DEX

Decentralized Exchange. A marketplace where peer to peer exchanges take place without the need for an intermediary. Transactions are fulfilled using programmed contracts and algorithms.

Digital Asset

Any digital content with a perceived value. This can be images, documents, videos, mp3s and NFTs.

Smart Contract

A computer protocol(set of programmed parameters) that is used to verify, enforce and facilitate a contract on the blockchain. Most notably used by the Ethereum ecosystem. Smart contracts are immutable once written to the blockchain.

CEX

Centralized Exchange. The opposite of a DEX where exchanges between parties are fulfilled using a central authority as a gateway. Assets are limited and only authorized parties can participate.

Arbitrage

Taking advantage of price discrepancy between different marketplaces. Selling the same asset for a higher price on a different market to make a profit.

Fungible

When one asset is interchangeable with another without the loss of value or characteristics. An example of this is the dollar. You can exchange one dollar for any other dollar and it will remain one dollar.

FUD

FEAR, UNCERTAINTY and DOUBT. Typically used in the phrase “spreading FUD” This is when bad and potentially damaging information regarding protocols, individuals, technology etc. is distributed through media platforms. Often causing poor investor sentiment or reputation which can lead to loss.

Fiat

An arbitrary order or decree. In regards to currency it is legal tender backed by a central authority. Examples are the US dollar in the form of cash or electronically represented in a bank.

ELI5

ELI5(Explain it Like I am 5) This term is used to reduce complex topics into words that a 5yr old could understand.

Custodial

A digital asset holding service that has possession of customer funds. Centralized in nature and often involved in crypto finance in order to provide customers with yield.

If you got something out of this and want to learn more about cryptocurrency, web3 & finance:

Follow me @jamiesventures for more articles like this. Thanks for reading!