Glossary of Key Terms
Blockchain: Decentralized ledger recording all transactions across nodes.
Cryptocurrency: Digital currency using cryptography and blockchain, independent of central banks.
Altcoin: Any cryptocurrency other than Bitcoin (e.g. Ethereum, Litecoin).
Exchange: Platform for buying, selling and trading crypto. Examples: Binance, Coinbase, Kraken.
Market Cap: Total value of a crypto (price × circulating supply).
Volatility: Rapid, significant price swings common in crypto markets.
Liquidity: Ease of buying/selling an asset without big price change.
Order Book: List of current buy/sell orders (bids/asks) on an exchange.
Market Order: Buy/sell at the current best price available.
Limit Order: Set a specific price to buy or sell; executes only when market reaches it.
Stop-Loss Order: Automatic sell order at a predetermined price to limit losses.
Take-Profit Order: Automatic sell at a target profit price.
Position: A trader’s open investment (long or short) in an asset.
Long (Buy): Expect price to rise; profit if it does.
Short (Sell): Expect price to fall; profit by selling high and buying back lower.
Leverage: Borrowed funds to amplify position size (increases risk and reward).
Spread: Difference between highest bid and lowest ask.
Candlestick Chart: Price chart showing open, high, low, close (OHLC) for each period.
Support Level: Price area where buying interest is strong enough to halt a decline.
Resistance Level: Price area where selling pressure is strong enough to cap rallies.
Trend: Direction of market movement. An uptrend makes higher highs/lows; a downtrend makes lower highs/lows.
Bull Market: Prolonged rising prices and positive sentiment.
Bear Market: Prolonged falling prices and negative sentiment.
FOMO: “Fear Of Missing Out”; rush to buy based on hype.
FUD: “Fear, Uncertainty, Doubt”; negative news causing panic selling.
HODL: Intentionally holding crypto through volatility (long-term strategy).
