With the value of Bitcoin almost hitting Rp. 1 billion, many are now interested to start investing or trading crypto assets. Previously, there were many who doubted the potential of crypto assets. Now, the industry is growing each day. Entering the all-digital era, crypto is increasingly recognized as a legal means of payment. Well-known fintech company PayPal has even accepted Bitcoin as a legal tender on its platform. Therefore, it is not surprising that many people now want to trade crypto for profit.
Although there are many traders who previously traded in other asset classes are moving to trade crypto-assets, there are also those who are still very new to crypto and are confused on how to get started. They are especially confused after opening an account on an exchange platform and are lost with all the crypto terms and their meanings. If you are one of them, don’t worry because Tokenomy has prepared learning materials for you to get started! Here are the terms in crypto asset trading that you must know!
Common Terms About Crypto
Bitcoin is the first cryptocurrency created in 2009 by someone who introduced himself as Satoshi Nakamoto. Initially, Bitcoin was created as a decentralized currency with a peer-to-peer (P2P) system that did not require banks as intermediaries
Cryptocurrency, also known as digital currency, is decentralized and uses blockchain technology. Like Bitcoin, cryptocurrencies use a P2P mechanism, i.e. transacting directly from one user to another user without any interference from third parties such as banks
Altcoin is an abbreviation of the word “coin alternative” which refers to other types of cryptocurrencies besides Bitcoin. Some examples of Altcoins circulating in the market are Ethereum, Binance Coin, etc.
Fiat is a term for a legal tender issued by the government and it has no intrinsic value. Examples of fiat money are rupiah, dollar, Malaysian ringgit, etc.
Taken from the name of the creator of Bitcoin, ‘Sat’ is short for Satoshi and is used as a term that refers to the smallest unit of Bitcoin. For example, an investor buys Bitcoin for a certain price and gets 0.00000001 BTC. This smallest fraction of Bitcoin is called Sat, so the investor gets 1 Sat.
Exchange Is a platform that provides a place to buy and sell crypto. On this platform, users can buy and sell crypto using crypto assets or fiat money. Tokenomy is an example of an exchange platform.
FOMO stands for fear of missing out. This term is often used by investors who are new to investing in stocks and crypto. FOMO is used for those who follow market advice blindly as well as investors who fear missing out on opportunities.
FUD stands for Fear, Uncertainty, and Doubt. FUD is a strategy carried out by investors who want to lower the price of a crypto asset so that they can buy it at a low price by spreading FUD to the general public so that they can buy in the coins at a low price.
Whale is a nickname for an individual who owns large amounts of certain crypto assets. Whales usually have assets of at least 5 percent of the total assets on the market. The whales have the ability to manipulate prices using the pump and dump method.
Crypto wallet is an application that facilitates crypto users to store and retrieve their digital assets. This wallet is a software program that can manage digital assets, as well as a place for storing and receiving crypto assets in a transaction.
Deposit is an activity to store money in the form of cryptocurrency for buying and selling or investment purposes.
Withdraw is the activity of withdrawing digital assets or transferring assets to an external wallet, to another exchange, or to another user’s wallet. Just like the process of sending goods, the process of transferring digital assets also requires a destination address in the form of a wallet address, or commonly known as a wallet address, so that the asset successfully reaches the right party.
Terms in Crypto Trading
- Buy is a term for buying coins.
- Sell is a term for selling coins.
- Bid is the maximum price that a buyer is willing to pay for an asset
- Ask refers to the lowest price at which a seller will sell
- Low is the price of the lower limit of the currency.
- High is the price of the upper limit of the currency.
- Chart is visual of the coin’s price chart in the market.
- Volume is the total number of coins traded in a day
- Limit order is the number of coin orders at future prices to be executed when the target price is reached.
- Breakout is an event where the price breaks out of the consolidation area or price range of an asset after trading for a certain period of time.
- Cut Loss is when someone sells a crypto asset at a price lower than the purchase price, it results in a loss.
- Hodl is an anagram of Hold, which means to hold. In the crypto community, Hodl has the meaning of ‘Hold on for dear life’, or referred to as a strategy to hold or maintain crypto assets owned.
- Dump is the activity of selling coins after the price rises.
- Dump and Pump are a crypto price manipulation method used to earn profits. Usually, the price will be manipulated to increase which encourages investors to purchase. Once the price has increased, the traders sell the assets for a profit and the price will fall once again.
- Bearish is a term used when the price of a crypto asset stagnates and declines.
- Bullish is a term used when the price of a crypto asset increases.
- Sideway is a term used when market conditions are flat due to both strong bullish and bearish factors.
Did the glossary above help you to better understand crypto terms? When you understand better, you can be confident to start investing in crypto with Tokenomy! With an easy registration process, you can start making profits through crypto-assets with Tokenomy. There are also many investment programs such as depositing and staking crypto assets for you to try out. These programs are good for beginners who are not keen on trading crypto just yet. If you are new to trading crypto, you can also use a demo account to practice your technical skills before trading live.
What are you waiting for? Come on, let’s get started!