This time, I have summarized the specialized terms in the crypto circle, the most complete ever! From simple to complex, whether you are a beginner or a veteran, you will surely find what you need!
Common Types
【Fiat Currency】Fiat currency is legal tender issued by the state and government, guaranteed only by government credit, such as the Renminbi, US dollar, etc.
【Bitcoin】Bitcoin (BTC).
【Auntie】A nickname for Ethereum (ETH).
【Retail Investor】Refers to individuals trading cryptocurrencies who are new to the market or inexperienced in investing in digital currencies.
【Private Placement】A form of financing. Private placement in the crypto circle is a way to invest in cryptocurrency projects and is also the best way for cryptocurrency project founders to raise funds for platform operations.
【ICO】(Initial Coin Offering), the first issuance of cryptocurrency. It originates from the concept of an Initial Public Offering (IPO) in the stock market and refers to the first issuance of tokens in blockchain projects, raising bitcoins and other general cryptocurrencies like Ethereum. ICOs are typically divided into team internal subscriptions and rounds.
【Primary Market】The primary market refers to the ICO issuance market, generally including original allocations to the team, corresponding tokens obtained by investors, private placements involving large institutions, and public offerings aimed at the general public. All of these belong to the primary market of digital currency, which is characterized by low costs, high risks, and large returns.
【Secondary Market】The secondary market refers to the circulating market, where trading can take place once the ICO fundraising is completed. Transactions are divided into over-the-counter and on-exchange trading, with the largest secondary market currently being various exchanges.
【Token】Commonly translated as 'certificate.' Token is one of the important concepts in blockchain, more commonly known as 'cryptocurrency,' but in the professional 'chain circle,' it is more accurately translated as 'certificate,' representing a kind of proof of rights on the blockchain rather than currency.
【Zen Holding】Refers to holding coins without caring about the price movements of digital currencies after purchasing, intending to hold long-term, regardless of how low the cryptocurrency assets fall, without reducing the holdings.
【Airdrop】The behavior of project parties giving away tokens is called an airdrop, which is currently a very popular marketing method in cryptocurrency. To provide potential investors and cryptocurrency enthusiasts with token-related information, token teams frequently conduct airdrops.
【Candy】Tokens sent by project parties are called candy.
【Wallet】Generally refers to a blockchain wallet, a place where you can store your digital currency assets securely, divided into cold wallets and hot wallets. It is not recommended for newcomers who are not familiar with it.
【Cold Wallet】Simply put, it is a wallet that is not connected to the internet, also known as an offline wallet. It is safer than hot wallets due to not being online.
【Hot Wallet】A wallet that is kept online, also known as an online wallet.
【White Paper】An official document that introduces the company's (project's) product. It is usually used to assess the quality and application scenarios of the project.
【Market Capitalization】Market value = circulating quantity × latest price; refers to the circulating value of a cryptocurrency calculated at market price.
【Telegram Group】A foreign encrypted social software that requires a VPN to use.
【VPN】Also known as scientific internet access, refers to VPN. The reason for the hyphen is that it is quite sensitive, and thus won't be elaborated on. Currently, many exchanges cannot be accessed directly from domestic networks, requiring a VPN to connect. For specific instructions on how to set one up, you would need to ask friends nearby or inquire in group chats.
【KYC】Know Your Customer verification, which usually requires providing identification or passport.
【Unplugging the Network Cable】A sarcastic term used by users regarding the exchange server failing at critical moments, implying that exchanges deliberately cut off server access to users to achieve certain goals.
Market Information
【Bull Market】Refers to a market condition where prices are generally rising, with a positive outlook.
【Bear Market】The opposite of a bull market, it refers to a market condition where prices continue to decline, with a general downtrend observed in the market.
【Fluctuation】The price of a cryptocurrency is unstable with small fluctuations (up or down).
【Main Uptrend】Originating from wave theory, it refers to the wave in a market rally that lasts the longest. This is also a common market condition in a bull market. The opposite trend is sometimes called the 'Main Downtrend.'
