Common Terms Used In Crypto Trading

Common Terms Used In Crypto Trading

Content provided by various contributors. DYOR.

Crypto trading terminology refers to the specific words and phrases used to buy and sell cryptocurrencies. They are split between regular trading terms (from traditional trading) and a few unique terms you’ll find only in the crypto world.

Crypto Trading Slang Terms

Some of the unique terms include specific to the cryptocurrency space are the following:

  • HODL: A slang term for holding onto a particular cryptocurrency for a long period, even in the face of market volatility. The term is derived from a word “hold” typo in a forum post from 2013.
  • FOMO: Fear Of Missing Out. The feeling of urgency and anxiety one gets when they think they are missing out on a big gain in the crypto markets.
  • Mooning: Describing a dramatic increase in the price of a particular coin or token.
  • Dumping: Describing a dramatic decrease in the price of a particular coin or token.
  • Bull run: A prolonged period of market growth.
  • Bear market: A prolonged period of market decline.
  • To the moon: A phrase used to describe a drastic price increase, often indicating a bull run.
  • Rekt: short-term wreck, describing a bad trade or losing money.
  • Bagholder: Someone who is left holding a particular token or coin that has decreased in value.
  • Shark: A very experienced trader or a big investor who can move the market.
  • Whale: a trader or investor who holds such a large amount of a particular cryptocurrency that they can move the market with their trades.
  • Lambo: short term for Lamborghini, it’s used to describe the ultimate goal of many crypto traders, which is to make enough money to buy a Lamborghini.
  • To the moon: a phrase that describes the expectation of a dramatic price increase.
  • To the moon and Lambo: The ultimate goal for traders, describing the expectation of making enough money to buy both a Lamborghini and a house on the moon.
  • BTFD: Buy The F**king Dip, a phrase traders use to encourage others to buy a cryptocurrency when its price is low and likely to rebound.
  • DYOR: Do Your Own Research, a reminder to traders to educate themselves before investing their money in a particular coin or token.
  • REKT: short term of “wrecked,” it describes the state of a trader who has suffered significant losses.
  • Bull trap: a situation where the market appears upward but is headed for a downturn.
  • Bear trap: a situation where the market appears to be trending downward but is headed for a rebound.
  • Shilling/Shill: Promoting a certain coin or token to inflate its price.
  • Fud: Fear, Uncertainty, and Doubt are used to describe negative sentiment or misinformation spread about a particular coin or token to manipulate the market.
  • To the m00n: similar to “to the moon,” but zeros (00) usage emphasizes extremely bullish sentiment.
  • Scam: a fraudulent scheme to obtain money or property or to make some gain.
  • HODLing: A slang term for holding onto a particular cryptocurrency for a long period, even in market volatility.
  • Moon shot: Extremely bullish, describing a rapid and drastic increase in a coin’s price.
  • DILDO: Long-term holding.
  • Diamond hands: A trader who holds on to their investments despite market volatility.
  • Moonbag: a bag of coins a trader has purchased with the expectation that their value will rise to the moon.
  • Stack Sats: Short for stacking satoshis, referring to accumulating smaller amounts of Bitcoin.
  • Crypto Twitter: the community of crypto enthusiasts, traders, and developers on Twitter
  • Satoshi: the smallest unit of a Bitcoin, named after the pseudonym of the person or group of people who created Bitcoin.
  • Binance Babies: Refers to traders who made a lot of money by trading on Binance
  • Rektplebs: a term used to describe traders who have made poor trading decisions and lost a lot of money.
  • Wallet Warrior: A trader with a lot of experience and knowledge on securing their assets in a wallet.
  • Shart: A trade that went bad; it’s a mix of “shit” and “start.”
  • To the moon, to Mars: the phrase indicates that an asset’s price will likely increase significantly soon.
  • Lamboland: A place where traders who made significant money on their crypto investments can buy their dream cars and live a lavish lifestyle.
  • Hodler of Last Resort: A trader who holds a coin even when it is not doing well because they believe in the project.
  • Crypto Crusader: A trader who is heavily invested in the crypto market and is passionate about the industry and its potential for positive change.
  • FOMO Buy: A trade made out of fear of missing out on potential gains in the market.
  • Shitcoin: A term used to describe a low-quality or scam cryptocurrency.
  • Bear Whale: A bearish market manipulator who holds a large amount of a coin and uses it to drive down the price.
  • Bull Bagger: A trader who is consistently buying the dip and holding for long-term gains
  • Crypto Winter: A prolonged bear market.
  • To the Moon and Beyond: phrase indicating that the price of an asset is likely to increase significantly in the long term.
  • Crypto Ghost Town: a market in which trading activity has slowed significantly.

