The dictionary of an experienced cryptotrader

Trading

Exchange — a legal entity that organizes the market for goods, currencies, securities, and derivative financial instruments, and ensures its regular functioning.
§ Commodity Exchange — a permanent wholesale market of pure competition where transactions for the sale and purchase of qualitatively homogeneous and easily interchangeable goods are conducted according to certain rules.
§ Stock Exchange — an organization whose activities involve ensuring the necessary conditions for the normal circulation of securities, determining their market prices, disseminating information about them, and maintaining a high level of professionalism among market participants.
§ Currency Exchange — an element of the currency market infrastructure, whose activities consist of providing services for organizing and conducting trading where participants conclude transactions with foreign currencies.
§ Futures Exchange — an exchange where trading is conducted in futures contracts.
§ Options Exchange — an exchange where trading is conducted in options.

Broker (from the English word "broker" — middleman, agent, intermediary) — a legal or physical entity that performs intermediary functions between the seller and the buyer and receives a commission as compensation. A broker in the securities market is a trade representative, a legal entity, a professional participant in the securities market, with the right to conduct operations with securities on behalf of the client and at their expense or on their own behalf and at the client’s expense under paid contracts with the client.

Financial Regulator — a government body responsible for overseeing brokers and transactions in financial markets. In the United States, the financial market regulator is the Federal Reserve System (FRS), while in the Russian Federation, it is the Central Bank (CB), not to be confused with "Sberbank."

Trade — two opposite operations that result in a financial outcome when trading in the financial market. Thus, to complete a transaction, that is, to fix a profit or loss, at least two operations are necessary: opening and closing a position.

Instrument — a trade item in the financial market used to generate profit through the difference in rates between the purchase price and the sale price, or vice versa.

Long Position (long) — the purchase of an instrument with the intent to resell it at a higher price later.

Short Position (short) — the sale of an instrument with the intent to repurchase it later at a lower price and earn a profit through the difference between the sale and purchase prices. The broker provides the client with the specified amount of the instrument on credit when opening the transaction.

Stock — a security that entitles its owner to claim a share of the company's net profit, participate and vote in shareholder meetings, and claim a share of the company's assets.

Futures (from the English "futures contract" or "futures") — a derivative financial instrument (contract) for the purchase and sale of an underlying asset (commodity, security, etc.) on the exchange, where the parties (seller and buyer) agree only on the price level and delivery date.

Option (from Latin "optio" — choice, discretion) — a contract under which the option buyer (a potential buyer or seller of the underlying asset — commodity, security) obtains the right, but not the obligation, to make a purchase or sale of the asset at a pre-agreed price at a certain time in the future or over a specified period. The option seller, in turn, is obliged to sell the asset or buy it from the option buyer under the contract terms. In the case of a futures contract, the buyer is required to purchase (or sell) the asset upon the contract's expiration, while in the case of an option, they may refuse to do so.

Currency Pair (currency pair) — the ratio of the prices of two currencies in the pair on the currency or cryptocurrency market. The first currency in the pair is called the quote currency, and the second is the base currency. For example, the price of the BTC/USD currency pair indicates how much USD is required to buy 1 unit of BTC.

Contract for Difference (CFD) — an agreement between two parties, the seller and the buyer, to transfer the difference between the current value of an asset at the time of the agreement (position opening) and its value at the end of the agreement (position closing). Although a contract for difference is similar in form to a contract for the delivery of goods, the seller is not required to own the actual asset, and the buyer does not acquire the right to demand delivery.

Margin Trading — the ability to buy financial instruments for an amount exceeding your capital, and the ability to sell instruments that are not in your account. This is made possible through credit provided by the broker under its conditions with the corresponding leverage.

Technical Analysis — a method of research that involves a set of techniques and methods used to analyze the price dynamics of an instrument. The goal of technical analysis is to determine the most probable direction of the market course of the instrument under study.

Fundamental Analysis — a set of analytical methods used to assess the condition and prospects of the market, industries, commodity, financial markets, and the economy as a whole. To explain processes, events, and obtain the necessary forecast data, the dynamics of macro and microeconomic indicators are studied and compared, as well as financial analysis is conducted.

Diversification — the distribution of capital among instruments with different risks, returns, and correlations, with the aim of minimizing investment risks. This means that the investor allocates portions of their portfolio in such a way that losses on one asset are compensated by profits on another.

Index — the average price of all financial instruments included in its calculation base. The index reflects the market dynamics as a whole (stock market, bond market, etc.).

Volatility — a measure of price variability or the deviation of the price from its average or usual value. Volatility is usually measured by the standard deviation of the price. The greater the price fluctuations or changes, the higher the volatility.

Capitalization — the value of a joint-stock company or the market value of its common shares. It is equal to the number of common shares multiplied by their market value.

Liquidity — the ability to quickly and without losses exchange shares for cash and vice versa. The liquidity of a specific instrument is measured by the trading volume and its spread. The higher the volume and the lower the spread, the higher the liquidity of the stock.