【Downtrend】The overall market trend is downward, with cryptocurrency prices slowly declining.
【Consolidation】Also known as sideways trading. Price fluctuations are minimal, and cryptocurrency prices remain stable.
【Waterfall】Also known as 'Diving.' Refers to a sudden and significant price drop in the market, resembling a waterfall, which can be painful to watch.
【Bullish】Also known as 'positive.' Refers to news or situations that help cryptocurrency prices rise, such as policies or macroeconomic conditions.
【Bearish】Usually refers to news that is unfavorable for the market, such as technical issues with Bitcoin or regulatory pressure from central banks.
【Explosive Growth】When the market has been under the influence of negative factors for a long time, and the market has been very suppressed, once the negative factors are eliminated or exhausted, the market will experience explosive growth.
【Rebound】The price of a cryptocurrency rises after a decline, supported by technical factors or capital involvement, causing a shift from decline to rise. The increase is smaller than the decrease.
【Reversal】The cryptocurrency price bottoms out after falling, with no further decline expected, transitioning from a downtrend to an uptrend. A common occurrence is the 'V-shaped reversal.' A rebound is the basis for a reversal, with the reversal amplitude far exceeding the rebound.
【Adjustment】Refers to a temporary pullback in an uptrend due to strong price increases, known as an adjustment. The decline is smaller than the increase.
【Kimchi Premium】Korean citizens' enthusiasm for investing in cryptocurrencies often leads to the prices of digital currencies in South Korea being higher than in other countries, hence termed 'kimchi premium.'
【Halving】Refers to when the price of a certain cryptocurrency drops to half of its previous value, e.g., from 2 yuan to 1 yuan.
【Break Price】Breaking refers to falling below, and issuing refers to the issuance price of the cryptocurrency. A break price in the crypto circle means that a certain cryptocurrency has fallen below its issuance price (i.e., ICO price).
Position Types
【Position】The ratio of your account funds to the funds you use to buy cryptocurrencies.
【Establishing Position】Also called opening a position. Refers to traders buying a certain quantity of cryptocurrency.
【Full Position】All account funds are invested in virtual currency. The terms 'fully invested' and 'all in' refer to a full position.
【Half Position】The funds used to buy cryptocurrency occupy half of the total funds.
【Adding to Position】Buying virtual currency in batches, for example: first buying 1 BTC, then buying another 1 BTC.
【Adding Position】You hold BTC, look favorably on its development, and then buy more BTC while it rises.
【Reducing Position】Anticipating risks in the future market, selling part of the cryptocurrency held.
【Liquidation】Not trading anymore, just watching. This can be understood in the crypto circle as selling all virtual currencies held, converting everything to cash.
【Locking Position】Locking position generally refers to when an investor opens a new position that is opposite to their original position when the market moves against them after buying and selling contracts, also known as hedging, or whimsically called butterfly double flying. Locking position is another term for hedging, and for beginners trading foreign exchange in leveraged markets, the fundamental reason for locking positions is to minimize losses in their positions.
【Light Position】The funds used to buy cryptocurrency occupy a small proportion of the total funds.
【Heavy Position】The funds used to buy the cryptocurrency occupy a large proportion of the total funds.
【Liquidation】Not trading anymore, selling all holdings, and preparing to observe the market without positions.
Trading Types
Fiat currency trading and cryptocurrency trading can be conducted through over-the-counter or on-exchange trading methods.
On-exchange and off-exchange trading concepts primarily come from the securities market.
【Fiat Trading】Refers to using legal tender such as dollars or renminbi to purchase BTC, ETH, USDT, and other cryptocurrencies acting as 'fiat currency' in the circle. Transactions can be made through credit cards, Alipay, or WeChat.
【Crypto-to-Crypto Trading】Refers to trading between virtual currencies (e.g., using Bitcoin to purchase Ethereum or vice versa).
【On-exchange Trading】Also known as exchange trading; it involves matching trades on virtual currency trading platforms where buy and sell prices are public, and the platform displays real-time quotes. A method of trading through bidding in exchanges.
