Crypto Glossary

Average Directional Index, trend strength from 0 to 100 (not its direction). Above 25 means a trending market, below 20 means a range. It comes with +DI/−DI showing where the trend points.

Annual Percentage Rate, yearly rate without compounding (rewards are not reinvested).

Annual Percentage Yield, yearly return including compound interest. How much a deposit grows in a year if rewards are reinvested.

Average True Range, the average price range over a period, a measure of volatility in dollars. Higher ATR means the asset swings more. Often used to size a stop-loss.

Average Monthly Return, the strategy's average monthly return over a backtest or live period. Past results don't guarantee future ones.

Backtest, testing a strategy on historical data: how it would have traded in the past. It helps assess the logic, but the real market always differs.

BTC Dominance, bitcoin's share of the total crypto market cap, in percent. Rising dominance means money flowing into BTC (often on fear); falling dominance means capital rotating into altcoins (risk appetite rising).

A percentage the contract takes on every purchase of the token. A high tax (>10%) instantly eats part of your position.

Confidence, how unanimous the council of 6 AI analysts is in its verdict, from 0 to 100%. High confidence means analysts agree; low confidence means opinions diverge and the signal is weaker.

Correlation, a measure of how two coins move together: +1 in sync, 0 independent, −1 in opposite directions. High correlation means weak diversification.

Dollar-Cost Averaging, buying an asset in equal parts at regular intervals to smooth out price impact. Reduces the risk of "buying the top".

Disagreement, the share of analysts whose opinion differs from the final verdict, from 0 to 100%. The higher the disagreement, the more contested the signal, worth examining the doubts.

Drawdown, the maximum drop of a portfolio from peak to trough. Shows how much you could lose at the worst moment.

Deribit's implied volatility index — the "crypto VIX". Shows how much price turbulence the options market expects over the next 30 days. The higher the DVOL, the wilder the expected swings.

Fear & Greed Index, a market sentiment gauge from 0 (extreme fear) to 100 (extreme greed). Low values often mean a buying opportunity; high values call for caution.

Funding-rate gap between exchanges for the same asset. Spread = (highest funding − lowest), normalized to an 8-hour base. A wide spread invites cash-and-carry arbitrage: long where you get paid, short where you pay. Open Interest shows where the leverage is concentrated.

Funding Rate, a periodic payment between longs and shorts in perpetual futures. Positive means longs pay shorts, negative means the reverse. It keeps the futures price close to spot.

A trap token you can BUY but cannot SELL, because the contract blocks selling. The most dangerous flag: money goes in and gets stuck forever. Never buy a token with this flag.

Leverage, borrowed funds that increase position size. 10× leverage multiplies both profit and loss by 10. High leverage means high liquidation risk.

Liquidation, the forced closing of a position by the exchange when losses eat through the margin. Happens on a sharp price move against a leveraged position.

How much money sits in the trading pair's pool. The thinner the pool, the easier for the deployer to drain it (rug) and the worse your slippage on exit. It's a risk signal, not a guarantee: low liquidity ≠ automatically a scam, high ≠ automatically safe.

Logarithmic Market Scoring Rule, an automated market-maker formula for prediction markets. It sets outcome prices based on participants' bets.

Ratio of longs to shorts. account-ratio = the retail crowd, top-trader-ratio = smart money. A crowd heavily long is a contrarian signal (everyone is already in → few buyers left, squeeze risk). ⚡ divergence = crowd and top traders on opposite sides.

Market Cap, the total value of all coins in circulation (price × supply). Shows the size of an asset.

Max Drawdown, the largest peak-to-trough fall over a period. A key risk metric for a strategy, how much you'd survive in the worst case.

The option strike at which option holders lose the most (and sellers the least) at expiry. Price often "gravitates" toward this level into expiration. Computed from open interest across all calls/puts. P/C ratio = puts/calls (>1 = put-heavy, defensive mood).

Minimum received is the guaranteed floor — you will never get less than this. It's the estimate minus your slippage tolerance. If the market moves further than that, the swap reverts instead of filling at a bad price.

How far market cap deviates from realized cap (coins priced at their last move), normalized. Low readings (<0.1) mark historical bottom zones; high readings (>7) mark cycle tops/euphoria.

