cRYPTO Glossary

An auction is a public sale where goods, services, or assets are sold to the highest bidder through a competitive bidding process.

Explanation of Specific Terms:

• Public sale: An event open to the public where participants can bid on items offered for sale.
• Bidding process: Participants place successive bids, with each bid typically higher than the previous one, until no higher bids are offered.
• Highest bidder: The participant who offers the highest bid before the auctioneer concludes the bidding process.
• Asset: The item or items being sold, which can range from physical goods like art or real estate to intangible items like intellectual property rights.

Key Points for Beginners:

• Types of auctions: Common types include live auctions conducted in person, online auctions hosted on websites or platforms, and sealed-bid auctions where bids are submitted privately.
• Price determination: Auctions use competitive bidding to establish the market value of assets, often resulting in fair market prices based on supply and demand dynamics.
• Seller's perspective: Auctions can be advantageous for sellers seeking to maximize returns by attracting competitive bids and leveraging buyers' willingness to pay.