Trading Terms

Trading Terms

Now that you’ve read our Blockchain Terms, read our useful Trading Terms to give you some insight into the everyday conversation terms used in Crypto articles, news and forums.

All Time High (ATH)
The peak of a coin’s price.

Bag holders
Investors who buy and hold coins hoping to make profits in the future. They have possibly fallen for a pump & dump trap or bought into a coin at a high price and then are left to hold the coin as its price drops. They are holding the coins because they might not have another choice, if they sell they lose quite a lot, in other words they are left “holding the bag”.

Bloodbath
When a large number of coins lose a lot of their value and your portfolio has gone from all greens to all reds.

Bull Market
A market in which there is positive price movement, encouraging more people to buy.

Buy The Dip
Sometimes also known as Buy The F*%$ing Dip means to buy a coin when it’s lost quite a bit of its value because from now on the only way is up. This is one basics of crypto (or any) trading!

Buy Wall
A buy wall occurs when the number of buy orders for a certain coin is greater than the amount of sell orders. See how to use buy and sell walls when trading.

Bear Market
A market in which there is negative price movement, encouraging more people to sell. Until people start Buying The Dip and prices start to go up.

Dump
Selling off a coin. Dumps normally happens when there is negative news or Whales playing leading to a Bear Market and everyone sells off (dumps) their coins.

DYOR
Do Your Own Research. The reply normally seen in Crypto forums when a newbie asks a stupid question.

Feeling Bullish
Feeling confident that a coin will grow in value.

Feeling Bearish
Feeling that a coin will lose its value.

FOMO
Fear Of Missing Out. When the coin price is increasing fast and you want a piece of the action. You frantically buy into a coin to avoid missing out. This usually happens during a pump and you end up buying at ATH.

Fiat
Fiat currency. Legal currencies such as US Dollar (USD), Great Britain Pound (GBP), EURO, Chinese Yuan Renminbi (CNY) and so on. Usually used to buy coins or swap your coins for such a currency. Also coins are linked to a Fiat currency to determine the coin’s monetary value.

FUD
Fear Uncertainty & Doubt. Fake or bad news that’s spread about a coin to cause others to doubt their investments and sell, or prevent from buying into a coin. Tactics used by anonymous groups or individuals to make a quick buck by panicking the market.

HODL
Purposeful misspelling of Hold, or maybe even “Hold On for Dear Life” (HODL) when things are really bad. This is the practice of holding on to a long term investment without giving in to the urge to sell when prices are going down fast. This is normally a rallying cry of investors who bought at really low prices or at ATH, encouraging others not to sell so their own investment doesn’t get worse.

Lambos
Short for Lamborghini.“Hi, I heard there are Lambos” usually said by newbies who started trading in Cryptos expecting to become millionaires overnight.

Market Cap
Short for Market Capitalization. It means the total value of a coin. Market Cap for a coin is calculated by multiplying the number of total coins in circulation by the price of the coin.

Moon
When the price of a coin is going up and up at a fast pace, just like a rocket. Investors jokingly say the coin is going “to the moon”.

Pump & Dump
A tactic where groups buy into a coin cheap and spread hype causing unsuspecting investors to buy in. More investors get FOMO and buy the coin causing prices to go up, and the more investors get FOMO. This starts a a vicious positive feedback loop causing the price to “pump” up. Then the groups “dump” their coins when the price is high causing a crash, leaving the unsuspecting investors left with over priced coins. There investors then either sell their coins at a loss or keep their coins for long term and are known as “bag holders”.

Sell Wall
A sell wall happens when the sell order numbers are bigger than the buy order numbers.

Shitcoin
A must hyped coin with no potential value or use.

Short
Selling motivated by a belief that the price will decline so you can back it back at a lower price.

Strong Hands
Investors who don’t panic or get over excited as soon as their coins fluctuates a little.

Weak Hands
Investors who buy a coin then panic sell as soon as the price dips.

Whale
Individual or group who hold a very large number of coins. They can influence the price of a coins by buying/selling in large numbers causing panic selling or bullish buying. These Whales usually manipulate the market through their “pump and dump” tactics. No one likes Whales, they play their games causing small investors to lose their money.