Crypto trading can be exciting — but without the right knowledge, it's easy to feel lost. Whether you're just starting or trying to level up, understanding key terms is essential for success.
Here are 7 must-know terms every trader should master:
1. Liquidity
Liquidity refers to how easily an asset can be bought or sold in the market without affecting its price.
High liquidity = faster, smoother trades.
Low liquidity = price slippage and delays.
Tip: Look for tokens with high liquidity before trading.
2. Market Cap (Market Capitalization)
Market Cap = Price of one token × Total circulating supply.
It shows the value and size of a crypto project.
Large-cap coins like BTC and ETH are more stable.
Small-cap coins can grow faster but are riskier.
3. Volume
Volume shows how much of a coin was traded in a given time (usually 24h).
High volume = strong interest and easier to trade.
Low volume = hard to enter or exit positions.
4. Bullish vs. Bearish
Bullish = expecting price to go up.
Bearish = expecting price to go down.
These terms describe both market trends and trader moods.
5. Support & Resistance
Support: A price level where a coin tends to stop falling.
Resistance: A level where it tends to stop rising.
These are key zones for entry or exit.
6. Token Supply
Includes:
Circulating Supply: Already in the market.
Max Supply: Total tokens that will ever exist.
Total Supply: Tokens created (but not always circulating).
Tip: Coins with low supply can have strong price moves.
7. Slippage
The difference between expected price and actual execution price.
It happens in fast or low-liquidity markets.
Always set a slippage limit when trading.
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