Connect with us

Blockchain

80 Crypto Trading Terms You Must Know

So, you have started to get acquainted with the crypto market but there are still some crypto trading terms or abbreviations whose real meaning you don’t understand? You came to the right place because, in this article, we will explain the most used expressions in the simplest possible way. Without further ado, let’s dive into […]

The post 80 Crypto Trading Terms You Must Know appeared first on Cryptocointrade.

Published

on

So, you have started to get acquainted with the crypto market but there are still some crypto trading terms or abbreviations whose real meaning you don’t understand? You came to the right place because, in this article, we will explain the most used expressions in the simplest possible way.

Without further ado, let’s dive into it.

1. Trading Bot

Aa automated software which places buy and sell orders on exchanges on the behalf of the trader.

2. API

API or Application Programming Interface is a way for various components to communicate with each other. In crypto, API is the system that enables a program (for example, trading bot) to communicate with the user’s exchange account or crypto wallet.

3. Automated Trading

In automated trading, traders set up a specific set of rules for entries and exits that are then automatically carried out by a pre-programmed computer.

4. Backtesting

Once a trader devises a trading strategy, he can test it on some past market timeframes, which is called backtesting.

5. Trading Signal

A signal for market action. Be it to place a buy or sell order, a trading signal is always based on some form of analysis (fundamental or technical).

6. Trading Products/Instruments/Features

Crypto trading products are everything you can trade in the market – bonds, stocks, CFDs, ETFs, futures, etc.

7. Leverage

When trading with leverage, a trader who already has funds he’s going to invest, basically borrows the extra cash from the exchange or a broker to enhance his gains.

8. Go long

Going long is buying a cryptocurrency with the intention of selling it at a higher price. One of the most important crypto trading terms.

9. Go short

Going short is selling a cryptocurrency with the intention of re-buying it at a lower price and lock the profit from the price spread.

10. Derivative trading

All types of trading that don’t include owning the traded asset are called derivative trading, such as Bitcoin CFDs, ETFs, BTC futures contracts, etc.

11. Futures trading

Futures trading is when a buyer and a seller make a contract to buy and sell a cryptocurrency at a pre-determined price on a pre-determined date.

12. Swaps trading

Swap trading is when a trader trades an asset without going on a platform owned by a third party (e.g. exchange).

13. Stop loss

A sell order placed below the buying value of the cryptocurrency to stop a trader from losing more money if the price starts declining.

14. Margin Trading

Like leverage trading, margin trading refers to borrowing money to trade an asset.

15. Margin Balance

The amount a trader borrows to do margin trading.

16. Margin Order

Placing a buying or selling order with a certain amount borrowed from an exchange or a broker.

17. Interest rates on leverage trading

Just like with a bank loan, when trading with a borrowed money, a trader needs to return the loaned funds to the broker or the exchange with interests.

18. Liquidation Level

A level (the exact amount of funds in trader’s account) at which liquidation process is automatically executed at the best available exchange rate. One of the most important crypto trading terms.

19. Guarantee Stop loss

A stop-loss order that guarantees that a cryptocurrency will be sold at that exact pre-determined price. Some CFD trading platforms does offer this feature.

20. Auto Deleveraging (ADL)

Or ADL is a case the exchange or a broker automatically deleverages trader #2 if a trader #1 cannot fill the liquidation. This feature can only be found on certain trading platforms and eToro is a great example.

21. Negative Balance Protection

An automatic system which ensures that a trader trading with leverage doesn’t lose more money than he initially deposited.

22. Trading strategies

A pre-determined set of rules by which a trader behaves in the market.

23. Day trading

A strategy where all buy and sell orders are closed inside a single market session (a day).

24. Swing trading

A strategy where traders take longer time (usually more than a couple of weeks) to close their trading plan.

25. Arbitrage trading

A trading strategy implemented by traders which look to profit from a spread between the price of a cryptocurrency on various exchanges or of the differing ration between more than two coins on a single exchange.

26. HODL

Initially a typo but now considered to mean Hold On for Dear Life means buying and keeping a cryptocurrency for a longer period of time (usually more than a year) in a hope that it will reach some pre-determined price. One of the funniest crypto trading terms.

