All terms
All termsAddressBlockBlock timeBlockchainConfirmationGasGweiHashMempoolNodePrivate keyPublic keySeed phraseTransactionWalletAll time high (ATH)Bear marketBull marketCandlestickCapitulationChart patternsDollar cost averaging (DCA)Funding rateLeverageLimit orderLiquidationLiquidityMarket capMarket orderOrder bookPosition sizingRisk managementSlippageSpreadSupport and resistanceTrendVolatilityVolumeWhaleAMMBridgeCEXDAODeFiDepegDEXFlash loanGovernance tokenImpermanent lossLiquidity poolLP tokenOraclePerpetual (perp)RestakingRWAStablecoinTVLWrapped tokenYield farmingAirdropAlphaApe inBagholderDegenDiamond handsFloor priceFOMOFUDGMHODLMaxiMeme coinMoonNFTNGMINormiePaper handsPFPRektShillSnapshotWAGMIAddress poisoningCold storageCustodyDue diligence (DYOR)Dusting attackExit scamFront runningHardware walletHoneypotHot walletMEVMultisigPhishingPump and dumpRug pullSandwich attackSelf custodySIM swapToken approvalTwo factor authenticationWallet drainerWash tradingAccount abstractionAppchainBlock explorerCirculating and total supplyConsensusData availabilityEVMFaucetFinalityForkFully diluted valuation (FDV)Gas warHalvingLayer 1Layer 2Layer 3MainnetMiningName serviceOptimistic rollupProof of stakeProof of workRollupShardingSidechainSlashingSmart contractStakingTestnetToken standardTokenomicsValidatorZero knowledge proofZK rollupArweave and the permawebComposabilityCross chain messagingdAppDecentralized identity (DID)DePINGameFi and play to earnIndexerInteroperabilityIPFSOnchain and offchainSession keysSmart accountSocialFiSoulbound tokenSybil resistanceToken gatingWeb2 vs Web3Web3
Definition
Borrowing to increase position size, which multiplies both gains and losses.
Ten times leverage means a 10 percent move against you wipes out your entire deposit. The exchange closes the position automatically, which is called liquidation, and you keep nothing.
Leverage is the single fastest way for beginners to lose everything. Most people who use it lose money, and the ones who do not treat it as a professional tool with strict rules.
In practice
On 20x leverage, a 5 percent move liquidates you. Crypto moves 5 percent regularly, including while you sleep.
Where to go next
LiquidationForced closure of a leveraged position when your collateral runs out.Perpetual (perp)A futures contract with no expiry, kept in line by a funding rate.Risk managementThe rules that keep one bad decision from ending your participation.VolatilityHow much and how fast a price moves, in both directions.
More trading terms
All time high (ATH)Bear marketBull marketCandlestickCapitulationChart patternsDollar cost averaging (DCA)Funding rateLimit orderLiquidationLiquidityMarket cap
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