Arbitrage: the activity of taking advantage of the difference in price that there may be between several “exchanges” to buy on one and resell on the other. Thanks to arbitrage prices tend to be equalized on all markets. When significant differences persist, it is often the case that the fees applied (on the transaction or the withdrawal) are not the same.
ATH: All Time High, the highest price ever.
Bear market: market with a downtrend.
BTFD (Buy The Fuckin ‘Dip): Basic principle of trading: “buy when everyone sells and the price seems to you to be the lowest”.
Bull market: market with an uptrend. We also use the adjective “bullish” to describe this situation.
Chart: Price chart.
Correction: Sudden change in price which returns to its previous price (or comes close to it) after a period of relatively long rise or fall.
Day Trading: Activity consisting of speculating in the short term and buying and selling very frequently. The day trader is opposed to the hodler, the long-term investor.
Dip (fall): brutal and ephemeral fall of the course which immediately finds its value. This can correspond to a large sale by a single actor. “Dips” can be good opportunities for those who have placed purchase orders.
DCA (Dollar cost averaging): Investment strategy of large entrants in illiquid markets to buy in several times to reduce the impact of volatility including.
Exchange (trading platform): marketplace dedicated to cryptocurrencies: Paymium, Kraken, Coinbase, Poloniex …
FOMO (fear of missing out): afraid to miss an opportunity when the price starts to rise. This fear can lead to bubbles when it comes to a group phenomenon.
FUD (Fear, Uncertainty and Doubt): Fear, uncertainty and doubt. A technique consisting in spreading negative, often vague and fear-inspiring information with the aim, sometimes, of lowering the price and / or discrediting a project.
FUDster: the one who practices FUD.
FIAT (Currency): Currency issued by central banks, which is based on the trust that we have in these issuing institutions. Example: $, €, £ …
HODL: comes from the word “hold”, which means to hold. The hodler invests in the long term.
ICO Initial Coin Offering: Fundraising in cryptocurrency by issuing and selling a token. [Read more]
Limit buy: Purchase trigger order placed by the investor to buy crypto-currencies at a price fixed in advance.
Limit sell: Sales trigger order at a price fixed in advance.
Long position: bet upwards using margin trading. That is to say, borrow crypto-currencies hoping for a rise that will both pay back the cost of the loan and generate a profit.
Market Buy: purchase order at the market price.
Market cap: Theoretical value of the money supply of a cryptocurrency. To calculate the “market cap” one multiplies the number of tokens in circulation by the price of a unit.
Market sell: sell order at market price.
Margin: Borrow money to make an investment. We speak of leverage (x2, x3, x10 …). It allows to multiply the potential gains … but also the losses. Market fluctuations are all the more intense as leverage is strong. For example, with a lever at x5, a variation of + 20%, you will earn 5 × 20%, ie 100%! By cons -20%, you will lose … 100% of your stake. If this happens, your bet is liquidated, and you lose the entire sum placed, even if the course goes back a minute later. A tool to book for confirmed traders.
Margin trading: margin loans allowing lenders to benefit from their dormant assets without risk of default, one can effectively borrow only in proportion to its holdings on the platform. The only risk to be assumed by the lender is the security of the exchange. “The good side of the margin loan is that it provides additional liquidity to the market, the bad thing is that it is easy for investors to lose money.” – Zhao Dong, OTC trader.
Moon (moon): expression used by the most optimistic to design the direction of the prices.
Panic Sell: sales panic and massive when the price starts to fall.
Pumping: a technique of artificially promoting a project or cryptocurrency to encourage others to invest, raise prices and sell favorably.
Pump & Dump: market manipulation, usually operated by a major player or group of players, buying huge amounts of cryptocurrency to artificially raise prices, hoping to create a feeling of “FOMO” attracting new buyers. When this goal is reached the pumper turns into a “dumper”: he sells everything before others to get the most benefit.
Rekt: comes from the English word “wrecked” which means “annihilated”. This is an expression that means that you have lost a lot of money on a bad investment, or all in the case of a margin loan.
ROI (return on investment): return on investment calculated by dividing the profit made by the amount invested. A 100% ROI means that you doubled your starting bet.
Sell wall / buy wall: On the exchanges, some players choose to place orders for sale or purchase. When the selling price meets the purchase price, a trade takes place. All these orders go into what is known as an “order book” or an “order book”. A “sell wall” is literally a sales wall: a sales order of a large amount or lots of small orders at the same price. The opposite is a “buy wall”.