27. Technical Analysis (TA)

Used for shorter-term trading, Technical analysis is an implementation of various tools on a trading chart in order to discover future market movements. This is an important resource for everyone learning about the crypto market. If you’re interested, you can read our Technical Analysis here.

28. Technical Indicator

A visual representation of an analytical mathematical calculation shown in the cryptocurrency trading chart.

29. Moving Average Convergence Divergence (MACD)

A technical indicator which calculates the difference between cryptocurrency’s 26-day and 12-day Exponential Moving Averages (EMA), with both using closing prices of the measured period.

30. Bollinger Band

A combination of the 20-day Exponential Moving Average (EMA) and two related bands forming a channel which represents the price volatility.

31. Relative Strength Index (RSI)

A momentum indicator, depicted as an oscillator below the trading chart, providing a clear picture if a cryptocurrency is overbought or oversold. It has values between 0 and 100 and moves between those two extremes.

32. Average Directional Index (ADX)

A technical analysis tool used by traders to determine the overall strength of a current trend a cryptocurrency follows in the market.

33. Trading Chart/Graph

A visual representation of a crypto’s price movement, mostly by “candlesticks”.

34. Time interval

The amount of information contained by a single candlestick. In the 15-minutes interval, a single candlestick is going to represent what happened to the price of a cryptocurrency during a period of 15 minutes.

35. Candlesticks

A visual representation of a spread between the opening and closing price of a cryptocurrency during a certain time interval in the chart. A red candlestick means that the price declined while a green one represents positive price movement. This one is among the most important crypto trading terms.

36. Support

The support is the price point where, during the declining price movement, buyers start pushing the price of the cryptocurrency back upwards.

37. Resistance

The price point where sellers, during the rising price movement, start pushing the price back down.

38. Opening price

The price at which an asset begins trading in at the beginning of a trading day. In crypto, since the market is opened 24/7, can refer to the price at the beginning of the calendar day.

39. Closing Price

The price at which an asset ends trading in at the end of a trading day. In crypto, since the market is opened 24/7, can refer to the price at the end of the calendar day in a daily chart.

40. Fundamental Analysis

An analysis performed over the fundamental features of a cryptocurrency and its underlying project to discover its long-term potential (e.g. market competition, development team, regulatory environment, marketing potential, etc.). One of the most important crypto trading terms for those who are learning the trade. You can read our updated Fundamental Analysis here.

41. Social Trading and Copy Trading

Social trading is when investors enable each other to “see” their trades and strategies on online platforms. In turn, that enables copy/mirror trading where investors literally copy each other’s market moves. Etoro is the best example of a social trading platform.

42. Pump and Dump

A market event when the price of a single cryptocurrency suddenly surges pushed up by an unsuspecting buying wave just to be pushed back down by an even heavier selling session, making those that invested near the peak lose a lot of money.

43. Order Book

A section of the exchange where all active buy and sell orders can be seen.

44. Limit Price

Prices at which buyers and sellers place their orders that cannot be immediately filled since they differ from the current market price. One of the most important crypto trading terms.

45. Market Price

The last value a cryptocurrency has been sold/bought for.

46. Fill or Kill

An order which is terminated unless it has been immediately filled.

47. Stop-limit

A conditional trade tactic implemented over an established timeframe combining stop and limit orders with the aim of lowering the risk, mostly implemented in automated trading and trading bots.

48. Trailing Stop

A series of stop-loss orders placed strategically over a declining price range.

49. Order History

Compiled information on all filled orders a trader made on the trading platform.

50. ICO

Initial Coin Offering is a way for companies to fund their ventures by selling their utility tokens to private and institutional investors before releasing them on the open market.

51. Token

Representation of value inside the network. Contrary to coins, tokens enable their owners to participate in the network.

52. Coin

Similarly, to tokes, it is the representation of the value inside the network but does not give the user the power to participate in the network.

53. Ticker Symbol

Abbreviation of the asset’s name (e.g. Bitcoin – BTC).

54. Wallet

A piece of software or hardware which holds private keys that give the user access to his funds.

55. CFD trading

CFD trading is when a broker and a trader sign a contract agreeing to exchange the difference in the value of a cryptocurrency at the end of the contract.

56. Demo trading account

AN account on a trading platform showcasing the user experience and interface where traders can trade fake (worthless) money in the real market conditions.

