A short, honest glossary of the crypto terms that trip up almost every newcomer. In this piece we walk through the key points a professional investor would consider before drawing conclusions.
HODL
A misspelling of 'hold' that stuck. It means buying and holding through volatility rather than trading around every move. Widely used, occasionally to excuse bad decisions.
Alpha and beta
Beta is the return you get from being exposed to the market. Alpha is the return you get from doing something skilful on top of that. Most retail investors capture beta and imagine they are capturing alpha.
Cold storage and hot wallets
Cold storage means offline — a hardware wallet or paper backup that never touches the internet. Hot wallets are online and convenient but exposed to more risk. Long-term savings belong in cold storage; day-to-day activity in a hot wallet.
TVL and market cap
TVL — total value locked — measures how much value sits in a protocol. Market cap measures the value of a token in circulation. Neither is a fundamental valuation. Both are useful comparative metrics when read alongside other data.
Editorial disclaimer
This article is provided by CryptocyNews for informational purposes only. It is not personalised financial advice and should not be treated as such. Digital assets are volatile; consult a qualified adviser before making decisions and never risk more than you can afford to lose.