Abenomics
A set of economic policies introduced in Japan under Prime Minister Shinzo Abe. It combines aggressive monetary easing, fiscal stimulus, and structural reforms to revitalize the Japanese economy.
Abnormal Return
The difference between an asset’s actual return and its expected performance, often used to evaluate the effectiveness of a strategy or event-driven trade.
Absolute Advantage
A concept in economics where a party can produce a good or service more efficiently than competitors. In trading, this could refer to bots that outperform the market due to better algorithms or lower fees.
Absolute Return
The total return on an investment without comparing it to a benchmark. Useful for evaluating how well a single trading bot or portfolio performs on its own.
Abstract
In blockchain, an abstract idea refers to a conceptual framework—like trustless design or tokenomics—that exists before practical implementation.
Abstraction Scalability
Refers to how well a blockchain or system can expand by modularizing components—useful for services supporting smart contracts or dApps.
Accepting Risk (Risk Acceptance)
A risk management strategy where a trader or business decides to tolerate known risks instead of mitigating them. For example, letting a trade run without a Stop Loss.
Account
A user’s profile on an exchange or service like 3Commas, which includes wallet balances, trading history, and linked APIs.
Account Abstraction
An evolving concept in blockchain where smart contracts replace externally owned accounts (EOAs), enabling flexible gas payments or multi-sig transactions without complex wallet setups.
Account Balance
The available funds in your exchange or trading account. In 3Commas, this balance is displayed after connecting an API.
Account Number
A unique identifier for a financial account. Not commonly used in crypto, where public wallet addresses serve a similar role.
Accountability
The obligation to take responsibility for decisions. In trading, this includes managing risk and adhering to a defined strategy.
Accounting Conservatism
A principle where potential losses are reported immediately, while gains are only recorded when realized. Important in volatile markets.
Accounting Method
The system used to record financial activity—such as accrual or cash-based accounting. Can affect how income and expenses are recognized in crypto bookkeeping.
Accounting Token
A digital token used to represent an IOU, debt, or balance in a system—often internal and not tradable on the open market.
Accredited Investors
Individuals or entities permitted to access restricted investment opportunities due to income, assets, or qualifications. Applies to some crypto token offerings.
Accretion (Discount)
The gradual increase in the value of a discounted asset. For example, a bond bought below face value grows closer to par as maturity nears.
Accrual Accounting
A method of recognizing revenues and expenses when they are incurred rather than when cash is exchanged—more reflective of actual financial activity.
Accrue
The process by which income or expenses accumulate over time, even if not yet paid or received.
Accrued Income
Earnings that have been generated but not yet received. May be relevant in staking or yield farming where payouts are delayed.
Accrued Interest
The interest earned or owed on a financial product that hasn’t yet been paid. Seen in bonds and lending protocols.
Accrued Liabilities
Obligations a business has incurred but not yet paid—often tracked off-chain in crypto businesses.
Accrued Revenue
Revenue that has been earned but not invoiced or collected yet. Common in SaaS and crypto service models with delayed billing cycles.
Accumulation Phase
The initial stage in a market cycle when prices are low and large investors begin buying, often unnoticed by the public.
Accumulation/Distribution Indicator
A technical indicator that evaluates volume to assess buying/selling pressure. Can help inform bot strategies on 3Commas.
Acid Test Ratio
A financial measure that tests a company’s short-term liquidity by comparing quick assets to liabilities—less common in crypto but relevant to firms managing stablecoin reserves.
Acquisition
The act of purchasing another company, often to expand market reach or product offerings.
Acquisition Cost
Total cost of acquiring an asset, including purchase price and related fees.
Acquisition Premium
The amount paid above market value when buying a company—can reflect anticipated synergies or strategic value.
Active Management
A hands-on investment approach where decisions are made frequently, as opposed to passively tracking an index. Some users prefer active bot tuning on 3Commas.
Activist Investor
An investor who uses equity stakes to influence company decisions or strategy. Rare in crypto, but seen in DAO governance.
Adam Back
A British cryptographer known for inventing Hashcash, a precursor to Bitcoin's Proof-of-Work. Mentioned in the Bitcoin whitepaper.
Adaptive State Sharding
A scalability technique where network components dynamically reorganize for optimal load balancing—used by blockchains like MultiversX (Elrond).
Address
A unique alphanumeric string used to receive and send cryptocurrency. Each blockchain has its own format.
Administrative Expenses
Overhead costs not directly tied to production or services. For crypto businesses, this might include support, legal, or infrastructure.
Adoption Curve
A model that describes how new technologies spread. Crypto is still early in adoption compared to traditional finance.
Advance/Decline Line (A/D Line)
A technical indicator that tracks the number of advancing vs. declining assets, helping traders gauge market breadth.
Aeternity Blockchain
A blockchain service that incorporates oracles, smart contracts, and scalable infrastructure.
Affiliate
A connected business or person who promotes a product in exchange for commissions. 3Commas has its own affiliate and referral programs.
Affiliate Marketing
A performance-based marketing strategy where promoters earn based on user signups or sales—commonly used in crypto communities.
