Before investing in cryptocurrency trading, we need to understand the terms commonly used in this market. If you do not understand these terms, you will have many limitations in accessing news and knowledge about the market. You will also have many limitations in accessing cryptocurrency products.
Hold
Buy and hold potential Coins (high value + top 50 strong Coins + large capitalization) wait for high prices and then sell. Calculate the capital invested and the prices to sell when the Coin price increases – take profit. Top 10 digital currencies with the largest capitalization on coinmarketcap.com you should refer to
Lending
Invest in Coins according to projects of that type of Coin and receive interest ( lend and receive interest according to cycles and investment packages ). This is a safe and sustainable form because strong Coins with high value are capable of paying interest of 30-60% / month. Some sites like yobit.net lend 10%, 15% in the form of investbox. Liza at yobit.net is a lending investment that has brought success to many investors here.
HYIP
Strike fast and withdraw quickly with HYIP Sites (high interest, high risk). These Sites should only play 5-10% of capital and must know how to analyze and evaluate the Site’s ability to pay and longevity. Play as soon as the Site is new and do not be greedy.
Trade
Buy and sell transactions on exchanges between different types of Coins Altcoin/Btc. To become a Trader, you need a large capital + experience + endurance + … It requires a lot of experience before trading. Investors who have played stocks will have very good experience in this field.
Pre-ICO
ICO Coin is a type of coin that has not been listed on the exchange and is in the process of raising capital for a certain project. Playing this way, you must know how to research and analyze information. Invest mainly in trust with the development team and the benefits of the project. Buy ICO coins and wait (can be n times the assets) this is to eliminate money to buy opportunities at a cheap price.
Mining
Coin mining is using supercomputers (buying coin mining buffaloes) to solve algorithms to create Blockchains. Receive rewards from that Coin in an amount as a payment to the miners for mining.
Other terms
Attack: A form of network attack when a group of miners control 50% of the computing power.
AML (Anti Money Laundering): A framework including legal procedures, laws and regulations to minimize and limit the flow of money generated from illegal activities.
AMM (Automated Market Maker): A tool that provides automatic liquidity to the exchange.
APR: Or annual percentage rate is the amount of interest you will pay on an unpaid debt each year.
APY: Used for annual percentage yield, which is the rate earned on an investment over a year, taking into account the effects of compound interest.
ASIC: Application Specific Integrated Circuit, referring to specialized IC chips in electronics. An ASIC miner refers to a computerized device or hardware that uses an ASIC for the sole purpose of mining cryptocurrency.
ATH (All-Time-High): ATH stands for All-Time-High, which is the highest price a cryptocurrency has ever reached.
ATL (All-Time-Low): The lowest point (in price, market capitalization) a cryptocurrency has ever reached in history.
Account: An account you register on exchanges, or social media accounts so you can track the financial activity of certain assets.
Address: A place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers.
Allocation: The allocation of tokens or equity through earning, purchasing, or setting aside to an investor, team, or organization. These allocations can be paid out all at once on a certain day or in stages according to a predetermined schedule.
Angel Investor: An individual who provides capital to a new business or startup.
Auction: A live event where customers bid competitively on assets and services. The assets or services are sold to the highest bidder.
Audit: The process of checking a crypto project for security vulnerabilities through examining the code in the project’s product.
BEP-2: A token standard on Binance Chain.
BEP-20: A token standard on Binance Smart Chain.
BEP-721: A technical standard that defines a set of rules for issuing NFTs in the Binance Smart Chain ecosystem.
BEP-95: A real-time BNB burn mechanism on Binance Smart Chain.
Bags: A holder’s cryptocurrency portfolio.
Bear Market: A bearish market in which the price of cryptocurrencies drops suddenly and continuously.
Bitcoin Dominance: The ratio of Bitcoin’s market capitalization to other cryptocurrencies.
Bollinger Bands: A technical analysis indicator composed of two moving averages to measure market volatility.
Breakout: Price action breaks out of a pattern or resistance.
Bull Market: A bullish market in which the price of cryptocurrencies increases sharply and continuously.
