Cryptocurrency Glossary
Acceleration — An increase in the speed of price movement in one direction.
Accumulation — A period when large participants buy assets at low prices before an expected rise.
Activity — Trading activity in the market, reflecting the number of transactions and participants’ interest in an asset.
Airdrop — A free distribution of tokens or coins to users, usually to promote a new project. To receive an airdrop, you need to meet certain conditions, such as subscribing to a channel or holding a specific cryptocurrency.
Asset — Any financial instrument that can be bought or sold (e.g., cryptocurrency, stocks, commodities).
ATH (All-Time High) — The historical maximum price of an asset.
ATL (All-Time Low) — The historical minimum price of an asset.
Base Сurrency — the first currency in the trading pair (ETH-USDC pair, ETH is base currency).
Bear — A market participant who expects prices to fall and sells assets in anticipation of their depreciation.
Bear Market — A period when prices of assets fall due to a predominance of sellers, and most investors are pessimistic.
Black Swan — A rare and unpredictable event that has a significant negative impact on the market.
Blockchain — A chain of blocks that stores transaction information. Each block contains data about previous operations, making the system transparent and secure from alterations.
Bounce — A price movement away from a support or resistance level in the opposite direction.
Breakout — The price overcoming a support or resistance level.
Bull — A market participant who expects prices to rise and buys assets in anticipation of their appreciation. The term comes from the idea that a bull “lifts” the market with its horns.
Bull Market — A period when prices of assets rise due to a predominance of buyers, and investors are optimistic.
Buyback — A situation where large participants (whales) buy assets at low prices to sell them later at a higher price.
Circulating Supply — The number of coins or tokens in circulation available for buying or selling.
Consolidation — A period when the price of an asset moves within a narrow range without a clear upward or downward trend.
Correction — A temporary price movement against the main trend. For example, after a rise, the price may drop slightly before continuing its upward movement.
Dump — A sharp drop in the price of an asset, often caused by mass selling.
Engulfing — A situation where one candlestick on a chart completely “engulfs” the previous one, potentially signaling a trend reversal.
Entry (Entry Condition) — The moment when a trader decides to open a position to buy or sell an asset.
Exchange — A platform where people can buy, sell, or exchange assets such as cryptocurrencies, stocks, or commodities. The exchange acts as an intermediary between buyers and sellers, ensuring the security of transactions.
Extremum — The maximum or minimum price value over a specific period.
False Breakout — A situation where the price temporarily breaks through a support or resistance level but then returns to its previous range.
Flash Crash — A sharp and short-lived drop in the price of an asset, often caused by technical glitches or panic.
Futures — Contracts to buy or sell an asset in the future at a predetermined price.
Graphical Reference — A level or pattern on a chart that helps traders make decisions.
Hedging — A strategy to reduce the risk of losses by opening opposite positions.
HODL — A slang term meaning long-term holding of an asset despite price fluctuations.
Impulse — A sharp and strong price movement in one direction.
In-play asset — An asset that is currently actively traded on the exchange, meaning there are volumes and open interest in it. The “in play” period can vary — sometimes a few hours, sometimes days, and sometimes several months.
Liquidity — The ability of an asset to be quickly bought or sold without significantly affecting its price.
Long (Long Position) — A position to buy an asset with the expectation of its price rising.
Long-Term — A period spanning several months or years. Long-term investors focus on fundamental analysis.
Market Capitalization — The total value of all coins or tokens in existence for a particular cryptocurrency.
Medium-Term — A period spanning several weeks or months.
Mining — The process of creating new coins and confirming transactions in the blockchain using computational power.
Multitake — Оne of several take profit orders that closes a trade in profit for a part of its volume.
Section titled “Multitake — Оne of several take profit orders that closes a trade in profit for a part of its volume.”Order — A request to buy or sell an asset according to the specified conditions.
Order - Limit - A buy or sell order that specifies a fixed execution price. Such an order can wait a long time for the price conditions to occur after creation.
Order - Market - An order to buy or sell an asset at the current market price. It is executed immediately after the order is placed, but the final execution price may differ from the price at the time the order was created (the effect of slippage).
Order - Stop-Limit - An order to buy or sell at a fixed price (limit), which is created only when the specified trigger “stop price” (activation price) is reached. Usually, for a buy order, the stop price is set below the limit, and for a sell order, it is set higher. This increases the chances of executing a limit order after the triggering (but the risk of non-executing a limit order is still non-zero).
Order - Stop-Market - An order to buy or sell at the current market price, which is created only when the specified trigger price (activation price) is reached. It is executed immediately after the order is placed, but the final execution price may differ from the price at the time the order was created (due to the slippage). There is almost no risk that the order will not be executed.
Panic Sale — Mass selling of an asset due to fear of further price declines.
Pattern — A repeating figure or model on a price chart that helps predict future market movements.
Profit — Gain from a trade.
Pull up — The mechanics of canceling a deal on the Veles platform in cases where the first limit order is not executed.
Pump and Dump — A scheme where a group artificially inflates the price of an asset (pump) and then quickly sells it (dump), leaving other investors with losses.
Quote Сurrency — the second currency in the trading pair (ETH-USDC pair, USDC is quote currency).
Reaction — Price movement following an event or reaching a level.
Resistance Level — A level on the chart where the price stops rising and may start falling.
Retest — A repeated test of a support or resistance level after its breakout.
Risk Management — A strategy to manage risks and minimize losses.
Setup/Formation — A combination of conditions or patterns signaling a potential price movement.
Short-Term — A period spanning several minutes, hours, or days. Short-term traders focus on technical analysis.
Sloping Level — A line on a chart showing the direction of price movement at a specific angle.
Spread — The difference between the buying and selling price of an asset.
Stop loss — An order that closes a deals at a loss if the trade did not go according to plan. The amount of the loss must be calculated in advance so that it is acceptable and limited.
Stop loss at Break-even — An order that closes the remainder of the deal volume at a small profit level. It will be created after a portion of the take profits has been taken.
Structure — The overall pattern or trend on a chart showing how the price moves.
Support — A price zone on the chart where buying pressure is strong enough to halt a downward move.
Support Level — A specific price level on the chart where the price repeatedly stops falling and may reverse upward.
Take profit — An order that closes a deal (or part of it) with a profit.
Timeframe — A time interval used for chart analysis (e.g., 1 minute – 1m, 1 hour – 1H, 1 day – 1D, etc.).
Token — A digital asset that can represent something valuable, such as a share in a project or the right to use a service.
Touch — The moment when the price reaches a support or resistance level but does not break through it.
Trading Volume — The total number of assets bought or sold over a specific period.
True Breakout — A situation where the price breaks through a support or resistance level and consolidates beyond it, confirming a new trend.
Volatility — The degree of price fluctuation of an asset over a short period. High volatility means the price can rise or fall sharply.
Whale — A large investor or trader who can influence the market with their significant buying or selling volumes.