57. Fiat currencies

Inconvertible currencies made legal by governments (e.g. US dollar, Euro, etc.).

58. ID verification

Verification on the trading platform or similar third party service by personal identification.

59. KYC

Know your customer/client policy implemented usually by trading platforms to be able to trace deposited and withdrawn funds.

60. AML

Anti-money laundering policy also implemented usually by trading platforms in order to prevent illegal practices.

61. Multisig

Multi-signature means that something needs more than one permission to be used.

62. 2FA (two-factor authentification)

A software way of ensuring the safety of a trading account by connecting it with some other device (e.g. smartphone) through an ever-changing series of digits.

63. Private keys

A secret phrase of numbers and letters that allows an owner to access his funds on the blockchain.

64. Market Maker

A person who trades by not taking already placed trade orders but making his own which will be fulfilled in the future (maybe a minute, an hour, or even longer period of time). These individuals usually enjoy lower trading fees.

65. Market Taker

A trader who takes already placed trade orders.

66. Spread

The difference between the highest bid price and the lowest sell price. One of the most important crypto trading terms.

67. Deposits SEPA, Wire transfer

Traditional ways of money transfer. Usually, from a bank to exchange.

68. Proof of Work

PoW is a consensus reaching mechanism on the blockchain-based network used by some of the biggest cryptocurrencies like Bitcoin, Ethereum, etc. Needs a lot of computational power in the form of mining rigs and ASIC miners.

69. Proof of Stake

PoS is a consensus reaching mechanism on the blockchain-based network. Used in various forms by EOS, NEO, etc. Owners stake their coins/tokens in their wallets to secure the network and, in turn, receive rewards in crypto.

70. Volatility

Liability to rapidly change value. Small market caps tends to have greater volatility.

71. Liquidity

The degree to which a cryptocurrency can quickly be bought or sold in the market. The more people trade an asset the more liquid it is.

72. Bull market

A prolonged period of a positive market sentiment when prices tend to rise.

73. Bear market

A prolonged period of a negative market sentiment when prices tend to decline.

74. Market cap

Market capitalization is a number we get when we multiply the number of units of the cryptocurrency present in the open market with the price of a single unit. Represents the “power” of the cryptocurrency.

75. Inflation

A decrease in the purchasing power of the asset caused by new units entering the market. Usually expressed in percentages. Mineable cryptocurrencies have an inflation while pre-mined doesn’t.

76. Hard fork

An event when a single blockchain, through a certain software upgrade, gets split into two and both versions remain relevant in the market. Can happen when a development team behind the project disagrees on the future of the project and decides to go separate ways (e.g. Bitcoin – Bitcoin Cash or Bitcoin ABC – BItcoin SV).

77. Mining

Using hardware to solve mathematical tasks in order to validate transactions on the network in PoW systems and, in turn, receive rewards for the service.

78. Mining Reward

A cryptocurrency reward that’s given to an individual for verifying transactions on the blockchain-based network.

79. Mining Difficulty

A value representing how hard it is to validate a transaction on the blockchain and is determined by an overall hash rate on the network and network’s global mining difficulty.

80. Network fee

A fee paid by an individual for doing transactions on the network. This is usually received by the miners or those who stake their coins or lock them up in a masternode.

Source: https://www.cryptocointrade.com/crypto-trading-blog/crypto-trading-terms-glossary/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-trading-terms-glossary

Blockchain

Bitcoin dominance is an irrelevant metric unless…

Published

on

The volatile cryptocurrency market has given way to multiple metrics for the market observers to analyze and predict what’s coming next. One such metric has been Bitcoin dominance, but as per Su Zhu, it should not be relevant to you unless you are a billionaire.

How so?

The CEO of Three Arrows Capital opined this after noticing the trend of the newcomers avoiding Bitcoin and Ethereum and opting for risky crypto tokens. When the largest digital asset was stuck in a wider correction period, altcoins like Dogecoin [DOGE] grabbed much attention. This was possible due to the hype created by Tesla CEO or, self-proclaimed “doge-father,” Elon Musk and the Doge community.

However, understanding the newcomers’ enthusiasm Zhu opined that if he were to bet on projects now, he would choose Solana and Avalanche.