CEX (Centralized Exchange): A centralized exchange. An intermediary that facilitates cryptocurrency trading between buyers and sellers.
Call option: A type of option that increases in value as the price of a stock increases. They are the most well-known type of option and allow the owner to lock in a price to buy a specific stock on a specific date.
Candlestick: A candlestick chart used by traders to determine possible price movements based on historical patterns.
Capital: Defined as the large amount of money you will use to invest.
Cloud Mining: A simple way to earn cryptocurrency by renting computing power from third-party sources.
Coin: A cryptocurrency built on the platform of its own Blockchain, which operates independently of each other, anyone can participate in its network.
Cold wallet: This is a cryptocurrency wallet that is not connected to the internet or any other insecure network when not in use.
Contract: In cryptocurrency, smart contracts execute functions on the blockchain.
Cross-chain: A solution that allows two separate blockchain networks to communicate with each other. In other words, it allows assets to be transferred from one blockchain to another.
Crowdloan: The implementation of new projects to raise funds through DOT or KSM for positions on the Kusama or Polkadot network.
Crypto Debit Card: A type of debit card that allows its owner to pay for goods and services with cryptocurrencies such as Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH).
Whale: An organization or individual holding a very large amount of assets such as BTC, ETH.
DAO (Decentralized Autonomous Organization): A system of coded rules for decentralized organizations.
DApp (Decentralized Application): Applications that run on a peer-to-peer network instead of a central computer. This allows software to run on the internet without being controlled by a single entity.
DCA (Dollar Cost Averaging): A strategy of dividing money into small amounts for regular and fixed investment regardless of the price of the asset.
DEX (Decentralized Exchange): A decentralized exchange. Users can trade directly from their wallets without having to deposit money into the exchange.
DeFi (Decentralized Finance): An ecosystem of decentralized applications developed on different blockchain networks.
Double Spending: A certain cryptocurrency can be double spent. Usually the result of a 51% attack or race attack.
Downtrend: Represents a downward trend in the market that can be short-term or long-term.
E-Signature: An electronic signature is a broad term for any type of signature in electronic format. Refers to data in electronic form that is attached to other data in electronic form and used by the signer to sign, used in electronic transactions.
EMA (Exponential Moving Average): A type of moving average that gives more weight to recent prices in calculations. This makes it more responsive to recent price changes.
ERC-20: A token standard on the Ethereum network first proposed in November 2015.
ERC-721: A technical standard that defines a set of rules for issuing NFTs in the Ethereum ecosystem.
EVM (Ethereum Virtual Machine): The Ethereum Virtual Machine, which is like a processor or computer that lends its accumulated computing power to developers. Developers use this resource to create smart contracts and dApps.
Elliott Waves: A technical analysis indicator, a trusted tool for various portfolio managers and suggests that it is possible to reasonably predict cryptocurrency price movements by studying price history as the market moves in wave-like patterns driven by investor sentiment.
Exchange: A venue that allows customers to trade cryptocurrencies for fiat or other cryptocurrencies.
FOMO (Fear Of Missing Out): FOMO stands for Fear Of Missing Out, a psychological effect of fear of missing out.
FUD (Fear, Uncertainty and Doubt): A propaganda strategy in marketing used to instill fear and uncertainty in customers and investors.
Fakeout: A price action that breaks out of a pattern, resistance, support then quickly reverses without continuing the previous breakout trend.
Fan Token: A cryptocurrency issued by a specific sports club that allows its owner to participate in management activities and gain exclusive rewards & discounts.
Fiat: Fiats are currencies issued by central banks.
Flash Loan: A transaction in which a specific amount of liquidity is borrowed and repaid in the same transaction or block.
Flash Loan Attack: Attacks that exploit flash loans and vulnerabilities in the protocol for personal gain.
Fork (Blockchain): Branches or splits the chain, creating an alternate version of the blockchain, so that two blockchains run concurrently.
Futures Contract: An agreement between a buyer and a seller on the price of a specific asset in the future.
GameFi: A combination of DeFi, NFTs, and blockchain-based online games.
