A list of key terms that are useful to know in crypto
Hex is a cryptocurrency that runs on the ethereum blockchain. It is designed as a store value and aims to be better store of value than bitcoin. You can think of HEX like the equivalent of a term deposit in the finance and banking world. You can stake your HEX tokens in the HEX smart contract and earn interest over time. This is similar to putting your money in term deposit for a certain period of time at a bank.
The official cash rate is the term used in Australia and New Zealand for the interest rate for transactions between banks and is the rate at which the central bank charges on overnight loans between commercial banks.
‘Heart’s Law’ says that cryptocurrencies will rise and fall alongside one another as a result of their liquidity pairing.
What does buy the news sell the rumor mean in crypto? A buy the rumor and sell the news situation occurs when a crypto currency price rises prior to a significant event or news and then dives down sharply after the event occurs.
MEV stands for “Miner Extractable Value” or “Maximal Extractable Value”. It refers to the process of extracting value from Ethereum users by reordering, inserting, and censoring transactions within blocks. To date more than USD 606 Million in value has been extracted from users by bots frontrunning transactions, exploiting the slippage users allow in a trade. The term “MEV” … Read more
A contrepreneur is, a con artist who makes their fortune by fooling wantprepreneurs into thinking they’re getting a great deal or coming into some easy money, when the reality is, it’s the contrepreneur making the real money. They can usually be found online on Facebook, YouTube, Instagram etc. selling their get rich quick schemes typically via courses.
Markets tend to move in anticipation of something happening – this is known as the rumor. This leads to people buying up an asset thus driving up the price. When the event actually occurs – this is known as the news. During the news phase most people have already bought the asset.
DeFi reduces costs, improves transparency, is resistant to censorship, gets rid of the middlemen and the associated counter party risk. This is in direct contrast to Traditional Finance aka TradFi which is run by Banks, Wall Street and Central Banks who act as the middlemen and can manipulate financial rules to suit their own needs.
A blockchain oracle is a decentralized data services that connects smart contracts with the outside world primarily (e.g. weather data, Vessel data, stock market data etc.) to feed information in from the world, to the blockchain. Oracles also provide a way for blockchains to see into each other. This is known as interoperability, and is an important next step as well.
A limit order allows traders to purchase or sell a cryptocurrency at a specified price or better. That way you can automate the buying and selling without having to constantly watch price charts. A limit order will only be executed at the limit price, or a lower price when buying. On the flip side, a … Read more