Crypto Glossary

Words / expressions to know about blockchain and cryptocurrencies

Click on one of the buttons above to see definitions specific to a letter

Number of elements: 173

 

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2FA

2FA is a two-factor authentication process, also known as dual-factor authentication.

 

This method is very widespread and consists of using a dedicated application on your smartphone which considerably increases the security of access to an account, a platform or an exchange for example. The principle is that this application displays fairly long numbers, which change automatically every thirty or sixty seconds and must be entered after entering your password to access your account or a platform.

 
 
 

A

Airdrop

An airdrop is for a cryptocurrency project to distribute tokens for free to its community. These marketing systems allow the project to make itself known by energizing its community. Airdrops are generally donated under specific conditions: like a Facebook page, complete a KYC, translate a whitepaper, etc.

Altcoin

An altcoin - or “alternative cryptocurrency”,

refers to any cryptocurrency other than Bitcoin.

Arbitrage

Arbitrage involves taking advantage of the price differences between two different trading platforms, buying on one and selling on the other. Arbitrage must also take commissions into account to remain strategic and allow the trader to maximize his profit.

ASIC

An ASIC (Application Specific Integrated Circuit) is a type of electronic circuit integrating on a single chip all the active elements essential and specific to a certain type of very precise calculation (for example SHA-256 hashes for Bitcoin). ASIC allows much greater computing power than a GPU graphics card and is therefore increasingly used in mining for cryptocurrencies with a very high level of difficulty, such as Bitcoin or Dash. Some cryptocurrencies have chosen a "resistant ASIC" algorithm to guard against this race for computing power, which poses significant environmental problems and centralizes mining, leaving very few chances for private miners to make their equipment profitable. . This is for example the case of Monero, based on the CryptoNightV7 algorithm.

Ask

We systematically see “Ask” and “Bid” values on a trading platform. The “Ask” value is the price at which sellers want to sell a given cryptocurrency.

ATH

“ATH” stands for “All time high”, and thus designates the highest price ever reached by a cryptocurrency.

ATL

"ATL" conversely means "All time low" and therefore designates the lowest price it has ever reached. These two data are important to define support and resistance on each cryptocurrency.

B

Bear trap

A bear trap characterizes a situation in which an investor or trader sells a position short, anticipating a market decline from a false sell signal. The trend therefore does not turn down as expected, but continues to rise. The trader or investor is therefore forced to buy back his asset more expensive than what he sold it to close his position quickly.

Bearish / Bear market

Bearish refers to the mindset of an investor who thinks the trend is falling. The bear metaphor is used to characterize a declining market because of the way a bear fights. The bear attacks his opponent with his front legs, kicking up and down.

 
 

Bid

We often see “Ask” and “Bid” values on a trading platform. The "Bid" value is the price at which buyers want to buy a given cryptocurrency. Conversely, “Ask” refers to the price asked by sellers.

Block

A block is the main element of a blockchain. Each block contains a set of transactions, which, when integrated into the blockchain, allows the miner to earn a reward. The reward on Bitcoin is currently 12.5 bitcoins. The production time of a block varies according to the different cryptocurrencies. On Bitcoin, a block is integrated into the blockchain every 10 minutes.

 

Block-lattice

The block-lattice is a DLT technology offering an innovative block structure, used for the first time by the cryptocurrency Raiblocks (renamed Nano). These are braided blocks allowing each user account to have its own blockchain storing the balance and transaction history. The owner of the channel account is the only one who can update it. The block lattice is an ideal solution for micropayments, because it allows instant transactions and without fees, while being able to manage a very large number of transactions simultaneously.

Blockchain

Blockchain is a type of distributed ledger technology (DLT). It is presented as a large database made up of blocks, linked to each other in a cryptographic way, containing information (transactions, lines of codes etc.). These blocks are added according to a very precise protocol that can be viewed by all. The particularity of the blockchain is that it is in essence decentralized, because everyone can contribute to it by forming blocks that are added to it, under certain very strict conditions defined by a consensus protocol. Cryptocurrencies are the first viable application of blockchain technology. The decentralized web could be next. A distinction is also made between public and private blockchains: in the first, everyone can participate in the continuation of the blockchain, in the second, participants are chosen according to certain criteria by the creator of the blockchain.

