Lesson 1 of 5
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Definitions and Key Concepts


  • API = Application Programming Interface = A connection between computer programs allowing data to be shared between them.
  • Crypto portfolio = A summary of all the cryptocoins and crypto-tokens you own.
  • Crypto portfolio software = A digital platform that enables tracking cryptocoins purchased, their total value, and current prices.
  • Crypto trader = A person who trades crypto on a short-term basis, usually measured in hours, days, or weeks.
  • Crypto investor = A persona who trades crypto on a long-term basis, usually measured in months or years.
  • HODL = This term is derived from the word HOLD that means to buy-and-hold an asset. It originated in 2013 on a bitcointalk.org forum.
  • Risk capacity = The dollar amount of investment risk you are able to take.
  • Risk management = The use of personal insight and trading tactics, such as position sizing, to maximize profit while minimizing emotional stress.
  • Risk tolerance = The level of risk an investor is willing to take.
  • Volatility = In the crypto trading markets this refers to the constant up and down movement of crypto asset prices that are trading on exchanges.

Key Concepts

  • Portfolio management is the process of deciding how much and what type of assets should be in your portfolio based on your risk tolerance. Assets include bonds, stocks, gold/silver, cryptocurrencies, crypto-NFTs, art, real-estate, and cash
  • Crypto portfolio tracker is a website, mobile app, or other platform that aggregates all your crypto trades into one place allowing you to monitor and track changes.
  • Crypto tax software allows users to track and manage crypto trades for the purpose of calculating income plus capital gains and losses. The software reconciles transactions matching buys and sells to produce required tax forms.
  • In the world of equities (stocks) a portfolio manager is someone you hire to manage your assets and make sure you’re profitable, but in the crypto world this term is often used generically to describe portfolio tracking tools.