Agency Problem
A conflict where an agent (e.g., manager or developer) may not act in the best interest of the principal (e.g., investor or user). DAOs aim to reduce this.
Agency Theory
Explores how to align interests between agents and principals. Smart contracts help enforce agency agreements without needing trust.
Agent
A representative authorized to act on someone else’s behalf—can apply to brokers, lawyers, or DAO delegates.
Aggregate Demand
The total demand for goods and services in an economy. While macroeconomic, it can influence investor sentiment in crypto markets.
Aggressive Investment Strategy
A high-risk, high-reward trading approach. Examples include leveraged trades or speculative altcoin picks.
AI Agents
Software entities capable of decision-making, often used for autonomous trading strategies or AI-driven risk management.
AI Coins
Tokens that fund or support AI-based applications. These often combine blockchain transparency with machine intelligence use cases.
Air Gap
A security measure that keeps systems physically isolated to prevent online access or attacks. Useful for cold wallets.
Airdrop
A promotional distribution of free tokens to wallet holders. Used for community building, awareness, or token decentralization.
Airnode
A Web3 oracle node architecture designed to allow traditional API providers to serve blockchain data with minimal friction.
Alan Greenspan
Former U.S. Fed Chair whose policies influenced traditional finance. Often referenced in macro discussions affecting crypto.
Algo-Trading (Algorithmic Trading)
Automated trading using predefined rules. Core to how bots on 3Commas operate—adjusting based on indicators or market triggers.
Algorithm
A step-by-step set of instructions for solving a problem. Trading bots rely on algorithms to execute decisions.
Algorithmic Market Operations (AMOs)
On-chain mechanisms that maintain token price stability, common in algorithmic stablecoins.
Algorithmic Stablecoin
A stablecoin maintained via supply adjustment rather than collateral. Examples include UST (pre-collapse) and AMPL.
All Risks Coverage
A comprehensive insurance term—outside crypto—but loosely analogous to full-spectrum security features or backup solutions.
All-Time High (ATH)
The highest price an asset has ever reached. Traders often track this as a benchmark for potential resistance.
All-Time Low (ATL)
The lowest price recorded for an asset. Often used to identify bottoming opportunities or extreme bearish phases.
Allocated Gold
Gold held in a specific investor’s name. In crypto, the idea maps to tokenized gold or asset-backed tokens.
Allocation
The distribution of resources—capital, tokens, or assets—across a strategy or portfolio.
Allocation Efficiency
A measure of how well resources are deployed to achieve optimal results. Useful in both asset management and tokenomics.
Allotment
Assignment of shares or tokens during sales or launches. Common in ICOs, IDOs, or airdrop campaigns.
Alpha
The excess return of an investment relative to the market. 3Commas users may refer to alpha bots that consistently outperform.
Alpha Version
A pre-release version of software, often for internal testing or early access feedback.
Alphanumeric
A string combining letters and numbers. Used in wallet addresses, API keys, and 2FA backups.
Altcoin
Any cryptocurrency that isn’t Bitcoin. Includes Ethereum, Solana, and thousands of others.
Altcoin Trader
A trader who focuses on altcoins—often searching for early-stage opportunities or outperforming BTC.
Alternative Investments
Non-traditional asset classes including real estate, collectibles, and crypto. Often used for portfolio diversification.
Amalgamation
The merging of two or more entities into one. Common in acquisitions and DAO mergers.
Amazon S3
A cloud storage service by Amazon Web Services. Used by crypto services to host files, data, or even NFTs.
Amended Return
A revised version of a previously filed tax return—important when correcting crypto gains or losses.
AMLD5
The EU’s 5th Anti-Money Laundering Directive. Introduced stricter KYC requirements for crypto services.
Anarcho-capitalism
A political philosophy that supports eliminating centralized authority in favor of voluntary market interactions—resonates with the ethos of Bitcoin and decentralization.
Anchoring and Adjustment
A behavioral finance concept where traders rely too heavily on initial data (anchor) and make insufficient adjustments.
aNFT (Autonomous NFT)
NFTs capable of self-executing functions, such as transferring themselves based on external triggers—useful for games or programmable art.
Angel Investor
An individual who provides capital for startups in exchange for equity or tokens—often seen in early-stage crypto projects.
Animal Spirits
Emotional and psychological drivers behind economic decisions. Fear and greed are common examples in crypto markets.
Annual Percentage Rate (APR)
The yearly cost of borrowing or earning, not including compounding. Often seen in lending or staking services.
Annual Percentage Yield (APY)
The annualized return on an investment that includes compound interest. APY > APR when interest is compounded.
Annual Report
A document detailing a company’s financial and operational performance. Public crypto projects often release these as community reports.
Annualized Rate of Return
A way to normalize performance by expressing it as if it occurred over one year, even if measured over a shorter period.
Anonymous
A status where a user or wallet has no identifiable link to a real-world identity. Prominent in privacy coins.
Anti-Dump Policy
Measures that prevent or discourage rapid token sell-offs—often via vesting, lockups, or smart contract enforcement.
Anti-Fragile
Describes systems that benefit from volatility or stress. Bitcoin’s resilience in crises is often cited as anti-fragile behavior.
