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Them?","featured_image_id":11359,"status":"published","chapter_id":7,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-an-airdrop","featured_image":{"id":11359,"uuid":"7b43c968-1275-4d3e-acb1-1707a43a4014","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","path":"crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","original_path":"crypto/storage/original/what-is-an-airdrop-featured-image.jpg","name":"what-is-an-airdrop-featured-image.jpg","original_name":"what-is-an-airdrop-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"66.05KB"},"youtube_video":null},{"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto 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Principles","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":6,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-arbitrage-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","featured_image_id":11394,"status":"published","chapter_id":7,"language":"en","order":7,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-fud","featured_image":{"id":11394,"uuid":"defd32c5-d3e1-4e66-9f58-e2ee316bad3a","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-fud-featured-image.jpg","path":"crypto/storage/optimized/what-is-fud-featured-image.jpg","original_path":"crypto/storage/original/what-is-fud-featured-image.jpg","name":"what-is-fud-featured-image.jpg","original_name":"what-is-fud-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"65.30KB"},"youtube_video":null},{"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":8,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/investing-in-cryptocurrency","featured_image":null,"youtube_video":null},{"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","featured_image_id":6532,"status":"published","chapter_id":7,"language":"en","order":9,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-a-rug-pull-in-crypto","featured_image":{"id":6532,"uuid":"be8043fb-078c-4487-9af9-d2d9c2b574ea","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","original_path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.jpg","name":"what-is-a-rug-pull-in-crypto.o.jpg","original_name":"what-is-a-rug-pull-in-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"92.28KB"},"youtube_video":null},{"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","featured_image_id":6555,"status":"published","chapter_id":7,"language":"en","order":10,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-rug-pulls-in-crypto","featured_image":{"id":6555,"uuid":"80cbed9d-3b4b-45d9-9a85-d2d8108c0f32","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","path":"crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","original_path":"crypto/storage/media/how-to-avoid-rug-pulls.jpg","name":"how-to-avoid-rug-pulls.o.jpg","original_name":"how-to-avoid-rug-pulls.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"111.99KB"},"youtube_video":null},{"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto 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Tokens?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-track-new-crypto-coins","featured_image":null,"youtube_video":null},{"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-research-crypto","featured_image":null,"youtube_video":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-mining.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-mining-101.jpg","rating":80,"sections":[]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":301,"original_id":null,"author_id":41,"translator_id":null,"title":"What is EMA (Exponential Moving Average)?","slug":"what-is-ema-exponential-moving-average","section":"E","keyword":"EMA (Exponential Moving Average)","status":"published","definition":"an indicator used to show the recent changes in price while maintaining the observations of older charts.","content":"<p><strong>Exponential Moving Average (EMA)</strong> is a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-are-technical-indicators/">technical indicator</strong></a> that analyzes recent data on the price changes of an asset. It is frequently used by traders who observe changes in the traditional or <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">cryptocurrency markets and act accordingly. The EMA reacts to asset changes faster than other <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-moving-average-ma/">moving averages (MAs)</strong></a>. An indicator is used to draw the EMA line.</p>\n<p>If the candles in the graph are above the EMA lines, the index shows an uptrend, which can signal a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-bull-market/">bullish market</strong></strong></a>. If the candle appears below a line, it indicates that the market price has fallen. EMA graphs can be used to predict price movements based on the ongoing price patterns. It&rsquo;s considered to be an efficient tool in financial markets.</p>\n<p>Since EMA is seen as reliable for market direction predictions, it is used alongside other technical indicators to better determine market changes and trends. It is often used by traders taking part in fast-moving markets and can help detect trading biases.</p>\n<p>According to market experts, there are two EMA settings preferred by different types of traders:</p>\n<ul>\n<li><strong>8-day and 20-day EMAs</strong>: preferred by <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-day-trading/">day traders</strong></a>;</li>\n<li>50-day and 200-day EMAs: preferred by long-term traders.</li>\n</ul>\n<p>The formula to calculate the exponential moving average is:</p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"EMA (Exponential Moving Average): The EMA formula\" src=https://www.bitdegree.org/"https://assets.bitdegree.org/crypto/storage/media/ema-exponential-moving-average.o.jpg/" alt=\"EMA (Exponential Moving Average): The EMA formula\" width=\"880\" height=\"300\" /></p>\n<p><strong>EMA = Exponential Moving Average</strong>; Smoothing = 2; the smoothing factor can be increased if traders want the most recent price data to have more influence on the indicator.</p>\n<p>The calculation can be complicated as EMAs provide the most recent inputs of the asset price. While the small moving average (SMA) is also a reliable indicator, the data provided by applying EMA reacts more to sudden price fluctuations and market reversals.