FAQ

An OCO order is a special type of order that allows traders to place two separate orders at the same time. The method works by combining a limit order with a limit stop order. In this case, when one of the orders placed is executed, the second one is canceled at the same time.

RSI (Relative Strength Index) is a technical indicator that is needed to evaluate data on overbought or oversold assets in the cryptocurrency market. To calculate RSI, compare the average price increase and the average price decrease for a specified period.

Mimblewimble (MW) is a scalable method for anonymizing transfers in the Bitcoin network, which became an independent blockchain. It is used in Grin and BEAM cryptocurrencies. MW does not have public addresses. To send a transaction, users exchange outputs directly, which makes it impossible for outsiders to analyze transfers from one address to another. A block in Mimblewimble does not look like a combination of several but like one big transaction. This means that blocks are checked and validated without providing details of each transaction.

Ethereum Casper is an update to the Ethereum network, also known as Ethereum 2.0. The update involves a transition from Proof-of-Work to Proof-of-Stake. One of the main advantages of Casper is staking, which will make Ethereum an environmentally friendly blockchain. The use of the PoS algorithm relieves miners of the need to spend resources on protecting the blockchain, which reduces the resource consumption of the network. Casper will make the blockchain resistant to intruders and wrong bets. An update will take years to fully launch but it will greatly improve the scalability and decentralization of the Ethereum blockchain.

Dark pool in cryptocurrencies is a closed group of trading alternative channels that unite reputable investors and traders. In dark pools, users place orders to make trades. Details of operations are not disclosed to third parties and become known only if an interested counterparty is found. Dark pools are especially used when trading anonymous cryptocurrencies.

An information eclipse attack in cryptocurrencies is a simple type of attack in which an attacker interferes with the operation of peer-to-peer network nodes to corrupt existing data. This allows you to disrupt the network to prepare it for more serious attacks in the future. During an eclipse attack, the scammer tries to ensure that all connections of the victim are made through hosts controlled by the attacker. To do this, it creates a large number of fake IP addresses that the victim will connect to when the software is restarted. Once this happens, the attacker will be able to transmit false data.

End-to-end encryption is a type of data transmission in which only the users participating in the communication have access to the information transmitted in messages. The use of end-to-end encryption does not allow access to cryptographic keys by third parties. The entire path from the sender to the recipient is encrypted, so no one can read it.

Cross-chain compatibility in cryptocurrencies is the ability to freely exchange data between different blockchains. Cross-chain compatibility allows interaction between applications and smart contracts without the need to send tokens from one system to another. Interoperability between blockchains is very important to ensure the free flow of data between networks and the widespread adoption of blockchain technologies.

Range Bound is the trading of cryptocurrencies with reference to price ranges. A trading strategy involves identifying assets in price channels. A trader finds major support and resistance levels with technical analysis by buying assets at a lower support level (bottom of a channel) and selling them near resistance (top of a channel).

ERC-4337 is an Ethereum standard that provides an account abstraction in the protocol without changing the consensus. The standard was launched on Ethereum in March 2023, allowing transactions with tokens and the creation of contracts using a single account. This makes it possible to develop a new generation of cryptocurrency wallets with a user-friendly interface, which contributes to the spread of cryptocurrencies. Abstraction technology allows you to combine the account of an external owner with a smart contract account.

ROI is an acronym for return on investment. The indicator is calculated as the ratio between the net profit of the investor and the cost of investment. ROI can be used to compare the multiple investment assets in a portfolio. ROI is calculated using the formula: (present value - initial cost of investment) / initial cost of investment. A positive index value means that crypto investments have made a profit, while a negative one indicates losses.

HODL is a well-known term in cryptocurrencies that means “to hold”. It was formed as a result of a typo in the word “hold” on the BitcoinTalk forum in 2013. The concept involves the acquisition and holding of assets in the hope of a long-term perspective. Such investors usually do not sell cryptocurrencies immediately after the start of a decrease in their price but hold assets until the last moment, waiting for their price to rise again.