Gas: A pricing mechanism used on the Ethereum blockchain to calculate the cost of smart contract operations and transaction fees.
Gems: A term for small-cap coins that are relatively unknown but have great potential or are undervalued.
Genesis Block: The first block recorded on a blockchain network.
Golden Cross: A bullish signal when the short-term moving average (MA50) crosses above the long-term moving average (MA200).
Google Authenticator: A software-based verification system that generates a unique one-time code based on the time spent on your mobile phone.
Governance Token: A token that can be used to vote on decisions that affect the ecosystem.
Gwei: The smallest unit of Ether. It is often used to measure the amount of gas used in a transaction. 1,000,000,000 wei = 1 Giga wei (Gwei).
Halving: The event of halving the block reward. This is a mechanism to reduce the rate of new coin issuance.
Hard Cap: The maximum amount of money a project plans to raise during its ICO, IEO.
Hash Rate: A unit that measures the speed at which computers or mining hardware can calculate new hashes.
Hot Wallet: A cryptocurrency wallet that is connected to the internet to store cryptocurrencies, as opposed to an offline cold wallet.
ICO (Initial Coin Offering): A form of fundraising for crypto projects. The project will sell their cryptocurrency to investors.
IEO (Initial Exchange Offering): A form of fundraising for crypto projects guaranteed by an exchange.
IPFS (InterPlanetary File System): A protocol for storing and accessing distributed content.
IPO (Initial Public Offering): The activity of companies selling their shares to the public for the first time.
Impermanent Loss: A term used when a liquidity provider temporarily loses money due to fluctuations in a trading pair.
Internet of Things (IoT): A global network of interconnected devices, sensors, and software that can collect and exchange data with each other in real time over the Internet.
Invest: The act of putting money into a financial plan with the intention of making a profit.
Isolated Margin: The margin balance allocated to a position.
Jager: The smallest unit of BNB. 1 Jager = 0.00000001 BNB
Jomo: The joy of ignoring what other people do that ‘seems fun’, focusing on what makes you truly happy. JOMO is the opposite of FOMO.
KYC (Know Your Customer): A standard process in the financial industry that allows companies to identify their customers and comply with AML.
Keylogger: A function that records or logs keystrokes on a computer. In the hands of cybercriminals, a keylogger is a tool to steal your information.
Large Cap: Established projects and organizations with a market capitalization of $10 billion or more.
Layer 0: Also known as the Data Transmission Layer, is the bottom layer of the OSI model and is primarily concerned with the integration between blockchain and traditional networks.
Layer 2: A framework or protocol built on top of an existing blockchain to provide scalability.
Layer-1 Blockchain: A set of solutions that improve the underlying protocol itself.
Lightning Network: A layer 2 that operates on top of an existing blockchain, allowing for faster transactions between participating nodes.
Limit Order/Limit Buy/Limit Sell: Tools that allow traders to automatically buy or sell cryptocurrencies on an exchange when a certain price target is reached.
Limit order: A type of order to buy or sell a cryptocurrency at a specific price or a better price.
Liquidation: Liquidation refers to the conversion of an asset or cryptocurrency to fiat or its equivalent such as Tether (USDT) and other stablecoins. In the cryptocurrency industry, Forced Liquidation occurs with margin trading where a trader’s position is automatically closed when they fail to maintain the demand of the leveraged position.
Liquidity: The ability to sell or buy any given asset without causing significant fluctuations in the market price of that asset.
Liquidity Bootstrapping Pool (LBP): A Smart Pool that changes the weight of tokens in the Pool over a predetermined period of time.
Liquidity Mining: A mechanism or process in which participants supply cryptocurrencies to liquidity pools and are rewarded with fees and tokens based on their share.
Liquidity Pool: Crypto assets held to facilitate trading pairs on decentralized exchanges.
Liquidity Provider: Users of decentralized exchanges who fund a liquidity pool with tokens they own.
Long: A situation where you buy a cryptocurrency with the expectation of selling it at a higher price for a profit later.
Low Cap: Established projects and organizations with a market capitalization of less than $50 million.
Mainnet: A complete blockchain launched after a testnet phase.
