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

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

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

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.

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.

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.

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

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

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

Filled Order:
An order that has been executed.

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.

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.

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.

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

The blockchain infrastructure on which cryptocurrencies operate.

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.

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.

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.

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.

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

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

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

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