25 Cryptocurrency Jargons Every Trader Should Know

25 Cryptocurrency Jargons Every Trader Should Know

in Bitcoin, Cryptocurrency, Blockchain, Crypto Vocabulary, Newbie, Know-it-all
Actually, cryptocurrency jargons can sometimes be quite confusing to a person who isn’t familiar with crypto! Here’s presenting a Top 25 Must-Know Cryptocurrency Jargon Post to help you decrypt some of the potentially confusing languages.  
  • HODL

Every time you read Facebook Groups, Telegram, Reddit–there will be at least one person who uses the term “HODL”. So initially when I first started out in the crypto world and doing research, I was totally judging redditors. “Cannot even spell ‘HOLD’ meh? So fail.” But actually, “HODL” refers to “Hold On for Dear Life”. It’s not a misspelling or autocorrects for the word “HOLD”. Well as I’m typing this, TRX is like mooning again due to its newest listing today on a major exchange. So someone might tell you to “HODL” because the prices will be increasing (X10? X100?) over the next few hours or days.
bitcoin address
  1. FIAT

Government-issued currency, such as the US dollar.
 bitcoin stock price
  1. ATH

“ATH” signifies all-time high, as in “all-time price high.” In the context of cryptocurrencies, it refers to the highest price milestone that any given coin or token has ever achieved. The recent bull run in the crypto market is a great example. Years ago, it would’ve been unfathomable for the price of bitcoin to hit $11,000 USD, yet that “ATH” was just achieved. See? Pretty simple right.
 bitcoin history
With BTC, things really have been wild lately, as we saw the bitcoin price hit several new all-time highs over the span of just a few days; from $9,000 to almost $12,000. And all-time highs come and go, as you can imagine. Relatively speaking, Ethereum’s associated “fuel” coin, ether, hit an all-time price high of $420 back in June 2017. ETH didn’t see that ATH breached until just a few days ago when the #2 crypto by market cap exploded.  
  1. Limit order/limit buy/limit sell

Orders placed by traders to buy or sell a crypto-currency when the price meets a certain amount. They can be thought of as ‘for-sale’ signs. These orders are what are bought and sold against when traders place market orders.
  1. Sell wall/buy wall

Using a depth chart, traders can see the current limit buy and sell points.
  1. Market order/market buy / market sell

A simple purchase or sale on an exchange at the current price. Market buys purchase the cheapest ETH available on the order book, and market sells fill the most expensive buy order on the books.
  1. Margin trading

The act of ‘magnifying’ the intensity of your trades by risking your existing coins. (NOTE: Very risky, only for experienced traders and only on certain exchanges even then)
  1. Mooning

Basically, the action verb of mooning describes the increasing price of the cryptocurrency. Contrary to popular language, it’s not describing an ass.
how cryptocurrency works
Sometimes crypto traders use the phrase “to the moon” to describe the skyrocketing prices of that particular coin.
  1. Going long

A margin trade that profits if the price increases.
  1. Going short

A margin trade that profits if the price decreases.
  1. Bullish

An expectation that price is going to increase.
  1. Bearish

An expectation that price is going to decrease.
  1. FUD

“FUD” stands for “fear, uncertainty, and doubt,” though some refer to it as “fear, uncertainty, and despair.” It’s a phrase that describes the heightened sense of panic and anxiety that can spread through the ecosystem like wildfires, sometimes deserved, sometimes definitely not. There’s legitimate FUD, as in when a serious problem has arisen that’s spooked the community. Consider hacks or restrictive regulatory announcements, for example. China’s ban of ICOs caused everyone in the ecosystem to freak out, reasonably so at the time. Then there’s shilled FUD from FUDsters, which can happen for a few reasons. It can come down to basic tribalism. Bitcoiners are quick to point out any problem in the Bitcoin Cash community, and vice versa. Think of this as being competitive FUD.
 cryptocurrency news
Then there’s the FUD that comes from people who will personally benefit from a price drop. Let’s say someone is shorting BTC privately. Well, naturally it would suit their goals, then, to spread acute panic about Bitcoin in order catalyze a short-term price drop, i.e. fulfilling the short. You have to be critical and even-keeled in the face of FUD. You will have to do your research to know if a threat is real or imagined.
  1. FUDster

Someone that is spreading FUD.
  1. Shilling/pumping

Someone essentially advertising another crypto-currency. If a coin is promised to cure cancer or be the second coming of Jesus, it’s being shilled.
  1. Stable coin

A cryptocurrency with an extremely low volatility that can be used to trade against the overall market.
  1. Arbitrage

Taking advantage of a difference in price of the same commodity on two different exchanges. Often mentioned when it comes to comparing ETH prices on Korean exchanges against US exchanges.
  1. FOMO

This abbreviation stands for “Fear Of Missing Out”. The shittiest feeling in crypto is when you cannot buy ETH as coinmama/ coinbase/ xfers is taking forever to verify your account, or you buy a coin at a relatively high price because everyone else is doing so.
  1. Bagholder

Bagholders are often people who purchase a currency at an all-time high or during a bull run, they become the bagholder once the price lowers leaving them stuck in a position where if they were to sell they would make a loss. The correct decision most of the time is to keep holding until the price goes back up where you can sell your “bags”.
  1. Pump And Dump

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.
  1. ROI

Return on Investment. The percentage of how much money has been made compared to an initial investment. (i.e., 100% ROI means someone doubled their money).
  1. TA

Trend Analysis or Technical Analysis. Refers to the process of examining current charts in order to predict which way the market will move next.
  1. MACD

Moving Average Convergence Divergence. A trend indicator that shows the relationship between two moving averages of prices.
  1. Bears, Bulls, and Whales

“Bears” and “bulls” come from traditional stock concepts of bear and bull markets. So crypto bears have an acutely pessimistic outlook for prices, whereas a crypto bull has optimism for prices. Now, the phrases have become milder still, usable in referencing a person’s bias. For instance, you could call an investor “overly bullish” if they’re dogmatically into a project while ignoring that project’s red flags.
And then there are “whales,” which are simply crypto investors that have massive crypto holdings. As in thousands, hundreds of thousands, or millions of coins. There is often a lot of talk and speculation about whales manipulating the market for their own gains. This includes things like putting up buy walls at certain prices to prevent people selling above that price. And selling a large volume of a currency in a short space of time to crash the price, triggering people’s stop-losses which compounds the problem and cause further downward action, at which point the whales buy back in cheaper. You could call Bitcoin creator Satoshi Nakamoto a whale because he reportedly has (or had) ownership over a BTC wallet that had over one million bitcoins.
  1. Bollinger Band

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

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