Bollinger bands

Bollinger Bands is a trading indicator developed by John Bollinger. This indicator provides a dynamic measure of two elements: price volatility and directionality. When there is an increase in volatility and strong directionality, the price breaks out of the bands. This is a rare event since statistically the price only comes out of the bands about 5% of the time.

 

BTFD (Buy The F***in’ Dip)

Basic principle of trading: "buy when everyone else is selling and the price seems low".

Bullish / Bull market

Bullish refers to the mindset of an investor who thinks the trend is rising. By extension, bullish applied to a market indicates that most observers believe that the market is on an uptrend.

 

Burn

Burn is the act of removing a certain number of tokens from a cryptocurrency to lower the total available supply. Concretely, the tokens are sent to a public address of which no one knows the private key and are therefore unusable. This creates an imbalance between supply and demand and is generally aimed at increasing the value of each token.

 

C

Casper

Casper is a long-awaited update to the Ethereum consensus protocol, which in 2019 foresees its transition from a PoW (Proof of Work) mechanism to a PoS (Proof of Stake) mechanism. When launching Casper, Ethereum will temporarily use a hybrid mechanism between PoW and PoS and then end up using only PoS in a later update.

CFD

A CFD (Contract for difference) is a financial instrument (a derivative) that allows you to bet on the rise or fall of the price of a financial asset, without directly buying this asset. purchase on Bitcoin. A contract is made between the buyer and the seller. If the price of Bitcoin goes up, your position will be positive. If you close your position at this point, then the seller of the CFD will owe you the difference between the buy price and the resale price. If instead you close your position at a lower price than your entry, you owe the seller money. You are at a loss It is possible to check whether you have bought a CFD or the cryptocurrency by trying to transfer it to the appropriate digital wallet. If the transfer does not take place, it is because it is a CFD. We strongly recommend that you stay away from this type of financial product if you are not experienced.

Chart

Real-time visual rendering of market fluctuations thanks to graphics.

Coin

A coin is the word commonly used to describe the accounting unit of a cryptocurrency. We can see the corners of the tokens. A coin refers to a cryptocurrency serving as a unit of account, store of value and intermediary of exchanges. A token designates a cryptocurrency giving access to a right or a particular service on a public DLT. Note that one and the same cryptocurrency can be both a coin and a token.

Coin stats

Coin Stats is the first Bitcoin and altcoins portfolio application to track cryptocurrency prices in real time on more than 100 exchange platforms. The application can be automatically synchronized with wallets and exchange accounts and allow each investor to know the value of his portfolio without having to manually add his transactions. It is also possible to configure alerts to be notified when the price of a cryptocurrency reaches a certain level.

CoinMarketCap

CoinMarketCap is a resourceful website for the cryptocurrency market. It contains a very large list of cryptocurrencies and allows you to be informed about several essential information on them: price, market place on which the asset is listed, link to the whitepaper, volume of transactions depending on the exchanges, etc.

 

Cold storage

Cold storage refers to a way of holding and storing one's private keys on something that is disconnected from the Internet. You can store your private keys on a single sheet of paper - a paper wallet - or use electronic wallets like the Ledger Wallet or the Cool Wallet.

 
 
 

Correction

A correction is a rapid and abrupt reversal in the price of a cryptocurrency, upward or downward. We speak of "correction" because following this reversal, the price is approaching its previous price, after a rather long period of rise or fall.

Crowd psychology / Crowd behavior

Crowd psychology or behavior refers to mass behaviors that can be observed in a certain situation. In trading, it is essential to understand crowd psychology and to anticipate it in order to build a winning strategy. The behavior and actions of the crowd as an entity are strongly influenced by the loss of responsibility of individuals. The role of the trader is to keep his responsibility and to position himself as a spectator of the crowd to adapt his positions according to the mass behavior.

 

Crypto asset

 

Cryptocurrencies are not considered as financial assets, because they lack physical substance. Therefore, we use the term "Crypto asset" to describe that intangible digital currency.

