CRYPTO BUBBLE
LEXICON BLOCKCHAIN and CRYPTOCURRENCIES
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-Airdrop: Free distribution of small amounts of a new cryptocurrency, sent to different users of the blockchain community.
-All-in: Invest all of your capital in a single asset. Technique strongly discouraged for beginners.
-Altcoin: The term “Altcoin” or alternative coin is used to describe all cryptocurrencies other than Bitcoin. Ex: Ethereum, Litecoin, Binance Coin ...
-Altcoin Season: Period of uptrend where altcoins outperform against Bitcoin.
-Fundamental Analysis: Analysis based on the overall functioning of a project and on what it brings as advantages / disadvantages to the market.
-Technical Analysis (TA): In-depth analysis performed to evaluate investments and identify trading opportunities by analyzing trends gathered from a chart.
-Arbitrage: Trading strategy in which an asset is bought and then immediately resold on a different exchange platform. The goal is to make a certain profit by exploiting the price differential.
-Attack 51%: A 51% attack is an attack that targets so-called “proof of work” blockchains (in English PoW, Proof of Work) or “proof of stake” (in English PoS, Proof of Stake) , the aim of this attack is to corrupt / modify the history of the blockchain.
-Asic (Application-Specific Integrated Circuit): An ASIC miner is a device that uses microprocessors for the sole purpose of mining certain cryptocurrencies.
-ATH (All Time High): Highest price ever reached on a cryptocurrency.
-ATL (All Time Low): Lowest price ever reached on a cryptocurrency.
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-Bag: Refers to the list of crypto currencies that a trader holds in his wallet. + -
-Bear: Representation of a bearish position, for sale. This name refers to the way a bear fights its opponents. The term “Bearish” refers to a cryptocurrency exhibiting several bearish signals.
-Bear Market: Market with a downward trend. A Bear Market usually arises after a Bullrun's euphoria period and can last for several months / years.
-Bear Trap: Bearish trap where the price of a digital asset makes a false bearish signal.
-BearWhale: Person who sells all of his cryptocurrency and causes a short-term drop in the stock price. Bid: The term “Bid” refers to the offer made by a user or a company to buy an asset.
-Bitcoin: Bitcoin is the very first cryptocurrency to be published. It was developed in 2008 by the famous Satoshi Nakamoto and has been the world's largest capitalization crypto ever since.
-Blockchain: A blockchain is a type of database where a lot of confidential information is stored electronically. A blockchain allows digital information to be recorded and distributed, but not edited. Virtually all transactions can be tracked and exchanged over a blockchain network, reducing risk and costs for all users.
-Break Even (BE): Consists of placing your StopLoss at the entry point of a trade. If the price reaches this level, the position closes with no losses or profits.
-Bottom: The lowest price traded by a cryptocurrency. The “Bottom” is a very good opportunity to invest. Bull: Active with an upward trend. The term “Bullish” refers to a stock price exhibiting several bullish signals.
-Bull Market: Bullish period for almost all cryptocurrencies on the market.
-Bull Trap: Bullish trap where the price of a crypto currency makes a false signal to rise.
-Burn: Method which consists of removing tokens from circulation, thus reducing the total supply of a cryptocurrency. “Burn” is a technique used by a large number of exchanges, in order to add a certain scarcity to their tokens, which generally results in the increase in the price of the tokens.
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-Capital: Represents the total amount present in a portfolio.
-Centralization: Centralization refers to an organizational structure in which decision-making power is vested in a group of selected individuals. In many situations, the senior executives of a company hold all the decision-making power.
-Chart: Graph representing the price of a digital asset.
-Japanese candlestick: Type of chart used in technical analysis to represent the variations of a price.
-Private Key: Algorithmic code of a digital asset portfolio. In general, private keys are used as a password or access code and should absolutely be kept in a safe place.
-CME (Chicago Mercantile Exchange): One of the two main US futures markets.
-Cold Wallet: A Cold Wallet is a method of storing physical private keys that is not connected to the internet. This solution greatly limits the risks of hacking and is highly recommended for storing crypto currencies over the long term.
-Consolidation: Decrease or stop buying pressure. A consolidation marks the indecision of traders after the sharp rise in the price of a cryptocurrency. While this can cause a short-term decline, a consolidation does not mark the end of an uptrend by any means, but just a stabilization before the stock price picks up.
