Crypto Trading Glossary

Key terms and concepts for Solana copy trading, DeFi, and crypto trading. Tap any term to learn more.

A

AES-256 Encryption

A military-grade encryption standard used to protect sensitive data. SOL Wallet Shadow uses AES-256-GCM to encrypt your private key in your browser.

AMM (Automated Market Maker)

A protocol that uses mathematical formulas and liquidity pools to facilitate token swaps without traditional order books or intermediaries.

C

Copy Trading

A trading strategy where you automatically replicate the trades of another trader's wallet in real time.

D

DEX (Decentralized Exchange)

A cryptocurrency exchange that operates without a central authority, allowing peer-to-peer token swaps directly on the blockchain.

G

Gas Fees (Transaction Fees)

Small fees paid to the Solana network to process and confirm your transactions on the blockchain.

J

Jupiter Aggregator

The leading DEX aggregator on Solana that finds the best swap routes across multiple decentralized exchanges for optimal pricing.

L

Liquidity

The amount of capital available in a trading pool that determines how easily a token can be bought or sold without significantly affecting its price.

N

Non-Custodial

A type of application or wallet where only the user has access to their private keys and funds — no third party can access, freeze, or control your assets.

O

On-Chain Analysis

The practice of analyzing blockchain transaction data to gain insights about trader behavior, token movements, and market trends.

P

Priority Fee

An optional additional fee paid to Solana validators to prioritize your transaction for faster confirmation during network congestion.

Private Key

A secret cryptographic key that gives you full control over your cryptocurrency wallet, used to sign transactions and prove ownership of your funds.

R

Risk Management

The practice of using tools and strategies to limit potential losses and protect trading capital, including stop losses, position sizing, and portfolio diversification.

RPC Node

A server that provides an API for reading blockchain data and submitting transactions to the Solana network.

Rug Pull

A crypto scam where token creators abandon a project and drain the liquidity pool, leaving holders with worthless tokens.

S

Shadow Trading

Another term for copy trading, specifically referring to following and mirroring another wallet's trades without their knowledge, using only public on-chain data.

Slippage

The difference between the expected price of a trade and the actual executed price, caused by market movement or low liquidity.

Smart Money

Wallets or traders who consistently make profitable trades, indicating they have superior market knowledge, analysis, or insider information.

Solscan

A blockchain explorer for Solana that provides detailed transaction data, wallet analytics, and token information used for on-chain analysis.

Stop Loss

An automated order that sells your position when the price drops below a specified percentage from your entry price, limiting your downside risk.

T

Take Profit

An automated order that sells your position when the price rises to a specified profit target, guaranteeing you capture gains at your desired level.

Trade Mirroring

The automated process of replicating another wallet's trading actions in your own wallet, executing the same buys and sells.

Trailing Stop

A dynamic stop loss that moves upward with the price but never moves down, locking in profits as the price rises while protecting against reversals.

W

Wallet Security

Best practices and technologies for protecting cryptocurrency wallets from theft, unauthorized access, and loss of funds.

Whale Wallet

A cryptocurrency wallet controlled by a trader with significant capital or consistently profitable trading activity.