Spread — the difference between the best price (quote) for buying and the best price (quote) for selling a specific instrument in the order book. The smaller the spread, the higher the liquidity.

Stop-Loss (Stop Loss) or simply Stop — a price level for limiting unacceptable losses for a trader if the price moves in the opposite direction from their expectations.

Take-Profit or Target (Profit Target, Take profit) — the price level at which profit is "fixed."

Commission — a broker’s fee in the form of a percentage of the transaction volume. The commission size is specified in the brokerage agreement. Study it carefully: it may also include additional payments. When choosing a broker, they are significant.

Trading Session — a time period during which banks and trading platforms in one or several countries located in one geographical area actively trade in one financial market.

Timeframe — the time interval used for grouping quotes when constructing elements of a price chart (bar, Japanese candle, point of a line chart).

Dump — the deliberate sale of a large amount of cryptocurrency to crash its exchange rate.

Whale — a large player with significant capital. They may have enough capital to manipulate the price of an asset.

Pump — the deliberate inflation of the price of a cryptocurrency. Several users with large capital may band together to "pump" a coin and then sell it to other users at an inflated rate. Pump almost always ends in a sharp decline, with profits mostly secured by the scheme organizers.

Rocket — a slang term indicating a sharp increase in the price of a cryptocurrency over a short period. On the asset’s chart, it appears as a large green candle.

Wick — a slang term indicating a sharp decrease in the price of a cryptocurrency over a short period. On the asset’s chart, it appears as a large red candle.

To the Moon (To the Moon) — means a rapid increase in the price of a cryptocurrency.

Flat or Sideways Movement — a situation where the market or the exchange rate of a particular cryptocurrency does not rise or fall but is confined within a certain range. For example, if Bitcoin’s price fluctuated between $9,000 and $10,000 for a month, it was in a flat during that time.

Hamster — a novice trader prone to making wrong decisions due to panic and emotions.

All Time High (ATH) — the historical maximum value of a cryptocurrency. For example, Bitcoin set its ATH in December 2017 at $20,000.

Blockchain

Address — A set of characters used in a cryptocurrency blockchain to identify a specific wallet or smart contract. Funds can be transferred within the coin's network using the address. Addresses can also be represented as a QR code.

Block — A list of transactions in a cryptocurrency network that have been processed and confirmed by miners. Blocks are created at regular intervals, which vary between cryptocurrencies. For example, in the Bitcoin blockchain, a block is generated every 10 minutes. Once formed, a block is added to previously found blocks, connected in a chain, forming the blockchain.

Blockchain (from English, "chain of blocks") — A distributed ledger consisting of a chain of blocks, with transactions recorded inside each block. Each subsequent block is linked to the previous one. This sequence cannot be disrupted or altered; otherwise, the data in the cryptocurrency network becomes invalid.

Wallet — An application for storing cryptocurrency. It allows users to access digital assets, transfer them to other addresses, use them for payments, and other purposes.
There are several types of wallets. Cold or hardware wallets are separate devices resembling flash drives. They are considered the most secure since cryptocurrency can only be accessed with direct access to the wallet and knowing its password.
Browser wallets — Wallets integrated into a browser as an extension.
Desktop wallets — Special applications installed on a computer.
Exchange wallets — Wallets provided to users when they open accounts on exchanges for trading cryptocurrency. This method of storing funds is considered the least secure.

Key — A set of characters needed to access a cryptocurrency wallet. There are two types of keys. Public — also known as the address — allows anyone to view the wallet's contents. Private — this key is required to spend funds from the wallet.
Pending — A transaction that has entered the blockchain but has not yet been included in a block and is awaiting processing by miners.

Smart contract — A specific algorithm recorded on the blockchain. Smart contracts are used for complex operations, such as token issuance or asset exchanges through decentralized applications.

Transaction — An operation on the blockchain, such as transferring coins between wallets or using a smart contract.

Fork — The creation of an alternative blockchain from an existing one. A soft fork modifies the existing block chain, while a hard fork splits the original blockchain into two independent ones, resulting in a new cryptocurrency. For example, Bitcoin Cash was created from a hard fork of Bitcoin, which later split into two more forks: Bitcoin Cash and Bitcoin SV.

Halving — A mechanism that reduces the reward for mining cryptocurrency. For example, in the Bitcoin network, halving occurs approximately every four years. The last halving happened in May 2020, reducing the reward for finding a block from 12.5 to 6.25 BTC.

