Derivatives
By CoinGecko | Updated on Mar 03, 2020
Derivatives are financial instruments whose value is derived from an underlying asset (e.g. Crude Oil, Gold, Bitcoin etc). Compared to spot markets where the underlying asset changes ownership, in derivatives markets, traders trade contracts rather than the actual assets.
Related Terms
Hard cap
The maximum amount that an ICO will be raising.
Encryption
In cryptography, encryption is a process of encoding information the original form of information called plaintext via an algorithm called cipher. The encrypted message is now called ciphertext. Only authorized parties can decipher the ciphertext and convert back it to the original plaintext.
Full Node
Full Nodes are computers that verify the set of rules that are built into the protocols of a given cryptocurrency.
Dutch Auction
A Dutch Auction, also know as an "inverted" auction, starts off with high asking price that decays over time until a pre-determined floor price.
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