Glossary

Cryptocurrency - Glossary of Terms and Definitions

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Non-custodial wallets
What are non-custodial wallets? A non-custodial wallet is a digital tool for storing and managing cryptocurrencies that provides users with full control over their funds. Unlike custodial wallets, where a third party (for example, an exchange or service) stores users ' private keys, in a non-custodial wallet, private keys are stored on the user's device. This provides a high level of security and privacy, but also requires the user to be more responsible for their funds. How
What is DEX?
DEX (from English. decentralized exchange is a decentralized exchange that allows users to exchange cryptocurrencies without intermediaries. Unlike centralized exchanges, where all transactions pass through a single server, on DEX users interact directly with each other. This provides a higher level of security and privacy. How does DEX work? On DEX, users can create orders to buy or sell cryptocurrencies. When the order of another user meets the conditions of your order, the exchange takes
What is DeFi?
DeFi (Decentralized Finance) — this is a new financial system that works on the basis of blockchain technology. It allows people to access financial services without the involvement of banks and other intermediaries. How DeFi works: Stablecoins. These are cryptocurrencies that are pegged to the value of real assets, such as the dollar or gold. They are used for exchange and trading in DeFi applications. Lending and borrowing. In DeFi, people can take loans secured by their cryptocurrencies or
What is a Dapp?
Dapp (Decentralized application) is an application that runs on the basis of blockchain technology. It is not controlled by a single center or organization, but operates through a network of computers connected to the blockchain. This makes the Dapp more secure and reliable, as data is not stored in one place and cannot be changed without the consent of the majority of network participants. How does the Dapp work? The user sends a request to the Dapp server. The request is processed by a smart
What is an ICO?
ICO (Initial Coin Offering) is a way to attract investment in a project, in which the company issues its own digital tokens and sells them to investors. These tokens can be used to access certain services or products of the project, as well as as a means of exchange for other cryptocurrencies. How does an ICO work? The company creates its own token (digital currency) and determines its value. It publishes information about the project, including a description of the technology, goals and
ico
What is CEX?
CEX (Centralized Exchange) is a centralized exchange that acts as an intermediary between buyers and sellers of cryptocurrencies. It allows users to buy, sell and exchange various types of cryptocurrencies. How CEX works: Users register on the exchange and pass identity verification. After verification, users can deposit funds to their account on the exchange. Funds can be deposited via bank transfer, payment system, or other payment methods. On the exchange, users can view the current rates
What is KYC and how does it work?
KYC (Know Your Customer) is a customer identity verification procedure performed by financial institutions to ensure the security of their operations. This is an important element in the fight against money laundering and terrorist financing. How does KYC work? The Client provides his / her personal dаta: name, address, phone number, date of birth and other documents confirming the Client's identity. The Company verifies this data through various sources to verify its authenticity. If the
KYC
What is an altcoin?
Altcoin is any cryptocurrency other than Bitcoin. The term "altcoin" appeared in 2011, when new cryptocurrencies began to appear on the market, alternative to bitcoin. How do altcoins work? Like bitcoin, altcoins use blockchain technology to ensure the security of transactions and control the creation of new units of cryptocurrency. However, each altcoin has its own unique features, such as transaction speed, commission size, consensus algorithm, etc. Examples of successful altcoins:
What is AML and how is it related to cryptocurrency?
AML (Anti - Money Laundering) is a set of measures aimed at combating money laundering. It includes monitoring financial transactions and verifying the identity of clients. In the context of cryptocurrencies, AML becomes particularly relevant, as digital assets can be used for illegal purposes, such as terrorist financing or tax evasion. Therefore, many countries and regulators impose strict rules and requirements for companies working with cryptocurrencies. How does AML work in the field of
AML
What is a Dump?
Dump is a mass sale of cryptocurrency that can lead to a decrease in its value. This usually happens when investors or traders decide to sell their assets after they have reached a certain target or when they believe that the price has reached its peak. How does a dump work in cryptocurrency? The dump process usually includes the following steps: Investors or traders accumulate a large amount of cryptocurrency. They start selling their assets en masse on the market, which leads to an increase
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