【Over-the-Counter Trading】(OTC, over-the-counter), also known as peer-to-peer (offline) trading; refers to trading conducted through means other than exchanges, including:
① Online P2P: Some trading platforms have developed peer-to-peer off-exchange trading systems, such as Okex, OTCBTC, etc. Users can decide their own buy or sell prices and post trade orders, choosing freely to trade with each other without the platform handling funds; (for example, if a seller posts a fixed quantity and price of bitcoin for sale on the platform, the buyer must exit the app to make direct payments to the seller's Alipay, WeChat, or bank account. The seller confirms receipt before releasing bitcoin on the platform.)
② Online B2C: Users can directly buy or sell bitcoin from the platform, with prices set by the platform. After collecting payment from users, the platform directly releases bitcoin to buyers or releases funds to sellers after receiving bitcoin. The funds or bitcoin from the B-side are either owned by the platform or come from partner merchants.
③ Offline Trading: Apart from trading platforms, there are also intermediaries who aggregate buying and selling demands and charge a fee. This often occurs in WeChat groups, QQ groups, etc. Additionally, people can exchange virtual currencies through face-to-face transactions, and some websites provide services for posting face-to-face trading information.
【Trading Pair】EOS/ETH, this kind of display refers to a trading pair, indicating how many ETH are needed to purchase one EOS, akin to the concept of 'grams per yuan.'
【Market Order Trading】Refers to buying and selling at the current price, with market orders having priority in trading. If you can complete the transaction faster, you can use market orders.
【Limit Trading】Refers to trading at a specific price, also known as commission trading or order trading.
【Arbitrage】Refers to price discrepancies of the same cryptocurrency across different exchanges. Buying on a platform with lower prices and selling on a platform with higher prices to profit from the price difference. It is essential to pay attention to the speed of transferring coins as it may affect your earnings.
【Cutting Losses】Politely referred to as 'liquidating.' After buying virtual currency, if the price falls, selling to prevent further losses. Fear of deeper declines.
【Rug Pull】A batch of new investors who enter the crypto circle are harvested by manipulators due to careless operations, and a new batch of investors enters. Without good investment experience, it is easy to be harvested.
【Long-term】Holding a certain cryptocurrency for an extended period.
【Short-term】Holding a cryptocurrency for a short period until the profit target is reached, which can range from hours to weeks, depending on the market.
【Take Profit】Selling the virtual currency held after achieving a certain profit to secure gains.
【Stop Loss】Selling the held virtual currency after losses reach a certain level to prevent further losses.
【Stuck】You buy a cryptocurrency, it drops, and you can't bear to sell. Congratulations, you are stuck.
【Unstuck】After buying virtual currency, if the price drops causing a temporary book loss, but later the price rebounds, turning losses into profits.
【Missing Out】Due to a pessimistic view of the future market, selling virtual currency only to see the price continue to rise, failing to buy back in time and thus missing out on profits. A perfect miss is called missing out.
【Roller Coaster】You buy a cryptocurrency, it rises, you are excited and brag to friends, but a few days later it drops back down. You feel like you’ve been on a roller coaster, just a quick thrill with no lasting result.
【Hoarding Coins】You see the future development of this coin and want to realize wealth freedom with a hundredfold or thousandfold increase, so you buy a large amount of this coin and hoard it.
【Going Long】Most people engage in going long daily, buying low with hopes of selling high. Generally refers to a bullish outlook.
【Short Selling】A practice that futures traders often engage in. The seller believes that the cryptocurrency price will fall in the future, selling the cryptocurrency they hold, and buying back at a lower price after the price drops for profit.
【Bottom Fishing】Buying a cryptocurrency when it falls to an appropriate price range.
【Market Control】The proportion of coins held compared to the circulating supply is large.
【Lifting the Price】The main force begins to raise the price for a certain purpose or after a period of accumulation.
【Washing the Plate】Manipulators or project parties with substantial funds control the market through capital, causing the market to fluctuate, scaring out hesitant investors to achieve profitable goals.