Despite the popularity of altcoins, the exec remained bullish on Bitcoin and Ethereum as he expected, the former to flip gold’s market cap, and the latter to eventually hit a value above $25,000. Bold predictions, but nothing we haven’t heard before.

However, newcomers were more bothered about the dominance metric but as data suggested, Bitcoin dominance has recently been falling. The dominance was hit earlier but recovered to form a peak at 49.25% on 30th July. But given the correction phase that followed, the dominance of BTC fell and was last noted to be at 40% on 10th September.

It is interesting to note that despite plenty of adoption related news such as that of El Salvador, coming in over the past few weeks, it looks like the dominance has remained unaffected by it.

Source: CoinMarketCap

Twitter user and crypto enthusiast, @HsakaTrades also noted that Bitcoin dominance was not a relevant metric for anyone who has a “sub mid 9fig portfolio]. Agreeing with Hasaka, Zhu added,

“To clarify, if you’re holding for 5+ yrs, you shouldn’t be thinking about btc dominance in the first place. And obv btc and eth have a strong place in that portfolio.

If you’re allocating actively atm, and think debating btc v eth v alts is a good framework, you’re ngmi.”

While this advice could stand true for experiences, long-term trader interested in making money, but not the ones looking out to invest in tech. This was especially highlighted in the comments wherein the crypto users were upset about the CEO’s Solana [SOL] recommendation that recently witnessed an outage.

Nevertheless, the trading advice and strategies differd from trader to trader and Zhu’s opinion to not focus on the BTC dominance, prebably stemmed from a hodlers perspective. While interesting projects were now erupting in the crypto space, it looks like Bitcoin’s dominance, not only in terms of price, but as a crypto project could be challenge.

Where to Invest?

Subscribe to our newsletter

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/bitcoin-dominance-irrelevant-for-anyone-not-10figs

Continue Reading

Blockchain

Millions of Dollars Raised Through Solana’s DeFi Projects

Millions of Dollars Raised Through Solana's DeFi Projects

PAI, an algorithmic stablecoin, backs Parrot Protocol. Grape Protocol was the primary source of the downtime. Solana has been up

The post has appeared first on thenewscrypto.com

Published

on

  • PAI, an algorithmic stablecoin, backs Parrot Protocol.
  • Grape Protocol was the primary source of the downtime.

Solana has been up nearly 3200% since August. Investors’ interest in Ethereum rival systems featuring DeFi, NFT, and smart contract services has risen dramatically.

The software applications that simulate legal contracts are smart contracts. Once housed on a blockchain network, the software application will run automatically without human intervention.

This month, Solana’s DeFi initiatives raised millions of dollars. This is another proof of Solana’s potential to compete with Ethereum. Currently, Ethereum has the most DeFi and NFT projects.

Bots raced to invest in a token sale for Grape Protocol over flooded the blockchain, causing Solana to collapse for 17 hours on Tuesday. Let us take a look at the few IDO that helped raise millions.

Grape Protocol

Grape Protocol, the primary source of the downtime, managed to raise just $600,000 on Raydium’s “Acceleraytor.”

Tokenized communities may use Grape Network to connect to platforms like Discord, Telegram, and soon twitter to collaborate over Solana and reward members with crypto.

Parrot Protocol

Parrot Protocol is based on Solana. Investors in the Initial DEX offering included Sino Global Capital, Alameda Research, and QTUM VC. Moreover, to put it simply, Parrot is a non-custodial lending platform and decentralized exchange.

PAI, an algorithmic stablecoin, backs Parrot. Furthermore, Parrot offered a governance token called PRT in its IDO. Thus, allowing investors to vote on the protocol’s operation and farm yields on Solana without affecting other Layer 1 blockchains.

Solana’s failure impacted Parrot’s IDO, but it was resolved by Sept. 16. Moreover, the team said it would start working on PRT staking, NFTs, and adjustable interest rates in “Letter from the Parrot.”

Several Solana initiatives will be launched in the next day’s/weeks. Examples include Solanium, Boca Chica, and Solstarter. On Solanium, whitelisted users may buy MatrixETF.

PlatoAi. Web3 Reimagined. Data Inteligence Amplifed.
Click here for Free Trial.

