A beginners guide to cryptocurrency & Bitcoin related trading terminology

Bitcoin and cryptocurrency trading terminology for Bitmex signals and Bitcoin calls

Altcoin: Alternative Coin, generally all coins other than Bitcoin. For example; Ethereum, Litecoin, Ripple, Tron, Cardano etc.

Arbitrage: An opportunity to profit due to a price difference for the same currency in two or more exchanges. (eg. buying at $100 on exchange A and selling for $140 on exchange B)

Ask price: Selling price.

ATH: “All time high”. The highest price or number.

Average Down: An investment strategy to buy more coins when the price is decreasing, resulting in a lower average price. 

Bagholder: A person who buys a coin (often after seeing a coin’s price start to rise, or after a significant pump) who is then left with the coin when the market dumps.

Bear/Bearish: A Bear generally “shorts” the market, anticipates downward movement.  A Bearish market is one in which the price action is downwards.

Bid price: Buying price.

Buy the dip: Buying the coin at a low price with expectation of an upward movement.

Bull/Bullish: A Bull generally “longs” the market, anticipates upward movement.  A Bullish market is one in which the price action is upwards.

FIAT: Currency such as USD, AUD, GBP, JYP etc.

FOMO: “Fear Of Missing Out”. Generally someone who spot buys or sells when they see the market move, without knowing why or if it will continue.

FUD: “Fear, Uncertainty and Doubt”.  A little like “Fake News”, or reacting to news quickly by buying or selling due to rumours or ‘news’.

Hedge: a strategy to reduce risk, eg. buying a coin but also selling on ‘futures’.

HODL: a mistyped word (hold), meaning to keep the coins to sell later when the price rises to the top.

ICO: ‘Initial Coin Offering’ effectively crowd funding by inventing a coin and exchanging it with another coin of value (eg. Ether).  Investors do so thinking, or hoping, that that coin’s price will dramatically rise.

Limit Order: an order to buy or sell at a price you specify.

Long: ‘buying’ in a margin trade with expectations to profit from a price rise.

Market Order: an order to buy or sell at the current market or spot price, often used to quickly enter or exit a position.

Portfolio: a collection of coins that make up your cryptocurrency account.

Pump and Dump: The act of an investor, or group of people, buying a low-valuecoin to increase the price (encouraging others to FOMO buy) and then selling at the higher price (leaving those others as Bag Holders).

Rally: The period of time in which the market continues to be Bullish or Bearish before changing or stabilising.

ROI: Return On Investment, usually expressed as a percentage indicating the overall account success of trading.

ROE: Return On Equity, usually expressed as a percentage indicating the success of the equity used (ie. amount risked in one trade)

Shill: To ‘talk up’ or promote a coin/project with the intention of getting others to buy it.  Often because the person has invested in it and wants to pump it, or is being paid to promote.  Used often with ‘Shitcoins’.

Shitcoin: A coin or token that is worthless.

Short: ‘selling’ in a margin trade with expectations to profit from a price drop.

Signal / Call: Advice by someone to others, or a group, to buy or sell at a particular time and price or under certain conditions.  (Be careful to differentiate from ‘pump and dump’)

Stablecoin: A coin that has relatively low volatility and can be used to trade against the overall market.

TA / Technical Analysis: A method of analysing price movements, market forces, trends and other variables to predict future movements.

Market Cap: The total value of a coin, calculated by multiplying the supply (amount of coins) by market price per coin.

Moon / Lambo: When the price will be sky high and everyone will be rich.

Trollbox: A chat box where people “troll”, spread rumours, FUD, try to trick others into taking bad trades.

Volatility: A term for price fluctuation.

Wallet: A place where coins are stored.

Whale: A person with a lot of the coin who can move the markets or rich investor.