Cryptocurrency trading is quite a ride for itself. The cryptocurrency market reacts even to a tweet from famous personalities. We can't blame anyone as whoever is trading crypto are aware of the volatility.

When I started investing in crypto, I just bought the tokens my friend had suggested to me and didn't sell them until I got some profit. But the next time, I bought the same token when its price came down, then I had waited..waited..waited for a long time to get some profit out of that trade, then I decided it's not worth the wait and sold all the tokens. Hadn't I sold them, I would have made 10000% profit on that trade.

I was a beginner then and I didn't follow my own instincts or analysis to buy or sell. You should be taking care of your actions and think before blaming someone.

And if you are new to crypto, I would suggest, you better be quick to understand the things going around you, or you may end up losing the profit or end up in a loss.

You may encounter some terms used frequently for defining the situation or trend of the market. You better need to know them, otherwise, you may not be going with the flow which can cost you dearly.

cryptocurrency terms and meanings

Crypto Trading Terms for Beginners

Here you are going to learn some crypto trading terms which will be useful when you trade Bitcoin or any other cryptocurrencies and also the context in which they are used

1. Altcoin Season

Altcoins are cryptocurrencies other than Bitcoin. When the Bitcoin dominance falls significantly with the rise in Bitcoin Price, then we call that period Altcoin Season or Alt Season.

Generally, we don't exactly know when an Alt season occurs, but it occurs in cycles. In the Alt Season, Altcoins with good fundamentals rise heavily in prices, and most altcoins record all-time-high prices in that period.

Nobody can guess when an alt season and if you find some good crypto tokens, you can make good bucks in an alt season. NFA

2. Bag Holder

No, it's not what you think. A bag holder is referred to a person who buys and holds altcoins in large quantities and hopes to become rich in the future or even buy a Lamborghini.

I think this is self-explanatory, if one thinks they have found the next Bitcoin, I mean the coin that can perform just like Bitcoin or even better, they may buy with whatever they have to become a millionaire soon.

3. Bitcoin Dominance

Bitcoin Dominance is a ratio. The ratio of the market capitalization of Bitcoin to the market capitalization of all cryptocurrencies is known as Bitcoin Dominance.

When the Bitcoin Dominance decreases, it means that the money is flowing into altcoins or some major altcoins from Bitcoin, and a rise in alts is expected. And when the Bitcoin Dominance increases, altcoins can witness a fall in their prices and it is not good to build a position in altcoins.


BTFD means Buy the Fucking Dip. A dip is defined as any price below the all-time-high price of a cryptocurrency(not exactly)

When a cryptocurrency falls below its all-time-high price and the price is in an uptrend, then it is called a dip, and buying the dip can make you quick profits.

5. Dump/Dumping

Dump is, it's obvious right? or isn't it? When a cryptocurrency falls in price, the price is said to be dumping and dump means to sell off a cryptocurrency. Some common phrases used are, "we can see a dump in XYZ token", "the recent news dumped its price'" etc.

When the price of crypto falls due to some news and everyone panics and sells their bags, then they call it a panic dump.


DYOR is closer to DIY. The full form of DYOR is Do Your Own Research.

In crypto, everyone gives you the advice to buy or sell. So it is better to do your own research before you invest in something because it is your hard-earned money and nobody will be responsible for your losses except you.

7. Flash Crash

You might not be hearing this term too often but I will explain what is called a flash crash. When some whale wants to sell all his tokens and if there aren't enough buy orders in the market, it would lead to a flash crash.

A whale once sold 600,000 LINK tokens at once, there weren't enough buy orders and the price of LINK token dipped to $0.001 from $2 at that moment and regained quickly. So if you have put a buy order at $0.002, you would have 1000x return instantly.


FOMO means Fear of Missing Out. It is a common term used in our daily life, but in crypto, it is most widely used. When you have a fear of missing out on the profits of the coin and you rush in to buy it at whatever the price is.

In crypto, it happens when a cryptocurrency you thought would rise but you didn't buy is rising in price and you want to invest in it at the current price or the higher price, then you are said to be FOMOing.

9. FUD

FUD is Fear, Uncertainty, and Doubt.

Let's take an example. There is a rumor about the government banning Bitcoin. There is a fear whether the government ceases your crypto or you might have to sell your holdings in a loss, yet you are uncertain whether the government really bans Bitcoin and that doubt makes you be on the safe side by selling your Bitcoin.

Generally, FUD creates panic in the market followed by a dump in the prices of the cryptocurrencies. If you have fundamental knowledge about your investments, then you no need to bother about the FUD.

10. HODL

HODL means not to sell your holding for a long period of time. In 2013, some drunk person posted 'hodl your Bitcoins' in the Bitcoin community forum. Since then the word HODL is the mantra for Bitcoin holders.

HODL makes you rich is kind of a proverb followed by the Bitcoin holders, in that case, any Hodling a good cryptocurrency can definitely make you rich.

HODL is also interpreted as 'Hold on for Dear Life' which really makes less sense in the scheme of events.

11. Leverage

Leverage generally means usage to the maximum extent. In trading, leverage is to borrow funds to increase your position. For example, you have taken 5x(5 times) leverage on your trade and your investment is $100, the exchange would lend you $400 for that investment, now your position would become $500 and with 1% increase in the price can give you 5% return(5x leverage).

