Crypto Market Terminology
Abbreviations
APY - Annual percentage yield - The % return (including compound interest) of your asset
DAO - Decentralized Autonomous Organizations
DYOR - Do Your Own Research FOMO - Fear of Missing Out
BTFD - Buy the F#!*#^* Dip When you think the long term trend is up you do this.
STFR - Sell the F#!*#^* Ralley When you think the long term trend is down you do this.
TradFi - Traditional Finance, ie. Blackrock,Fidelity, Goldman Sachs etc.
Trading Terminology
Web3isGoingGreat.com - Glossary
Address - A string of characters that identifies a cryptocurrency wallet
Bull Market - A market or asset where prices are trending up over time. Higher highs, higher lows.
Bear Market - A market or asset where prices are trending down over time. Lower highs, lower lows.
Bulls - Those who buy an asset planning to sell it at a higher price.
Bears - those who short (borrow and sell) an asset expecting to sell at a lower price so that profits cover the debt and the interest with some left over for your pocket. Borrower pays interest on the borrowed asset and may have to pay dividends due during the period of borrowing.
Whales - Big Institutions and Investors with large sums of money that can move markets. Savvy investors who can play the ups and downs.
Beast Mode – The crypto takes off, leaves everything else behind and just keeps going!!! (And you sold with a measly 45% return at the first dip and now it's up 179% and it's sooooooooo painful!!!)
Long - Buying and asset expecting rising prices.
Short - Borrowing and asset (at interest) and selling it with the hope that the price goes down so they can Buy to Cover and pocket the difference. Best left to professionals! (Personal note: Once, having missed a huge spike on a micro-cap I went to short it, sure that it was headed back down. The exchange wanted 20% more to make the trade. I declined the trade. (My few experiences in shorting taught me: Best left to professionals.)
Local Top - A temporary peak in the price of a cryptocurrency or asset, typically within a shorter timeframe, before a decline or consolidation occurs.
Channel - A price pattern formed by two parallel trendlines that connect a series of highs and lows on a price chart, indicating a trading range for an asset.
Limit Order - An order to buy or sell a cryptocurrency at a specific price or better, which is executed only when the market reaches that price.
Death Cross - A bearish technical indicator that occurs when a short-term moving average crosses below a long-term moving average, potentially signaling a downtrend.
Golden Cross - A bullish technical indicator that occurs when a short-term moving average crosses above a long-term moving average, potentially signaling an uptrend.
Trading Sideways - It goes up a little bit, it goes down a little bit, up a little, down a little, it fakes you out, it goes up a little, it goes down a little. It goes nowhere for a while and then you either see higher highs and lows or lower highs and lows as a new trend takes hold.
Waterfall event - The price of the asset drops off the cliff and goes down, down, down, down, down!. Sometimes there's a rock a ways down that causes a splash and then it goes down, down, down, down!!
Correlation - Assets are correlated when they move together over the ups and downs. Many people have spoken about Bitcoin decoupling from the stock market (S&P 500) and taking off but when it finally decoupled on a short time frame it was to the downside as i write this. (Look at the Trend in the All view on Trading View Total)
Correlation Articles (Note the dates)
Bitcoin Stock Market Correlation
Capitulation Collapse - The final, horrible drop in price, often a long wick, where The Bottom has finally been reached after a usually gut wrenching down trend. The price turns around and starts to go back up. (The place where having cash to spend is soooooooo Nice!!)
Goblin town - A persistent downtrend in the markets that haunts you and eats your money.
Decentralized Finance (DeFi): A system of financial applications built on blockchain networks that aims to provide traditional financial services without centralized intermediaries.
Non-Fungible Token (NFT): A unique digital asset that represents ownership of a specific item or piece of content, often used for digital art, collectibles, and gaming items.
Yield Farming: A practice in DeFi where users lend or stake their cryptocurrency assets to earn rewards in the form of additional cryptocurrency.
Gas Fees: The cost of performing transactions or executing smart contracts on blockchain networks, particularly on Ethereum.
Liquidity Pool: A collection of funds locked in a smart contract, used to facilitate trading by providing liquidity to decentralized exchanges.
Stablecoin: A type of cryptocurrency designed to maintain a stable value, often pegged to a fiat currency like the US dollar.
Layer 2 Solutions: Protocols built on top of existing blockchains to improve scalability and transaction speed, such as the Lightning Network for Bitcoin or Optimistic Rollups for Ethereum.
Tokenomics: The study of the economic systems and incentives governing the creation, distribution, and use of cryptocurrencies.
Smart Contract: Self-executing contracts with the terms of the agreement directly written into code, automatically enforcing and executing the terms when predefined conditions are met.
Consensus Mechanism: The method by which a blockchain network agrees on the current state of the distributed ledger, with common types including Proof of Work (PoW) and Proof of Stake (PoS).
Web3isGoingGreat.com - Glossary