Octopus Crypto Capital Dictionary of Cryptocurrency Terms

Octopus Crypto Capital
2 min readMay 12, 2021


Friends, in the process of working with clients we started noticing that many people are not familiar with the terms needed to understand specific issues related to trading and investing in cryptocurrency. This is especially true for the NFT and DeFi market. In this article, we will clarify the meanings of the most important concepts.

White paper — in the cryptocurrency industry, this term is reserved for official documentation describing technical solutions for projects.

Volatility — a term that means a measure of price volatility. In most cases, it is used by traders and investors as an indicator for risk management. That is, it is a measure of risk and as a financial analytical tool for opening and holding positions at the exchange.

Liquidity — this term refers to the ability to sell a cryptocurrency asset below, above or at market price.

Smart contract is an algorithm designed to automate the process of execution of contracts on the blockchain. The main idea of smart contracts is to rule out discrepancies in the interpretation of contract terms by the parties to the contract.

Stacking is a term referring to an alternative way of mining that involves storing coins on a wallet connected to the network. It is the mining of coins based on the PoS mechanism.

PoS (Proof-of-Stake) — Proof of Ownership. It is an alternative PoW consensus algorithm for writing a block to the blockchain, where the probability of writing a new block to the blockchain and receiving a corresponding reward is proportional to the user’s ownership stake in the system.

All Time High (ATH) — the highest price value over all time.

Decentralized Autonomous Organization (DAO) — Decentralized Autonomous Organization.

Dapp (Decentralized Application, DA) — A decentralized application. This is an open-source program that runs autonomously and stores its data in a blockchain.

DeFi (Decentralized Finance) — a set of services and applications developed using blockchain, cryptocurrencies, tokens and smart contracts. The services are integrated into a single network, offering users services that are typically provided by banks and other financial institutions.

DeAM (Decentralized Asset Management) is decentralized asset management. The system on the basis of which Octopus Crypto Capital is built.

Gas — a commission in the Ethereum network and some other coins, charged for transfers within the network. Gas has its own price, which is set by the market.

NFT (Non-Fungible Token) — a token, which assigns to its holder the right of ownership of a digital object. There is only one copy of it.

DEX (Decentralized Exchange) — an exchange platform for digital assets, working on the principle of decentralization. It has no central leadership represented by one person or a group of people. There is no central node and no server.

If you have any questions about any terms or other topics, you can ask them in our chat room — t.me/OctopusCC_Eng.

You can invest in pools of our fund and buy tokens OCC through our Telegram bot — t.me/Octopus_VC_bot.