What is Collateral?
The short answer
Assets locked up to back a loan or a crypto-backed stablecoin, reducing risk for whoever is relying on it.
Many DeFi loans and some stablecoins require collateral worth more than what’s borrowed or issued, so that a price drop in the collateral doesn’t immediately break the system.
Related terms
Full glossaryFUD (Fear, Uncertainty, Doubt)
Negative information — sometimes true, sometimes exaggerated or false — spread to drive a price down.
Wallet
Software or hardware that holds your private keys and lets you use crypto — not a place coins…
Market Cap
A coin's price multiplied by how many coins exist — a rough measure of overall size.
Circulating Supply
The number of coins currently in public circulation and available to trade.
HODL
Crypto slang for holding an asset long-term rather than trading it, originating from a famous misspelling of "hold."
51% Attack
A theoretical attack where one entity gains control of the majority of a network's computing or staking power,…
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