July 19, 2024

What are the Cryptocurrency Trading Terms you need to know?

Trading is an Important Aspect of money Making in Crypto Space especially at the time of big movements due to any Big News in the Market affecting the sentiment of Investors and big players. Though there are various terms used by Crypto traders that one should be well known of. Blockchain Believer Brings You another glossary of Cryptocurrency Trading Terms in this post.

Some Common Cryptocurrency Trading Terms

Exchange

The Trading Websites or portals where people (and bots) perform buying and selling activities. There are International Exchanges like Binance and Local Exchanges like BitBns and CoinDCX operating Right Now.

FIAT

These are the conventional Government-issued currencies, such as the US Dollar, Euro, INR etc.

Tether

A Stable and digitized form of USD. Eg: USDC, TUSD

Arbitrage

It is a way where a trader makes an undercutting to take advantage of price between two different exchanges and make a good profit percentage simple by moving and selling coins.

Whale

Someone that owns absurd amounts of crypto-currency and has the potential to move a particular market.

Margin trading

It is amplifying your gaining potential (also risking appetite) at particular exchanges where against risking the available coins you make a place much bigger trading order. Newbies should stay away from this as it requires expertise, chart reading, and good trading experience. BitMex is one of the most popular options for Marginal trading.

Going long

Type of a margin trade where the trader accumulates profits at the time of price jump.

Going short

Type of a margin trade where the trader accumulates profits at the time of price drop.

Bullish

Market Sentiment where a price rise is expected.

Bearish

Market Sentiment where a price drop is expected

Limit order/limit buy/limit sell

Buying/Selling requests set by traders for a coin when the value meets the desired value.

Sell wall/buy wall

Using a depth chart, traders can see the current volume of buy or sell orders related to a cryptocurrency.

Blockchain Believer
Credits: Reddit

Market order/market buy / market sell

It is a buying/selling mechanism which is completely governed by the buyers and sellers where the last buying and selling prices determine the current value of a crypto asset.

ATH

It stands for All-Time-High. It is the maximum price point that has been achieved ever by a crypto coin.

ATL

It stands for All-Time-Low. It is the minimum price point that has been achieved ever by a crypto coin.

Altcoin or ALTs

Stands for Alternative Coins. Everything under the Sun except Bitcoin is regarded as Altcoin. Though people have different views in regards to Ethereum (ETH)

Tokens

It refers to the digitized currencies and/or projects built on the ethereum blockchain platform. They usually raise money through ICO. Eg: GNT, BAT, NPXS, ZRX, NEXO etc.

ICO

Stands for Initial Coin Offering. It’s a Crypto version of the IPO launched in stock markets. It is a method to raise money through crowdfunding.

Shilling/Pumping

Artificial/Abnormal price Rise due to a FOMO or unnecessary Hype. If a coin is promised to cure cancer or be the second coming of Jesus, it’s being shilled.

Stable coin

Crypto Market is full of volatility and any coin showing a low volatile behavior is considered as a stable Coin. Eg. USDT, TUSD, PAX, USDC.

TA

Trend Analysis and/or Technical Analysis. Chart Reading and making Prediction is the main use cases of this activity. A person doing Analysis is also known as TA.

MACD

Stands for Moving Average Convergence Divergence. A trend indicator establishing a relationship between two moving averages of prices.

Bollinger Band

A margin around the price of crypto that helps indicate when a coin is overbought or oversold.

FOMO

Stands for Fear of Missing Out. This is a hype created for any particular coin due to any big announcement (or even rumor) which leads to abnormal price rise.

FUD

Stands for Fear, Uncertainty, and Doubt. It is a market condition where an unexpected decline is witnessed due to unnecessary selling pressure.

Pump and Dump

A Sudden Rise and Huge Crash in the Prices of a coin. It is usually artificial in nature and not an organic one.

Bagholder

Holding the position after accumulating a large amount of token/currencies in greed to sell at higher prices for profit.

Market Cap

Stands for ‘Market Capitalisation’. It is the total value any coin (or all coins combined) brings forth. Various factors like the total supply of coins and circulation supply affect the Cap. Coingecko and Coin Market Cap are the two most trusted references in this regard.

ROI

Stands for Return on Investment. It is calculated in percentage against the investment you made and what you are getting currently as a return.

 

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