Crypto Trading Terms For Beginners

If you are new to the market you may find it really overwhelming. There is literally a special word for everything. In order to make it easier for you to understand and use these terms, we wrote down an explanation on what each means. Let’s find out.

• Bagholder – someone that holds coins until the price is as low as 0, waiting for the price to skyrocket
• Average Down – the action of buying more coins when the price is going down. It’s considered an investment strategy
• Day Trading – making a profit by trading short-term
• Bearish – the market is bearish when the prices of cryptocurrencies go down
• Exchanges – places where you can buy, trade and sell cryptocurrencies. There are multiple from which you can choose such as Binance, Bitfinex, Coinbase, and Kucoin.
• Fiat currency – the common currencies you use every day such as Euro or Dollar.
• FOMO – short for fear of missing out
• FUD – short for Fear, uncertainty, and doubt
• Futures – these are a type of contract that an investor buys or sells at a designated price in the future.
• ASIC Miner – the ASIC is a chip that makes mining different coins easy and fast. The chip can only process one task. There are more specific ones that use complex mathematical codes.
• Blockchain – a blockchain is a system that makes fast transactions on a decentralized network. All of the people and computers work together and create one great network that is protected by cryptography. The blockchain consists of blocks which grow when you add new data on them. This is one of the most used terms ever.
• Fork – forks are created when 51% attacks happen or there is a problem in the program. This can also happen if the team behind a specific cryptocurrency is making great changes to the system.