【Accumulating Funds】Typically involves washing out retail investors, after which the manipulators will take over the coins sold by retail investors, increasing their own holdings to achieve market control (generally, accumulation occurs at low prices).
【Dumping】A stock market term, generally divided into two scenarios: one where the price is rising and manipulators want to clean out the following buyers by significantly dumping at a certain price, creating a false appearance of decline, enticing retail investors to sell; the other occurs when a manipulator has completed their objectives and, when prices are high, dumps a significant amount of cryptocurrency to achieve their exit.
【Hedging】Hedging generally involves executing two transactions that are market-related, opposite in direction, and of equal quantity, offsetting gains and losses. In the futures market, one buys the same quantity of positions in opposite directions, and once the direction is confirmed, closes out the opposite position, keeping the positive position to gain profits.
【Position】A position is a market agreement, promising the initial position of buying and selling contracts. The buyer of the contract is long, anticipating a price rise; the seller of the contract is short, anticipating a price decline.
【Bull】Expecting the cryptocurrency price to rise in the future, buying a certain quantity at the current price, and then selling at a higher price after the price increases to earn a profit difference, characterized by the behavior of buying first and selling later.
【Bear】Expecting the cryptocurrency price to fall in the future, selling the digital currency held at the current price, and buying back after the market declines to gain profit from the price difference. Characterized by selling first and buying later.
【Leverage】Leverage trading, as the name implies, is using a small amount of funds to make investments several times the original amount, aiming for returns that are multiple times the fluctuations of the investment target, or losses.
【Overbought】The cryptocurrency price continues to rise to a certain height, and buying power is essentially exhausted, signaling an impending price drop.
【Oversold】The cryptocurrency price continues to fall to a certain low point, and selling power is basically exhausted, indicating that the price is about to rebound.
【Pump and Dump】Refers to a market behavior where the main force or manipulators intentionally create the illusion of rising prices, luring investors to buy in, only for prices to drop instead, trapping those who followed the trend.
【Short Squeeze】Refers to a market condition where mainstream funds heavily short the market, creating obvious weak patterns that lead investors to believe the market will continue to drop significantly, resulting in panic selling.
【Wash Trading】A trading technique used by manipulators. The specific method involves opening accounts at multiple exchanges and quoting trades between exchanges in a seesaw manner to manipulate cryptocurrency prices.
【Turnover Rate】Refers to the frequency of a certain cryptocurrency being bought and sold in the market within a certain period, which is one of the main indicators for evaluating the liquidity of a cryptocurrency.
【Whale】Refers to traders or large holders with significant capital who can profoundly influence price movements. Whales typically use methods like market protection, manipulation, wash trading, and dumping to control cryptocurrency market prices, which is why there are sayings like 'whales harvest retail investors' and 'kill the dog whale.'
【Whale】Refers to individuals who profit by manipulating the market, with market manipulators usually earning money from retail investors, hence retail investors often refer to manipulators as whales.
Supplement
Crypto Circle: The community naturally formed by digital currency enthusiasts.
Bitcoin: A nickname for Bitcoin (BTC).
Aunt: Refers to 'Ethereum,' a homophonic term for 'Ethereum,' often used in various pyramid schemes.
Whale: A person who profits by manipulating the market in the crypto circle, often referring to notorious scammers.
All In: Phonetic translation of 'show hand,' meaning putting all of your money into the cryptocurrency market or a specific cryptocurrency.
DDT: An organophosphate insecticide, a tool for protecting rights in the cryptocurrency market, and a nemesis of exchanges.
Waterfall: Describing a sharp drop in cryptocurrency prices, akin to a waterfall.
Rebound: When the price of a cryptocurrency falls sharply, it may recover due to rapid declines.
Consolidation (Sideways): A market condition where price fluctuations are small, and the cryptocurrency price remains stable, with little difference between the highest and lowest prices.
Downtrend: The cryptocurrency price is slowly declining.
Adjustment: In a bull market, if the price rises too quickly, a temporary pullback occurs, known as an adjustment. The decline is smaller than the increase.
