Trading Terminology

Click on a term below to see the definition.
ARBITRAGE (ARBING)

The act of purchasing coins on one exchange and selling them on another. This is usually done to exploit a price difference between exchanges.

TECHNICAL ANALYSIS (TA)

Financial analysis techniques that use patterns in market data to identify trends and make predictions.

STOP BUY

An order which is triggered by the act of a traded crypto going above a price set by the trading party.

STOP LOSS

An order which is triggered by the act of a traded crypto falling below a price set by the trading party.

WHALES

Traders with massive amounts of the currency. They can sell and buy in quantities large enough to manipulate the market price in the short term for their financial gain.

LONG POSITION (A LONG)

Making a purchase with the hope that the item will increase in value so that it can be sold for a profit. This is what most investors do.

MARGIN SHORT (SHORTING)

This is the act of selling something that you’ve borrowed with the hope of being able to buy it back later at a lower price.

MARGIN TRADING

Margin Trading is trading using money that has been loaned by an exchange. A deposit of capital must be placed to receive the said loan.

MARKET ORDER

A market order is a buy or a sell order on the market with no regard for price.

CORRECTION

A correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset.

RESISTANCE LEVEL

The resistance level is the value at which a positive price movement is interrupted by an overwhelming level of supply. Resistance levels are usually found at the upper levels of range bound markets (top of a channel).

SUPPORT LEVEL

A value at which, historically, a stock has had difficulty falling past. Supports that are confirmed mean that the price has not fallen past the given level; eradicated supports are ones which the price falls past. Buyers typically buy at a confirmed support level.

Common Crypto Terminology

Click on a term below to see the definition.
ATH

All-time high, or the highest price a coin or token has risen to.

BLOCKCHAIN

A digital ledger in which transactions made in a cryptocurrency are recorded chronologically and publicly. In Ethereum’s case, it also records the execution state of applications on the platform. In “gen 3” blockchains, POS is used instead.

BULLISH

Optimistic towards the value of the Coins/Tokens going up; It would be said they were bullish on the Crypto. If the Coin or Token starts to climb rapidly, this denotes a “Bull Run.”

BEARISH

A belief that the value of the Coins/Tokens is going to fall; It would be said they were bearish on the Crypto. If the Coin or Token starts to fall rapidly this denotes a “Bear Run/Market.”

COLD STORAGE

A means of storage for taking crypto away from the internet, specifically on a paper wallet or in a hardware wallet.

FIAT

Fiat money is the currency that a government has declared to be legal tender, though it is not backed by a physical commodity ( e.g. $, £, etc.).

FOMO

This stands for “Fear of Missing Out.” It is a term used to describe the act of purchasing a Crypto while it is on a bull run. It often carries a negative connotation, in that FOMO may cause the price to be artificially high and indicate that a correction is coming.

FUD

This stands for “Fear, Uncertainty, and Doubt.” It is a term used to describe the malicious spread of negativity. This is often done with the goal of causing inexperienced investors to sell, or possibly cause a temporary dip in price.

HARDWARE WALLET

A hardware wallet is a cryptographically secure piece of hardware designed to keep wallet information secure (e.g. Trezor wallet, ledger nano, etc.).

ICO

This stands for “Initial Coin/Token Offering.” It is a new coin that is being sold at a base price before the launch of the service it is associated with.

MINING

Mining is the act of contributing processing power to a blockchain network to help determine the next block. It is incentivized by the chain providing a reward for doing so.

PAPER WALLET

A paper wallet is a printed document containing the information linked to your wallet (I.e. your private key, public key, etc.).

PRIVATE KEY

This is like the key to your home. It can unlock your wallet and everything inside it for whatever transaction you (or whoever has it) chooses. It is not advisable to share this with ANYONE.

PUBLIC KEY

This is your wallet address. This is the key you will share with people in order to have cryptos sent to you or requested from you.

SMART CONTRACT

A smart contract is a piece of code that can be broadcasted to the blockchain and executed. Used to write applications that run distributed across the platform.

STAKING

In a Proof of Stake system, this generally means leaving your coins in your wallet to increase their stake to net rewards from block creation.