Anti-Malware
Software that protects devices from malicious threats—important when managing crypto wallets or browser extensions.
Anti-Money Laundering (AML)
Regulatory policies aimed at detecting and preventing illegal financial flows. Enforced by most compliant exchanges and services.
Antitrust Law
Laws designed to prevent monopolies and encourage competition. Relevant in Web3 discussions about centralized power in DeFi.
Antivirus
Software that defends against malware, phishing, and cyberattacks. Essential for crypto security.
Antpool
A large mining pool primarily focused on Bitcoin. Aggregates computing power to solve blocks faster.
Apeing
Buying a crypto token impulsively without research—typically early after a launch. Often associated with hype cycles.
API
Short for Application Programming Interface. APIs allow 3Commas to connect to exchanges and automate bot trading.
Application Layer
The top layer in a network model where user-facing apps operate—like wallets, dashboards, and trading interfaces.
AR Token (Arweave)
The native currency of the Arweave network, used for permanent decentralized data storage.
Arbitrage
Profiting from price differences of the same asset across exchanges. Not directly offered by 3Commas bots, but sometimes performed manually.
Arbitrage Pricing Theory (APT)
A framework for asset pricing based on multiple risk factors, often used in academic finance.
Arbitrageur
A trader who specializes in finding and exploiting arbitrage opportunities.
Arm Virtual Machine (Qtum)
A decentralized virtual machine that allows for smart contract execution on the Qtum blockchain.
Aroon Indicator
A technical indicator that helps traders spot the beginning of a trend or detect trend reversals.
Ascending Channel
A price pattern showing higher highs and higher lows—often used to identify bullish trends.
Ashdraked
The total loss of capital, usually from shorting Bitcoin and being liquidated. A cautionary tale in leverage trading.
ASIC
An Application-Specific Integrated Circuit, optimized for one task—typically mining a specific algorithm like SHA-256 for Bitcoin.
ASIC-Resistant
A design choice in blockchain protocols to prevent ASIC domination, keeping mining more decentralized.
Ask Price
The lowest price a seller is willing to accept. One side of the bid-ask spread in order books.
Asset
Any resource that holds value. In crypto, this includes coins, tokens, NFTs, and wrapped assets.
Asset Class
A group of investments with similar characteristics—crypto is now recognized as a distinct asset class by many investors.
Asset Financing
Using existing assets as collateral to raise capital. Common in both traditional finance and tokenized real-world assets.
Asset Swap
The exchange of one asset for another. In DeFi, this often happens via liquidity pools or cross-chain bridges.
Asset-Backed Tokens
Digital tokens pegged to real-world items like gold, real estate, or fiat. Trust relies on custodians or on-chain proofs.
Asset-Based Approach
A valuation method based on the fair market value of a company's underlying assets.
Asset-Based Lending
A loan secured by physical or financial assets rather than credit history. Tokenized assets may enable this in DeFi.
Assets Under Management (AUM)
The total value of assets that a fund or entity manages. Often used to measure the scale of a crypto hedge fund or protocol.
Astroturfing
Faking grassroots support for a project. Typically done via fake reviews, social campaigns, or coordinated shilling.
Asynchronous
Events or systems that operate independently or without waiting for a central process. Important in decentralized systems.
Atomic Swap
A method for swapping crypto between blockchains without using a centralized exchange. Trustless and often secured by smart contracts.
AtomicDEX
A decentralized exchange and wallet tool built by Komodo that supports atomic swaps.
Attestation Ledger
A system for proving transactions or events occurred, often used in regulatory or compliance contexts.
Auction
A sale where buyers bid on assets. Popular methods for NFT drops and initial token sales.
Audit
A review of smart contracts or code by security experts. Essential before deploying contracts that hold funds.
Auditor
A person or firm that performs audits. In crypto, they verify the security and correctness of blockchain projects.
Augmented Reality (AR)
A digital overlay on the real world. AR features are being explored in NFT gaming and metaverse projects.
Authentication
A process for verifying identity. In crypto, this often includes 2FA, biometric scans, or wallet signatures.
Authority Masternode (VeChain)
A validator on the VeChain network that approves transactions and maintains blockchain consensus.
Automated Market Maker (AMM)
A liquidity mechanism where trades are executed against smart contract pools instead of traditional order books.
Autonomous Economic Agent (AEA)
An AI-driven software that can act independently in economic systems. These agents could execute trades or negotiate contracts without human input.
Average Annual Growth Rate (AAGR)
The mean growth rate of an investment or asset over several years.
Average Annual Return (AAR)
The average return generated over multiple years, not accounting for compounding.
Average Daily Trading Volume (ADTV)
The average amount of an asset traded daily. High volume indicates liquidity and investor interest.
Average Directional Index (ADX)
A tool used to measure trend strength. Often paired with other indicators in bot configurations.
Average Return
The mean profit or loss over a specific period. Can help assess overall bot performance on 3Commas.
Average Selling Price (ASP)
The typical price an asset or product is sold for. In trading, this reflects what buyers are willing to pay over time.