Crypto Trading Terms

If you want to trade cryptocurrency, it's good to know the meaning of some unique terms in crypto trading. By using it in conversation, you can demonstrate your existence as part of the professional crypto community and an expert in the field of crypto investment.

Addy The term Addy comes from the slang for Address (cryptocurrency public address). Without the need to type the word "Address" that is too serious and long, Bitcoin users simply write the word ADDY.

Ask Price: The minimum price a trader is willing to sell an asset.
Bid Price: The maximum price a trader or investor is willing to buy an asset.

ATH is a short form for "All-Time High", which means a crypto coin has reached the highest price of all time. For example, the price of ATH Bitcoin reached 20,000 USD in 2017.

Bag Holder A term that refers to a crypto buyer when prices are high, and missed the opportunity to sell when the price is still good. They usually will only sell when prices have dropped dramatically and experienced FOMO.

Borrowing Rate is a term when you open a position using leverage, you will borrow coins at a predetermined rate. This value will be added to reflect the true profit and loss value of all your positions.

Breakout Trading is a forex (crypto) strategy  that relies on breaking prices from a key level as a trigger for entry.

BTFD  Buy The F * cking Dip, which is an indication to buy crypto coins when the price has dropped so sharply.

Bitcoin Halvening/Bitcoin Halving
Bitcoin Halving is an event where the reward block is reduced by half. Halving of this reward block occurs every 210,000 blocks. This halving will only occur when half of the supply of coins is already in circulation. Halving will be repeated when the remaining half of the supply of coins is in circulation, and continues to be so in a period of 4 years. And Bitcoin halving will occur around May or June 2020.

Bullish and Bearish. ... The meaning of other terms from the Bullish market and the Bearish market is the designation of the Bullish Market trend (Uptrend) which means the state of the price goes up while the Bearish (Downtren) is defined as the state of the price down.

Buy the dip, Sell the rally. 
In general, we will buy a crypto if the price is cheap and sell it if the price has risen.

BUY LIMIT, SELL STOP, SELL LIMIT 
BUY LIMIT is a Buy Pending Order below the current price.
SELL STOP is a pending SELL order below current prices.
SELL LIMIT is a Pending SELL Order above the current price.

Bull Trap A short price increase, which seems like the start of a bull market, but actually the prices declined even further after that.

CEX and DEX 
Centralized Exchange (CEX) is a cryptocurrency exchange / trading platform organized by a central organization company to provide a meeting place for people who want to exchange cryptocurrency.
Decentralized Exchange (DEX)  This exchange does not depend on companies or services to control the assets of users. Instead, trading or transactions are controlled by automated processes that are carried out with smart contracts. This trade is said to be peer-to-peer or users. Basically the platform acts as a service that connects trading orders with each other to serve customers who want to exchange cryptocurrency (coins or tokens).


Crowdsale is selling tokens to many people
Softcap is the amount of funds raised during a crowdsale.
ICO hardcap is the maximum amount of capital you want to accumulate.

Dead Coin A cryptocurrencies which has been delisted from all exchanges and has no more liquidity on OTC markets.

DDoS This short form of "Distributed Denial of Service" is a unique term in crypto trading, which occurs when a denial of service distribution occurs. This is usually caused by a server that is too busy or symptoms of hacking. Timely DDoS attacks on the exchange during volatile movements can be very damaging, because traders will not be able to execute orders manually and will depend on previous settings.

Exchange is a site where you can exchange cryptocurrency or buy and sell cryptocurrency with fiat money.


Flippening In the currency market, a shift in value is a natural thing to happen. Even though Bitcoin is still the strongest cryptocurrency at the moment, users certainly anticipate the moment of Flippening, the point where Bitcoin will be replaced by another currency as the top digital currency on the market.

Fill or Kill Is a type of Limit Order that needs to be executed. This type of execution can be divided into 2 types, filled (Fill) or canceled (Kill).


FUD is an abbreviation of Fear, Uncertainty, Doubt. interpreted in everyday language is the spread of news whose truth is still doubtful and uncertain to give fear to the layman about the crypto movement. The aim is that market prices fall sharply.

FOMO This short form of "Fear of Missing Out" represents the feeling when you see a crypto currency that is trending, and decides to act quickly in order to take advantage of these conditions. Because crypto trading is still driven more by emotion than judgment, FOMO is a big factor to consider when trading crypto.

