Backtesting
A method of evaluating a trading strategy using past market data to simulate results. In 3Commas, backtesting helps you preview how a DCA or Grid bot might have performed before launching it live.
Backorder
A delayed order due to the unavailability of the product or asset. In crypto, this can apply to illiquid tokens or failed trades due to insufficient market depth.
Backstop
A backup funding source or guarantee used to stabilize financial trades. In crypto, this can refer to liquidity providers or reserve mechanisms in DeFi protocols.
Backward Compatibility
The ability of a new software or protocol to support older versions or systems, ensuring smooth upgrades without breaking previous integrations.
Bag
Crypto slang for a large holding of a particular coin or token, often used humorously or to describe an emotional attachment.
Bagholder
An investor who holds onto a coin that has significantly dropped in value, hoping it will eventually recover.
Bail-In
A resolution method where creditors and investors absorb losses during a financial institution’s crisis, instead of using taxpayer funds.
Bail-Out
An emergency financial support, usually from a government or institution, to prevent bankruptcy or systemic collapse.
Baking
The consensus mechanism in the Tezos blockchain, equivalent to staking or mining in other networks.
Balanced Investment Strategy
A portfolio strategy that blends growth and income by mixing high-risk and low-risk assets, often used by cautious investors.
Balloon Payment
A large final payment at the end of a loan period. Though rare in crypto, it's a concept used in traditional finance.
Bandwidth
The amount of data that can be transmitted in a network over time. Higher bandwidth enables faster crypto transactions and better node performance.
Bank Run
A rush by depositors to withdraw funds due to fears of insolvency. In crypto, centralized services have experienced digital versions of bank runs.
Banking as a Service (BaaS)
An API-based model where banks offer financial infrastructure to third parties. Similar frameworks appear in DeFi for building modular financial tools.
Bankruptcy
A legal process when an individual or entity cannot repay debts. In crypto, exchanges or lending protocols may file for bankruptcy during liquidity crises.
Bar Chart
A visual tool used in technical analysis showing open, high, low, and close prices for a given time interval.
Based Rollup
A type of Ethereum Layer 2 that emphasizes decentralization and censorship resistance while scaling transactions.
Basis Point
Equal to 0.01%, this unit is commonly used to express changes in interest rates or yields in financial instruments.
Basket
A group of different cryptocurrencies bundled together for investment or trading. 3Commas users may create a portfolio to track such baskets.
Batch Auction
A trading model where orders are collected over a period and then executed all at once at a single clearing price.
Bayes’ Theorem
A formula in statistics used to revise probabilities based on new information. Sometimes used in risk modeling or trading algorithms.
Beacon Chain
Ethereum’s proof-of-stake coordination chain introduced in ETH 2.0. It manages validators and underpins Ethereum’s shift from proof-of-work.
Bear
A trader or investor who believes asset prices will fall. "Bearish" sentiment influences shorting strategies and market outlooks.
Bear Market
A market condition where prices decline significantly over time. 3Commas supports shorting tools that allow users to profit even in bear markets.
Bear Trap
A temporary dip in price that tricks traders into opening short positions before the market reverses upward.
Bearwhale
A crypto whale who places massive sell orders to push prices down intentionally, often influencing smaller traders.
Behavioral Finance
A study of how psychological biases affect financial decisions. Recognizing FOMO, FUD, or herd mentality is key in crypto trading.
Benchmark
A standard used to evaluate investment performance. Traders may benchmark their bot results against Bitcoin or other indices.
Benchmark Index
A specific index used to measure performance trends, such as S&P 500 or a crypto market cap index.
Benefit-Cost Ratio
A calculation used in evaluating the value of a project or investment by comparing benefits received to costs incurred.
BEP-2
A token standard on Binance Chain for simple asset issuance and transfers. Not used in 3Commas but relevant for Binance asset tracking.
BEP-20
A BNB Chain token standard, similar to Ethereum’s ERC-20. Most BNB-based tokens traded on 3Commas follow BEP-20.
BEP-721
A standard on BNB Chain for non-fungible tokens (NFTs), similar to Ethereum's ERC-721.
BEP-95
A protocol on BNB Chain designed to accelerate token burning to reduce supply and support price appreciation.
Beta (Software Release)
A pre-launch version of a tool or software available for early access. 3Commas occasionally releases features in beta for testing.
Bid Price
The maximum price a buyer is willing to pay for an asset. It's visible in exchange order books and critical for setting limit orders.
Bid-Ask Spread
The gap between the highest bid and lowest ask. Narrow spreads indicate liquidity; wide spreads can impact trade efficiency.
Big Tech
A collective term for dominant technology firms like Google, Apple, Amazon, and Facebook. Often discussed in the context of Web2 vs. Web3.
Binance Chain Explorer
A blockchain explorer for Binance Chain that allows users to track transactions and token info.
Binance Labs
The investment and innovation arm of Binance that incubates early-stage blockchain projects.
Binance Launchpad
A service that helps new crypto projects raise funds and gain exposure via token sales on Binance.
Binary Code
A basic computing language using 0s and 1s, forming the foundation of digital systems and cryptographic algorithms.
Bit
The smallest unit of data in computing. In Bitcoin, "bit" also refers to sub-units (1 million bits = 1 BTC).
Bitcoin (BTC)
The first decentralized cryptocurrency and the largest by market cap. Supported on all major exchanges linked to 3Commas.
Bitcoin ATM
A physical terminal where users can buy or sell Bitcoin using cash or cards.
Bitcoin Compounding
A yield strategy where users reinvest earned Bitcoin rewards to grow holdings over time.
Bitcoin Dominance
A market metric that shows how much of the total crypto market cap is made up of Bitcoin.
