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CRYPTO CURRENCY DICTIONARY

TERMS COMMONLY USED IN THE WORLD OF BLOCKCHAIN AND CRYPTOCURRENCY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Yearn-finance

yearn. finance is a group of protocols running on the Ethereum blockchain that allow users to optimize their earnings on crypto assets through lending and trading services. One of a number of emerging decentralized finance (DeFi) projects, yearn.

Other Important Terms

Derivative Exchange

 An exchange traded derivative is a financial contract that is listed and trades on a regulated exchange. Simply put, these are derivatives that are traded in a regulated fashion.

Web 3.0

Web 3.0 is an umbrella term that refers to the next stage of the internet's emergence. This new internet is being deliberately created to address common, potentially harmful flaws present in today's internet, and it will establish an online environment in which human-centric and highly individualized interactions I the norm. While the intricacies of Web 3.0's underlying architecture have yet to be determined, but in a broad sense it appears more probable that the primary elements of Web 3.0 will be linked and enabled by decentralized technology.

Centralized Exchanges (CEX)

Companies maintain centralized cryptocurrency exchanges as middlemen for bitcoin transactions and storage. Customers on a centralized exchange do not have access to their private keys and relinquish control of their funds. The exchange records all buying and selling records of users' orders internally, only turning them into actual currency when they are withdrawn. Because of their ease, speed, and low cost to customers, centralized exchanges now handle the vast majority of bitcoin transactions. However, some see these exchanges as the polar opposite of the objectives of cryptocurrencies like Bitcoin. Furthermore, there are risks associated with the number of money exchanges keep. These problems include wash trading, exchange price manipulation, hacker theft, and government censorship. Binance, Gate.io, KuCoin, WazirX, CoinDcx, Coinswitch Kuber, etc are some examples of centralized exchanges.

Proof of Stake (PoS)

Proof of Stake is a form of the blockchain consensus process. It chooses validators at random from the network using a probability method proportionate to the validators' holdings in the blockchain's native coin. After the computation is performed, the validating node is paid with transaction fees. The Proof of Stake method was developed as an alternative to the Proof of Work mechanism, which lacks scalability because of its energy-intensive nature and the requirement for miners to compete with elite hardware to validate blocks. Some consider Proof of Stake to be a more secure paradigm since it reduces miners' incentives to attack networks. A validator loses some of its stakes if they verify false transactions.

Buying The Dip

When an asset’s value drops, it can be said to “dip.” The term is used across a range of financial markets and is often used to describe the price fluctuations of cryptocurrencies.“Buying the dip” is a technique in which investors take advantage of drops in an asset’s value. By purchasing at a lower price, investors “average down” their asset purchase price or maximize profits on undervalued assets. Many markets, however, are highly speculative. And this is particularly the case with the cryptocurrency market. A dip in the value of an asset may signify the start of a longer downward trend. A future bounce back isn’t a given. Waiting for price settling, undertaking due diligence, and utilizing incremental buying protect buyers against poor investments.

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