Glossary

What is FOMO? FOMO, or “Fear of Missing Out,” describes the anxiety or fear of missing a lucrative opportunity. This psychological phenomenon often leads individuals to make impulsive decisions to participate in an activity or investment because they see others doing so and fear being left behind. FOMO in Cryptocurrency In the cryptocurrency world, FOMO…

What is FUD? FUD, short for “Fear, Uncertainty, and Doubt,” refers to the spread of negative, misleading, or false information intended to manipulate emotions and market sentiment. This tactic is often used in the cryptocurrency world to create fear among investors, causing panic selling or discouraging potential buyers. Due to the highly volatile nature of…

What Is the Genesis Block? The genesis block is the very first block in a blockchain, serving as the foundation for the entire network. It is usually hardcoded into the blockchain’s software. Blockchains are composed of sequential “blocks,” each containing a record of transactions securely linked together by cryptography, forming a continuous chain. The genesis…

What Is a Hardware Wallet? A hardware wallet is a physical device, often resembling a USB stick, specifically designed to securely store cryptocurrencies. Instead of holding actual coins, it securely stores the public and private keys that grant access to a user’s cryptocurrency assets on a blockchain. Hardware wallets are commonly referred to as cold…

What Is HODL? HODL stands for “hold on for dear life,” a term used by cryptocurrency investors to describe a long-term investment strategy of buying and holding cryptocurrencies without selling, regardless of market volatility. It originated as a misspelling of the word “hold” but has since become a widely recognized meme and philosophy in the…

What is a Hodler? A “hodler” is a term used in the cryptocurrency world to describe someone who holds onto their crypto assets despite market volatility, avoiding the temptation to sell during price drops. The term has become synonymous with long-term investment and resilience in the face of market fluctuations. Origins of the Term The…

What Is a Honeypot? A honeypot in the crypto world is a fraudulent setup designed to lure victims into depositing funds or providing sensitive information under the guise of a legitimate platform or service. Once users interact with the honeypot, scammers steal their assets or data. Honeypots may take the form of fake websites, wallets,…

What is Impermanent Loss? Impermanent Loss refers to the reduction in value that liquidity providers experience in an automated market maker (AMM) due to price changes of the tokens they have deposited. This occurs because the AMM rebalances the token pair to maintain a constant ratio, which can result in fewer high-value tokens and more…

What Is Impermanent Loss? Impermanent loss occurs when a liquidity provider on a decentralized exchange (DEX) experiences a reduction in value compared to simply holding the assets outside the pool. This happens due to price discrepancies between the two assets in the pool, often a cryptocurrency and a stablecoin (e.g., USDC). The loss is considered…