Akt.io Glossary

Do you speak crypto? Here are some of the crypto terms and phrases you should know to help you enter the world of crypto with confidence

Common Crypto Terms

Get familiar, you’ll surely see them again

AKTIO

AKTIO is our multi-utility token

APR

Annual percentage rate

APY

Average Per Year

ATH

All-Time-High

ATL

All-time low

ATM

Automated Teller Machine

CEX

Centralized crypto EXchanges (CEXs)

CVV

Card Verification Value

CeFi

Centralized Finance

DEX

Decentralized crypto EXchanges (DEXs)

DYOR

Do Your Own Research

DeFi

Decentralized Finance

FOMO

Fear Of Missing Out

FUD

Fear, Uncertainty, Denial

HFT

High Frequency Trading

HODL

“Hold On for Dear Life”

IBAN

International Bank Account Number

ICO

Initial Coin Offering

JOMO

Joy of missing out

KYC

Know your customer

MCR

Minimum Collateralization Ratio

MPC

Multi-Party Computation

NFT

Non-fungible Tokens

OC

Over-Collateralization

OTC

Over-the-Counter

PoS

Proof of Stake

PoW

Proof of Work

ROI

Return On Investment.

SEPA

Single Euro Payment Area

SWIFT

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication

TVL

Total Value Locked

TX

Transaction on a blockchain

TXID

Transaction ID

All financials & web3 terms you need to know

A

APR

The amount of interest a borrower must pay each year is known as the annual percentage rate (APR). The annual percentage rate (APR) is determined by multiplying the periodic interest rate by.

ATH

(All-Time-High) The highest point (in price, in market capitalization) that a cryptocurrency has been in history.

ATL

(All-time low) refers to the lowest price a cryptocurrency has hit during its trading history.

Allocation

Allocation is a term used with maintaining cryptocurrency portfolios.

Altcoin

An altcoin is a term to describe any alternative cryptocurrency to Bitcoin. Altcoins can be anything from the second-most popular coin, Ethereum, to any crypto with no market value you’ve never heard of.

B

Bag

Crypto slang for a large quantity of a specific cryptocurrency. Alternatively used to refer to the contents of an individual's crypto portfolio.

Bagholder

An investor who continues to hold large amounts of a specific coin or token, regardless of its performance.

Bitcoin

Bitcoin is the first cryptocurrency, launched on Jan 3, 2009. Today, it is the most valuable crypto, but the price can fluctuate wildly.

Bitcoin Cash

A peer-to-peer electronic cash system originated from a fork of the original Bitcoin. Bitcoin Cash helps optimize transactions for those who deem Bitcoin to be too volatile to function as a currency.

Block

In cryptocurrency, blocks are groups of data within a blockchain containing transaction records. Once a block reaches the data limit it can hold, a new block is formed to continue the chain.

Blockchain

A decentralized, digitized ledger that records transaction information about a cryptocurrency in a chronological order.

Bridge

A blockchain bridge, otherwise known as a cross-chain bridge, connects two blockchains and allows users to send cryptocurrency from one chain to the other. Basically, if you have bitcoin but want to spend it like Ethereum, you can do that through the bridge.

C

CVV

CVV stands for Card Verification Value. This code is usually composed of a three-digit number provided by the companies that make the bank cards. The CVV code is usually located on the back of the card, although in some cases it may be found on the front.

Coin

A name of digital value stored on a given blockchain or crypto network. Some coin names can be the same as the network, such as Bitcoin or different, like the Stellar blockchain and its coin - Lumen.

Cold wallet

A physical storage device such as a flash drive, hard drive or “solid state” drive used to store cryptocurrency offline.

Collateral

Collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan.

Collateralized Stablecoin

A “collateralized stablecoin” is a stablecoin that is entirely or almost entirely backed by collateral held in a reserve.

Crypto Portfolio

A cryptocurrency portfolio is a means to manage your inventory of online currency investments. It can be hosted on a cryptocurrency management software that helps you track each coin’s performance and provides you with analytical tools.

Crypto bundle

It’s a package of cryptocurrencies that you can buy in one single transaction. Bundles are the best and easiest way to diversify your portfolio.

Cryptocurrency

A digital and decentralized currency. Cryptocurrency can be used for transactions or to store value.

Custodial

Custodial cryptocurrency businesses are the ones that are in possession of their customers’ funds for the duration of the use of their services.

Custodian

A custodian is responsible for safely holding assets for an institution or individual for a variety of purposes.

Custody

Custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss.

D

DEX

Decentralized crypto EXchanges (DEXs) are blockchain-based apps that allow direct transactions of crypto assets between traders without financial institutions or banks.

Decentralization

The transfer of control away from a single place to smaller ones. Requiring majority approval rather than from a single authority makes blockchains decentralized.

Decentralized Applications (DApps)

Programs or applications that are designed to run on a blockchain, or a peer-to-peer network, and are often used to execute Decentralized Finance activities. DApps are often created on the Ethereum network.

