Cryptocurrency terminologies every crypto trader should know.
In the field of cryptocurrency, as a trader, investors or researcher, it is very important to know the key terminologies in the field, because it is different word compared to traditional stocks, bonds, as investors often get confused and puzzled with the acronyms and other jargons in crypto, even though, it is still part of investment.
However, having crypto trading as part of investment, it is important to understand exactly what you are investing (at least know the language and how the system works) before you throwing in your hard-earned cash.
Here are some of the terms and phrases that you should know to enable you to be more familiar with the crypto world.
Crypto terminologies you need to know.
Altcoins: This includes other crypto currencies except Bitcoin.
ATH: Acronym for “All Time High”. Used to express when an assets reaches a highest price at certain period.
Airdrop: Airdrop is a distribution of cryptocurrency token or coin, usually for marketing purposes.
Blockchain: This is a decentralised public ledger that uses a cryptography to record in any prior block.
Block: This is collection of transactions that has not yet been recorded in any prior blocks.
Bitcoin: Bitcoin is the first type of digital currency, that runs on P2P (peer-to-peer) network without the need for central authority.
Ethereum: This is a type of crypto currency that enables the creation of decentralised applications.
Token: Also called crypto token, it is unit of value that are built on existing blockchain networks. ie: FTT is native token of FTX exchange.
Stable coin: This is a type of cryptocurrency that is pegged and relies on stable assets for its value. ie: USDC.
Fiat: This is a currency issued by government.
Hash Rate: This is computed power that miners contribute to secure the network in exchange for block rewards and transaction fee.
ICO: Stands for “Initial Coin Offering”. Crowdfunding where tokens or coins are offered in exchange for stable crypto.
FUD: Stands for “Fear Uncertainty and Doubt”. Describes negative sentiments on crypto, to spread doubt, fear and uncertainty in the minds of crypto investors.
HODL: Slang for HOLD. Also stands for “Hold On for Dear Life” Means to hold a crypto rather than selling it.
IEO: This stands for “Initial Exchange Offering”. Just like ICO, it is ways cryptocurrency are sold via crypto exchange.
FOMO: Stands for “Fear of Missing Out”. Usually when one enters a trade without enough research in the fear of missing out profits.
Whale: Very wealthy trader or market mover.
DApp: Stands for “Decentralised Application(s)”, which runs on a peer-to-peer computer network.
JOMO: Stands for “Joy of Missing Out”. Used to express when one misses out in making a decision which have turned out badly.
Limit Order: An order type where one places a trade at future price that will excute when the price target is hit.
Market Order: An order type where the price execute immediately at the market price.
KYC: Stands for “Know Your Customer”. Used in crypto to know the identity of crypto traders.
REKT: Slang short form for “Wrecked”. Used to describe a bad loss after a trade.
Exchange: Marketplace, which allows buying and selling of cryptocurrencies. i.e: FTX Exchange, which is the best crypto exchange most traders use. It is safe to trade your crypto assets, especially for crypto investors.
(I recommend you create an account here. And start trading your crypto)
ROE: Stands for “Return Of Equity”. This is calculated by the capital employed in a trade but, not through trade.
MCAP: Stands for “Market Capitalization”. This is coin price multipled by the number of coin available.
OHLC: Open, High, Low and Close. These are candlestick information in a Technical Analysis.
Rally: An upward tread leading to increase in price of an asset. Mostly in an uptrend or bull market.
Bullish: When the sentiments on a coin is positive.
Bearish: When the sentiments on a coin is negative.
TA: Means Technical Analysis. Used by crypto traders to analyse coin.
FA: Means Fundamental Analysis. Used by crypto traders to analyse coin.
DYOR: Stands for “Do Your Own Research”. Used by crypto enthusiasts to research about coins or on crypto before investing.
WAGMI: Stands for “We’re Gonna Make It”. Used by crypto enthusiasts who are bullish on crypto.
There are hundreds of thousands of other crypto terminologies out there, but the list above is enough to help kick-start and hone in on the key cryptocurrencies. Hopefully with these terminologies it will make the move into crypto easier.
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