Hey, what does this mean?
Mining = Super computers, which perform complex mathematical problems. Every time a solution is found the miner is rewarded with Bitcoin. Note: Some AltCoins also use mining.
D.Y.O.R = Do Your Own Research.
AltCoins = Coins/tokens on the blockchain. Not Bitcoin.
TA (Technical Analysis) = Using graphs and charts with indicators to study the direction of the markets. Using these tools to place educated trades, thus lowering/managing risk.
ICO (Initial Coin Offering) = The price of an AltCoin when it is first released and ready to buy.
Liquidity = Lots of money flowing in.
Dead cat bounce = When the price is in an overall decline but suddenly rises for a short time before dropping again.
Catching a falling knife = Buying a coin/token as it continues to fall.
HODL = Hold – Bitcoin slang for not selling. Buying and not trading a coin is classed as HODL, usually long term. (Hold was misspelt by a drunk trader back in 2013 and has stuck ever since).
Noob = Me! someone who doesn’t really know what they’re doing – Learn, learn and learn. Do not rush! Also used to describe someone new.
Bull = Someone who sees the future price action being positive and going up. A person who always says that the price action will go up is often referred to as Permabull.
Bear = Someone who sees the future price action being negative and going down. A person who always says the price action will go down is often referred to as Permabear.
Volatile = Unstable and has the ability to move in any direction very quickly.
Airdrop = Receiving coins, for free, directly to your cryptocurrency wallet or exchange.
Dollar cost averaging = Buying more of an asset as it continues to fall. Lowering the original “buy in cost” after a sudden drop in the market.
Bart/Barting = Sideways movement. When trading is only moving slightly up and down for a period of time.
Scalping = Quick trades, usually with higher risk. Buying a lowpoint and selling higher after a very short move. Or vice versa (shorting).
Short = Reverse trading. To buy a cryptocurrency high, “bet” (leverage) on a drop in price, and sell lower.
Long = To buy cryptocurrency low and “bet” (leverage) on a rise in price, and sell higher.
Leverage = To borrow money/asset to ‘invest’ and pay back with profit above the current interest rate.
FOMO – Fear Of Missing Out. Leaving decision making to the last moment. Risky trading.
Trading bots = Code written for automatic trading using API’s that link to online trading exchanges. Used by individuals to buy and sell cryptocurrency with no human interaction.
Stop loss = An automatic sell area. Trading exchanges for cryptocurrency allow you to place a closing price that you’re not willing to go past. Once this price is “triggered” your closing price is activated. This happens either by ‘Taker’, immediately closed, or ‘Maker’, closing price added to the order book.
Maker = Your trading buy or sell price is added to an exchange’s order books. This means you pay less fees once your order is fulfilled.
Taker = You would buy or sell at ‘current market’ price, immediately fulfilled. Full exchange charges for this transaction apply. Usually more expensive.
Fiat = Everyday “normal” currency, your £’s $’s €’s – Yuk, we got crypto! Move out the way…
Market maker = Exchanges, wealthy individuals or just a particular price range with lots of buy/sell points on the order books.
