Academy

Here is a summary of key terms related to cryptocurrency and the crypto market, taken from the sources provided:

Airdrop: Free distribution of tokens or cryptocurrencies to users, often to promote a new project.


APR (Annual Percentage Rate): Non-compounded annual rate of return.


ASIC (Application-Specific Integrated Circuit): A machine dedicated to a single task, used to solve a mining algorithm such as SHA-256.


Blockchain: A distributed ledger between all participants (decentralized), allowing everyone to verify that no one cheats by spending cryptocurrency units that they do not own.


CEX (Centralized Exchange): A centralized cryptocurrency exchange platform, where transactions are verified and executed by a third party.


CBDC (Central Bank Digital Currency): A decentralized digital currency issued by a central bank.


Cold Storage: A method of storing cryptocurrencies offline, to protect against cyber attacks.


Colored Coins: Cryptocurrency units modified to represent additional assets, such as goods or services.


Confirmations: Number of blocks verified and added to the blockchain to validate a transaction.


Consensus: Mechanism that allows nodes in the network to agree on the state of the blockchain.


CPU (Central Processing Unit): Central processor, used to solve mining algorithms.


Asymmetric cryptography: Encryption method that uses public and private keys to ensure the security of transactions.


Cryptocurrency: New form of fully digital currency, which uses technologies such as cryptography and blockchain to ensure the authenticity of transactions and prevent fraud.


Cryptojacking: Type of attack where malware infects a computer to use its processing power to mine cryptocurrencies without the user’s consent.


DAO (Decentralized Autonomous Organization): Decentralized autonomous organization, which uses smart contracts to manage its activities.


Day Trading: Investment strategy that consists of buying and selling assets within the same day. DEX (Decentralized Exchange): Decentralized cryptocurrency exchange platform, where transactions are verified and executed by the network nodes.


DDoS (Distributed Denial of Service): Type of attack that aims to make a website unavailable by sending a massive flow of requests.


Decentralization: Concept that consists of distributing responsibilities and data across a network, rather than centralizing them.


DeFi (Decentralized Finance): Decentralized financial system that uses blockchain technologies to offer decentralized financial services.


DevFee (Developer Fee): Commission paid to the developers of a project for their work.


Difficulty: Parameter that regulates the complexity of mining algorithms, adjusted to maintain a stable block production rate.


Dip: Brief and temporary drop in the price of a cryptocurrency.


Double spending: Investment strategy that consists of buying a cryptocurrency at a high price and selling it at a lower price, using the money obtained to buy another cryptocurrency at a lower price.


Dump: Rapid and significant drop in the price of a cryptocurrency.


Long position: Investment strategy that consists of betting on the rise using margin trading.


Pump & Dump: Market manipulation that consists of buying huge quantities of a cryptocurrency to artificially increase prices, then selling at a higher price.


Short position: Investment strategy that consists of betting on the fall using margin trading.


Algorithmic stablecoins: Decentralized digital asset whose stability compared to a traditional currency is based on an algorithm and smart contracts.