Glossary
KYC
Know Your Customer — the identity verification that regulated exchanges require.
KYC is the identity verification process regulated exchanges require: a government ID, sometimes a selfie, sometimes proof of address. It exists to satisfy anti-money-laundering rules.
Decentralised exchanges have no KYC because there is no company to regulate. That is a feature for privacy and a problem for anyone who needs a regulated on-ramp.
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.