Source: https://thenewscrypto.com/millions-of-dollars-raised-through-solanas-defi-projects/

Continue Reading

Blockchain

Cosmos (ATOM) Lead Market-Wide Rally

Cosmos (ATOM) Lead Market-Wide Rally

Cosmos’ creators call it an “internet of blockchains.” ATOM also launched a bridge to Ethereum at the end of August.

The post has appeared first on thenewscrypto.com

Published

on

  • Cosmos’ creators call it an “internet of blockchains.”
  • ATOM also launched a bridge to Ethereum at the end of August.

Cosmos (ATOM) blew up 10.74 percent overnight to establish a new price of $39.58, according to CoinMarketCap. It surpassed $40 yesterday, reaching $40.76. Despite today’s minor decline, Cosmos’ price was still ten dollars more than seven days ago, and twenty dollars higher than this time last month.

Its creators call it an “internet of blockchains.” It’s an interoperability network that allows various blockchains to connect, exchange data, and interact with one another.

In short, Cosmos claims to address some of the “hardest problems” in the blockchain sector. It seeks to provide an alternative to “slow, costly, unscalable, and ecologically harmful” proof-of-work protocols like Bitcoin by connecting blockchains. On August 18, Cosmos rose 25% from $15 to $20 after the introduction of Emeris, a cross-chain DeFi interface.

It also launched a bridge to Ethereum at the end of August. The inter-blockchain communication protocol (IBC) allowed trade across the Cosmos and Ethereum networks for the first time, along with the integration of Sifchain.

Cosmos Might Soon Over Take FTX Token

Cosmos is “Blockchain 3.0” — thus, as previously said, ease of usage is a significant objective. To this aim, the Cosmos SDK emphasizes modularity. This enables a network to be created quickly using existing code. Long term, it is anticipated that sophisticated applications would be simple to build.

Cosmos now has the twenty-first largest market value, but at this pace, it would only take $0.8 billion to flip FTX Token and make a bold entry into the top twenty.

Some in the crypto sector, much worried about the amount of fragmentation in blockchain networks. There are hundreds, yet few can converse. Cosmos wants to change this by making it feasible.

PlatoAi. Web3 Reimagined. Data Inteligence Amplifed.
Click here for Free Trial.

Source: https://thenewscrypto.com/cosmos-atom-lead-market-wide-rally/

Continue Reading
Uncategorized4 days ago

Wicked Craniums are now Nifty Gateway!

Blockchain3 days ago

Massive NFT and Token Giveaway from Polker as Staking is Announced!

Uncategorized4 days ago

Acorns Hires Former Amazon Executive as President, Hints at Crypto Options

Uncategorized4 days ago

Swissquote Confirms European Expansion Plan, Focusing on Crypto

Blockchain4 days ago

Biggest Crypto Adoption Rumours: Apple, Amazon, and Walmart

Uncategorized4 days ago

Investor: Coinbase’s $2 billion junk bond deal shows crypto ‘supercycle’ is in place

Blockchain4 days ago

Gate.io Introduces OpenPunks, A Community-Based NFT Collection

Blockchain4 days ago

The Signal and the Noise

Uncategorized4 days ago

Head of Australian Crypto Exchange Says Regulations Are Beneficial

Uncategorized5 days ago

How to fix the Party Member Preloading error in Apex Legends

News4 days ago

Evaluating Credit Card Debt Relief Options

Uncategorized4 days ago

Nickelodeon All-Star Brawl will include DLC fighters post-launch

News3 days ago

Gods Unchained and Guild of Guardians Layer 2 Solution Immutable Raises $60 Million

Uncategorized4 days ago

Bingbon Launches its Carbon Free and Afforestation Project

Blockchain4 days ago

Public.com Inks Deal with NFL Star to Advise on Financial Literacy Programs

Blockchain1 day ago

Over 40 days after Ethereum’s EIP-1559, here’s where it stands

Blockchain4 days ago

What’s Behind Elrond (EGLD) Daily Surges?

Blockchain4 days ago

Ethereum’s Infura Launches Tool To Prevent Over-payment Of Fees

Uncategorized4 days ago

This needs to happen before Peter Schiff will buy Bitcoin (BTC)

Blockchain4 days ago

xtingles To Drop Its First ASMR NFT “Free Like A Butterfly” On September 16

Trending