)? Dollar-Cost Averaging (DCA) is an investment strategy designed to reduce the effects of market volatility. It involves investing a fixed amount of money into an asset at regular intervals, regardless of its price. This method lowers the average cost of acquiring the asset over time, making it particularly effective in…

What Does Decentralized Mean? Decentralization refers to a system or organization that operates without relying on a single central authority or governing body. Instead, decision-making and operational control are distributed among multiple independent entities or nodes, each with equal or comparable authority. This approach contrasts with centralized systems, which depend on a single authority to…

What Is a Decentralized Exchange (DEX)? A decentralized exchange (DEX) is a type of cryptocurrency trading platform that operates without a central authority or intermediary. Instead, DEXs use smart contracts on blockchain networks to facilitate peer-to-peer transactions directly between users. This makes DEXs fundamentally different from centralized exchanges (CEXs), where a private company acts as…

What Is Decentralized Finance (DeFi)? Decentralized Finance (DeFi) refers to a financial system built on blockchain technology that eliminates the need for traditional intermediaries like banks, credit card companies, or payment processors. By leveraging smart contracts and decentralized applications (dApps), DeFi enables peer-to-peer transactions and access to financial services in a transparent, decentralized manner. How…

What Is DePIN? DePIN, or Decentralized Physical Infrastructure Network, refers to blockchain-powered networks designed to build, operate, and maintain physical hardware infrastructure in a decentralized and transparent manner. These networks use blockchain technology to enable open marketplaces where participants can buy, sell, and manage hardware resources such as data storage, wireless connectivity, or computing power.…

What is a Desktop Wallet? A desktop wallet is a software application that allows users to securely store, manage, and interact with their cryptocurrencies on a desktop or laptop computer. Desktop wallets are typically non-custodial, meaning the user retains full control of their private keys, and no third party can access or manage their funds.…

What Is Diamond Hands? Diamond hands is a term popularized on social media, especially platforms like Reddit’s r/wallstreetbets, to describe a person’s unwavering commitment to holding onto an asset—be it stocks, cryptocurrency, or other investments—regardless of significant price drops or market volatility. In the cryptocurrency community, it represents the belief in long-term success and confidence…