Aave is a decentralized finance (DeFi) protocol like dYdX. However, instead of offering perpetual contracts, Aave allows users to lend and borrow cryptocurrencies without intermediaries. Aave operates on the Ethereum blockchain and uses a unique system of collateralized loans to provide users with access to credit without requiring traditional credit checks or financial intermediaries.
Account leverage refers to the amount of borrowed funds or margin that a trader can use to increase their position in a particular cryptocurrency trade. By using leverage, traders can amplify their potential gains, but they also risk increasing their potential losses.
In cryptocurrency, an address is a string of characters that uniquely identifies a particular wallet or account on a blockchain network. Cryptocurrency addresses are used to send and receive digital assets between different users or accounts on the network.
In cryptocurrency, an allowance refers to the amount of funds that one user has granted permission for another user or smart contract to spend on their behalf. Allowances are commonly used in decentralized finance (DeFi) protocols to allow smart contracts to execute transactions on behalf of users.
Altcoin is a term used to describe any cryptocurrency that is not Bitcoin. Altcoins are often launched as alternatives to Bitcoin, with their own unique features and use cases. The largest altcoin is Ethereum.
Asset diversification is a strategy used by traders to reduce risk by trading a variety of different assets or asset classes. In the context of cryptocurrency, asset diversification may involve choosing multiple cryptocurrencies or other digital assets to spread risk and potentially increase returns.
An all time high (ATH) refers to the highest price that a particular cryptocurrency has ever reached. It is often used as a benchmark to measure the performance of a cryptocurrency over time.
An auction in the context of cryptocurrency refers to a process of selling or buying digital assets or tokens through an open bidding system. In an auction, buyers place bids on the assets, and the highest bidder wins the auction.
In the context of cryptocurrency, bags refer to the collection of digital assets or tokens that an individual holds in their portfolio. The term "bags" is often used to describe a significant amount of a particular cryptocurrency that a person holds.
A bear market in the context of cryptocurrency refers to a market trend in which the prices of digital assets are falling, and investors are selling their assets to avoid losses. It is characterized by a pessimistic sentiment, declining prices, and high selling pressure.
The bid price is the highest price that a buyer is willing to pay for a particular cryptocurrency or digital asset. It is the price at which a buyer is willing to purchase the asset.
In an auction, bids refer to the offers made by potential buyers to purchase a specific cryptocurrency or digital asset. It is the amount of money that a buyer is willing to pay for the asset.
Bitcoin is a decentralized digital currency that uses a peer-to-peer network to facilitate transactions. It was created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Bitcoin is the first and most well-known cryptocurrency.
Bitcoin Cash is a cryptocurrency that was created in 2017 as a result of a hard fork from the Bitcoin blockchain. It aims to provide faster and cheaper transactions than Bitcoin by increasing the block size limit.
Bitcoin dominance is a measure of the percentage of the total cryptocurrency market capitalization that is made up of Bitcoin. It is calculated by dividing the market capitalization of Bitcoin by the total market capitalization of all cryptocurrencies.
Borrowing is the act of obtaining cryptocurrency or other assets by agreeing to repay the borrowed amount with interest at a later date. This can be done through lending platforms or decentralized finance (DeFi) protocols.
A bracket order is a type of order in which a trader sets both a stop-loss and a take-profit order for a particular asset at the same time. This allows the trader to limit potential losses while also securing potential gains.
Bull market is a market condition in which prices are rising and investor confidence is high.
Censorship-resistance is the ability of a blockchain network to resist censorship or control by any central authority or individual.
Circulating supply refers to the amount of a cryptocurrency that is currently available for trading.
A coin is a unit of value or digital currency that is native to a particular blockchain or cryptocurrency network.
A type of cryptocurrency wallet that stores private keys offline, making it more secure against hacking or theft.
In the context of cryptocurrency, collateral refers to an asset that is pledged to secure a loan or other financial transaction. For example, if you want to borrow cryptocurrency, you may need to put up another cryptocurrency or a fiat currency as collateral.
