If you are a crypto trader, you will hear a lot of crypto trading terms people use on Twitter, telegram, discord, Reddit, and other community platforms. Having familiarity with these terms is important to understand the market and identify crypto signals.
In this article, we’ve compiled some of the most important crypto trading terms you should know if you’re trading cryptocurrency.
21 Crypto trading terms
- HODL: Buy and hold on to it for a long time.
- BUIDL: Keep your head down and build the next financial system.
- SAFU: Funds are safe.
- ROI (Return on Investment): How much money you are making (or losing).
- ATH (All-Time High): The highest price ever recorded.
- ATL (All-Time Low): The lowest price ever recorded.
- FUD (Fear, Uncertainty, and Doubt): Spreading of fear and misinformation to gain an advantage.
- FOMO (Fear Of Missing Out): The emotion you feel when you panic buy.
- DYOR (Do Your Own Research): Don’t trust, verify.
- DD (Due Diligence): Smart people make decisions based on facts.
- AML (Anti Money Laundering): Regulations that prevent criminals from hiding their money.
- KYC (Know Your Customer): Regulations that make exchanges verify your identity.
- ICO (Initial Coin Offering): A popular, and usually unregulated, way to raise cash for new cryptocurrency ventures.
- Whale: Players who hold huge amounts of bitcoin.
- Altcoin: The term is used to refer to any cryptocurrency that is not Bitcoin.
- Bearish: Negative market sentiment. The prices are either going down or will start to go down.
- Bullish: Positive market sentiment. The prices are either going up or will start to go up.
- Burn: The process of destroying tokens to decrease the total supply and cause a price increase if the demand remains the same.
- Dapp: A decentralized application that is run on the blockchain.
- DeFi: A term for decentralized finance that runs on the blockchain.
- Gas: The name for the transaction fee paid on the Ethereum network.
This is not an exhaustive list but some very important terms you keep hearing. I hope this will give you some familiarity while decoding crypto communities. Now you can feel more SAFU with all these abbreviations. Make sure to DYOR on FUD, not blindly FOMO into a coin that has reached ATH, and keep HODLing and BUIDLing.