Cryptocurrency

A cryptocurrency is a digital currency based on the principles of cryptography. It is exchanged on a decentralized network, peer to peer, thanks to Distributed Ledger Technologies (DLT) technologies such as blockchain, DAG or block lattice. It integrates the user into the process of storing, issuing and settling transactions and eliminates the intervention of an intermediary or a trusted third party such as a bank.

 

D

DAG

A DAG (Direct Acyclic Graph) is a type of distributed ledger technology (DLT), just like blockchain. DAG technologies do not use blocks, but use a direct acyclic graph where information is stored in nodes. Transactions are linked to each other: one transaction confirms the next and so on. DAGs have the advantage of being more scalable than blockchains, faster and more suitable for microtransactions. But these networks are also more vulnerable to attacks. The most well-known cryptocurrencies to be based on a DAG are IOTA and ByteBall.

 

DAO

A DAO is a Decentralized Autonomous Organization. So basically, it means that its governance rules are fully automated and in principle do not require any human intervention. The DAO is therefore based on a “trustless” principle, which eliminates the need to grant trust to a third party: in a DAO, “code is law”, in other words the code makes the law. The operating rules of a DAO are written into a blockchain and are therefore both immutable and transparent.

DApp

DApp is an acronym for “decentralized application”. A decentralized application works on a network of computers often called a virtual machine, like the EVM (Ethereum virtual machine), which allows it to be “indestructible” because it is spread over several computers rather than on an Amazon, Google or Microsoft server. Networks like Ethereum, Stratis or EOS are dedicated to hosting these DApps.

Dark pool

Practice aiming to allow whales, in particular institutional investors, to carry out anonymous transactions between them on a platform, that is to say without them being visible by the rest of the market. The market trend is therefore not changed as it could be by the publication of a large number of transactions while the latter provide liquidity to the platform. This practice can lead to a sudden drop in prices in the event of disclosure of transactions;

Day trading

Day trading involves taking rather short trading positions, ranging from a few hours to a few days at most. Day trading requires significant availability in order to be able to monitor your positions every day and take advantage of price increases or decreases. Day trading is distinguished from swing trading (longer timescale) and scalping (shorter timescale).

Decentralized exchanges (DEX)

Decentralized exchanges or DEX offer an alternative to large centralized exchange platforms like Binance, Bittrex or Kraken to allow users to exchange their cryptocurrencies on peer-to-peer markets directly on the blockchain. Traders thus remain custodians of their funds and avoid the risks of piracy that can arise on centralized exchange platforms. DEXs thus make it possible to do without a trusted third party to fully benefit from the advantages of the blockchain. The use of these platforms is however complex and not very intuitive.

Deflation

Deflation is opposed to inflation, and therefore refers to falling prices. It is often confused with a fall in inflation - disinflation - which consists of a decrease in price increases, not a decrease. . Deflation is synonymous with the regression of a market or an economy, so that we often speak of a "deflationary spiral". It is therefore undesirable to observe a situation of deflation in the cryptocurrency market, any more than in any other money market.

Difficulty target

In the Proof of work (PoW) system, the difficulty target is a condition that the hash of a block must meet so that it is accepted by the network and that the miner who created this block pocket his reward. On Bitcoin for example, the current difficulty target requires the hash to start with twenty zeros, which is extremely difficult to achieve and requires very high energy consumption. The level of difficulty varies over time so that the frequency of creation blocks complies with that indicated in the cryptocurrency protocol. The higher the difficulty level, the more minors must "work" to satisfy it, validate a new block and receive the corresponding reward. The more miners there are, the more the difficulty must be readjusted upwards so that the block creation frequency remains constant, as is the case in particular with Bitcoin where the difficulty level is adjusted (raised) every 2016 blocks. , or about two weeks.