Crypto Slang

1. HODL — Hold On for Dear Life, expressing the intention not to sell under any circumstances, regardless of volatility. It implies buying cryptocurrency and holding it for a long period due to belief in future value growth.
2. Diamond Hands — Refers to someone who will continue HODLing an asset even if their portfolio drops by 20% or more.
3. Paper Hands — Traders/investors who quickly sell their positions when facing price drops.
4. FOMO — Fear Of Missing Out, a psychological concept describing the fear of missing out on profit from a price uptrend.
5. FUD — Fear, Uncertainty, and Doubt, the spread of uncertainty and disinformation about cryptocurrencies to drive them out of business or lower their price.
6. Shitcoin — A term for a cryptocurrency perceived as worthless. It's subjective, as some of the most valuable coins might be considered shitcoins by others.
7. Apeing — Investing in something without proper research, often due to FOMO.
8. BTFD — Buy The F***ing Dip, a strategy of buying cryptocurrency during price drops in anticipation of eventual price increases.
9. Degen — Short for "degenerate," referring to someone with a highly risky investment strategy, such as buying shitcoins, trading with high leverage, investing in high-risk projects, or a combination of these.
10. GM — Good Morning; a playful way to spread good vibes. It has become a ubiquitous meme in the web3 space.
11. NGMI — Never/Not Going to Make It, describing a person or firm using the wrong tactics to succeed, like not HODLing or not adhering to recognized marketing strategies.
12. WAGMI — We Are All Going to Make It, a positive expression of the belief that through cryptocurrency investments, one can achieve financial independence or wealth, allowing them to quit a job they dislike.
13. Boomer — A mocking term for people or concepts considered old and outdated in the crypto space. Sometimes, even relatively new but popular ideas are called boomers.
14. IYKYK — If You Know You Know, usually used as an inside joke or expression when sharing commonly known information.
15. LFG — Let’s F***ing Go, an expression of excitement, often used when the price of a coin someone owns rises significantly.
16. Looks Rare — A way to say an NFT might have value (a random guess). Since the value of most NFTs is determined by their rarity, a rare or seemingly rare NFT will bring profit to its buyers.
17. Few — Popularized by @bowtiedbull, this is an ironic way of saying something might be important, but most people don’t know about it.
18. (3,3) — Refers to outcomes beneficial for both sides. This comes from the Prisoner's Dilemma, where it’s better for both sides to cooperate rather than defect and get a (-3,-3) outcome.
19. Shilling — Paying someone to promote a cryptocurrency. Shitcoins often rely on shilling to create FOMO and the impression that they are more valuable than they are.
20. Moonbois — People who are overly enthusiastic about a coin’s prospects. "To the moon" means a sharp price increase by any means.
21. Lambo — "When Lambo" is often used by moonbois overly concerned with profiting from significant price increases to afford a Lamborghini. It's also used to mock people focused solely on a coin’s price.
22. Wagecuck — In the crypto space, a wagecuck is someone with a regular job. Sometimes, this term is used ironically for self-identification.
23. Pleb — A person with little or no knowledge of cryptocurrencies.
24. Fren — Short for "friend." In the crypto space, it can refer to a real-life friend or someone with whom you maintain friendly relationships on social media.
25. Ser — Crypto slang for "sir," often used to troll Indian and East Asian crypto participants for their overuse of the word.
26. Gigabrain — Used to refer to someone with excellent understanding or knowledge of a particular concept in the crypto industry.
27. Gigachad — Used to describe someone who has done something very impressive in a specific aspect of the crypto industry.
28. Smol brain — Refers to someone considered ignorant or dumb regarding something that is common knowledge in the crypto space.
29. Anon — Popular in the crypto space to address readers, as most of them are anonymous. For example, "Are you buying the dip, anon?"
30. -oooor — A way to mock people or scams.
31. Rekt — A misspelling of "wrecked," used to describe someone who has lost their money in the markets.
32. Down bad — A way to say someone has incurred losses on their position because the market moved against them.
33. Pump and Dump — A tactic used to manipulate market sentiment. Pump refers to inflating a cryptocurrency’s value based on false news, followed by dumping or selling when prices rise, causing the price to drop again.
34. Nuke — A term used in the crypto space to describe a sudden and severe price correction. Since cryptocurrencies are highly volatile, prices need to drop by 10% or more to be considered a real nuke.
35. NFA — Not Financial Advice, a disclaimer used to indicate that the person is not qualified to provide financial advice.
36. Copium and hopium — Describe unjustified hope for price increase or decrease.
37. Bulla and bera — Just a fancy way of writing bull and bear, referring to market sentiment.
38. Funds are safu — Refers to the safety of funds in any crypto project. It’s also supposedly a joke about the Asian pronunciation of the word "safe."
39. Rugged — Rugged or rug pull is derived from the expression "pulling the rug" and implies a method of scamming users in the crypto space by removing funds from a smart contract without their knowledge.
40. HSBAF — Holy Shit Bears Are F**ked, used to describe bullish market sentiment after an upward price movement. It also mocks those who were short.
41. HFSP — Have Fun Staying Poor, used to mock those without cryptocurrency investments.
42. Exit liquidity — Refers to naive investors seeking quick and easy profits on "fishy" coins.

Trading ideas on the market