The crypto trading community has its unique language and vocabulary. Not all of these terms are serious or accurate; many are lighthearted or humorous and don’t reflect actual market moves or predictions. Nevertheless, you’ll come across many of these terms when you’re around the crypto community, and understanding them will help you better understand the conversation.

Common Crypto Trading Terms

Some common terms include:

  • Bid: the highest price a buyer is willing to pay for a certain cryptocurrency.
  • Ask: the lowest price a seller can accept for a certain cryptocurrency.
  • Spread: the difference between the bid and ask prices.
  • Volume: the number of shares or contracts traded in a given period.
  • Long: a position in which a trader expects the price of a cryptocurrency to increase.
  • Short: a position in which a trader expects the price of a cryptocurrency to decrease.
  • Bullish: an expectation that the price of a cryptocurrency will increase.
  • Bearish: an expectation that the price of a cryptocurrency will decrease.
  • TA: technical analysis.
  • FA: fundamental analysis.
  • Wallet: a digital wallet used to store and manage one’s cryptocurrencies.
  • Blockchain: a decentralized, digital ledger of all cryptocurrency transactions.
  • Mining: using specialized software and hardware to validate and record cryptocurrency transactions on the blockchain.
  • Hash rate: the measure of a miner’s computational power.
  • Fork: a split in the blockchain, resulting in two separate versions of the cryptocurrency.
  • Altcoin: any cryptocurrency other than Bitcoin.
  • Token: a digital asset representing a specific utility or asset.
  • ATH: All-Time High.
  • Liquidity: how easily an asset can be bought or sold in the market without affecting the asset’s price.
  • Whales: Big investors who hold a huge amount of specific coins.
  • Exchanges: platforms where cryptocurrencies can be bought, sold, and traded.
  • Order book: A list of all pending orders on a trading pair.
  • Margin trading: a type of trading in which a trader can borrow money to make larger trades
  • Arbitrage: buying a cryptocurrency on one exchange and selling it on another exchange for a higher price.
  • Stop-loss: an order to sell a cryptocurrency automatically at a certain price to prevent further loss.
  • Market cap: the total value of all the cryptocurrency in circulation.
  • Circulating supply: the number of coins that are currently available to the public and in circulation
  • Total supply: the total number of coins that will ever exist.
  • Cold storage: offline cryptocurrency storage, typically on a hardware wallet, to protect against hacking or theft.
  • OTC (over the counter): trading that occurs outside formal exchanges and is typically done in large quantities or with significant amounts of money.
  • Stablecoin: a type of cryptocurrency that is pegged to the value of an asset such as the US dollar
  • Smart contract: a self-executing contract with the terms of the agreement written directly into lines of code.
  • Decentralized finance (DeFi): financial services built on top of blockchain technology that operates in a decentralized manner.
  • Yield farming: providing liquidity to decentralized finance protocols to earn interest or other rewards.
  • Maker-Taker fee structure: A common pricing scheme on crypto exchanges where the market maker, who adds liquidity to the order book, is charged different fees than the taker, who takes liquidity from the order book.
  • Halving: a process in which the reward for mining a blockchain’s network is cut in half to control inflation and maintain scarcity.
  • 51% attack: an attack on a blockchain network in which an attacker or group of attackers controls more than 50% of the network’s mining hash rate and can manipulate the consensus.
  • Market maker: a trader or institution that provides liquidity to a market by placing limit orders on both the buy and sell side of the order book.
  • Market taker: a trader who takes liquidity from the market by placing market orders or taking limit orders.
  • Gas: the amount of computational power required to execute a transaction on the Ethereum blockchain, measured in Ether.
  • Gas price: the amount of Ether a user is willing to pay per unit of gas to have their transaction mined and added to the blockchain.
  • Airdrop: a way of distributing tokens by giving them away for free, usually as a promotional or marketing tool.
  • ICO: Initial Coin Offering, a crowdfunding campaign in which new projects sell their underlying crypto tokens in exchange for Bitcoin or other cryptocurrencies.
  • IEO: Initial Exchange Offering, similar to an ICO but conducted by and on a cryptocurrency exchange platform.
  • Pump and dump: a form of market manipulation in which an individual or group artificially inflates the price of a certain asset before selling it at a profit.
  • Hash power or Hashrate: a unit of measurement for mining power, and it’s in the unit of hashes per second (h/s).
  • Difficulty: how hard it is to mine a block, measured in how much computation power is required.
  • NFT: Non-Fungible Token, a digital asset representing ownership of a unique item or piece of content, such as a piece of art or collectible.
  • DAO: Decentralized Autonomous Organization, a type of organization run through rules encoded as computer programs on a blockchain.
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As in any other specialized field of interest, it’s important to learn the terminology to understand better the community, news, and events in the crypto markets.

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