Glossary

In this article you will learn common words and phrases used in the cryptocurrency as well as terms specific to the Backpack Exchange.

Address:
A unique identifier for a cryptocurrency wallet that receives and sends digital assets.

Altcoin:
Any cryptocurrency other than Bitcoin, with various attributes and underlying algorithms.

Ask:
An order to sell a security at a specified price.

Base Currency:
The first currency in a trading pair, indicating how much of the quote currency is needed to buy one unit.

Bid:
An order to buy a security at a specified price.

Bid/Ask Spread:
The difference between the highest bid price and the lowest ask price in the market for an asset.

Blockchain:
A distributed ledger that records all transactions across a network of computers.

Cold Wallet/Cold Storage:
A secure offline storage method for cryptocurrencies.

Crypto Asset (Cryptocurrency):
A digital asset that uses cryptography for secure financial transactions.

Decentralized Application (dApp):
An application that runs on a peer-to-peer network of computers rather than a single centralized server.

Deposit:
Transferring crypto assets to your Backpack Exchange account from an external source.

Exchange (Crypto Exchange):
A marketplace where cryptocurrencies are traded.

Fiat:
Government-issued currency not backed by a commodity like gold.

Filled Order:
An order that has been executed.

Gas:
The fee required to conduct a transaction or execute a contract on networks like Solana.

Hot Wallet:
An internet-connected wallet used for storing cryptocurrencies.

Liquidity:
The measure of how easily an asset can be bought or sold in a market without affecting its price.

Limit Order:
An order to trade a security at a specified price or better.

Maker:
A market participant who places a limit order that adds liquidity to the order book.

Market Order:
An order to immediately buy or sell at the best available current price.

Mining:
The process of verifying transactions and adding them to the blockchain ledger.

Network:
The blockchain infrastructure on which cryptocurrencies operate.

Node:
A computer on a blockchain network that upholds the network's rules and shares in its operation.

Order Book:
A list of all open buy and sell orders for a particular asset on an exchange.

Private Key:
A secure digital code known only to the owner of a cryptocurrency wallet, used to sign transactions.

Public Key:
A cryptographic code that allows a user to receive cryptocurrencies into their account.

Smart Contract:
A self-executing contract with the terms of the agreement written into code.

Slippage:
The difference between the expected price of a trade and the price at which the trade is executed.

Solana (SOL):
A high-performance blockchain supporting decentralized applications and cryptocurrencies.

Stablecoin:
A cryptocurrency designed to minimize price volatility by pegging its value to another asset, like fiat currency or gold.

Stop Loss Order:
An order placed to sell a security when it reaches a certain price.

Take Profit Order:
An order to sell a security once it achieves a specific profit target.

Taker:
A trader who removes liquidity from the order book by immediately matching with an existing order.

Transaction Fee:
A fee incurred when making a transaction on a blockchain network.

Two-Factor Authentication (2FA):
An additional layer of security used to protect accounts.

USDC (USD Coin):
A stablecoin tied to the US dollar, designed to combine the stability of the dollar with the benefits of digital currency.

Volatility:
A measure of how much the price of an asset varies over time.

Wallet:
A digital system that stores cryptocurrencies and allows users to manage their digital assets.

Whale:
An individual or entity that holds a significant quantity of cryptocurrency, with the power to impact market prices.

Do you have questions or require further information?