Basic terminology of crypto trading

in #cryptocurrency6 years ago (edited)

I am listing down some basic terminology used in crypto trading, some of them are general trading terminology.

Altcoin - Any form of digital crypto currency that isn't Bitcoin, an alternative coin. Example Litecoin, Ripple, ethereum

ATH - All time high - this is not a right time to buy a coin unless you have some solid insider information.

Bull run (market) - When price of a coin goes in up trend.

Bearish market - When the price of a coin goes in down tread.

Bag holder - When you get into a trade seeing upward movement and suddenly market crashes, you end up holding the coin for a longer period waiting for a price increase.

**CMP **- Current market Price

Circulating supply - An approximation of the number of coins or tokens that are circulating in the public market. See also: total supply and maximum supply.

Fiat Currency - Any form of physical paper currency. Regulated and Centralized.

FOMO -Fear of Missing out

FUD - Fear, Uncertainty, Doubt

Faucet - A technique used when first launching an altcoin. A set number of coins are pre-mined, and given away for free, to encourage people to take interest in the coin and begin mining it themselves.

HODL - “Hodl,” is simply a misspelling of “Hold” . It means you hold the coin without selling till it reaches the desired price.

ICO - An Initial Coin Offering

Lightning Network - A low latency, off chain P2P system for making micropayments of cryptocurrencies.

Mining - Mining is the term used for discovering and solving blocks along the blockchain.

Market capitalization (market cap) - The market value of a company, market or sector at a point in time commonly used to rank relative size.

Maximum supply - An approximation of the maximum number of coins or tokens that will ever exist for a cryptocurrency or crypto asset.

Parabolic move - when the price of a coin moves exponentially upward or downward in a limited time. These moves might be due to some pump and dump activities or news breakouts.

Pump and Dump (PnD) - When whales move the price depending on their strategy, large buy or sell occurs resulting in pumping (upward movement) price or dumping (downward movement) . When you see an upward movement in price and start to invest , you might become a bag holder as whales dump their profits.

Smart contracts - An automated mechanism involving two or more parties where digital assets are put in and redistributed at a later date based on some preset formula and triggering event

Swing trade - Swing Trading is a short-term trading method that can be used when trading. Whereas Day Trading positions last less than one day, Swing Trading positions typically last two to six days, but may last as long as two weeks.

**Token **- Crypto tokens enable the creation of open, decentralized networks, and provides a way to incentivize participants in the network.

Trading signals - Depending on your technical analysis / fundamental analysis , you can come up with your own trading signals which will guide you to make a trading decision.

Trading sideways - When there is no much price movement, upwards or downward. This kind of trend is not favorable for traders as there is no much opportunity to trade.

**Wallet ** - A store of digital assets such as cryptocurrencies, analogous to a digital bank account.

**Whitelist **- A list of registered and approved participants that are given exclusive access to contribute to an ICO or a pre-sale.

**Whitepaper **- A documentation describing a crypto currencies protocol in detail

Whales - Large institutional investors or large investors who have the ability to control price movements.

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