Private Placement: A method of investing in cryptocurrency projects, which is also the best way for founders to raise funds for platform operations.
Locking Position: Locking position generally refers to when an investor opens a new position that is opposite to their original position when the market moves against them after buying and selling contracts, also known as hedging, or whimsically called butterfly double flying.
An analysis of the entire financing process of primary market projects in the crypto circle: seed round, angel round, private placement round, public offering round!
Seed Round: Refers to the earliest stage of financing. Although most startups rely on their founders' or their immediate family and friends' funds, some businesses seek third-party 'seed financing,' which is a form of financing in the very early stages.
Angel Round: Angel investment refers to individuals investing to help entrepreneurs with specialized skills or unique concepts who lack their own funds to start a business, bearing high risks and enjoying high returns upon success. It is a special form of venture capital.
Private Placement Round: Private placement is opposed to public offering, where public offerings refer to fundraising from a broad and unspecified audience, like bank-sold funds; private placements target specific groups for fundraising and cannot advertise publicly.
Public Offering Round: Refers to the ICO stage, which generally does not last long and involves several rounds with different discounts. This is typically divided into two steps.
1. An institution states that it is researching blockchain technology, with transferable tokens embedded in the public chain.
2. Investors exchange mainstream coins or platform coins for tokens as a certificate.
Primary Market: Refers to tokens that have not yet been listed on exchanges. Participating prices are much lower than listing prices, inherently a low-risk, high-reward certificate.
Missing Out: Due to a pessimistic view of the future market, selling virtual currency only for the price to rise, failing to buy back in time, hence missing the profit.
Slapping Thighs: A phrase expressing deep regret, typically used after making erroneous operations.
Arbitrage: Referring to the price differences of the same cryptocurrency across different exchanges. Arbitrage involves buying on one exchange and selling on another to profit from the price difference.
Unplugging the Network Cable: A sarcastic term for users regarding 'exchange server failures,' implying that exchanges deliberately shut down server trading for some hidden purpose.
Position: Refers to the ratio of actual investment to actual investment funds.
Full Position: Buying virtual currency with all available funds.
Reducing Position: Selling part of the virtual currency but not all.
Heavy Position: The available funds are smaller than the cryptocurrency holdings.
Light Position: The available funds compared to the virtual currency, with available funds occupying a larger share.
Liquidation: Selling all virtual currencies held and converting everything to cash.
Establishing Position: Buying virtual currency.
Adding to Position: Buying virtual currency in batches, such as first buying 1 BTC, then buying another 1 BTC.
Full Position: Buying all virtual currency at once with all available funds.
Take Profit: Selling the held virtual currency after achieving a certain profit to secure gains.
Stop Loss: Selling the virtual currency held after losses reach a certain level to prevent further losses.
Bull Market: A market condition where prices continue to rise, and the outlook is optimistic.
Bear Market: A market condition where prices continue to decline, and the outlook is bleak.
Bull (Going Long): The buyer, who believes that the cryptocurrency price will rise in the future, buys the currency and waits to sell it at a higher price for profit.
Bear (Short Selling): The seller believes that the cryptocurrency price will fall in the future, selling the cryptocurrency they hold (or borrowing cryptocurrency from a trading platform), and buying back at a lower price for profit.
Cutting Losses: After buying virtual currency, if the price falls, selling to prevent further losses.
Stuck: Expecting the price of a cryptocurrency to rise, but after buying, the price falls; or expecting the price to fall, but after selling, the price rises.
Unstuck: After buying virtual currency, if the price drops causing a temporary book loss, but later the price rebounds, turning losses into profits.
Pump and Dump: After a long period of consolidation, the price may likely drop significantly. Most shorts have sold their virtual currencies, and suddenly the bears raise the price, luring bulls to believe the price will rise, causing them to buy, only for the bears to suppress the price, trapping the bulls.
Short Squeeze: After bulls buy virtual currency, the price is intentionally suppressed, leading bears to believe that the price will fall, causing them to sell, which results in a trap for the bulls.
