Basic Trading Terms for Beginners In Crypto

1. Basic Trading Terminology

Order: A request to buy or sell an asset.

Bid – Ask: The price buyers are willing to pay (Bid) and sellers want to receive (Ask).

Volume: The number of assets traded in a given period.

2. Types Of Orders

Market Order: Executes immediately at current market price.

Limit Order: Executes at your specified price.

Stop-Limit / Stop-Market: Used for stop-loss or take-profit triggers.

3. Trading Positions

Long: Expecting the price to go up.

Short: Expecting the price to go down.

PnL (Profit and Loss): The gain or loss from a trade.

4. Margin & Leverage

Margin Trading: Borrowing funds to increase trading size.

Leverage: Multiplies your exposure (e.g., 5x, 10x).

Liquidation: Forced closure of a position when losses exceed margin.

5. Market Sentiment & Psychology

FOMO (Fear of Missing Out): Buying impulsively due to hype.

FUD (Fear, Uncertainty, Doubt): Negative news causing panic.

HODL: A slang for “Hold,” meaning to keep assets long-term.

6. Other Important Terms

ATH (All-Time High): Highest price ever recorded.

ATL (All-Time Low): Lowest price ever recorded.

Bull Market / Bear Market: Rising vs. falling markets.

Whale: Investor holding a large amount of crypto.

Pump – Dump: Inflating price quickly, then selling off.

7. Conclusion

Mastering trading terms helps you read charts, understand market news, and make informed trading decisions. In the ever-changing crypto world, strong terminology is your first line of defense.