Decentralized Finance (DeFi)

Financial activities executed through peer-to-peer networks rather than a bank or any financial institution.

Drivers

A driver is a factor that has a material effect on the activity of another entity. Drivers affect change in their targets and occur at many levels of the economy and stock market. Macro drivers cause changes at the overall market level. Micro drivers cause change at the company level.

Dump

A sudden sell-off of digital assets.

E

Ethereum

Ethereum is a crypto network, and a decentralized software platform developers can use to create new applications and the second most popular crypto after Bitcoin. It has a native token called ether (ETC).

Exchange

A platform functions as a marketplace to buy and sell cryptocurrency.

F

Fiat

Fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, with its own banking system, such as fractional reserve banking.

Fork

An event when the community changes the protocol or rules of the blockchain. The fork splits the chain into two paths - one follows the original rules and the new one to the new direction. (Example: a fork of Bitcoin created Bitcoin Cash).

G

Gas

A fee required paid in ether to execute transactions on the Ethereum platform.

Genesis Block

The first block of a cryptocurrency ever mined.

H

HODL

“Hold On for Dear Life” or HODL is a crypto trading strategy term meaning to buy and hold onto cryptocurrency.

Halving

A pre-set rule in Bitcoin’s code that reduces the amount of Bitcoin awarded to miners by half every four years.

Hash

A unique set of block identification assigned to crypto buyers and sellers.

Hot Wallet

A crypto wallet that is connected to the internet. Hot wallets give easy access to stored crypto but are more vulnerable to hacks than cold storage wallets.

I

ICO

Initial Coin Offering (ICO) is a fundraising method for a new cryptocurrency project. The concept is similar to Initial Public Offering (IPO), but instead of stocks, ICO offers investors a new crypto token. The akt.io ICO has now come to an end.

Interoperability

A concept of allowing blockchains to be compatible with each other and build upon each other's features and use-cases.

L

Limit Order

A type of trade that will only be executed once a cryptocurrency reaches a specified price.

M

Market Capitalization

The total value of all the coins mined. It is calculated by multiplying the value of one given crypto by the number of coins.

Metaverse

It's a combination of multiple elements of technology, including virtual reality, augmented reality and video where users "live" within a digital universe.

Mining

The process of creating new cryptocurrency coins and verifying new transactions.

Minting

Minting is the process of generating new coins using the proof of stake (PoS) mechanism and adding them to the circulation to be traded.

N

Node

A computer that connects to a blockchain network.

Non-fungible Tokens (NFTs)

NFT is a digital asset with a unique identification code to identify the ownership and authenticity of an item, such as art. Most NFTs are based on the Ethereum blockchain.

P

Peer-to-peer

Two users interacting directly without a third party or intermediary.

Ponzi Scheme

A type of fraudulent investment scheme that lures investors in with high returns that are solely funded from the deposits of newer investors. Also known as a Pyramid Scheme, as that is the shape of investor growth over time, until the fraud is mathematically unsustainable and collapses.

Private Key

Similar to a bank account password, a private key is a secret code giving access to your cryptocurrency.

Protocol

A protocol is basically a foundational layer of code that tells something how to function. It's the program that forms the software basis of any given network. Think of a protocol as a set of rules that allow entities to communicate and transmit information.

Public Key

Similar to a bank account number, a public key is the address of your crypto wallet. You can share your public key with others in order to receive money.

R

Rebalancing

Rebalancing is the process of realigning the weightage of a portfolio of assets that involves buying or selling assets periodically to maintain a targeted level of asset allocation and risk.

Resistance Level

A price point which proves difficult to cross and will halt upward or downward momentum.

S

SEPA transfer

The Single Euro Payment Area (SEPA) is a system of transactions created by the European Union (EU) to harmonize transactions between participating countries.

Satoshi Nakomoto

The pseudonymous creator(s) of Bitcoin. Until today, the true identity of Nakomoto is still unknown

Slippage

The difference between the expected price of a cryptocurrency trade and the actual price at execution. Slippage usually occurs when there is high volatility in the market or not enough liquidity to fulfil orders.

Smart Contract

A self-executing contract through written code that controls and executes actions according to the agreements contained within.

Stablecoin

A cryptocurrency that has its value pegged to another stable asset such as fiat currencies, commodities and other cryptocurrencies. (Example: Tether is pegged to the U.S. dollar)

T

Token

A unit of value on a blockchain normally offers more functionality on top of transferring value.

V

Vitalik Buterin

A programmer and one of the co-founders of Ethereum.

Volatility

A market condition in which prices frequently and unpredictably rise and fall.

W

Wallet

A place to store your cryptocurrency. Wallets can be “hot” (online, easy access) or cold (offline, less vulnerable to hacking).

Web 3.0

The development of new internet based services that are driven by machine-based understanding of data. Blockchain technology is a key example of web3.0 technology as are Artificial Intelligence, Augmented and Virtual Reality.

Whitepaper

A technical document released alongside new crypto projects that explains how the system works.

Y

Yield

A return on investment, expressed as a percentage.

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