Fundamental and Technical Analysis 
Fundamental Analysis is a method of analysis based on issues, rumors, and various events that directly or indirectly have an influence on the performance of a market. Some experts have the opinion that this Fundamental Analysis is more suitable for making long-term decisions.
Technical analysis itself is a technique used to project price trends. This analysis is done by studying market data in the past, such as Price Action and Volume. Technical analysis can be done by various methods such as Price Action, Chart Pattern, or using indicators such as RSI, Moving Average, and so on.

Going Long and Going Short Going long is a term used for profitable margin trading if prices rise. And going short for profitable margin trading if prices decline.

Hedging is a trading strategy to protect traders' funds from fluctuations in currency exchange rates that are not profitable. Hedging provides an opportunity for a trader to protect himself from possible losses even though he is conducting transactions.


Limit Order or Market Order 
Buy Limit Order are orders to buy cryptocurrency at or below a specified price, allowing traders to determine the price they want to trade.
Market Order  is an order to buy or sell at the current market price. For example, EUR / USD was currently trading 1.2140. If you want to buy at this fixed price, you will click buy and your trading platform will quickly place a purchase order at that fixed price.

Margin Trading is a method of buying shares by borrowing some money from a securities company (broker). The loan is guaranteed by collateral (collateral) in the form of shares in the investor's account. ...

Market Capitalization is one way to rank relative sizes of digital currencies. This is calculated by multiplying the Price with the Supply. Market Capitalization = Price X Supply Supply.

Mooning (To The Moon) The term The Moon refers to the price of coins that are soaring sharply. If we hear the word "Bitcoin is in the moon", it means that price projections are being very optimistic. This term is followed by the status of Hodlmoon, a crypto trader who holds a coin until the price jumps as high as the moon.


Pump and Dump 
Pump aims to force (in this case) the price of a coin to rise unexpectedly. This serves to create a panic. Yes, panic to buy! This (pump) is not always tied to a group. One can even create a buying panic at an exchange. Of course, with enough money. When prices peak, traders who do Pump and Dump will sell all of their Bitcoin, causing prices to plummet and harming other traders who haven't had time to sell their BTC.

Shill is the act of promoting the purchase of coins in the public media. Traders who buy coins have an interest in the hope of sparking public interest in certain coins. When people 's interest in the coin strengthens, Shill' s actors sell their coins to make a profit for themselves.


Signal trading, information that tells traders when to buy or sell

Spot Trading & Margin Trading 
Spot Trading purchased is the value of the item. Yes the most easy example of bitcoin, which certainly all know if buying at a low price continues to sell more expensive is profitable, and vice versa. While the Margin Trading that is purchased is a contract, where the profit / loss obtained is calculated from the difference in the purchase price times the value of the contract, which is called a lot.

Stop-losses and Take profits 
Stop Loss is the value of the lowest price limit specified to limit losses. When price movements touch this value, the system will automatically close the order or position. For most traders, the decision to place a stop loss is an uncomfortable choice. Why? because it means they have received the losses incurred. However, each trader has the right to decide for himself which trading model is most suitable for him, either by using stop loss or ignoring it, it returns to the trading strategy used by each trader.

Take Profit is used to limit the profit that will be earned. If an order that is profit is affected by this limit, the position will be closed automatically. Maybe for some people, obtaining high profits without giving limits will bring in more profits. However, the main purpose of Take Profit is to secure profits. Of course, in determining this Take Profit should refer to the analysis that has been made, so that the level of Take Profit that is set can also be realistic.

Volume Coin is the total transaction of a coin in the market bro, the greater the volume indicates that the coin is a lot of buying and selling transactions. If you want to get profit from trading, try to find coins with volumes above 300 btc per day. because coins with large volumes of risk are small manipulations so it will not affect dump / pump.


Wash Trading
Wash trading is when two parties trade between themselves to make a price movement appear. For example, if A has a coin with a supply of 1 million coins and we sell to B for $ 5. Mean market to be $ 5 Million. Then B sells back to A 0.5 coin for $ 5. Means the current market cap has doubled. If A sells again to B 0.25 coin for $ 5, the market cap is now $ 20 million. So, in these three transactions, we can increase the market cap by 400%. Although this is illegal in other markets because it is a price manipulation, in the cryptocurrency market it is common practice for many people.