Crypto winter — an extended bearish period of continually falling crypto assets’ prices (%80+ decline) that can last up to 10-12 months. As an example, in 2018, BTC skyrocketed to about $20,000 before a two-year drop to under $5,000. Sometimes it causes the crypto industry to experience an extensive downturn.
Candlestick shows the price activity of an asset during a definite timeframe using four price indexes: open, close, high, and low.
CEX is a shortened version of a “centralized exchange”. It refers to a type of crypto exchange where the trading of digital assets is facilitated through a centralized platform or intermediary. While using CEXs, people deposit their funds into the exchange's wallets. The exchange matches buy and sell orders, allowing users to trade cryptocurrencies with each other.
Collateral is a digital asset, typically a cryptocurrency or token, that a user locks into a smart contract as security when participating in DeFi activities or borrowing against it. It serves as a guarantee for lenders, ensuring that in case of default, they can seize the collateral to cover losses or repay the loan.
CeFi (Centralized Finance) refers to traditional financial services and platforms that operate within a centralized framework, often under the control of a single organization or entity. CeFi differs from DeFi as it relies on intermediaries, central authorities, and traditional banking systems to facilitate financial transactions and services.
Compound is a DeFi protocol built on the Ethereum blockchain that enables users to earn interest on their crypto holdings or borrow assets by supplying collateral to the platform. Users can lend their cryptocurrencies to the Compound protocol and earn interest, while borrowers can lock up collateral and borrow assets in a decentralized and algorithmically determined interest rate environment.
Circulating supply is the total quantity of a specific cryptocurrency that is available and actively in circulation within the market, excluding coins or tokens that are locked, reserved, or not tradable, and is a key metric for understanding a cryptocurrency's market capitalization and liquidity.