Alpha

An investment recommendation made by an "expert" that indicates the entry and exit prices for a crypto asset / project. 

 

Bear / Bear Market

In the context of cryptocurrencies, a bear is an investor who is pessimistic about the market and expects prices to decline. A crypto bear market is a prolonged period of time when prices are falling, market confidence is low, and supply is greater than demand. 

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Blockchain

In cryptocurrency, blockchain refers to a distributed ledger of data records that are linked together to form a chain. Blocks: Each block contains transaction data, a timestamp, and a cryptographic hash of the previous block. Chain: The blocks are linked together in chronological order to form a chain. 

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Breakout

This is the initial movement where the price breaches a significant support or resistance level. It's essential to look for signs of genuine momentum and increased trading volume during this phase to validate the breakout. 

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Bull / Bull Market

In the crypto world, the term "bull" refers to an investor who is optimistic that the price of a cryptocurrency will increase over time. A bull market is when the price of a cryptocurrency increases over 20% from its lows and stays there. This is often due to a positive economic environment, high demand, and low supply. 

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Candlestick

In cryptocurrency trading, a candlestick is a visual representation of price movements over a specific time period. A candlestick displays the opening, high, low, and closing prices of an asset. 

 

Candlestick Wick

In cryptocurrency trading, a candlestick wick, also known as a shadow or tail, is a thin line that extends from the top and bottom of a candlestick's body. The wick indicates the highest and lowest prices an asset reached during a specific time period. 

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Ecosystem

The crypto ecosystem is a decentralised network powered by blockchain technology. The ecosystem comprises blockchain protocols, miners, developers, exchanges, investors, and crypto media, working together to facilitate the creation, transfer, and management of digital assets. 

 

Exchange

A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. 

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Leverage

Leverage trading involves borrowing funds from a broker or exchange to make a transaction. This amplifies the value of a trader's capital, which in turn increases the potential for both gains and losses. 

 

Liquidity

In cryptocurrency, liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. A liquid market is one where it's easy to make a purchase or sale at any time and in any quantity. 

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Long

In cryptocurrency, "long" refers to a trading strategy where an investor buys a cryptocurrency with the expectation that its price will increase 

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Market Cap

The total value of all coins in circulation, calculated by multiplying the number of coins by the price of each coin. 

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Position

In cryptocurrency trading, a position is a trader's commitment to a market, or exposure, that can result in a profit or loss. Positions are defined by their size and direction, and there are two main types: long and short. 

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Resistance

In cryptocurrency trading, support and resistance are price levels on a chart that indicate where the price is likely to stop or reverse. The price level where the price typically stops rising and dips back down. A resistance level may indicate a selling opportunity. 

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Retail

Retail investors invest for their own benefit and not on behalf of others. They manage their own money. Usually, when investing for the long term or trading for their own accounts, they invest much smaller amounts less frequently compared to institutional investors. 

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Retest

Following the breakout, the price retraces back to the level it previously broke through. 

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Reversal

This is price action confirmation that broken resistance has turned into support (in the case of a bullish breakout) or broken support has turned into resistance if the (in the case of a bearish breakout). The confirmation comes in the form of a reversal candle. Typical reversal candles are long-tailed hammer or pin-bar candles, but they can also be engulfing candles or multi-candle reversal patterns. 

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Short

In crypto, "short" refers to a trading strategy where an investor anticipates a decline in the value of a traded asset. 

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Spot

In cryptocurrency, the term "spot" refers to the current market price of a digital asset, and "spot trading" is the immediate buying and selling of those assets at that price. 

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Support

In cryptocurrency trading, support and resistance are price levels on a chart that indicate where the price is likely to stop or reverse. The price level where the price typically stops falling and bounces back up. A support level may indicate a buying opportunity. 

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Tether

Tether is a blockchain-based currency that is pegged to the US dollar at a 1:1 ratio. This means that each Tether token is theoretically backed by an equivalent amount of dollars held in reserves. 

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Ticker

A ticker is a symbol representing a token or cryptocurrency. For example: Bitcoin: BTC. Ethereum: ETH. Solana: SOL. 

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Timeframe

In cryptocurrency, a timeframe is a period of time represented by a candlestick or bar on a chart. It's used to monitor price movements and identify entry and exit points for trades. 

 

Token

A token can be another word for cryptocurrency or crypto-asset. For example, Bitcoin and Ethereum are both cryptocurrencies and crypto tokens. 

 

Trendline

In crypto, a trendline is a line drawn on a chart to connect a series of prices to indicate the direction of an asset's value. Trendlines are a popular technical analysis tool that can help traders make informed decisions about when to enter or exit a trade. 

 

Scalping

In cryptocurrency, "scalping" is a trading strategy that involves making a series of short-term trades to profit from small price fluctuations. The goal is to accumulate small gains over time, rather than seeking larger, less frequent returns. 

 

Swing Trading

In crypto trading, swing trading is a strategy that involves buying and selling cryptocurrencies over a short or medium-term period to profit from market volatility. The goal is to buy low and sell high, or borrow and sell high and buy low. 

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Volume

Volume refers to how much - in monetary terms - a given cryptocurrency has traded over a period of time. 

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Wallet

In cryptocurrency, a wallet is a device, program, or online service that stores the keys needed to access and manage cryptocurrencies. 

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Whale

In the world of cryptocurrency, a whale is an individual, institution, or entity that holds a large amount of a particular cryptocurrency. This gives them enough influence to affect market prices. 

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