Copytrading Wiki
A universal dictionary of terms related to copytrading and the investment sphere.
Token
A token is a digital entity (asset) in a blockchain environment that represents value, ownership, or utility. Tokens differ from cryptocurrencies in that they serve specific functions in ecosystems, such as governance, rewards, and payments.
Tokenomics
Tokenomics is the cornerstone of the entire cryptocurrency industry, defining its supply, demand, and the overall economic ecosystem. Tokenomics determines how tokens are issued, distributed, and used, considering long-term adoption and sustainability implications.
Liquidity
Liquidity is a fundamental concept in financial markets that describes how quickly assets can be bought or sold without affecting their price. From stocks and forex to cryptocurrencies and real estate, liquidity determines price stability, transaction speed, and market confidence. Investors, traders, and corporations that manage financial risk need to understand liquidity.
Altcoin (Altcoins)
Altcoins are all digital currencies other than Bitcoin, each with their own innovations and characteristics. From smart contract platforms like Ethereum (ETH) to privacy coins like Monero, altcoins have flooded the crypto space, enabling innovation in finance and technology.
Volatility
Volatility is one of the basic concepts in financial markets that determines the speed and scale of asset price fluctuations. Volatility is more pronounced in the cryptocurrency market and affects investment opportunities and risk management strategies.
Blockchain
Blockchain technology has revolutionized the internet by offering users a secure, decentralized, and transparent method of transacting. Blockchain was originally developed specifically for use by Bitcoin, but it has now expanded into other areas, meaning it could revolutionize finance, healthcare, and government as well.
Cryptocurrency
Cryptocurrencies have revolutionized the world of finance by offering decentralized and secure digital alternatives to traditional fiat currencies. Since the emergence of Bitcoin in 2009, the cryptocurrency landscape has expanded significantly to include a diverse range of digital assets with unique features and applications.
Staking
Staking is perhaps the least known process in the cryptocurrency industry, which allows users to earn rewards for participating in blockchain validation processes. Staking is an energy-efficient alternative to traditional mining, used primarily in blockchains that use the Proof-of-Stake (PoS) mechanism. Below is an explanation of the basics of staking, its pros and cons, and how to start earning passive income from staking.
Copytrading
Copytrading is a trading method where deals (positions) of other traders (masters) are copied manually or automatically.
Investment
Investment refers to assets such as cash, stocks, real estate, bonds, or other property, along with a series of practical actions aimed at generating profit or other desired outcomes for the investor in the future.
Derivative
A derivative, also known as a "financial derivative," is a contract that grants rights or imposes obligations on both parties to take specific actions in the future regarding an underlying asset.
Spot
Spot ("place"), refers to a transaction condition where payment must occur within the shortest possible time. The maximum payment term for a spot transaction is 2 business days from the moment the deal is made.
P2P
P2P (peer-to-peer) networks have transformed the world of cyberspace by enabling users to directly connect without the need for an intermediary. From decentralized file sharing networks to decentralized finance (DeFi) and blockchain, P2P technology is shaping the future of online transactions, information sharing, and computing.
Fiat currency
Fiat currency is a medium of exchange whose value is established by government decree. Fiat currencies are not backed by physical assets such as gold, silver, or commodities. All modern national currencies fall under the category of fiat money.
Option
An option is a type of derivative financial instrument. It is a contract granting the holder the right (but not the obligation) to purchase an underlying asset at a predetermined price or based on a formula. The contract specifies the timing or period of purchase, quantity, and payment frequency.
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