Crypto pumps are an artificial increase in demand for cryptocurrency, which is carried out by buying assets by a group of individuals. Pump groups, which usually create private chats to discuss their plans, choose an asset, and start an organized bulk purchase of it. After that, active advertising begins with the aim of selling the asset at inflated prices to crypto “hamsters”. A massive sale causes a rapid fall in the rate, which provokes a crypto dump.

Hamsters in cryptocurrencies are newbies in the crypto market who do not understand how it works. Novice traders are ready to spend money and buy assets without understanding market conditions. As a result, acquired assets can cause serious losses. Hamsters often fall prey to crypto pumps.

A crypto dump is a sharp decline in the price of a cryptocurrency that occurs as a result of a one-time agreed sale of assets by a group of persons who previously artificially increased the price by buying it in bulk. Newbies in the field of cryptocurrencies, who are called “hamsters”, suffer from crypto dumps. Along with a crypto dump, a term such as “hamster haircut” is used, which implies that experienced traders make money on the mistakes of beginners who do not understand how the cryptocurrency market works.

SAFU (Secure Asset Fund for Users) is a popular abbreviation in cryptocurrencies, meaning that the funds are safe. This term became known after the publication of the director of the exchange Binance CZ on Twitter. Binance has set up a SAFU fund to keep users safe, with 10% of trading fees deducted to it. Funds are stored in a hardware wallet and used, if necessary, to reimburse users for losses.

The soft cap is the minimum fundraising limit when launching an ICO. If the project fails to raise the minimum required amount of funds, the organizers must decide to suspend it and return the funds to investors. In practice, some companies decide to work with the capital that they managed to get, even if it is less than the required minimum.

CryptoNight is a cryptographic hash function that implies the absolute anonymity of cryptocurrency holders. CryptoNight is used in the CryptoNote application algorithm to reduce hardware performance differences and minimize network load. The anonymity of cryptocurrencies built on the CryptoNight algorithm is achieved through the use of ring signature technology.

AMA (ask me anything) is a promotion of a crypto project in the form of an interview, during which users can ask the organizers any questions. Organizers usually conduct such interviews at their own venues with the participation of an interested audience. For example, AMA sessions are often arranged on Telegram channels. Organizers can interact with the audience both personally and through the presenter. The duration of the interview is usually about an hour. The AMA interview format allows you to significantly increase audience engagement.

CryptoNote in cryptocurrencies is the application protocol upon which all anonymous cryptocurrencies are built. To achieve anonymity, the protocol uses the technology of ring signatures. Using technology makes it possible to hide the identity of the sender, which cannot be revealed from the group. Transactions are sent to one-time addresses, which are generated from random transaction keys and the user's real address. From the outside, multiple transactions sent to the same address will look like they are sent to different addresses that have nothing in common.

Ring signatures are a cryptographic signature technology that allows anyone who has a key to sign. One of the main features of the ring signature is the fact that it is impossible to determine which user in the group has signed. Ring signature technology is widely used in anonymous cryptocurrencies.

All types of blockchains can be divided into controlled and public. Public projects can be used and managed by anyone. Also, any user can become a validator. The most famous examples of public blockchains are Ethereum, Bitcoin, and BNB Chain. Participation in controlled blockchains requires an invitation or administrator permission. They are usually used by private organizations.

BNB Chain is a fast and secure decentralized digital asset platform with a high-performance matcher that runs on distributed consensus. BNB Chain is a new stage in the development of Binance Smart Chain (BSC), which is led by developers and users. BNB Chain provided faster transaction processing and increased scalability to multiple blockchains, allowing projects that were previously considered incompatible to work on the same network.

Blockchain rollups are protocols that are designed to increase throughput and reduce fees. There are two types of rollups: optimistic and ZK (zero knowledge) rollups. Optimistic rollups are protocols that increase blockchain performance by grouping multiple transactions into a group. The group is processed offline, and compressed data is sent to the network. Optimistic protocols can increase the scalability of the blockchain by 10-100 times. In zero-knowledge rollups, groups of transactions are controlled by operators who prove the correctness of the changes by checking for fraud. It takes much less time and money to verify evidence than to control transaction data.