Learn the essential terms and concepts in cryptocurrency and Web3
15 terms found
A type of decentralized exchange protocol that uses mathematical formulas to price assets instead of using an order book like traditional exchanges. Examples include Uniswap and Raydium.
The real rate of return earned on an investment, taking into account compound interest. In DeFi, APY represents the potential yearly return from staking or providing liquidity.
A distributed, decentralized ledger that records transactions across many computers. Once data is recorded, it cannot be altered retroactively without altering all subsequent blocks.
A cryptocurrency wallet that is not connected to the internet, providing enhanced security for storing digital assets. Examples include hardware wallets like Ledger.
A cryptocurrency exchange that operates without a central authority, allowing peer-to-peer trading directly from users' wallets using smart contracts.
The cost required to perform a transaction or execute a smart contract on a blockchain. On Ethereum, gas is paid in ETH; on Solana, fees are paid in SOL.
The temporary loss of funds experienced by liquidity providers due to volatility in a trading pair. The loss becomes permanent only if you withdraw during the price divergence.
A collection of funds locked in a smart contract that provides liquidity for decentralized trading, lending, and other DeFi activities. Providers earn fees from trades.
A unique digital asset that represents ownership of a specific item like art, music, or collectibles. Unlike cryptocurrencies, each NFT has distinct properties and cannot be exchanged 1:1.
A secret cryptographic key that allows you to access and control your cryptocurrency. Never share your private key with anyone - whoever has it controls your funds.
A series of 12-24 words that can be used to recover a cryptocurrency wallet. It should be stored securely offline and never shared with anyone.
Self-executing code stored on a blockchain that automatically enforces the terms of an agreement. They power DeFi protocols, NFTs, and DAOs.
Locking up cryptocurrency to support blockchain operations (like validating transactions) in exchange for rewards. Common in Proof of Stake networks like Solana.
A digital asset created on an existing blockchain. Tokens can represent anything from utility access to governance rights. SPL tokens are built on Solana.
A DeFi strategy that involves moving assets between different protocols to maximize returns. Farmers provide liquidity and earn rewards in the form of additional tokens.