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Glosario de Trading

El glosario de trading se refiere a un tipo de estrategia de trading en la que los gestores utilizan un conjunto predefinido de términos, definiciones o conceptos para tomar decisiones informadas. A menudo implica jerga específica de la industria, métricas financieras y herramientas analíticas para navegar por los mercados de manera efectiva.

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Hard Cap

The total supply of tokens or coins that can be created in a particular network is hard-coded into the network’s protocol. When the hard cap is reached, the supply will not be able to be increased anymore, it is not a policy that can be changed at will but it is a rule of the protocol and will need some changes to the protocol code.

The most commonly referenced is the 21 million cap on Bitcoin. The finite and predictable supply is intended as a design feature the hard cap shields the asset from inflationary supply growth typical of government currencies.

Hard caps are distinguished from inflationary designs, which have an unlimited number of supplies or supply additions at a scheduled time. Investors regard hard caps as hard cap aspects of tokenomics analysis. A fixed hard cap with increased demand is an obvious supply-demand bull case if the demand thesis is true.

Example: An investor interested in comparing two blockchain projects observes that one of them has a hard cap of 100 million tokens and the other has no supply cap. The investor believes it will be easier to predict the value of the capped project because there is a fixed amount of scarcity, whereas the uncapped project’s value assumes demand growth will always exceed the amount of new scarcity over the project’s life.

Hard Fork

A protocol upgrade on a blockchain that is not backward-compatible and therefore can permanently fork the chain. The old software can’t process blocks coded in the new software and vice versa. Generally, the coin at the split will be matched with equivalent balances on both chains.

Hard forks are used to upgrade a protocol, settle community disagreements, undo the impact of an exploit or alter basic economics, such as the supply cap, block size, and consensus mechanism. It is determined by which variant wins over the most miners, validators, developers and economic activity that the fork becomes viable or otherwise.

In most hard forks, the resulting chain becomes the dominant one, while the minority chain remains a smaller network of lower value and continues to function indefinitely.

Example: A cryptocurrency community discusses plans to increase the block size to boost throughput. Most members upgrade to the new software; some members stick to the old rules. Chains are broken at a certain block. They both pass on the transaction history till the split, and after the split, both will have the same number of the original coins and the new ones, the relative value of each chain will be determined by the market forces.

Hard Landing

A dramatic economic downturn after a central bank’s tighter monetary policy that leads to a sharp increase in rates but which is effective to quell inflation, but also plunges the economy into a serious recession. The analogy of the aircraft: A hard landing places the aircraft down safely but in a jarring manner, compared to a soft landing that places the aircraft down safely in a smooth manner.

Central banks try to achieve soft landings, that is, they raise rates sufficiently to dampen inflation without causing the economy to recede. In reality, monetary policy transmission is not certain, not immediate and is not precise. If it’s over-tightened, it will land hard and if it’s under-inflated, it will set the inflation and need to be done up later, with more effort.

Along with the inflation reduction that was the policy goal, hard landings also include increasing joblessness, shrinking credit, declining corporate profits and bear markets in equities. The cause is known and, in principle, correctable, as is the rate policy.

Example: When inflation is high, a central bank increases rates very quickly. A year on, inflation is down considerably, while credit is tightened, business investment has been slashed, unemployment has surged and GDP is in contraction for three quarters. Economists term the situation a hard landing as the inflation target is being achieved at the expense of a recession, a scenario that the same central bank is now under pressure to reverse with rate cuts.

Hardware Wallet

An electronic hardware device designed to store cryptocurrency private keys offline on a secure chip, which signs transactions internally without ever exposing the keys to an attached computer or to the internet. Users start transactions from a connected device, verify them on the hardware wallet’s physical screen, and the signed transaction is broadcast the private key never leaves the device.

Hardware wallets protect you from remote hacking, malware and keyloggers. They do not protect against physical theft, loss or device failure, which is why best practice is to have a secure backup of the recovery seed phrase in a completely separate physical location.

Popular manufacturers are Ledger and Trezor. Hardware wallets are the gold standard for individual self-custody of large cryptocurrency holdings.

Example: Investor transfers large cryptocurrency holdings from a centralized exchange to a hardware wallet. The private keys now reside only in the secure chip of the physical device. Even if the investor’s computer is completely compromised by malware, the attacker cannot access funds without also physically having and unlocking the hardware wallet, shrinking the entire attack surface to physical security instead of digital.

Harmonic price patterns

Harmonic price patterns are geometric patterns based on Fibonacci ratios like ABCD, butterfly, crab, and shark patterns.

Hash Function

A mathematical algorithm that takes an input of any length and produces as output a fixed-length hash unique to that particular input. If you change anything, no matter how small, the hash is totally different. The process is one-way. Given a hash, it is computationally infeasible to reconstruct the original input.

Cryptographic hash functions play many important roles in blockchain. Each block contains the hash of the previous block, creating a linked-chain structure that changes any historical block and every subsequent hash, making tampering immediately obvious. Proof-of-work mining involves finding an input (the nonce) that produces a hash below a target value, which is deliberately computationally intensive.

Bitcoin uses SHA-256, Ethereum uses Keccak-256. Both generate 256-bit outputs regardless of the input size.

Example: A block of thousands of transactions is processed with SHA-256, producing a unique 256-bit hash. If someone tried to change one transaction the hash would be completely different and not the same as what the next block recorded. This would then propagate through to every other block . This would make it immediately obvious to any node checking if the chain is valid or not that it had been tampered with.

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