 

Digital signature

A digital signature is a process allowing to guarantee the integrity of an electronic document and to authenticate the author. Most use asymmetric cryptography, especially in the case of cryptocurrencies. Such a process must make it possible to identify the person or body which has affixed his signature, and to guarantee that the document has not been altered between the moment when the person or body affixes his signature and when the reader This process is constantly used in cryptocurrency systems to validate transactions: the digital signature, which varies according to each currency, allows the issuer of a request to show that he is indeed the holder of the private key associated with the public address it uses, without having to reveal this private key, which would remove any interest from the system. The digital signature also ensures that the transaction has not been modified during its short passage over the network: the slightest change in the transaction data would completely modify the electronic signature.

Dip

A dip is a sudden, but fleeting drop in the price of a cryptocurrency. After a dip, a cryptocurrency very quickly regains its value. A dip can result from different market mechanisms, very often it is a sale by a heavyweight (a "whale" or a "whale", according to the jargon of the crypto market). The ideal is to manage to buy a cryptocurrency during a dip to achieve a nice capital gain.

Distributed Ledger Technology (DLT)

The goal of a DLT is to improve the transparency, security and traceability of information related to different transactions by sharing a register that is immutable and searchable by all. DLTs can be public or private, and thus restrict access to a minority of authorized persons. Almost all of the cryptocurrencies on the market today are based on public DLTs. A large majority of them are based on blockchains, however the blockchain is not the only type of DLT possible: there are also technologies such as the DAG (Direct Acyclic Graph), used by IOTA in the form of a tangle, or the block lattice, used by Nano.

Double spending

Double spending is precisely one of the innovations of Bitcoin, proposed by Satoshi Nakamoto at the end of 2008. As its name suggests, double spending consists of spending the same token twice. This is the major problem. digital assets, which by definition are just computer code. The duplication of computer files in particular was a big problem in the music industry. This made it possible to share files illegally on the Internet, Bitcoin solves the problem thanks to the cryptographic system that is its decentralized blockchain. If miners receive two transactions spending the same bitcoins, they only accept the first transaction and decline the second.

 

Downtrend

A downtrend simply means that the market is declining.

DPOS

The DPOS protocol, for Delegated Proof of Stake, is a blockchain consensus algorithm developed by Daniel Larimer and first used for the BitShares blockchain. The DPOS protocol consists of a delegated proof of stake which aims to resolve the centralization problems posed by the Proof of Work and Proof of Stake mechanisms. Each user of the network has a voting right proportional to his token holdings in view of 'elect different delegates. Only the delegates will be able to contribute to the production of the blocks, but the members of the network have the final say on any modifications made to the protocol. The system is sometimes criticized for abuse of a dominant position by delegates, which can stay in place for a very long time. On the other hand, the smaller the number of delegates, the greater the centralization (21 for EOS, 51 for Ark, 101 for Lisk).

Dump

A dump is simply the drop in the price of a cryptocurrency. A dump is usually a prolonged drop, which can cause concern among traders or investors.

Dust

Dust, corresponds to all the small amounts of cryptocurrency that we keep in our wallet if we regularly trade, and that we can neither sell nor convert because the amounts are too low. On Binance , it is possible to convert your dust to BNB (Binance platform token) to recover them or pay transaction fees with it.

DYOR

DYOR is the acronym for “Do Your Own Research”. This is a very common adage in finance that is often repeated to novices. Always do your own research before making any investment.

 

E

Entry point

When we refer to the “entry point” without further precision, we are actually referring to the entry point in a trading position statement. The position can be long or short, but in all cases, its entry point will be decisive on the success of the trade. A bad entry point can make it very difficult to exit. Knowing how to set your entry point is therefore decisive for carrying out an effective and viable trading strategy over the long term.

Equity token

An equity token gives its investor rights in return for funds brought to a company, at the time of its ICO or later. An equity token works on the same principle as a share: it represents a participation in the capital of the company and therefore makes it possible to receive any dividends. The increase in its value is correlated with that of the value produced by the company. There are other types of tokens, such as security or utility tokens.

ERC-20

ERC-20 (Ethereum request for comment n ° 20), is a standard smart contract that allows the creation of tokens based on the Ethereum blockchain, in other words without having to develop a new blockchain. It is the major tool used by the organizers of ICOs that allows them to create a new currency by building on the efficiency and good reputation of the Ethereum blockchain.