</p>\n<p>Alongside EMA, other popular technical indicators used by traders to analyze the asset data in traditional and crypto markets are the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-relative-strength-index-rsi/">relative strength index (RSI)</strong></a>, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-moving-average-convergence-divergence-macd/">moving average convergence divergence (MACD)</strong></a>, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-on-balance-volume-obv/">on-balance volume indicator (OBV)</strong></strong></a>, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-aroon-indicator/">Aroon indicator</strong></a>, and the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-stochastic-oscillator/">stochastic oscillator</strong></a>.</p>\n<p>The range of technical indicators helps explore different mechanisms and aspects of a financial aspect, such as <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-volume/">volume or price weightage. It is generally recommended to use a number of varying indicators before making an investment in any asset on both traditional and crypto markets.</p>","level":"medium","meta_title":"What is EMA (Exponential Moving Average)? Definition & Meaning | Crypto Wiki","meta_description":"EMA (Exponential Moving Average) meaning: EMA (Exponential Moving Average) - an indicator used to show the recent changes in price while maintaining the observations of older charts.","meta_keywords":null,"language":"en","created_at":"2022-03-09T17:08:51.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-ema-exponential-moving-average"},"prevSection":{"id":299,"original_id":null,"author_id":41,"translator_id":null,"title":"What is E-Signature?","slug":"what-is-e-signature","section":"E","keyword":"E-Signature","status":"published","definition":"electronic signature; an electronic tool used as a substitute for a physical signature when signing various documents.","content":"<p>Electronic signatures, or e-signatures, are digital tools used as an alternative to physical signatures. This technology was developed to allow more digital contracts and documents to be legally authorized easier. E-signatures serve as proof of identification of the signatory, who is the sole owner of the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-private-key-secret-key/">private key</strong></strong></a>.</p>\n<p>There are three main types of e-signatures:</p>\n<ul>\n<li>Simple electronic signatures (SES)</li>\n<li>Advanced electronic signatures (AES)</li>\n<li>Qualified electronic signatures (QES)</li>\n</ul>\n<p>More recent e-signature services have also started implementing <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptography/">cryptographic technologies</strong></a> as additional security measures. While the e-signature market is constantly expanding, some of the biggest names in the industry are <a href=https://www.bitdegree.org/"https://en.wikipedia.org/wiki/Adobe_Sign/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong><strong>Adobe Sign</strong></strong></a> and <a href=https://www.bitdegree.org/"https://en.everybodywiki.com/HelloSign/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>HelloSign</strong></a>.</p>\n<p>E-signatures are recognized as legitimate proof of identification and a legal substitute for a physical signature. The <a href=https://www.bitdegree.org/"https://uncitral.un.org/en/texts/ecommerce/modellaw/electronic_commerce/" target=\"_blank\" rel=\"noopener\"><strong>UNCITRAL Model Law <strong>on Electronic Commerce</strong></strong></a> was published by the United Nations in 1996 to establish the use of e-signatures. The document helped accelerate the implementation of e-signatures around the world.</p>\n<p><strong>Biometric signatures</strong> have been developed as one form of e-signatures. They require the use of physical qualities, such as fingerprints or face identification. Phones with fingerprint locks employ biometric technology. However, <strong>biometric signatures are criticized for their dubious security</strong>, as there can be no replacement if they are compromised.</p>\n<p>Other technologies that provide similar proof of identification as e-signatures have been developed. One of these is a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-digital-signature/">digital signature</strong></a>. Although the terms e-signature and digital signature may be <strong>used interchangeably</strong> by some, the latter uses cryptographic technology to reinforce the security and validity of the signature.</p>\n<p>Digital signatures are commonly used in <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">crypto spaces. Users are able to verify their identity and ownership of the private key <strong>without revealing any information</strong> about it. Electronic signatures may also be able to perform this function in the future as they increasingly come equipped with cryptographic tools.</p>","level":"easy","meta_title":"What is E-Signature? Definition & Meaning | Crypto Wiki","meta_description":"E-Signature meaning: E-Signature - electronic signature; an electronic tool used as a substitute for a physical signature when signing various documents.","meta_keywords":null,"language":"en","created_at":"2022-03-09T17:02:01.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-e-signature"},"currentChapter":"E","currentSection":"what-does-eli5-mean","chapterTitle":"E","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-does-eli5-mean","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter E

What does ELI5 mean?

ELI5 MEANING:
ELI5 - is an acronym for “explain to me like I’m five”. It's a request to simplify a concept.
Easy
1 minute

Let's find out ELI5 meaning, definition in crypto, what does ELI5 mean, and all other detailed facts.

ELI5 is an acronym for “explain to me like I’m five”, a phrase often used on various online platforms, particularly among the crypto community. The phrase is often used in discussions about complex terminology and concepts.

Since the crypto ecosystem is constantly evolving and adapting new technologies, there can be many misunderstandings or concepts that are difficult to understand without the right context. The use of the phrase ELI5 helps slow down the discussion and clarity project details in a digestible way.

It is alleged that the phrase originated from a quote by Albert Einstein, stating, “If you can’t explain it to a six-year-old, then you don’t understand it yourself.” The quote means that a person who has a good understanding of a concept or any other thing should be able to explain it in the simplest way possible so that even a child can understand it.

The acronym is also related to a quote from the American TV series The Office where the phrase “Why don’t you explain it to me like I’m five” was frequently used. Since the show was airing around the inception of blockchain technology and cryptocurrencies, it is likely that the phrase entered the online lexicon from there.