-Correction: Trend reversal after making a relatively large bullish / bearish movement.
-Crypto currency: Decentralized technology allowing users to make secure payments and store money without having to go through an intermediary such as a bank. Cryptocurrencies are based on a “Blockchain”, a network that manages itself, in particular used to store and transmit a lot of information.
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-dApps: Applications or software running on a decentralized computer system.
-DAO (Autonomous Decentralized Organization): Fully automated governance system allowing the proper functioning of a Blockchain. DAOs work through a combination of various smart contracts that allow participants to take a fair share in decision-making processes within an organization. Decentralization: Decentralized system which, unlike centralization, does not rely on a single center of authority to enforce the rules and maintain the proper functioning of a network.
-DCA (Dollar Cost Averaging): Investment strategy used by people wishing to invest a predefined amount of money at regular intervals, repeating it for several months / years.
-DeFi: Financial system developed on blockchain networks, fully decentralized and accessible to all. DeFi applications don't need middlemen or mediators. Most are built on the Ethereum network, which allows decentralized software development through the use of smart contracts.
-DEX (Decentralized Exchange): Decentralized exchange platform allowing safe crypto currency trading.
-Dip: Lowest point during a bearish movement. A Dip is certainly one of the best opportunities to invest in a cryptocurrency and therefore highly sought after by traders.
-Divergence: Contradiction between the price of an asset and the information given by an indicator (RSI / MACD). Usually, divergences point to big upward or downward trend reversals.
-Doge Coin: crypto currency founded from the same one launched by the community, representing a Shiba Inu (breed of dog). DOGE is now in 8th place with a total capitalization of around $ 22 billion.
-Dump: Very strong bearish movement.
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- Leverage: Trading instrument that allows you to artificially increase the size of an investment / stake, without amplifying market exposure. (Method formally not recommended for beginners)
-ERC-20: Tokens used and developed only on the Ethereum platform. Full article on ERC20
-Ethereum: Ethereum is a distributed peer-to-peer (P2P) monetary protocol for smart contracts and decentralized applications. Its native token is Ether (ETH), it serves primarily as a means of payment for transaction fees and collateral for borrowing specific ERC20 tokens in the Decentralized Finance (DeFi) industry.
-Exchange: Cryptocurrency exchange platform.
-Exit Scam: Type of scam where a platform decides to seize all of the funds it has collected and never resurface. One of the biggest Exit Scam and the one that was carried out by the Bitconnect site, grabbing several hundred million dollars.
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-Fee: Fee charged when trading up / down a digital asset.
-Fomo: Expression designating an investor who bets on an asset for fear of missing a good deal. The Fomo causes a cryptocurrency to surge irrational in the short term, usually followed by a violent correction.
-Fiat: Fiat currency that is legal tender, backed by a government and used in the current economy. Ex: euros, dollars ...
-FUD: Negative or misleading news that can impact down the price of a digital asset.
-Flash Crash: Stock market event where the sudden increase in sales of an asset causes its price to drop very quickly. Ex: In 2010, a $ 4.1 billion order placed on the NYSE resulted in a loss of more than 1,000 points in its stock index.
-Fork: Modification of the protocol of a blockchain network into two distinct chains. Forks come into play when software from different miners becomes misaligned. It is up to the miners to decide which blockchain to continue using.
-Futures: Futures contract offering many investment tools that are not available on the Spot market.
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-Gains: Bet won following the winning investment of a trader.
-Gas: The Gas is a virtual unit mainly dedicated to the validation and confirmation of transactions on the Ethereum blockchain. It refers to the computational effort required to perform operations.
-GPU (Graphical Processing Unit): Computer technology present in graphics cards. GPUs perform complex tasks to ensure the good graphics performance of a video game. They are also very suitable for mining certain crypto currencies.
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-Hack: Computer hacking which consists in stealing as much information, data or money as possible in the form of electronic currencies or cryptocurrencies.
-Halving: Event where the rewards per confirmed block achieved by minors are halved. For now, the Bitcoin network has been able to attend 3 “Halvings”: the first in November 2012, the second in July 2016 and the third and last in May 2020.
-Hard Fork: Radical change in the protocol of a network in which a blockchain is divided into two parts. Hard forks are major events and are usually broadcast to a cryptocurrency community well in advance. Example: Hard Fork of the Bitcoin blockchain in 2017 which gave birth to the Bitcoin Cash (BCH) project.
