You don't need to be a programmer or a blockchain expert to understand a crypto project.
In this section, you'll find simple explanations of the terms we use in our analyses, illustrated with everyday examples.
Our goal is to help you understand what the data really means so you can form your own judgment and make more informed decisions with greater confidence.
What does it mean?
A holder is a person or digital wallet that owns a particular cryptocurrency.
It does not matter whether they own one token or one million. As long as the wallet holds tokens, it is counted among the project's holders.
Imagine a club with 40,000 members.
Each member owns at least one membership.
Holders represent something similar: the number of wallets that hold the project's token.
A wallet is a digital tool used to access and manage cryptocurrencies.
It does not physically store the money. Instead, it protects the keys that allow you to access your assets on the blockchain.
Just as a banking app allows you to access your bank account, a crypto wallet allows you to access and manage your cryptocurrencies.
Liquidity represents how easily a cryptocurrency can be bought or sold without causing significant changes in its price.
Think of a marketplace.
If many people are buying and selling, you can usually complete a transaction quickly.
If very few people are participating, it becomes more difficult to find buyers or sellers.
TVL stands for Total Value Locked.
It represents the value of assets currently locked within an ecosystem.
These funds are generally deposited in smart contracts, staking mechanisms, or other protocols associated with the project.
Imagine a financial platform where thousands of people decide to keep their money deposited or invested for a certain period.
The more capital that remains there, the higher the TVL.
For this reason, TVL can provide useful information about participation and capital committed to an ecosystem, although TVL alone does not guarantee the success of a project.
Trading volume indicates how much value was exchanged during a specific period, usually 24 hours.
It does not measure how much the cryptocurrency is worth. It measures how actively it is being traded.
If $50,000 worth of a cryptocurrency was bought and sold today, its daily trading volume would be $50,000.
Net buying compares the value of purchases with the value of sales during a given period.
If $10,000 was bought today and $8,000 was sold, net buying would be +$2,000.
Market cap, or market capitalization, is an estimate of the total market value of a cryptocurrency's circulating supply.
It does not represent money stored inside the project.
If one million tokens are in circulation and each token is worth $1, the market capitalization would be $1 million.
Staking generally involves locking or committing cryptocurrency for a period of time and, depending on the mechanism, receiving rewards in return.
The exact purpose and structure of staking can vary from one project to another.
A simple analogy is a fixed-term financial deposit.
You agree not to use certain assets for a period of time and may receive a benefit in return.
A smart contract is a program that executes predefined rules automatically on a blockchain.
Once the required conditions are met, it can perform actions without requiring someone to manually execute each step.
Think of a vending machine.
You insert money, select a product, and the machine follows predetermined rules to deliver what you selected without requiring an employee to process the transaction.
A blockchain is a shared digital record where transactions and other data can be recorded.
Information is distributed across a network, making the history transparent and difficult to alter without detection.
Imagine an enormous accounting ledger that many participants can verify at the same time.
Everyone can check the same record, making unauthorized changes much harder to hide.
A token is a digital asset created on a blockchain.
Depending on its design, it may represent value, access to a service, participation rights, rewards, or other functions established by a project.
Think of a token at an amusement park.
The token itself may give you access to specific rides, games, or services within that particular ecosystem.
Whales are wallets that hold very large amounts of a cryptocurrency.
Because of the size of their positions, significant movements from these wallets can sometimes influence the market.
Example
If someone sells ten tokens, the market may barely notice.
But if a wallet sells one hundred million tokens, the effect could be much greater.
Dolphins are significant holders, but their positions are smaller than those of whales.
Their transactions can still be relevant, although their individual impact is generally more limited.
FFUD stands for Fear, Uncertainty, and Doubt.
The term is commonly used in cryptocurrency markets to describe information, rumors, or narratives that create concern or uncertainty among investors.
Not everything labeled as FUD is necessarily false.
That is why it is important to examine the underlying information and evidence before reaching a conclusion or making a decision.
HODL is a popular term in the cryptocurrency world referring to holding an investment for a long period of time, even when its price experiences significant rises or declines.
The term originated in 2013 from a misspelling of the word HOLD in a Bitcoin forum post. The crypto community embraced the mistake, and “HODL” eventually became a widely recognized expression associated with long-term holding.
If you buy a cryptocurrency today and decide to keep it for several years rather than selling every time its price changes, you are HODLing.
Cryptocurrency markets can experience significant volatility.
HODL describes a long-term holding approach rather than reacting to every short-term market movement.
However, holding an asset for the long term does not by itself guarantee that the investment will increase in value.
EThese terms describe potential annual returns.
Although both are expressed as percentages, APY may be higher because it incorporates the effect of reinvesting returns.
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