In cryptocurrency, a confirmation refers to the process of verifying a transaction on the blockchain. When a transaction is confirmed, it means that it has been processed by the network and added to the blockchain.
Consensus mechanisms are the protocols that cryptocurrency networks use to verify transactions and maintain the integrity of the blockchain. Examples of consensus mechanisms include proof of work (PoW), proof of stake (PoS), and delegated proof of stake (dPoS).
Cosmos is a decentralized network of independent blockchains that can communicate with each other through a hub called the Cosmos Hub. The Cosmos network is designed to be scalable, interoperable, and customizable. Learn more here.
Crypto winter refers to a period of time when the cryptocurrency market experiences a significant decline in prices and overall activity. The most well-known crypto winter occurred in 2018-2019.
DeFi (Decentralized Finance) is a financial system built on blockchain technology. DeFi aims to create a financial system that is open and accessible to everyone. It provides financial services such as lending, borrowing, and trading without the need for intermediaries like banks. For example, many DeFi platforms are powered by smart contracts that enable peer-to-peer transactions.
Diamond hands is a term used to describe investors who hold onto their assets despite market fluctuations and volatility.
Double spend refers to the act of spending the same cryptocurrency more than once. This can happen if the sender of the transaction is able to reverse the transaction before it is confirmed on the blockchain. However, double spending is prevented on blockchain networks through their consensus mechanisms, which ensures that each transaction is verified and recorded only once.
The dYdX Foundation is a non-profit organization created to support the development and growth of the dYdX protocol. Its mission is to make decentralized governance and financial products accessible to everyone. The Foundation provides resources to developers and other contributors working on the dYdX ecosystem and is also in charge of the $DYDX token.
dYdX Trading is the company that builds the product infrastructure of dYdX. dYdX allows users to trade cryptocurrency with up to 20x leverage across a variety of different markets. dYdX currently runs on audited smart contracts on Ethereum, which eliminates the need to trust a centralized exchange while trading.
DYOR (Do Your Own Research) is a common phrase used in the cryptocurrency community, advising individuals to conduct their own research and due diligence before investing in any cryptocurrency or project.
Ethereum is a decentralized blockchain platform that enables the creation of smart contracts and decentralized applications (dApps). It is the second-largest cryptocurrency by market capitalization after Bitcoin.
Flippening is a term used to describe the hypothetical event where Ethereum surpasses Bitcoin in terms of market capitalization. It is seen as a significant milestone in the cryptocurrency industry.
Floor price refers to the minimum price that an asset is expected to reach or trade at. It is usually based on market trends and technical analysis.
FOMO (Fear Of Missing Out) is a term used to describe the feeling of anxiety or regret that arises from the fear of missing out on a profitable investment opportunity.
FUD (Fear, Uncertainty, and Doubt): FUD refers to the spread of negative information or rumors about a particular cryptocurrency or the cryptocurrency market in general, with the aim of creating fear, uncertainty, and doubt in the minds of traders.
Gas is a unit of measurement used to calculate the fees required to execute a transaction on a blockchain network.
A gas fee is the fee paid by users to execute a transaction on a blockchain network.
Gas limit refers to the maximum amount of gas that can be used to execute a transaction on a blockchain network.
The genesis block is the first block in a blockchain network; it is the basis on which additional blocks are added to form the "chain."
Gwei is a denomination of the cryptocurrency ether (ETH) and represents one-billionth of one ETH.
Halving is an event that occurs in the Bitcoin blockchain network, where the mining reward for successfully mining a block is cut in half.
Hedgies is a collecton of 4,200 unique, collectible avatars represented as NFTs on Ethereum.
HODL is a misspelling of the word "hold," and is a term used by cryptocurrency investors to express their intention to hold onto their cryptocurrency holdings for the long-term, regardless of short-term market fluctuations. It stands for "Hold on for Dear Life."
