Glossary
Hot Wallet
An internet-connected wallet — convenient for daily use, more exposed to attacks.
A hot wallet is any wallet connected to the internet — a browser extension like MetaMask, a mobile app, or an exchange account. It is fast and convenient.
The trade-off is exposure. Malware, malicious approvals, and phishing sites all target hot wallets specifically. Use one for small balances and airdrop farming, and keep savings in cold storage.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.