Liquidity: How Easily You Can Buy or Sell Liquidity determines whether you can actually trade your crypto at fair prices. High liquidity means smooth trading. Low liquidity means getting rekt by slippage. Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. In crypto markets, liquidity comes from…
Exchange: Where Crypto Gets Bought and Sold Crypto exchanges are the on-ramps to digital money. But not all exchanges are created equal – some prioritize security, others prioritize profits. A cryptocurrency exchange is a platform where you can buy, sell, and trade cryptocurrencies using traditional money or other digital assets. Think of it as a…
Whale: The Big Players Who Move Markets In crypto, whales are individuals or entities holding massive amounts of cryptocurrency. When whales move, markets tremble. A whale is someone who holds enough cryptocurrency to significantly influence market prices through their trading decisions. For Bitcoin, this typically means holding 1,000+ BTC (worth $30+ million at current prices)….
Pump and Dump: Coordinated Market Manipulation Pump and dump schemes are crypto’s version of old-school stock manipulation. Coordinated groups artificially inflate prices, then dump on unsuspecting victims. A pump and dump is a form of market manipulation where a group artificially inflates an asset’s price through coordinated buying and false promotion, then sells at peak…
Hot Wallet: Convenience Over Security Hot wallets are your everyday crypto spending accounts. They’re connected to the internet for easy access, but that convenience comes with security trade-offs. A hot wallet is a cryptocurrency wallet that maintains an active internet connection, allowing for quick and easy transactions. Think of it as your crypto checking account…
Multi-Signature (Multisig): Shared Control for Enhanced Security Multisig wallets require multiple signatures to authorize transactions. It’s like requiring multiple keys to open a safe – no single person can move funds alone. Multi-signature (multisig) is a wallet configuration that requires signatures from multiple private keys to authorize transactions. Common setups include 2-of-3 (any 2 signatures…
Cold Wallet Backup: Securing Your Security Cold wallet backup ensures you can recover your cryptocurrency even if your hardware wallet is lost, stolen, or destroyed. It’s like having spare keys to your safe deposit box. Cold wallet backup refers to secure storage methods for seed phrases and recovery information that enable restoring access to hardware…
Phishing Attack: How Scammers Steal Your Crypto Phishing attacks are the #1 way people lose crypto. Scammers create fake websites that look identical to real ones, then steal your login credentials and private keys. A phishing attack is a fraudulent attempt to obtain sensitive information by impersonating a trustworthy entity through fake websites, emails, or…
Rug Pull: When Projects Disappear With Your Money Rug pulls are crypto’s version of old-fashioned exit scams. Developers build hype, collect investor money, then vanish into the digital night. A rug pull is when cryptocurrency project developers abandon the project and steal investor funds. The term comes from “pulling the rug out” from under investors…
KYC (Know Your Customer): The Identity Check KYC is crypto’s concession to traditional finance. Exchanges collect your personal information to comply with government regulations and prevent money laundering. Know Your Customer (KYC) is the process of verifying customer identities through government-issued documents and personal information. Most regulated cryptocurrency exchanges require KYC before allowing significant trading…