A hot wallet is a type of cryptocurrency wallet that is connected to the internet and is used to store cryptocurrency holdings that are intended for regular trading or spending.
Immutable refers to the characteristic of a blockchain network that ensures that once a transaction is recorded on the blockchain, it cannot be altered or deleted.
The index price is the average price of a particular cryptocurrency on multiple cryptocurrency exchanges.
Interoperability refers to the ability of different blockchain networks to communicate and interact with each other seamlessly.
KYC is a regulatory requirement that is often seen in the cryptocurrency space. It requires users to provide identifying information, such as a government-issued ID or passport, to verify their identity. dYdX does not require KYC!
A ledger is a record-keeping system that is used to track transactions in the cryptocurrency space. It is a distributed database that is maintained by a network of users, and it ensures that all transactions are secure and transparent.
In traditional financial markets, using “leverage” means “borrowing funds.” In derivative financial markets, using leverage means putting up only a small portion of the value of a contract to obtain full exposure. However, unlike with traditional financial markets and products no third party is putting up the balance of the value so there is no deemed borrowing; the leverage comes from the terms of the product.
A leverage limit is a restriction on the amount of leverage that a trader can use for a particular trade. This is often used to limit potential losses and to ensure that traders do not take on too much risk.
Leverage trading is a trading strategy that involves borrowing funds or obtaining increased exposure in order to make a trade with a larger position size than normal. This can amplify potential profits, but it also increases the risk of potential losses.
Liquidation is the process of closing out a leveraged position when the asset's price moves against the trader's position to the extent that the margin or collateral deposited is insufficient to cover the loss. In other words, it is the forced closure of a trader's position by the exchange or broker to prevent further losses beyond the trader's margin or collateral.
Liquidity refers to the ease with which an asset can be bought or sold in the market without affecting its price. High liquidity means that there is a high volume of buyers and sellers, making it easy to execute trades quickly at a fair price.
Long refers to a bullish position in trading. When a trader goes long on a cryptocurrency, they are betting that the price of the asset will increase over time.
In cryptocurrency trading, a maker is a trader who adds liquidity to the market by placing limit orders on the order book. They are called makers because their orders "make" the market.
Margin refers to the amount of collateral that a trader must deposit to open a leveraged position. It is the difference between the value of the trader's position and the amount of collateral they have deposited.
Margin trading is a type of trading that allows traders to open leveraged positions that increase exposure to a given asset. This allows traders to amplify their potential gains (and losses) by trading with more capital than they actually have.
Margin usage refers to the amount of collateral that a trader has used to open leveraged positions. It is calculated by dividing the value of the trader's open positions by the amount of collateral they have deposited.
The highest level of borrowing or increased exposure that a trader can receive from an exchange to make trades.
The highest percentage of price change that a trader is willing to accept when executing a trade.
Maximum supply is the maximum amount of a cryptocurrency that can be mined or created.
MetaMask is a self-custodial digital wallet used to store, manage and interact with Ethereum-based tokens and dApps.
Metaverse is a virtual world that allows users to interact with each other and with digital assets.
Mid-market price is the midpoint between the best bid and ask prices of a cryptocurrency on an exchange.
Minimum order size is the smallest amount of a cryptocurrency that can be bought or sold on an exchange.
The process of solving complex mathematical equations to verify transactions and create new cryptocurrency units.
Minting is the process of creating a new cryptocurrency or token.
Moon is a term used in the crypto community to describe a significant increase in the price of a cryptocurrency.
NFT, or Non-Fungible Token, is a unique digital asset that represents ownership of a piece of content or art.
Node is a computer or device that participates in the processing and validation of transactions on a blockchain network.
Non-custodial is a type of digital wallet or exchange that does not hold custody of user funds.
Off-chain are transactions that occur outside of the blockchain network and are settled later on the blockchain.
Orders to buy or sell a cryptocurrency at a specific price.