Bitcoin ETF
A publicly traded investment vehicle that tracks Bitcoin’s price, allowing traditional investors to gain exposure.
Bitcoin Halving
An event where Bitcoin block rewards are cut in half, occurring every 210,000 blocks, which reduces the supply rate.
Bitcoin Improvement Proposal (BIP)
A technical document proposing changes or upgrades to the Bitcoin protocol.
Bitcoin Misery Index (BMI)
An indicator designed to gauge sentiment and potential entry points based on Bitcoin volatility and price.
Bitcoin NFTs
NFTs hosted on or secured by the Bitcoin network, often via secondary protocols like Ordinals.
Bitcoin Pizza
A famous early transaction where 10,000 BTC were exchanged for two pizzas, marking the first real-world use of Bitcoin.
Bitcoin Virtual Machine (BitVM)
A conceptual upgrade enabling complex smart contract logic on Bitcoin’s base layer without requiring major protocol changes.
Bitcoiner
A passionate supporter or long-term holder of Bitcoin, often aligned with decentralization principles.
Bitcointalk
A longstanding online forum used by crypto enthusiasts, developers, and early adopters for discussion and project announcements.
BitLicense
A regulatory license issued in New York for companies handling digital currency operations.
BitPay
A Bitcoin payment processor enabling merchants to accept crypto for goods and services.
Bits
A subunit of Bitcoin. 1,000,000 bits equal 1 BTC.
Bitstream
The set of configuration data uploaded to a programmable device like an FPGA.
Black Hat Hacker
A malicious hacker exploiting systems for personal gain, as opposed to ethical or "white hat" hackers.
Black Swan Event
An unpredictable event with extreme consequences, such as the collapse of a major exchange or flash crash.
Black-Scholes Model
A mathematical formula used to price options contracts, particularly relevant in traditional finance.
Blake-256
A cryptographic hash function used by projects like Decred, known for its speed and security.
Block
A package of transactions that are permanently recorded on a blockchain. Each new block strengthens the chain’s integrity.
Block Explorer
A web tool used to view transaction data, block history, and addresses on a blockchain.
Block Header
The metadata of a block, used for verification in proof-of-work mining processes.
Block Height
The number of blocks that precede a particular block in the blockchain. Used to track network progression.
Block Lattice
A structure used by Nano where each account has its own blockchain, enabling fast and feeless transactions.
Block Producer
An entity selected to validate and add new blocks in a proof-of-stake network.
Block Reward
The incentive given to miners or validators for confirming transactions and securing the blockchain.
Block Size
The maximum amount of data that can be included in a single block. Bigger blocks can support more transactions but may lead to centralization.
Block Time
The average time it takes for a new block to be added to a blockchain. For Bitcoin, this is about 10 minutes.
Block Trade
A large order, often executed privately to avoid slippage on public markets.
Blockchain
A decentralized and immutable ledger that records transactions in a series of blocks. It underpins all cryptocurrencies and many decentralized applications.
Blockchain 1.0
The first generation of blockchain applications, focused primarily on digital currency transactions.
Blockchain 2.0
The evolution of blockchain into smart contracts and programmable money, made popular by Ethereum.
Blockchain 3.0
The emerging phase of blockchain technology aimed at scalability, cross-chain compatibility, and real-world enterprise use.
Blockchain Explorer
A searchable interface that allows users to view activity on a blockchain network.
Blockchain Mutual Credit
A peer-to-peer lending and borrowing system that uses blockchain to settle mutual obligations and reduce reliance on fiat.
Blockchain Trilemma
The concept that a blockchain must balance decentralization, scalability, and security — often improving one at the expense of another.
Bonding Curve
A pricing model that increases the cost of buying a token as supply increases. Common in token launches and DAOs.
Bots
In 3Commas, bots are automated trading tools such as DCA, Grid, and Signal bots designed to execute trades based on customizable strategies.
Bounty
A reward offered by projects for tasks like bug reporting, translations, or community promotion. Often paid in tokens.
Brave Browser
A privacy-focused web browser that blocks ads and trackers, and rewards users with BAT tokens for viewing opt-in ads.
BRC-20
An experimental token standard on Bitcoin using the Ordinals protocol to issue and manage fungible assets.
Brian Armstrong
Co-founder and CEO of Coinbase, a leading crypto exchange based in the U.S.
Bridge
A tool that enables tokens or data to move between two different blockchain networks. Bridges can be custodial or decentralized.
Browser Extension
A software plug-in for browsers that adds features, such as crypto wallets or security tools.
Brute Force Attack
A method where hackers try all possible password combinations to gain unauthorized access.
Bubble
A market phase where prices rise far beyond intrinsic value, often followed by a sharp correction.
Bug Bounty
A program that rewards developers or ethical hackers for finding and reporting security vulnerabilities.
Bull
An investor who expects asset prices to rise, often engaging in buying or long-position strategies.
Bull Market
A sustained period of rising prices across the market, often accompanied by optimism and increased trading volume.
Bull Run
A sharp and rapid upward trend in asset prices over a short or extended time frame.
Bull Trap
A false signal that a market or asset is recovering, luring buyers before a price decline resumes.
Burn
The act of permanently removing crypto tokens from circulation, often to reduce supply and boost value.
Buy the Dip
An investing strategy where traders purchase an asset after a price drop, expecting a rebound.
Buy Wall
A large buy order that creates strong support for a token on an exchange’s order book.
Byzantine Fault Tolerance (BFT)
A system’s ability to continue operating even when some nodes fail or act maliciously — crucial for blockchain consensus.
Byzantine Generals’ Problem
A classic problem in distributed systems where consensus must be reached despite potentially unreliable participants.
Byzantium Fork
A major upgrade to Ethereum that introduced optimizations, smart contract improvements, and better network scalability.