-Hardware Wallet: Physical wallet allowing the storage of private keys in a completely secure computer device. (Ex: Ledger, fepal ...)
-Hash rate: Term used to describe the computing power of a crypto currency network. Hash rate is measured in hash units / second, which represents the power of calculations per second that can be performed.
-Higher High (HH): One high point higher than the previous one.
-Higher Low (HL): A lower point higher than the previous one.
-Hold: The fact of keeping your digital assets for the long term, regardless of price fluctuations. This strategy is generally rewarded with the deflation of the current cryptocurrency market.
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-Inflation: Loss of the value of a currency, which means the general increase in prices in the market.
-ICO (Initial Coin Offering): Introductory offer allowing investors to buy the first tokens put up for sale by any project.
-ITO (Initial Token Offering): Similar to ICO, ITO's are more focused on offering tokens with intrinsic utility in the form of software or use in an ecosystem. Invest: Allocate a certain amount of money on a digital asset / financial security.
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-KYC (Know Your Customer): Security device to verify the personal data and identity of customers. The KYC is a mandatory step on most platforms in order to fight against money laundering and terrorism (LCB-FT).
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-Ledger: French company founded in 2014 which offers its own range of physical wallets (Hardware Wallet). You can safely store a large number of private keys there.
-Lightning Network: Second layer technology which consists in solving the problems of scalability and scalability of the bitcoin network. The Lightning Network makes transactions faster, cheaper, and easier to validate.
-Liquidation: Total loss of the amount invested in a digital asset.
-Liquidity: The ease with which a cryptocurrency can be bought and sold without impacting the overall market price. The more liquid a market has, the easier it will be to buy / sell on it.
-Liquidity Pool: In DeFi, a liquidity pool is a set of tokens locked and kept in a smart contract, in order to facilitate the trading of digital pairs on decentralized exchange platforms (DEX). Liquidity pools are also used to stake and farm cryptocurrencies with the aim of generating daily returns.
-Long: Investing on the rise in the price of an asset by applying leverage.
-Lower High: One higher, lower than the previous one.
-Lower Low: A lower, lower than the previous one.
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-Market Cap: Represents the total capitalization of a digital asset.
-Market Maker: Market maker. Person / institution that contributes to guaranteeing sufficient liquidity on the markets, i.e. sufficient trading volume for transactions to be carried out in full transparency.
-Market Order: Type of buy or sell order that is immediately executed at the best possible market price. Note that you will pay fees as a Taker, that is, you take liquidity from the market.
-Masternodes: Masternodes (“master nodes”) are powerful computer servers which fulfill essential tasks within an ecosystem. These are mainly used to ensure the security and efficiency of transactions carried out on a blockchain network.
-MetaMask: Online storage solution for digital assets. Just install the extension available on Google Chrome, then add the asset you want to store.
-Minor: One miner is a computer whose role is to validate transactions on a blockchain network, in exchange for a certain amount of cryptocurrency.
-Minting: IT process consisting of validating information, creating a new block and recording this information in the blockchain. This method is practiced by users using a blockchain at the Proof of Stake (PoS) network.
-Money-Management: Management of your digital asset portfolio. It is very important for a trader to have a good management of his capital, in order to avoid as much as possible the taking of unthoughtful decisions.
-Moving average: Indicator based on the average price of an asset, widely used in technical analysis. The moving average is a good way to assess the dynamics and confirm the current trends of a cryptocurrency. Never use only one indicator for your forecasts!
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-Nodes / nodes: Nodes are micro-servers performing essential tasks within a blockchain network.
-NFT (Non Fungible Token): An NFT is a unique token or with a very limited stock. NFTs are bought to be preserved for several years so that they increase in value.
-Nominators: Nominators perform major tasks in a blockchain network that uses the NPoS (nominated proof-of-stake) consensus algorithm.
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-OCO (One Cancel The Other): Refers to an order that automatically cancels a previous order. If you place an OCO order and the first instruction is executed, the other will be immediately canceled. Very useful to place a TP and SL from the start.
-Open Source: Adjective given to software that is developed in accordance with the principles of OSI, the Open Source Initiative. Being open source allows users to use, modify, and change software or code, according to their needs.
-Options: Futures market.
