Glossary

bitcoin a type of digital currency in which a record of transactions is maintained and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central bank.

blockchain an immutable system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.

bold (of a color or design) having a strong or vivid appearance.

borrowing to receive (money) for temporary use on the condition of repayment with interest.

collateral something pledged as security for repayment of a loan, to be forfeited in the event of a default.

coinbase rewards also known as a mining or staking reward, refers to the transaction whereby miners/stakers receive newly minted crypto as a reward for generating a new block through mining, or staking.

derivative a financial contract set between two or more parties, that derive their value from an underlying asset, group of assets, or benchmark.

lending to give (money) for temporary use on condition of repayment with interest.

leverage use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.

liquidity pool a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and more.

long (going long) also known as a long trade or position, is a purchased asset or derivative waiting to sell when the price goes up. The terms "buy" and "long" are interchangeable.

perpetual futures contract also known as a perpetual swap, is an agreement to buy or sell an asset at an unspecified point in the future.

private key a sophisticated form of cryptography that one may think of as their "password" that allows a user to access their cryptocurrency.

Proof-of Stake mechanism (POS) "miners" (stakers) must lock a financial stake (similar to a collateral deposit) in order to verify transactions. POS systems are designed such that the deposit amounts and time periods required in order to verify transactions are large enough to make fraud attempts unprofitable.

Proof-of Work mechanism (POW) "miners" must have specialized computer hardware that performs specific mathematical cryptographic calculations in order to verify transactions. POW systems are designed such that the computational requirements in order to verify transactions are large enough to make fraud attempts unprofitable.

public key a cryptographic code that one may think of as their "username" that allows users to receive cryptocurrencies into their accounts.

short (shorting) also known as a short trade or position, involves investing in such a way that the asset or derivative will profit if the value of the security falls. This is achieved by borrowing an asset you want to short, and then IMMEDIATELY selling it for cash. Then, wait for the assert that you bought to dip lower in price than what it was when you borrowed it, rebuy the same asset at the lower cost, repay the loan, plus the interest accrued , and the remainder minus trade fees is profit. The terms "sell" and "short" are interchangeable.

smart contract a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code controls the execution, and transactions are trackable and irreversible.

staking involves "locking up" a portion of your cryptocurrency for a period of time as a way of contributing to a blockchain network. In exchange, persons who stake their coins can earn rewards, typically in the form of additional coins or tokens.

trading fees the cost of making a trade on a decentralized or centralized exchange.

transaction fees the cost of committing a transaction to a blockchain.

volatility the extent to which an asset's price fluctuates over time.

bitcoin un tipo de moneda digital en la que se mantiene un registro de transacciones y se generan nuevas unidades de moneda mediante la solución computacional de problemas matemáticos, y que opera independientemente de un banco central.

blockchain un sistema inmutable en el que se mantiene un registro de transacciones realizadas en bitcoin u otra criptomoneda en varias computadoras que están vinculadas en una red peer-to-peer.

negrita (de un color o diseño) que tiene una apariencia fuerte o vívida.

clave privada una forma sofisticada de criptografía que uno puede considerar como su "contraseña" que permite al usuario acceder a su criptomoneda.

clave pública un código criptográfico que uno puede considerar como su "nombre de usuario" que permite a los usuarios recibir criptomonedas en sus cuentas.

contrato inteligente un contrato auto-ejecutable en el que los términos del acuerdo entre el comprador y el vendedor se escriben directamente en líneas de código. El código controla la ejecución y las transacciones son rastreables e irreversibles.

volatilidad la medida en que el precio de un activo fluctúa con el tiempo.