Short position: bet down using margin trading. That is to say, borrow crypto-currencies and sell them hoping for a decline that will buy more than the initial amount to repay the cost of the loan and make a profit.
Spread: Difference between the first offer of purchase and sale.
Stack: Refers to the whole capital in crypto-currencies of an investor.
Stop Buy: Order executed when the price exceeds a certain limit in order not to stay out of the market when a bullish phase seems to start.
Stop Loss: An order executed when the price falls below a certain limit in order to leave the market when a bearish phase seems to start.
TA (Technical Analysis): Technical Analysis. Graphical representation of the price that tries to predict from the past the future movements of the market.
Tokens: Tokens specific to different crypto-currencies or different projects. Bitcoins are the tokens of the Bitcoin network and ethers are the tokens of the Ethereum network. As part of the ICO some tokens are created and deployed on the Ethereum network. They usually follow a standard, called “ERC20”.
Trading bot: Program load to buy and sell without human intervention following a strategy defined by the programmer.
Whale (Whale): An important player with a large capital whose orders can have an impact on the price.
Smart Contract: These are intelligent contracts with automatic execution, whose terms between the seller and the buyer are defined in the lines of code. Its content exists on a decentralized blockchain network that allows for transactions and agreements of trust without the need for a central authority, legal system or external enforcement mechanism. Transactions are thus made traceable, transparent and irreversible.
Dogma from the “geek” branch of anarchists advocating a self-organized society, without hierarchy and without state. Crypto-anarchists or cypherpunk know exactly how the Internet works and they try to use it to build technologies from their own creation. Crypto-currencies are the most perfect examples. Crypto-anarchists aim at the global encryption of data so that nobody can have access to private information. The crypto-anarchist encrypts all communications, he uses software allowing anonymity like Linux for example. In summary, crypto-anarchists use peer-to-peer communications, only computers communicate with each other, no central server interferes with their communication.
Cryptocurrency based on blockchain Ethereum technology. Ethereum is a decentralized exchange protocol that allows users to create smart contracts. These contracts are based on a computer protocol that verifies or implements a mutual contract without a trusted third party. These contracts or applications are deployed or searchable in the Ethereum blockchain.
In order to create for example new Bitcoins (but the same is true for other cryptocurrency), computers are continuously computed. The computer that “mine” and that responds first to the mathematical problem posed has the right to create a new block within the Blockchain. When this happens, the computer and its owner win new Bitcoins. This process consumes a lot of energy, but the entire network can find an answer about every 10 minutes. It is now almost impossible to mine Bitcoin independently. Bitcoin miners use high-performance hardware on thousands of machines stored in warehouses. On the other hand nothing prevents you from mining on other currencies “more accessible”.
Peer-to-peer is a computer network close to the client-server model, but each client is also a server. The terms “node”, “peer” and “user” define the P2P. P2P can be centralized or decentralized. It can be used for data sharing, distributed computing, communication.
Proof of work
Validation by “proof of work” or PoW means in computer science an economic and security measure which makes it possible to dissuade, on a computer network, attacks by denial of service and other abuses of services such as spam thanks to computing power combined multiple computers that serve the applicant.
Internet network to navigate completely anonymously. The data set is constantly encrypted
A wallet is a “wallet” for storing one or more crypto-currencies. Most often, it takes the form of software to install. The choice of the wallet is essential, ideally, it must be online, perfectly secure and offer the choice of multiple cryptocurrency management. Nevertheless, no wallet offers the possibility of managing all the crypto-currencies available on the market.
Bitcoin (BTC): first decentralized electronic money designed in 2009 by an unidentified developer using the pseudonym Satoshi Nakamoto
Mining: Use the computing power of one or more computers to process transactions, secure the network, and allow all users in the system to stay in sync.
Ico: Initial Coin Offering. The ICO is a fund raiser for a cryptocurrency project. Instead of taking shares of the company as is the case in other sectors, investors receive a certain amount of the currency for which they participate in the ICO. It’s a way to get involved from the beginning of a project, if you think it’s worth it.
Satoshi: 1 satoshi is worth 10-8 bitcoin (0.00000001). This is the unit most often used in the trading community. It refers to the creator of bitcoin, Satoshi Nakamoto.
Segwit: The segregated witness is a soft fork of a currency, which allows to change the format of the transactions in the blockchain, in order to increase the capacity of a block, as well as the security of the transactions. The segwit is a prerequisite for the implementation of payment channels like the lightning network