Leverage is quite rewarding while there is the same amount of risk. Now with the 5x leverage, just if the price is down 20%, you will lose all of our funds, in the above example, you would lose your whole $100 and the exchange will take back its $400. This is called Liquidation and the price at which liquidation occurs is called Liquidation price.

You will often come across Leverage and Liquidation in news and articles when there is a sudden price movement in Bitcoin or any other crypto-like, "Over $1 Billion liquidated as Bitcoin broke the crucial support zone", "High leverage traders got liquidated on account of Bitcoin FUD"

12. Liquidity

Liquidity is the ease at which a cryptocurrency can be bought or sold without affecting its price. As cryptocurrencies are traded on exchanges, liquidity is applicable for crypto exchanges. In a highly liquid exchange, buying or selling a cryptocurrency wouldn't affect its price.

Now suppose you have bought a cryptocurrency at $1 and if there are no buyers who want to buy it from you, then that market is said to be highly illiquid.

13. Long

Long or Longing is a term used while trading, more specifically while trading in the Futures markets, not just in crypto markets. Traders go long when they have a perception of upward movement of the price of a cryptocurrency in the future, maybe in some minutes or in the next few days.

Longing is different from buying. Longing involves leverage and if the price goes down when you long, there is a chance of losing your entire capital as you do not get any tokens when you Long any crypto.

14. Moon

'Moon is our target' or 'To the Moon' is what you see when you scroll through your Twitter or Reddit feeds. When the price of a cryptocurrency goes up, up, and away, then the price is said to be Mooning.

There is nothing much to add except this chart which represents chart similar to the moon mission.

crypto moon mission

15. NFA

NFA means Not Financial Advice.

You should often see this term on crypto Twitter. You know Bitcoin has certain events coming up soon and the fear and greed index is at a high fear stage which makes it the best time to accumulate some Bitcoin. Not a Financial Advice #NFA

16. OTC

OTC means Over the Counter. When a trade doesn't occur on the exchange, it is called OTC trade.

When institutions or high net-worth individuals want to buy Bitcoin or any other crypto, then can't just buy it on an exchange as there may not be many sell orders, and also it would cause a massive spike in price. So the institutions buy over the counter, outside of an exchange, at a certain price and with certain sellers.

17. Pump

Pump is the opposite of a Dump. When there is an upward price movement, then it is called a pump. Sudden upward movement of price is generally called a pump.

In crypto communities, it is used most often like, "let's pump it", "pump it to the moon" etc. When there is good news about crypto, it gets pumped, that is how we can put it. Pumps sometimes last for a day or few weeks, even months some times and even a few minutes.

18. Shitcoin

Shitcoin has it in its name. Cryptocurrencies with little to no value or utility are called Shitcoins. Investing in shitcoins is a bad idea.

Anyone can create a cryptocurrency and build a community around it. Investing in such tokens which have no utility without due diligence will make you no good. There are many good projects coming up, your returns will be on how much effort you spend to find good cryptocurrencies.

19. Short

Short is the opposite of Long. When you have established a downward view on the price of a cryptocurrency, you can short it to gain returns even when the price drops.

Increasing short positions among traders might indicate a negative price movement in the asset.

20. Rekt

Rekt is a verb. When you suffer a bad loss in a trade, then you get rekt. It is usually fun when people use the word rekt to announce their losses.

There is a Telegram channel called Rekt Plebs, where the people who got rekt, talk about how they got rekt. LOL

21. Rug pull

Rug pull is a scary thing to happen. When cryptocurrency project developers abandon the project and run away with the investor's money, it is called a Rug pull. Rug pulls also happen due to bugs in the smart contract.

Rug pulls happen quite often in crypto and with the evolution of Defi where you have to stake your funds on a decentralized platform, the platform creators can do anything they want if you are not careful in selecting those platforms. It is good to invest in something after some trust is established in the project.

22. Volatility

Volatile substances evaporate quickly. That's what I learned at school but after I have stepped into crypto, it is different. Volatility is defined as the fluctuation of prices of an asset rapidly and unpredictably. Cryptocurrencies are highly volatile.

Volatility has nothing to do with risk or reward. Cryptocurrencies prices move rapidly sometimes as the markets have started recently and people investing have little to no knowledge of their investments.

23. Wash Trading

Wash trading is a term you never hear anywhere but you need to know as you might experience it. Wash trading is when a trader or group of traders buy or sell rapidly to increase or decrease the price of a cryptocurrency. Wash trading is also used to report fake volumes on exchanges.

Wash trading is simply called Pump and Dump. There are several telegram groups that decide to pump a certain token at a certain time. Stay away from them as you may buy at the top and end in a loss.

24. Whale

A whale refers to individuals or institutions who hold large amounts of cryptocurrency. Bitcoin whales are those who hold a large amount of Bitcoin.

Whales can easily manipulate the prices in crypto. You can HODL and become a whale for yourself too. If you follow the whales, it might benefit you while trading.

25. YOLO

YOLO means You Only Live Once, yes, we only live once, so what? how it is related to crypto. According to the Redditors, you have to appreciate the moment and make benefit out of it like buying a stock or crypto so that everyone gets rich.

Redditors have a list of YOLO stocks and crypto which they want to invest and go all in. However, putting all your money into a single asset is not a wise decision. NFA

Those are the crypto trading terms you should know, and if you think we forgot something, please feel free to comment down below. Trade safe.


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