Margin Trading: A form of trading with borrowed funds, also known as margin trading.
Market: An area or arena, online or offline, in which trade transactions are executed.
Market Maker: A trader who places limit orders on the market. Market Makers provide liquidity and depth to the market and profit from the price difference in the execution of buys and sells.
Market Taker: Market participants in trading who seek immediate liquidity to execute their trades and positions. That is, the person who matches orders from the order book created by the Market Maker.
Market cap (Market Capitalization): The total value of a given cryptocurrency – calculated by: the supply of that coin multiplied by the current price.
Masternode: Nodes on the network that typically require a minimum amount of a given coin to be staked in order to receive staking rewards.
Max Supply: The maximum number of coins a project will issue.
Maximum Supply: The maximum number of coins or tokens that will ever be created for a given cryptocurrency.
Memecoin: A cryptocurrency that originated from an Internet meme or has some other humorous feature.
Metaverse: A digital universe that contains all aspects of the real world.
Mid Cap: Established projects and organizations with a market capitalization between $1 billion and $10 billion.
Miner: People who contribute to a blockchain and participate in the mining process.
Mining Pool: An arrangement in which several miners pool their resources to increase their chances of finding the next block.
Mining Reward: The income that miners receive after finding and validating a block.
Money Flow Index (MFI): Money Flow Index is a technical indicator that measures the buying or selling pressure of an asset through price and volume.
Moon: A term that describes the bullish trend of a crypto asset or other asset.
Moving Average (MA): A moving average (MA) is a technical indicator that reacts to financial market trends and is used by market experts to predict the trend direction of an asset.
Multi-chain: Refers to multi-chain or multi-platform. If a project is deployed on multichain, it means that the project is deployed on two or more Ethereum, BSC, or other blockchains.
Multisignature: An additional layer of security by requiring more than one key to authorize a transaction.
NFT (Non-fungible Token): A type of token that represents a digital or real-world asset. This token is unique and non-interchangeable.
Node: A participant on a blockchain network that communicates with other participants to ensure the security and integrity of the system.
Non-Custodial: Usually refers to key storage. It is associated with a wallet or exchange. This is a setup where the private key is held directly by the user. No one, including the wallet provider, has the right to access, freeze, or trade the wallet owner’s assets.
OTC: Trades that are conducted outside of an exchange, usually peer-to-peer through private transactions.
Off-chain: Transactions that occur outside of a given blockchain network, which can later be reported or grouped together before being sent to the main chain.
On-chain: Transactions are recorded on the blockchain itself and are visible to all nodes on the blockchain network.
Open-source: Refers to participants in the information that is released for free, which users can modify or add some updates, other outstanding features to pursue the greater common good.
Opensea: A decentralized P2P platform for NFT trading.
Options Market: A public market for options, giving buyers the right to buy or sell a cryptocurrency at a specific strike price, on or before a specific date.
Oracle: A third-party data source or feed used to determine the outcome for smart contracts.
Order book: An electronic list of outstanding buy and sell orders for a specific asset on an exchange or market.
Oversold: Refers to a cryptocurrency that is sold by investors more and more over time, with its price falling over a long period of time.
Pair: A transaction between one cryptocurrency and another, such as a BTC/ETH trading pair.
Parachain: An application-specific data structure that runs in parallel with each other in Polkadot.
Peer-to-Peer (P2P): An information technology infrastructure that allows two or more computer systems to connect and share resources without requiring a server or, in general, a third party to intervene.
Permissionless: Often used to describe blockchains, a system is said to be permissionless when there is no entity that can regulate who can use it and how it can be used.
Perpetual Contract: A derivative product that differs from a futures contract because it has no expiration date.
Platform: In the cryptocurrency and blockchain space, the term refers to the parent blockchain of the tokens or can refer to an exchange where you can trade cryptocurrencies.
Play-to-Earn (P2E): An open economy that rewards players who bring value to its metaverse.
Ponzi Scheme: A fraudulent investment involving the intentional payment of profits to existing investors from funds contributed by new investors.