ERC-721 (Token)

ERC-721 tokens are a category of Ethereum tokens. These are non-fungible tokens (NFT), which are particularly used in blockchain video games.

Evening star

Evening star is a graphic figure of 3 Japanese candlesticks announcing a bearish market reversal: A bullish first candle with a large body; A second indecision candle (large wicks and small body); A third bearish candle with a great body.

 

Exit point

Exit point refers to the moment when a trader closes his position. The exit can therefore result in a gain or loss depending on the entry point. The exit point is more difficult to determine than the entry point for many traders. This is even more true in the cryptocurrency market, which is very difficult to predict. Defining your exit point therefore requires having a trading and risk management plan, and always crossing your fundamental analysis with your technical analysis without letting your emotions take over.

 

Exit scam

The exit scam is a type of crypto scam. Scammers raise funds from investors for the promise of a finished product, then slip away, keeping the money, without delivering any product. Exit scams were particularly numerous during the ICO boom in 2017 and 2018.

 

F

Faucet

A faucet is a site or part of a site where you can, by performing very simple actions like clicking a button, recover infinitesimal parts of cryptocurrencies.

 

Fees

These are the transaction fees applied by Exchanges when buying / selling cryptocurrencies. Bitcoin also contains minimal transaction fees which are redistributed to miners.

Fiat

Fiat is a word of Latin origin that has nothing to do with the automaker and is synonymous with fiduciary. Fiat means “let it be so” in Latin and designates a currency that is legal tender and imposed by the issuer, which can be a state or a group of states (in the case of the euro), such as euro, yen or US dollar.

Fibonnacci retracement levels

 

Fibonnacci retracement levels, or Fibonnacci retracements, is a method used to set price targets during a consolidation phase. The idea is to evaluate the level of corrections or rebounds to position oneself correctly on a trend.In this sequence, each number is equal to the addition of the two previous digits: 1,1,2,3,5,8 , 13,21… This sequel allowed us to discover the golden ratio 1.618 and the golden ratio 0.618. Each number in the sequence is more or less equal to 0.618 times the following number and 1.618 times the preceding number. It is from the golden ratio that we can determine the Fibonacci retracements.

 

Flippening

Flippening refers to when the total capitalization of Ethereum (ETH) will exceed that of Bitcoin (BTC). “Flippening” is a theory that arose out of the soaring price of Ethereum (ETH) and the decline in the Dominance of Bitcoin. This phenomenon almost happened in June 2017. Ethereum's capitalization was $ 37 billion and Bitcoin's was $ 45 billion. Since then, this term can refer to other struggles for a position in the market. between two cryptocurrencies. Ethereum, for example, lost its second place to Ripple in December 2017, to regain it in January. This theory is often mocked on the networks and is represented by a dolphin circling around.

Front running

Manipulation consisting, for a broker, in taking advantage of the price fluctuation caused by the execution of the order of one of its clients. For example, he can execute several small buy orders for his own account just before executing an important order for his client which would increase the value of the asset, thus generating an interesting capital gain.

FUD

Fear, uncertainty and doubt (FUD) is a technique used in marketing. In cryptocurrencies, FUD consists of trying to influence potential investors or traders by disseminating negative information sufficiently vague to sow doubt. The FUD consists, for example, in denigrating a cryptocurrency or a project.

Fundamental analysis (FA)

Fundamental Analysis is a method on which investors rely to estimate the evolution of the intrinsic value of a good or an asset. Fundamental analysis seeks to interpret all the different factors that may impact its future price: external events and influences, elements internal to the company (financial diagnosis, human resources, etc.). Fundamental analysis is often based on a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). It must be supplemented by a technical analysis if one wishes to carry out trading activities, regardless of the asset considered (cryptoassets, stock market indices, Forex, etc.).

 

Futarchy

Futarchy denotes a form of government in which predictive markets are used to determine what political choices will be made.

Futures

“Futures”, or futures contracts, are derivative products of underlying assets in the form of contracts duly approved by regulatory authorities. A future can relate to any type of underlying: gold, commodities, and more recently, cryptocurrencies.