Transactions that occur on the blockchain network and are recorded permanently on the blockchain.
A third-party service or platform that provides data and information to a smart contract on a blockchain network.
The price of a cryptocurrency or asset that is determined by an oracle.
P&L is the profit or loss incurred by a trader on a particular trade or investment.
A decentralized network where users can interact and transact directly with each other without the need for intermediaries.
Perpetual contracts are a type of futures contract that have no expiration date. You can trade them on platforms like dYdX.
A feature on an exchange or trading platform that displays the user's open positions and balances for various cryptocurrencies and trading pairs.
A visual representation of an asset's price over time, often using candlestick or line charts.
A secret key used to access and control a cryptocurrency wallet.
A set of rules and standards that govern how a network or system operates, including how transactions are validated and how data is transmitted.
A key used to receive cryptocurrency into a wallet, which can be shared publicly.
A price level where an asset has historically struggled to break through, often seen as a potential ceiling for price movement.
A measure of how much profit or loss an investment has generated, expressed as a percentage of the initial investment.
A technical indicator used to measure the strength of an asset's price movement, typically used to identify overbought or oversold conditions.
A scam where the creators of a cryptocurrency or project exit with investors' funds, leaving them with worthless tokens.
The smallest unit of bitcoin, equal to one hundred millionth of a bitcoin.
A series of words used to generate a private key for a cryptocurrency wallet.
A cryptocurrency wallet where the user controls the private key, giving them full control over their funds.
A trading strategy where the trader bets on the price of an asset decreasing.
The difference between the expected price of an asset and the actual price at which a transaction is executed.
The maximum allowable slippage for a trade, often set as a percentage of the desired trade size.
A group of users who combine their resources to lock cryptocurrencies on a blockchain and earn rewards.
Step size is the smallest factor allowed for order amounts on the market.
A swap refers to the exchange of one asset or currency for another at an agreed-upon rate. In the context of cryptocurrencies, it refers to the exchange of one cryptocurrency for another.
A taker is a market participant who takes liquidity from an order book by placing a market order or a limit order that is immediately filled.
Tick size refers to the minimum price increment that an asset can move in a particular market.
A ticker is a symbol used to identify a particular asset or security on an exchange or trading platform.
A token is a digital asset that is created and managed on a blockchain network. Tokens can represent various assets, such as currencies, commodities, or securities, or they can be used to access certain services or platforms.
Refers to the total amount of a cryptocurrency that a trader wants to buy or sell at a particular price.
Refers to the process of completing a trade on an exchange by matching a buy order with a sell order.
Refers to the act of moving cryptocurrency from one address to another.
Refers to a system or process that operates without the need for trust between parties, often achieved through the use of smart contracts on a blockchain.
A node on a blockchain network that is responsible for validating transactions and adding them to the blockchain.
Volatility the degree of variation of a cryptocurrency's price over time.
Volume is the total amount of a cryptocurrency that has been traded over a specific period of time.
In the world of cryptocurrency, a wallet is a software application that allows users to store, send, and receive cryptocurrencies.
In the world of cryptocurrency, a wallet address is the unique identifier that is used to send and receive cryptocurrency.
WalletConnect is a bridging protocol that allows users to connect their cryptocurrency wallet to decentralized applications.
Weak hands refers to traders who panic sell during cryptocurrency market downturns.
A withdrawal in the context of cryptocurrency refers to the process of transferring digital assets from one wallet or exchange account to another. It involves sending a specified amount of cryptocurrency from one address to another.
0x is an open-source, permissionless protocol that facilitates the decentralized exchange of Ethereum-based tokens. It enables developers to build their own decentralized exchanges (DEXs) and to integrate decentralized exchange functionality into their applications.
0x API is a product offered by the 0x protocol that allows developers to build applications that interact with various decentralized exchanges through a unified API. With the 0x API, developers can access liquidity from multiple decentralized exchanges, making it easier to build decentralized applications with access to a larger pool of liquidity.