Portfolio: A collection or portfolio of cryptocurrencies or cryptoassets held by an investment firm, hedge fund, financial institution, or individual.
Pre-IDO: Refers to a token offering before an actual initial DEX offering (IDO) takes place.
Pre-Sale: The sale of cryptocurrency, before it is made public, to specific investors.
Private Key: Often referred to as a cryptocurrency wallet, a string format of characters to connect to an account, quite similar to a password to a bank account. In order to use the funds in this wallet, the code must match the public key.
Proof-of-Stake (PoS): A consensus protocol or set of rules used to validate cryptocurrency transactions through staking.
Proof-of-Work (PoW): The first consensus algorithm created in Blockchain. Cryptocurrencies such as Bitcoin are using PoW to validate transactions and create new blocks added to the chain.
Protocol: A set of rules that define interactions on a network, typically related to consensus, transaction validation, and network participation on a blockchain.
Public Key: A string of random numbers that can be used to encrypt a message, which can only be decrypted and read by the intended recipient using the associated private key.
Public Sale: The period of time during which an asset or service is released to the market and made available to all customers to purchase. Usually conducted on exchange platforms and websites such as DEX and CEX in the form of ICO, IDO, IEO for cryptocurrencies.
Pump: In crypto, it is used to refer to the act of buying a large number of coins/tokens to push demand and prices up.
QR Code: A form of information encoded to display so that it can be read by machines.
REKT: A loss or split account of a trader, it is also used to jokingly talk about a newly purchased coin that has dropped in price very deeply and many other cases.
ROI: The ratio between net profit and investment cost.
RSI (Relative Strength Index): This is a momentum oscillator that measures the magnitude of price fluctuations as well as the speed of these fluctuations. It is also an important technical analysis indicator.
Rank: The position of a cryptocurrency ranked by market capitalization.
Ransomware: A type of malware used by hackers to steal or encrypt victims’ files in order to extort them for ransom in exchange for decrypting or restoring the files.
Replay chain: The central chain used by the Polkadot network.
Resistance: The highest point on a chart that, when the price moves to, the market will have difficulty breaking it.
Roadmap: A visual summary that outlines the vision and direction of a particular product.
Rug Pull: A type of scam in which developers abandon a project and take their investors’ money.
SEC: The Securities and Exchange Commission (SEC) is an independent government agency responsible for regulating the securities market.
SHO (Strong Holder Offering): A fundraising mechanism in which qualified investors are selected based on on-chain activities and other data sets.
Satoshi (SATS): The smallest unit of bitcoin worth 0.00000001 BTC.
Satoshi Nakamoto: The individual or group of individuals who created Bitcoin.
Scam: A scheme designed to defraud users of their cryptocurrency.
Scamcoin: Coins created as “get-rich-quick or pump-and-pull schemes” by their developers.
Scammer: A person who participates in a scam scheme.
Scholarship / Scholar: Commonly used in Axie Infinity, the process of managers lending their free Axies to “Scholars” who are new to the game and do not have enough funds to build a team of three NFT monsters needed to play the game.
Security Token: A digital form of traditional securities. Security Token holders can receive many of the same benefits as stocks and other securities.
Seed Phrase: Also known as a recovery phrase, backup phrase, or mnemonic phrase. It refers to a generated list of 12 to 24 words, in a specific order, used by cryptocurrency wallet users to regain access and control of their funds on-chain.
Sell Wall: A situation where a large limit order has been placed to sell when a cryptocurrency reaches a certain value.
Sharding: A scaling approach that allows the blockchain state to be divided into partitions containing states and transaction history. Each partition can be processed in parallel.
Shitcoin: A coin with no value or potential use that has no explicit information.
Smart contract: An agreement between two people or entities in the form of computer code that is programmed to execute automatically. Smart contracts are executed on the blockchain, meaning the terms are stored in a distributed database and cannot be changed.
Snapshot: Refers to the ability to record the state of something at a specific point in time. In blockchain, Snapshot refers to the act of recording the state of a blockchain at a specific block height.
Stablecoin: A cryptocurrency designed to maintain a stable value, rather than experiencing significant price changes.
