New to crypto? You’re not alone – and yes, it can be confusing. But it doesn’t have to be. These 5 terms are your starting toolkit. Understand them, and you’ll avoid 90% of rookie mistakes.

1. FOMO – Fear of Missing Out

FOMO usually happens when a coin is pumping, and you feel "late" to the party and hurry to buy it.

What usually happens: You buy high. Then it dumps.

✅ Pro Tip: Never buy simply because something is in the green. Always ask yourself, “Would I want this coin the same if it dropped 10% tomorrow?”

2. Support and Resistance – The Market’s Invisible Walls

Support is attractive to buyers. Price bounces here. Resistance is attractive to sellers. Price doesn't want to go higher.

✅ Pro Tip: Don’t trade in the middle. Wait until the price is close to support or breaks resistance with volume.

3. DCA – Dollar Cost Average

Instead of buying ₹10,000 of a coin at once, DCA means you split your investment into small buys, like ₹2,000 every week.

✅ Why it works: It lowers risk and makes it less likely you are buying at the top.

Example: If a coin goes from ₹100 to ₹80 to ₹60, you would average your cost lower with each purchase.

4. Bull Trap – The Fake-Out Pump

Looks like a breakout, behaves like a breakout, emotions get involved and then crashes. A bull trap most of the time deceives buyers into taking a premature position.

✅ Pro Tip: Don't buy breakouts unless volume backs up the HOOD. No volume = probably fake.

5. Stop-Loss – Your Capital’s safety net

A stop-loss is a predetermined price at which your trade will close automatically if it moves in a negative direction too far.

✅ Smart traders use stop losses because:

  • You can control your losses

  • You get to trade again another day.

  • It removes the emotion.

In crypto, understanding the language is the first step toward understanding the market.

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