Crypto Dictionary

A centralized finance (CeFi) system is one where a financial institution is governed by a single governing authority. CeFi institutions include the vast majority of banks and exchanges. CeFi institutions are middlemen that clients rely on to conduct financial transactions and secure assets. Know-Your-Customer and anti-money-laundering regulations must also be followed by CeFi organizations. Despite the fact that cryptocurrencies operate on decentralized blockchains, many cryptocurrency exchanges are CeFi. They demand that users show identification and provide control of their private keys. When compared to decentralized exchanges, CeFi crypto exchanges have a much more manageable trading experience. They are, however, more likely to be subject to government rules and are more vulnerable to cyberattacks and market manipulation.

Centralized networks are based on a single, centralized server/master node that conducts all significant data handling and stores data and user information that other users may access. Client nodes can then link to the main server and submit data requests rather than performing them directly. The vast majority of web services, such as YouTube, a video streaming service, or your online banking account, are controlled by a centralized network owner, which means that all data exchanges inside these networks must be verified by a third-party authority. Centralized networks are now the most common sort of network on the internet. These networks rely on a single network owner to link all of the other satellite users and devices, indicating that there is a single point of failure which can be used to enter and attack the overall structure.

Marc Chaikin's Chaikin Money Flow (CMF) is a volume-weighted average of accumulation and distribution over a certain time period. The typical CMF duration is 21 days. The Chaikin Money Flow theory states that the closer the closing price is to the high, the greater accumulation has occurred.

Code coverage is a software testing metric that counts the number of lines of code that are successfully validated throughout a test method, which aids in determining how thoroughly a product is tested.

“Burning” crypto means permanently removing a number of tokens from circulation. This is typically done by transferring the tokens in question to a burn address, i.e. a wallet from which they cannot ever be retrieved. This is often described as destroying tokens.

Coinbase is the world's largest cryptocurrency exchange platform. Coinbase, like any other cryptocurrency exchange, enables users to purchase and sell cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. Coinbase and similar companies have been essential in introducing bitcoin investment options to new areas. Its user-friendly UI and wide range of digital currencies have helped it gain popularity among regular users. Furthermore, the platform's scale provides high levels of liquidity. However, owing to the high transaction costs and the considerably narrower selection of currencies available compared to other exchanges, it is less popular among experienced traders and bigger investors.

A cryptocurrency industry tool called CoinMarketCap collects and publishes the most recent values for the hundreds of cryptocurrencies traded on the world's platforms. It provides information on each currency's market capitalization, total trading volume, and ranking by trading volume for the previous month and the last 24 hours.

Cold storage is the way to store cryptocurrency offline.  The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.

Cold wallets - also known as offline wallets - are offline cryptocurrency wallets. Cold wallets enable users to save their private keys offline via a paper wallet, a hardware wallet, or an offline software wallet. The majority of cold pockets are hardware pockets in the form of a USB stick. Cold wallets are used by long-term bitcoin traders because they are less vulnerable to internet assaults than hot wallets. Cold digital bags are frequently used to strengthen security. This enables users to scan their code for harmful activities. Because trading and wallets are less regulated than traditional financial institutions, security is vital while handling cryptocurrency.

Decentralized networks use consensus mechanisms, also known as consensus algorithms or protocols, to establish verifiable, legitimate, and unified databases. Individual nodes in a peer-to-peer network perform a series of actions in order to authorize data. The type of method utilized determines these tasks. For performing consensus tasks, bitcoin blockchains reward certain nodes – sometimes known as validators or miners – with native cryptocurrency. These algorithms rely on nodes to show ownership of valuable resources such as processing power or large holdings in a coin. The Proof of Work and Proof of Stake algorithms are the two most common types of consensus techniques. Other approaches include the Delegated Proof of Stake mechanism, the Proof of Authority mechanism, and the Proof of Activity mechanism. Consensus mechanisms guard against some forms of economic threats, such as 51% attacks.