-Oracle: An oracle is a group of networks / applications allowing the digitization of information coming from sources external to the Blockchain (Off-Chain) via smart contracts. They give blockchains the ability to interact with data from the outside world.
-Order Book: Order book that displays in real time the buy and sell orders made on a futures contract.
-OTC (Over The Counter): Term which designates a transaction carried out outside an exchange, this thus limits the impact on the price of an asset, particularly if the OTC transaction in question remains secret.
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-Panic Buy / Sell: Situation where a trader buys / sells his position during a large variation in the price up or down. This mostly happens to inexperienced traders who do not yet know how to deal with their emotions.
-Peer to Peer (P2P): A peer to peer network is a decentralized system allowing the exchange or sharing of information between several computers.
-PnL (profit and loss): The PnL represents the profits and losses accumulated between the opening and closing of a position.
-Portfolio: Set of digital assets held by a trader.
-Ponzi scheme: A ponzi scheme is a scam that promises investors very high rates of return while exposing themselves to very little risk. However, once the asset price has reached a certain point, the founders disappear with all the funds raised. Traders are strongly advised to inquire about a project before investing in it.
-Pump: Very strong bullish movement.
-Pullback: Pause or temporary change in the trend of an asset. The price returns to test a support or resistance zone before returning to the initial trend. A Pullback often confirms the underlying trend and is a good entry point for traders.
-Price Discovery: Price discovery. When the price of an asset exceeds its ATH, the latter no longer has any benchmarks and is therefore in price discovery.
-Proof of Stake (PoS): Proof of Stake is a type of consensus mechanism used by blockchain networks, in order to maintain the integrity of a cryptocurrency, by preventing users from printing additional coins that they did not win. In addition, instead of using computing power to participate in the development of a blockchain, the “PoS” algorithm allows participation according to the number of tokens made available to the network.
-Proof of Work (PoW): First consensus system used by blockchains, to discourage malicious uses of computing power, such as sending spam or launching DDoS attacks. To create new blocks, miners must make their computing power available to solve mathematical equations.
Pizza Day: Marks the first real-world (official) use of the Bitcoin cryptocurrency on May 22, 2010. A bitcoin miner in Florida buys 2 pizzas for 10,000 bitcoins. At that time, 1 Bitcoin was worth between $ 0.003 and $ 0.004.
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-QR Code: Virtual device that presents information encoded in a black and white graphic pattern. In the world of cryptocurrencies, the -QR Code is generally used to send and receive payments, much faster and more automatically.
- R like:
-Range: Period of stagnation between two price levels. A range can last several weeks / months without the price making large variations upwards or downwards.
-Resistance: Price levels where the selling force is stronger than the buying force. Resistance is achieved through the high density of sell orders placed at a specific point in the price of a cryptocurrency.
-Fibonacci retracement: One of the most popular indicators in AT. It helps predict areas of potential support and resistance during a trend change in a digital asset. Never use only one indicator for your forecasts!
-Risk / Reward (RR): Ratio which represents the risk you take depending on the trade you want to make during an investment. Example: A RR of 1/5 for a bet of 10 euros means that you risk losing 10 euros for a potential win of 50 euros.
-ROI (Return on Investment): Short for “return on investment”, it is the ratio between the net profit and the cost of the investment. The -ROI gives a very important indication of the performance and profitability of a trade.
-RSI (Relative Strength Index): The Relative Strength Index (RSI) is an oscillator that measures the power of the rises and falls made by an asset over a predefined unit of time. The RSI is used to check the strength and trend of a market. The asset is considered oversold if the RSI is below 30 and overbought if the RSI is above 70. Never use only one indicator for your forecast!
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-Satoshi Nakamoto: Famous creator of Bitcoin whose identity (or almost) nobody knows. Satoshi Nakamoto is the pseudonym used by the person who wrote the Bitcoin white paper in 2008.
-Scalability: From the English “Scalability”. Ability of a system / blockchain to adapt to fluctuating number of transactions and people using the network at the same time.
-Scalping: Investment strategy where traders trade their assets over very short periods of time, usually ranging from a few seconds to a few minutes.
-Shitcoin: Crypto currency having no viable project and very uncertain future. Shitcoins generally provide little or no value to investors and therefore are not suitable for long-term investment.
-Short: Invest on the fall in the price of an asset.