Overbought: The cryptocurrency price continues to rise to a certain height, and buying power is basically exhausted, indicating that the price is about to fall.
Oversold: The cryptocurrency price continues to fall to a certain low point, and selling power is basically exhausted, indicating that the price is about to rebound.
Swing Trading: Refers to the investment method where individuals in the crypto circle sell at high prices and buy at low prices. This method is an effective trading strategy targeting the current fluctuating market characteristics.
Hash Rate: Simply put, it is a function that compresses a message of any length into a fixed-length message digest.
Hash Rate: Assuming mining is solving an equation problem, where each integer must be substituted to calculate the answer, the hash rate is the speed of processing data per second. The higher the computing power, the higher the hash value and the faster the efficiency.
Mining: At regular intervals, the Bitcoin system generates a random code at the system nodes, and all computers on the internet can search for this code. Whoever finds this code will generate a block and receive a bitcoin, making the block creator a miner. This process is called mining.
Mining Pool: An automated mining platform that allows miners to contribute their computing power to mine blocks together and receive block rewards, distributing profits based on their contribution of computing power (i.e., miners connect to the pool—providing computing power—receiving returns). This enables miners to earn a steady income rather than relying on the low probability of receiving a single block reward.
Simply put, everyone works together to mine a gold mine, and after digging out a piece of gold, the distribution is based on the workers' digging progress.
Order: Refers to a commission. When buying/selling on a trading platform, you enter the price at which you want to buy/sell (this price is set by you), and then place an order. Once your digital currency reaches the price you want to buy or sell, it will automatically execute.
Market Order: A market order is an instruction to buy or sell a certain amount of futures contracts at the current best price or market price immediately.
Limit Order: You specify the price at which you wish to buy or sell and enter this price into the system to wait for execution, while also reporting a time limit for the order; canceling an order means you withdraw an order you have already placed.
Hedging: Refers to simultaneously executing two market-related transactions that are opposite in direction, equal in quantity, offsetting gains and losses.
Leverage Trading: As the name implies, it means using a small amount of capital to invest multiple times the original amount, hoping to achieve returns that are several times the fluctuations of the investment target, or losses.
Limit Trading: Investors can set a buy price below the market price or a sell price above the market price. When the market price fluctuates to the set price, the transaction occurs. When the set price deviates significantly from the market price, it may result in an inability to execute transactions.
Market Order: Transactions are executed at the current market price, which can ensure that investor buy and sell orders are filled promptly. However, the investor cannot predict the transaction price before placing a market order, posing some uncertainty. Generally, the more volatile the market, the greater the uncertainty risk of the transaction price.
The basic principle of transactions: price priority, time priority. A higher buy price takes precedence over a lower buy price, and a lower sell price takes precedence over a higher sell price. When the commission prices are the same, the earlier commission takes precedence over the later one.
ICO: Initial Coin Offering, the first issuance of tokens, originating from the concept of Initial Public Offering (IPO) in the stock market, is the first issuance of tokens in blockchain projects, raising bitcoins and other general cryptocurrencies like Ethereum.
Candy: Refers to various digital currencies distributed for free to users at the time of ICO, used by the issuing party to create momentum and publicity for the project itself.
Airdrop: Airdrop is currently a very popular marketing method in cryptocurrency and is mostly free. To provide potential investors and cryptocurrency enthusiasts with token-related information, the token team frequently conducts airdrops.
Break Price: Breaking refers to falling below, and issuing refers to the issuance price of the cryptocurrency. A break price in the crypto circle means that a certain cryptocurrency has fallen below its issuance price.
Token: Commonly translated as 'certificate,' Token is one of the important concepts in blockchain and is more widely known as 'cryptocurrency.'
DEX: Decentralized Exchange.
HODL: It is 'hodl' not 'hold,' meaning Hold on for dear life, indicating that this cryptocurrency has great potential and will rise significantly in the future.
FOMO: Fear of missing out, referring to those who have not yet entered the market fearing that others have already profited, and they have missed out.
ATH: All-time high, the highest historical price.
