Trading Glossary

H

Halving

The scheduled reduction, by half, of the block subsidy. Bitcoin's halving occurs roughly every four years and is a core element of its issuance schedule.

Hard Fork

A backward-incompatible protocol change. Nodes that do not upgrade will reject blocks produced under the new rules, potentially splitting the network into two chains.

Hardhat / Foundry / Remix

Widely used smart contract development frameworks and environments for compiling, testing, and deploying.

Hardware Security Module (HSM)

Certified hardware for generating, storing, and using cryptographic keys under strict access controls. Standard in institutional custody.

Hardware Wallet

A dedicated physical device that stores keys in a secure element and signs transactions internally, so keys never leave the device.

Hash / Digest

The output of a hash function.

Hash Time-Locked Contract (HTLC)

The contract construct enabling atomic swaps and channel routing, combining a hash-preimage condition with a time-based refund.

Hashrate

The aggregate computational power securing a proof-of-work network, expressed in hashes per second.

Health Factor

A normalized measure of a position's distance from liquidation, where a value below one triggers eligibility.

HODL

To hold through volatility rather than sell. Originating from a 2013 forum post containing a typo of "hold."

Homomorphic Encryption

Encryption permitting computation on ciphertext, producing an encrypted result that matches the result of the same operation on plaintext.

Honeypot Contract

A token or contract engineered to permit purchases but block sales.

Hot Wallet

A wallet whose keys are held on an internet-connected device. Convenient, higher risk. Appropriate for operational balances.

Hot Wallet Float

The proportion of assets held in hot wallets to service withdrawals, balanced against the risk of holding them online.

Howey Test

The US Supreme Court test for determining whether an arrangement constitutes an investment contract and therefore a security.