Support: Support. In contrast to Resistance, support is the lowest point on a chart that, when the price moves to that level, the market will have difficulty breaking it.
Symbol: The code of a cryptocurrency; for example, the symbol for Bitcoin is BTC.
Synthetic Asset: A synthetic asset, sometimes called a synth, that is a combination of a cryptocurrency and a traditional derivative asset.
Taproot: An upgrade to Bitcoin that aims to improve its privacy and network efficiency.
Technical Analysis (TA): A method or tool used to predict the likely future price movements of a cryptocurrency, stock, or security, based on market data.
Technical Indicator: A calculation based on the price, volume, or open interest of a security or contract, used by technical traders.
Testnet: A term for a mechanism for testing blockchains. Through this network, developers can conduct experiments without the risk of affecting the correct operation of the main network.
Token: A type of digital asset created on an existing Blockchain.
Token Generation Event (TGE): The moment when a token is issued.
Token Sale: Refers to the initial offering of a cryptocurrency token to a group of private investors before it is officially sold on the market.
Token Standard: A set of standards by which tokens are developed on a certain blockchain platform. For example, ERC-20 is the most common standard for tokens operating on the Ethereum blockchain.
Tokenomics: Represents the economic nature of cryptocurrency assets. It includes a set of rules that govern the issuance and supply of cryptocurrencies.
Total Supply: The total number of coins/tokens in existence, minus any that have been burned.
Total Value Locked (TVL): A metric that represents the total value of all assets deposited into decentralized finance (DeFi) protocols to earn rewards, interest, new tokens.
Trade volume: The volume of cryptocurrency that has been traded in the last 24 hours.
Trading bot: A program designed to automate the trading of crypto assets on behalf of a trader.
Transaction (TX): The act of exchanging cryptocurrency on the blockchain.
Transaction Fee: A payment for using the blockchain to trade.
Two-Factor Authentication (2FA): Two-factor authentication (2FA) is an access method that requires two different forms of authentication.
Uptrend: Represents a rising trend in the price of a market that can be short-term or long-term.
Utility token: Tokens specifically designed to help people use something.
Validator: A participant in a blockchain with a Poof of Stake consensus mechanism. They participate in validating blocks to receive rewards.
Venture Capital: A form of private equity provided to fund small, early-stage businesses that are considered to have high growth potential.
Virtual Automated Market Makers (vAMMs): A system that provides synthetic (or virtual) liquidity, allowing traders to buy and sell derivatives entirely on the blockchain.
Virtual Reality (VR): The use of computer technology to create a simulated environment that can be explored in 360-degree views.
Vitalik Buterin: One of the creators of Ethereum, the second-largest cryptocurrency after Bitcoin.
Volume: The amount of cryptocurrency that has been traded over a given period of time, such as the last 24 hours.
Wallet: A place where cryptocurrency users can store, send, and receive assets.
Watchlist: A feature of a website where users can create their own list of cryptocurrencies to keep track of.
Weak Hand: Refers to the tendency of traders to panic and sell at the first sign of a cryptocurrency falling in price.
Web 1.0: A term often used to describe the first version of the Internet.
Web 2.0: Describes the current state of the web, which supports more user-generated content and is more stable for the average user than Web 1.0.
Web 3.0: The next generation of the internet.
Web3 Foundation: Established to promote new technologies and applications in the field of decentralized web software protocols.
Wei: The smallest fraction of Ether, with each Ether being 1000000000000000000 Wei.
Whitepaper: A document released by a crypto project that provides investors with technical information about the project’s concept and a roadmap that documents the project’s development plans.
YTD: Year to date.
Yield Farming: Refers to earning interest by investing cryptocurrencies in decentralized financial markets.
Zero Confirmation Transaction: An alternative term for an unconfirmed transaction.
Zero-Knowledge Proof: Allows a party to provide proof that a transaction or event has occurred without revealing the private details of that transaction or event.
Zk-SNARK: A proof that allows a party to prove that they possess certain information without revealing that information.
These are commonly used terms in the cryptocurrency market. Certainly the article still has shortcomings, we will update new terms right in this article.