As the blockchain industry evolves, more cryptocurrency holders are seeking methods to create passive income from their investments. Some choose to mint new tokens that may be sold for a profit, while others prefer to stake existing tokens and receive incentives as validators. Several users are also exploring centralized and decentralized lending protocols in order to increase their profits through yield farming. Some crypto rewards credit cards, on the other hand, now give bitcoin (BTC) in exchange for cash or points. Despite the fact that all of these alternatives bring potential, investors should constantly examine the risks connected with each. Staking, for example, often demands that assets stay locked in a smart contract, exposing investors to unfavorable market moves. Furthermore, DeFi protocols are powered by automatic smart contracts.

Crypto Brokerage is a new solution that enables companies to offer cryptocurrency buying, selling, holding, and sending capabilities within their own applications. It is a turnkey, API-based solution that eliminates the technical and regulatory complexity.

The use of incentives and encryption to create systems, applications, and networks is known as crypto-economics. It is the use of cryptography that takes into consideration economic factors and economic strategy.

An "index fund" is a mutual fund or exchange-traded fund that tries to replicate the returns of a market index. Index funds may strive to track market indexes such as the S&P 500 Index, and IC-15 etc.

Cryptocurrencies, sometimes known as "crypto," are digital assets that serve as mediums of trade. Various layers of cryptographic technologies assure the safe storage and movement of cryptocurrency. Cryptocurrencies are often based on decentralized networks and are either issued or managed by central authorities or financial institutions. These decentralized systems rely on publicly accessible distributed ledgers, often known as blockchains, to prevent cryptocurrency from being double-spent.

A cryptocurrency pairing, also known as a trading pair, is a form of currency pair. Fiat currencies and cryptocurrencies can be included in cryptocurrency pairings. Currency pairings in cryptocurrency allow traders to compare currencies against one another. A pair has two currency names or abbreviations separated by a slash or dash, such as BTC/USD. The base currency is listed first in the pair, followed by the quotation currency. The quote currency is compared to the base currency to determine how much one coin or token of the base currency is worth in the quotation currency. Because some altcoins may only be purchased with specific currencies, traders should be familiar with cryptocurrency pairings. Furthermore, awareness of pairs allows investors to explore arbitrage trading and high liquidity trading opportunities. A pair is a pair of tradeable tokens or currencies. 

A cryptocurrency wallet, as opposed to a physical wallet that carries paper currency, maintains public and private keys. Cryptocurrency transactions cannot be performed without these keys. Keys are essential even in a basic "crypto wallet" to spend, receive, and monitor cryptocurrency ownership. A private key provides the user with ownership of funds and is used to authorize outbound transactions. A public key enables anybody other than the wallet's owner to make payments to it. Wallets are classified into several varieties, each with a distinct level of protection. Multi-key authentification, for example, is a characteristic of more complicated wallets. There are various hardware, software, and in-browser alternatives that may be used offline (cold storage) or online (hot storage) (hot storage). Furthermore, users can select between custodial and non-custodial options.

Custodial cryptocurrency wallets are protected by private keys that users do not own. Financial institutions and businesses, such as cryptocurrency exchanges, provide security funds that regulate and ensure the security of users' private keys. Protection funds are attractive because of their ease of use. Because they provide accounts that have the means to recover passwords, security wallets reduce the chances of users becoming negligent and losing access to cryptocurrencies. However, using a wallet is safe. They are not immune to cyber-attacks and fines can be incurred. Therefore, users should choose a reliable wallet provider with robust security measures.

Daedalus is a cryptocurrency wallet for the native token of the Cardano blockchain, ADA. Users download it to their desktops. It is compatible with Windows, macOS, and Linux Daedalus is an open-source and operates on a stake-in-stake blockchain platform, Cardano. It is a full node wallet that stores a complete, authenticated, authenticated blockchain This full-node functionality, which doesn’t rely on third-party servers for data, makes the wallet trustless and secure.The Daedalus wallet is non-custodial and lets users maintain control of their private keys. In addition, a fixed wallet that supports multiple key pairs is based on a single seed phrase.

The Flow blockchain protocol was designed by Dapper Labs to allow the development of NFTs for NBA Top Shot, which are one-of-a-kind collectible videos that basketball fans may own.