 

G

Gas

Some smart contract blockchains, such as Neo or Ethereum, use several tokens, including gas. On these blockchains, gas is used to pay transaction fees or perform the various operations provided for by a smart contract. To use the Ethereum or Neo blockchain, it is therefore essential to have gas.

H

Halving

We talk about halving when the mining reward of a cryptocurrency is halved. This event is programmed in advance in the currency code and is triggered automatically when a certain number of blocks have been mined.

Hardware wallet

A hardware wallet is the most secure way to store cryptocurrencies. The hardware wallet is a physical wallet that allows cold storage. It is thus distinguished from online wallets or desktops wallets, which are much less secure and more easily hackable. The particularity of a hardware wallet is that it fully protects access to its user's private key (necessary to access the funds in the wallet). The owner himself has no knowledge of his private key: a code and a recovery key allow him to access it, without the latter being able to read it. The most famous hardware wallets are the Ledger Nano X , the Ledger Blue , the Trezor , and the Cool Wallet S.

Hash

Hash can be translated as "fingerprint". The hash is used in computing, but also in cryptography. A fingerprint aims to authenticate an initial data (sometimes unknown), by being able to compare it with other fingerprints.In cryptography, the fingerprint is the result of the application of an encryption software to a given message. Whatever the nature of the data entered into the encryption software, the fingerprint will always have the same syntax, ie the same number and the same type of characters. For example, if I apply imaginary encryption software to "New York" formulas followed by random numbers, I get the hashes to the right of the arrow which are a series of unintelligible letters and numbers but still of the same length. and format: "New York0" 2fa8bc6ea3b7d1754f5ccb4a924f9aa7a83ff430e57bb7 → "New York1" 203eefcbcf1e5c0d10b487ebe976f63b6285eda1f99432 → "New York2" c67d4d115d57752899af1c2bc61b1073d938f8fd9907cc → "New York67789" c042b08c9af9465e41d0cf4bba0b16d810b0e04098178f → "New York67790" 98ed5f89492a32440f159fac05b642e1fe3c84ca1dab86 → "New York67791" → 13b357ff4c15b935694a51042b923527cc88b739a58f74

Hash rate

 

The hash rate is the measuring unit of the processing power of a Proof of Work (PoW) blockchain. The measuring unit has the following formula : H/s (hashes / second). In the case of bitcoin, we are at PH / s (1 million billion hashes per second). In simple words, it's used to mine and process transactions.

 
 

HODL

 

The acronym "HODL" is frequently used on crypto forums and stands for "hold on for dear life". This acronym actually comes from the word "hold". The use of "hodl" would come from the fact that several years ago a drunk person posted a message on BitcoinTalk to encourage investors not to panic and not to sell despite falling prices: instead of write "hold", this would have written "hodl". The term has since stuck and continues to be used with every cryptocurrency dump to prevent various investors from panicking.

Hot storage

As opposed to cold storage, hot storage is the act of storing one's private keys and other passwords on a connected device or even online. Desktop and exchange wallets are in essence hot storage, while hardware wallets and paper wallets are cold storage.

Hyperledger

Hyperledger is a private blockchain (or consortium blockchain) supported by the Linux Foundation. Hyperledger is open source and arguably the most complete private blockchain on the market, as it offers a lot of possibilities for businesses. It is also one of the most complex to deploy. Hyperledger is particularly flexible and allows you to customize the consensus and access rights to the registry. IBM has made Hyperledger the basis of its blockchain offering, and is participating in developing various projects alongside Airbus, JP Morgan, Intel and Cisco. Hyperledger is certainly the most widely used private blockchain with Quorum, Corda, and Ripple in the financial world.

I

ICO

An ICO (Initial coin offering) is a fundraising in cryptocurrency. During an ICO, a new cryptocurrency is created, and the public is invited to invest in this new token with generally ETH, but it can also be bitcoins or other “safe” currencies. The investor therefore takes the risk of selling reference currencies against a currency which does not yet exist and which may never exist. There are many scams among ICOs. France is currently working on defining a legal framework for ICOs.