-Sidechain: Sidechains are secondary blockchains that work in parallel with a main blockchain. By allowing operations to be carried out on the fringes of the main chain, sidechains bring a great deal in terms of scalability and functionalities, they can, for example, make it possible to reduce the time or cost of transactions.
-Smart Contract: Smart contracts are computer protocols that rely on Blockchain technology, in order to facilitate, verify and execute the negotiation or execution of a contract. Smart contracts allow users to transact transparently and without conflict, while avoiding the services of a (centralized) intermediary. Smart Contracts also offer the possibility for developers to create and implement decentralized applications (dApps) on a blockchain network.
-Spot Market: Public market where crypto currencies are traded for immediate settlement. It opposes futures contracts, in which settlement is provided for later.
-Spread: A spread can have several meanings in finance. Basically, they all refer to the difference between the buy price (Ask) and the sell price (Bid) of a digital asset. For example: If the purchase price of a cryptocurrency is 3.50 euros and the selling price is 3.35 euros, then the spread is 0.15 euros.
-Stablecoin: Crypto currencies indexed on a stable value like the dollar. As the name suggests, Stablecoins have extremely low volatility, they are often used as a more secure and reliable means of diversification.
-Staking: The principle of staking is to lock a quantity of crypto currencies in a wallet in order to receive rewards, while contributing to the operations of a Blockchain. Staking is known to be used in many Blockchains using Proof of Stake (PoS) as the main consensus.
-Stop Limit: Stop Limit orders are triggered in two stages, the first at the stop price and the second at the limit price. You must first define a stop price which, once reached, instantly triggers the previously defined “limit” price.
-Stop Loss: The “stop loss” tool, more commonly known as SL, is an order that is triggered when the price reaches the price of your prediction. This makes it possible to limit losses on an investment.
-Stop Market: Similar to a stop-limit order, stop-market orders use a stop price which, once reached, automatically triggers a market order instead. Support: Price levels at which the buying force is stronger than the selling force. Support is achieved through the high density of buy orders placed at a specific point in the price of a cryptocurrency.
Swap: Functionality that allows users of a platform to easily exchange one cryptocurrency for another, without going through the market. Swingtrade: Trade position open over several days.
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-Take Profit (TP): The “take profit” tool, more commonly known as TP, is a conditional order that allows you to secure your profits and take some profits in order to reduce your exposure to the market. The order is placed manually, depending on the reward goals a trader wishes to achieve.
-Testnet: Alternative blockchain used by developers for testing different protocols. Example: On June 24, 2021, an Ethereum update was deployed on the Ropsten testnet, so that developers can ensure that the various changes implemented are functional.
-To The Moon: Very common expression in the world of crypto currencies meaning the meteoric rise in the price of an asset.
-Token: Tradable digital asset having a particular utility on a blockchain network.
-Tokenomics: The abbreviation of Token and Economy, represents for a crypto project, the way in which the creation of tokens will be managed for the proper functioning of the project.
-Total Supply: Quantity of an asset in circulation (available for purchase) at a given time. This is the sum of the coins that have already been distributed (or issued) minus the total of the coins that have been destroyed (burn).
-Trading Bot: Computer program designed to automate the trading of crypto currencies, in order to obtain daily returns. A Trading Bots reproduces the investment strategy defined in advance by a trader and therefore avoids all unthought-out actions linked to emotions.
-Trend: Refers to a bullish or bearish trend.
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-Volatilité: Any cryptomonnaie that experiences frequent and large movements is called volatile by its lack of capitalization.
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-Volume Profile: Indicator showing market activity at certain price levels. The volume profile makes it possible to visualize the price zones that the price has worked for a long time and identify the potential zones that the price will work on.
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- WeAreSwissBorg preceded by a hashtag: #WeAreSwissBorg, # allowing you to find all the messages of the SwissBorg community
-Whale / Whale: Term used to designate a person or organization holding enough crypto currencies to impact their spot price on the market in the short term. Example: A large part of the bitcoins existing on the market (around 40%) would be held by nearly 1,000 people (whales).
-White Paper / Livre Blanc: Document where all the information concerning a blockchain or any cryptographic project is written.
-Withdraw: Withdrawal of an amount previously invested.
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- Yield Farming: Yield Farming consists of creating tokens from other tokens, by indirectly “lending” money to other users, while being rewarded by receiving interest through transaction fees. Users provide liquidity to DeFi protocols in Smart Contracts called “Liquidity Pools”.