Jargons

Accredited Investor An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They should meet at least one requirement regarding their income, net worth, asset size, governance status, or professional experience in order to have privileged access. The best example of accredited investors is banks, insurance companies, and employee benefit plans.

Airdrop In cryptocurrency, an airdrop is a marketing stunt that involves sending coins or tokens to wallet addresses to promote awareness of a new virtual currency. It involves delivering bitcoins or tokens to the wallets of current cryptocurrency traders, either for free or in exchange for a small promotional service. "The airdrop is meant to spread awareness and increase ownership of the currency startup"

Arbitrage Arbitrage is a technique of gaining profit from differences in crypto in different markets. This opportunity with arbitrage happens in crypto because there is no established common way to price the cryptos. Since there are hundreds of platforms for crypto day trading, the arbitrage opportunities are boundless, and the crypto market can give you more frequent arbitrage opportunities in contrast to traditional intraday trading. "The trader intended to buy foreign equities at a discount and immediately sell them in the United States using arbitrage strategies."

Bear Trap A bear trap is a technical pattern that signals a reversal from a downward trend to an upward trend. It mostly occurs when the price action of a stock, index, or another financial instrument is incorrect. It loses value in a reversal when participants must cover the shorts because it is often triggered by a decline that induces market participants to open short sales. “Some technical indicators show a sigma of recovery, however, we must be vigilant as it could just be a bear trap.”

Bear Market A bear market is when a market is experiencing price declines continuously for a long period of time by more than 20%, and it is often accompanied by negative investor sentiment and declining economic prospects. It can be cyclical or long-term, meaning it is recurrent and continuously. The former can happen for several weeks or a couple of months and the latter can last for several years or even decades. "With the recent election outcome and the global crisis, supposedly we are now heading to a bear market."

Bitcoin Bitcoin is designed to act as money and a form of payment outside the control of anyone, person, group, or entity, thus removing the need for third-party involvement in financial transactions. Launched in 2009, It acts as a cryptocurrency, a virtual currency for transactions. Unlike fiat currency, Bitcoin is created, distributed, traded, and stored using a decentralized ledger system known as a blockchain. “Bitcoin has been merely used as a digital store of value since its invention.”

Blockchain A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. "The industry will continue to be affected by artificial intelligence and blockchain."

Breakout A breakout is when the price moves above a resistance level or moves below a support level. It can be subjective since not all traders will recognize or use the same support and resistance levels. It also provides possible trading opportunities. A breakout to the upside signals traders to possibly get long or cover short positions. A breakout to the downside signals traders to possibly get short or sell long positions. "Breakouts with relatively high volume show conviction and interest, and therefore the price is more likely to continue moving in the breakout direction."

Bubbles A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value or a contraction, which is sometimes referred to as a "crash" or a "bubble burst." “The United States housing bubble was a real estate bubble affecting over half of the U.S. states.”

Coinbase Coinbase is an online platform on which many applications are being built using our API. It is also where people can store digital currency and it can be used for buying, selling, transferring. The main goal of coinbase is to make buying and selling currency easy. "I started with Coinbase and I'm still with Coinbase. Coinbase for me is just easy, especially with the application."