Crypto&Trading Glossary: 45+ most popular terms in 2019-2020

Are you just starting your way in cryptotrading? Here we have gathered the most important terms you should know.

Contents

Every trader needs information about any company, whose shares he speculates. Newbies lose their deposit not only because of psychological instability and lack of experience in trading. Another important point here is that any trader needs to understand the market he works in and be able to speak the language of those who already operate in it. Cryptocurrencies and blockchain are a completely new sphere and quite a complex one. First of all one should get familiarized with all the terms and definitions, and there are quite a few. In order to be able to trade BTC and altcoins successfully one should have a decent command of the topic. When choosing altcoins, you should be able to tell a scammer or an inexperienced newbie from a market shark. We constantly work on creating high-quality educational content for you in order to provide assistance. The first step is this glossary comprising the most important words and terms of the crypto&trading world. 

Glossary-pump-dump

Altcoin

This is what any currency is called with the exception of the market giants – Bitcoin and Ethereum. Though the latter’s status as an altcoin is still sometimes a matter of dispute.

Arbitrage

Trading strategy aimed at gaining profit from the difference in prices of a certain cryprocurrency on different exchanges.

ATH

The abbreviation stands for All-Time-High. This means that current cryptocurrency price is historically highest.

Bagholder

Someone holding a cryptocurrency that has no market potential.

Bearish

Anticipation of a price decrease by market participants.

Blockchain

A public register or transaction log. The registry database consists of a chain of financial transaction blocks, in which each subsequent block is cryptographically linked to the previous one.

Bucket

This is a purchase order for a cryptocurrency placed well below the market price. If the rate of the cryptocurrency falls sharply, it fills the bucket, hence the name.

Bullish

Anticipation of a price increase by market participants.

Cold Storage

The type of cryptowallet from which a transaction cannot be carried out quickly, but with higher security. Cold wallets include a hardware wallet representing a device such as Trezor or Ledger.

DAO

DAO stands for decentralized autonomous organization. It has no management and is controlled by user voting based on smart contracts.

Dapp

A type of application that uses smart contracts and blockchain backend, such as EOS, Ethereum, Tron.

Exchange

It’s a platform, where you can buy and sell cryptocurrencies. The most popular exchanges in the world are: Binance, Huobi, Coinbase, Upbit, Bitfinex, OKEX and others.

FOMO

Stands for “Fear Of Missing Out”. In the trading world this indicates the fear of a trader to miss out on profit. Many traders take risks because of the FOMO phenomenon.  

Fork

Cryptocurrency that appeared later than Bitcoin (or other alto-currency), based on copying part of the code and algorithms of the original cryptocurrency.

FUD

Stands for “Fear, Uncertainty, and Doubt”. This is the psychological reason why traders sell cryptocurrency even at a loss in order to save the major part of their assets and avoid higher losses.

FUDster

Someone that is spreading FUD.

Hashrate

A unit that measures the computational power of cryptocurrency mining equipment. Bitcoin mining involves a huge number of mathematical problems, only after which the cryptocurrency can be earned

Hodl

This is a meme and also a type of trading strategy. This is usually what you call someone who has bought a certain amount of cryptocurrency and holds on to it no matter what, despite the market situation.

Hot Wallet

This is a wallet connected to the Internet, from which you can send money almost instantly. Online wallets that can be placed on stock exchanges or on special sites; “paper” wallets generated on certain sites, information is stored on paper in the form of QR codes; mobile wallets and desktop wallets. 

ICO

Stands for initial coin offering (ICO). Essentially, this is the crypto-world equivalent of the traditional IPO. Blockchain based projects initiate ICO’s to sell their tokens and thus fund the project.

Leverage

Financial leverage is the ratio of debt to equity (in other words, the ratio of debt to equity). In terms of cryptocurrency exchanges, it’s the ration between the client’s deposit and the cryptoexchange’s credit. The maximum leverage now is 1:100 at Bitmex, usually it’s about 1:10.

Limit order

This is an order that a trader places when buy/selling at the precise moment the price reaches a certain point. Basically, this is a big neon sign with the word “Buy” lighting up whenever the price hits the necessary value.

Long is buying cryptocurrencies for long-term investments. Also called a “long line” are any transactions that are oriented towards profit from the growth of the asset price.

Margin trading

Margin trading means conducting speculative trading operations with the use of funds provided to the trader on credit against the security of a specified amount – the margin. The margin differs from a simple loan in that the amount of the funds provided is usually several times higher than the amount of collateral (margin).  

Market Cap

The total market value of a cryptocurrency. It is a product of the total number of coins multiplied by coin price. You can check it here https://coinmarketcap.com/

Marketmaking

This happens when a certain player of several market players control significant amounts of currency and use it to directly influence the market.

Market order / market buy / market sell

Market order is a sale/purchase order at this point in time a current price, as is. Essentially, you purchase exactly what you see at the exchange right now.

Mining

A necessary and important process in the Bitcoin and other cryptocurrencies network, which results in the addition of a new blockchain transaction block and the issuance of coins.

Nodes

Any computer connected to the network that runs an official client of a cryptocurrency is a node. The nodes store the latest copy of blockchain, maintain network security and perform transactions. 

Order book 

A list of all orders that are currently listed on the cryptocurrency exchange. The orders are distinguished by bids

Pool

An association of miners who collectively mine a block and then share the rewards. Mining pools are a way to increase profitability while increasing the complexity of mining, with several large pools controlling most of the hashrate of bitcoin.

POW and POS

Two main types of consensus for conducting cryptocurrency transactions and protecting blockchain from generating blockchains. PoW is based on mining and PoS on steaking.

Private key

The key to your cryptowallet, so don’t ever tell anybody otherwise you could lose all your cryptocurrency. I suggest you print out all your private keys and keep them on paper.

Public key 

The address of the cryptowallet in the blockchain.

Pump And Dump

Fraudulent scheme of obscure altcoins’ price manipulation. It begins with the price inflating two- or even threefold, which inevitably leads to the bubble burst.  The recurring cycle of an altcoin getting a ton of attention, leading to a fast price increase, and then of course followed by a huge crash.

ROI

Stands for “Return on Investment”. The percentage of how much money has been made compared to the initial investment. (i.e., 100% ROI means someone doubled their money).

Sell wall / buy wall

This is a wall built of sell/buy order blocks with the same price, so that it’s really hard to move the price higher or lower, than this wall.

Shilling / Pumping

This terms denominates the practice of manipulating public opinion through mass media and social networks in order to influence the market, advising the audience to buy.

Short

A strategy of exchange game on short distances. Up to a minute. Buy for less, sell for more.

Sideways (channel) trend

Relatively smooth movement of the cryptocurrency market in some narrow limits, without strong growth or decline.

Stablecoin

A cryptocurrency that has low volatility and is backed by fiat currency.

Staking

A consensus algorithm for PoS. It is based on the fact that the reward for the block receives the node, which has more coins.

Tokens

Tokens are a type of “currency” within ethereum network projects. Tokens are usually the means of exchange during an ICO.

To the moon

This expression means that the price of cryptocurrency is going through the roof.

Volatility

— changes in price movements over time for traded financial assets (including cryptocurrencies).

Whale

Someone who has significant amounts of currencies in possession or operation and by manipulating the assets can impact the global market.

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