The cryptocurrency industry is at the crack of dawn, so as its glossary. Being tightly correlated with the traditional finance and high-tech, its vocabulary is novel and unique. The language we use speaking of crypto is at its early stage of development, thus requires to be explained and polished. The BTCMEX Blog is dedicated to simplify complex notions, define and explain concepts related to crypto investment, blockchain, and digital asset trading in order to foster the industry and improve crypto accessibility.

Ethereum

Ethereum: An open-source network with its own Internet browser, a coding language built on a decentralized blockchain which serves as a platform for building applications (DApp). Ethereum has its native cryptocurrency – Ether (ETH).

Insurance Fund

Insurance Fund: A balance on the exchange, filled by the Remaining Margin of a position liquidated at a price better than the Bankruptcy Price, and used to cover the loss from a position closed at a price worse than the Bankruptcy Price.

Smart Contract

Smart Contracts: A computer protocol on a blockchain that regulates the terms of an agreement between two parties. The contract is controlled by the code and is only triggered by the circumstance of execution, which eliminates the third party from participation.