 

J

Japanese candlesticks

Japanese candlesticks represent the behavior of the price according to the unit of time that one has selected on a market chart. It is usually green if the price has moved up, and red if the price has moved down.

 

K

KYC

KYC is an acronym referring to the expression “Know Your Customer”. This term refers to all procedures that require you to send documents to prove your identity. Exchange platforms for example, will systematically ask you to go through a KYC verification procedure where you will have to send a selfie, an identity document and a proof of residence. These steps are aimed at combating money laundering. It is a legal obligation.

L

Lambo

The word "Lambo" is sometimes used out of context on crypto forums. Investors use it to refer to their future car (the "Lambo", otherwise known as the Lamborghini) once their cryptocurrency wallet has enabled them to make a fortune. The term is used with humor, since no cryptocurrency investor can be sure that a price will rise over the long term.

Ledger

Ledger is a French start-up offering several hardware wallets and secure storage solutions such as Ledger Vault. Its flagship product remains the Ledger Nano S , the most popular hardware wallet on the market. There are currently three Ledger wallets available: Ledger Nano S , Ledger Blue and the latest, the Ledger nano X. Ledger hardware wallets are renowned for offering the best value for money on the market. Launched only in 2014, Ledger now has more than 150 employees and is one of the fastest growing French start-ups in recent years.

 

Leverage effect

A leverage effect allows you to multiply your exposure to the market, while immobilizing only a part of your capital, which is called hedging. The broker makes available the remaining part of the total value of the position. Gains and losses are calculated on the total value of the position. The leverage effect makes it possible to gain very large sums, but also exposes people to proportional risks of loss. The leverage effect exists for most financial products, including cryptocurrencies. Trading with leverage is possible on BitMEX .

Lightning network

The Lightning Network is a secondary layer of the Bitcoin protocol. This aims, among other things, to considerably improve the scalability of the Bitcoin network to resolve congestion problems during load increases. The idea of the Ligthning Network is to offer an overlay to the Bitcoin network to pass certain off-chain transactions on a payment channel. The only transactions recorded on the Blockchain will be the opening and closing of the payment channel. The Lightning Network can significantly accelerate the speed of transactions, and also significantly reduce costs.

Limit

A limit order is a type of stock market order also used in cryptocurrency markets where you agree to buy or sell an asset when it has reached a certain price that you specify. If you want to buy, the exchange will place the order when the asset has reached the price you specified on the downside (so the price of the asset was higher when you placed the limit order). If you want to sell, it will do so when the asset reaches the price you specified on the upside (so the asset's price was lower when you placed the limit order).

Liquid

Liquid is a parallel chain (sidechain) project on Bitcoin (BTC) developed by Blockstream. This will allow bitcoins to be exchanged anonymously, but also any other type of data: fiats currencies, information, any data, etc. The first block was produced on September 27, 2018.

The consensus is obtained in a particular way since there are no minors, but 23 “federators” including many exchanges.

Liquidity

Liquidity is an important indicator of financial markets that describes the ability to buy or sell assets quickly in a given marketplace without having a major effect on prices. The more liquid a market, the faster and easier you can transact in that market. Liquidity is an essential characteristic that a good market must provide. It depends in particular on the number of buyers and sellers, transaction costs and the terms of placing an order on this market.

Luck (mining)

Percentage of luck (over a set amount of time) that a miner or pool finds a block. The percentage can vary between 0% and + ∞%. In a perfect world, the Luck would consistently be 100%.

 
 

M

MACD

The acronym MACD stands for Moving Average Convergence Divergence. This is a technical indicator for determining trend changes. MACD is the difference between two exponential moving averages of different time periods (usually 12 and 26 days). MACDs are useful when crossed with its signal line, to determine a buy or sell signal.

Mainnet

The mainnet is the original network for transferring cryptocurrency from one address to another within the blockchain. The mainnet differs from the testnet, which aims to test the transfer function on a prototype network. Many cryptocurrencies are only at this stage and therefore do not yet have a mainnet. The tokens of a project without a mainnet cannot have any other utility than that of trading, or failing to materialize the amount invested by provisional tokens. When leaving the mainnet, we will use what is called a “token swap” to obtain the final tokens.

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