Crypto-currencies : glossary of common terms

You just begin to invest in crypto-currencies, or you plan to do this, but you are a little lost by the terms, and acronyms, weird used by the regulars ? This small glossary of common terms of crypto-currencies should help you find your way.

FUD, HODL, ATH… kézaco ?

In addition to the expressions that are used frequently in finance, the sector of the crypto-currency also has its own terminology. If you do not want to reveal that you are a blue by asking the question, here are the meanings of the expressions that appear repeatedly in the posts and threads of crypto-investors :

Hodl : probably one of the most common. Of the English “to hold” (to keep), not to sell, to play on the long-term. Following a typo by a user on a forum, the term hodl became one and the same. The one who does not sell cryptos is called a ” hodler “.

FUD : an acronym for Fear, Uncertainty and Doubt (fear, uncertainty and doubt). In the complex of crypto, those who spread the FUD against a crypto-currency that wish to see its price decline. These people are called FUDsters. Sometimes you just need to make a simple criticism reasonable to be tricked out of this qualifier.

HUD : an acronym for ” all time high “, is the highest in history. Regardless of the asset class, there is nothing worse than buying the ATH.

FOMO : acronym for ” fear of missing out, fear of move to the side. It is a feeling that makes the purchase when there is the impressive increase of a crypto and they are afraid to miss out on the deal (which often leads them to buy the ATH…).

Pump and dump : a pump and dump (inflation and liquidation) is characterized by the dramatic rise in the price of a crypto-currency, followed by a drop just as dramatic. It is a phenomenon of nature fueled by FOMO and the take profit, is artificial, as initiated by organized groups that cause an increase in the price by going to the purchase to then be able to sell their pieces, pocketing a nice capital gain. The pump and dump artificial aim of the alts, the liquidity of which is limited.

Liquid : a market is liquid when it is easy to find a buyer or a seller, when trade volumes are high.

Volumes : in reference to the volumes of trade, and therefore to the quantity of cryptos that change hands on a market.

Market Cap : it is the market value, or the number of coins or tokens in circulation multiplied by the price.

Arbitrage : taking advantage of a price difference. Arbitration can be done simply on the basis of the price of an asset which has large differences between the 2 platforms, exchange (including a platform for european and asian), or differences much less important between different pairs (e.g. XRP-ETH and XRP-BTC).

Whale : a whale is an investor that has a huge amount of a crypto-currency, and that has the necessary firepower to have a significant influence on its price.

ROI : return on investment.

TA BTCExample of technical analysis (TA) – Source TradingView (user MagicPoopCannon)

Shorter : short sell a crypto. It is an option that allows you to bet on the fall in the price of an asset. Pretty dangerous on the cryptos, this technique has, however, brought fortunes to those who used it in January 2018.

ICO : Initial Corner Offering, issuance of a new crypto-currency, the equivalent of an IPO on this market.

Alts : crypto-currency alternatives. For the purists, this is anything that is not Bitcoin, but in general Ethereum is no longer considered as an alt.

TA : acronym for technical analysis, technical analysis. It is these graphs with bunch of lines and arrows that try to predict the price evolution of a crypto.

Bots : programs that are designed to trade automatically the crypto-currencies on the platforms as Binance on the basis of rules defined by the code, for example by taking account of the technical indicators, the price of BTC for the alts, etc

Fiat : a currency issued by a government, so dollars or euros.

Mooning : a crypto in the phase of “mooning” is in the process of going to the Moon, which means that it is experiencing a growth insolent.

Bearish : someone who is bearish expects a decline in price. A new can also be bearish, so negative.

Bullish : someone who is bullish expects a rise in the price. A new can also be bullish, so positive.

Margin Trading : the use of a leverage effect to multiply his profits… or losses. With trading on margin, you borrow the amount corresponding to the required leverage, your money is used only to cover the possible loss on your position. When you have a margin call, it means that the amount you have to cover your position has reached the amount of the loss. Your position is automatically closed and you lose everything.

ROI : return on investment.