Narrative, the dominant market theme that drives coins higher: AI tokens, RWA, memecoins, L2s, and so on. Money rotates between narratives.

Notional, the full value of a position including leverage, not just the margin you put up.

Net Unrealized Profit/Loss — the share of total unrealized profit in market cap. <0 = capitulation (the market is underwater), >0.75 = euphoria/greed. The classic Glassnode cycle phases.

A read on where BTC sits in its market cycle from on-chain data — undervalued, overvalued or neutral. Built from a blend of metrics (MVRV-Z, NUPL, Puell) — the same toolkit Glassnode/Checkonchain use. Not financial advice, but a "where are we in the cycle" gauge.

Open Interest, the total volume of all open futures positions. Rising OI means new money entering the market; falling OI means positions being closed.

Performance Fee, the percentage a strategy creator takes only from the profit you earn. No profit means no fee.

Perpetual basis — how far the perp price deviates from spot: (mark − index) / index. Positive = perp trades above spot (longs dominate), negative = below (shorts dominate).

Price impact is how much your own trade moves the price in the pool. It depends on trade size and liquidity — the thinner the pool, the more a large trade pushes the price against you.

Profit Factor, the ratio of total profit to total loss. Above 1 means the strategy is profitable; 2+ is very good.

Miner revenue (in USD) relative to its one-year average. Low readings (<0.5) mark historical bottom zones (miners under stress); high readings (>3) mark overheating.

The average price at which every coin on the network last actually moved — the market's "cost basis". Price below realized price = most holders are underwater.

Risk Veto, the risk analyst's right to block an aggressive council verdict if the trade is deemed too dangerous. A veto lowers the final verdict to something more cautious (e.g. BUY → HOLD).

Relative Strength Index, measures whether an asset is overbought or oversold, from 0 to 100. Above 70 means a pullback is possible; below 30 means a bounce is possible.

A percentage withheld on every sale. A very high sell tax (50%+) is a common scam marker: you're allowed in, but exiting is expensive.

Sharpe Ratio, risk-adjusted return. Above 1 is good, above 2 is excellent. Shows whether the risk is justified by the profit.

How a copied trade's size is calculated. Proportional mirrors the whale's conviction — you spend the same fraction of your balance the whale spent of theirs. Fixed copies a flat amount up to your cap. Proportional is more honest: a big whale buy makes a big copy, a small one a small copy.

Slippage, the difference between the expected and the actual execution price of a trade, caused by market movement or low liquidity.

Aggressive settings for entering new tokens first: a boosted priority fee (5×) and wider slippage tolerance so your transaction lands ahead of others at listing. Faster, but pricier and riskier.

Spent Output Profit Ratio — whether coins are moving at a profit (>1) or at a loss (<1). SOPR < 1 — holders are selling at a loss, often a support/capitulation zone.

Stochastic Oscillator, where the close sits within the price range over a period, from 0 to 100. Above 80 is overbought, below 20 is oversold. %K is the fast line, %D its smoothing.

Composite 0–100 token grade from five factors with fixed weights: momentum 30% (price impulse), trend 25%, liquidity 20% (depth/volume), sentiment 15% (news mood), attention 10% (market attention). A factor with no data is excluded and the weights are renormalised over the rest — “coverage” shows how much of the factor set was actually scored. A descriptive data summary, not a forecast and not a buy signal.

Total Value Locked, how much money is deposited in a protocol. Higher TVL means more trust and liquidity.

Volume Anomaly, a sharp spike in trading volume relative to the average, often foreshadowing a big price move or the arrival of "smart money".

Whale, a large holder whose trades move the market. Tracking whales helps you spot big moves in advance.

Win Rate, the share of profitable trades out of the total. On its own it doesn't guarantee profit, average win vs. average loss matters too.

A prediction-market share is a contract that pays exactly $1 if the outcome happens and $0 if it doesn't. The price in cents equals the market's implied probability. Buy cheap and you earn the gap up to $1.

The share price in cents = the market's probability for that outcome. 64¢ means the market puts the chance of "Yes" at 64%. A winning share always settles at $1.