Beginner's guide | Tips and Tricks You Should Know part 2

Ask – Limit sell order at a specific price (ask price)

Bear/bearish – Decrease in price, a trend which primarily moves downwards, or someone that believes the trend will be down

Bid – Limit buy order at a specific price (bid price)

Bull/bullish – Increase in price, a trend which primarily moves upwards, or someone that believes the trend will be up

Delisting – Removal of an asset or trading pair from an exchange

Dump – Intense sell pressure which rapidly moves the price down

Divergence – A situation in which the price makes a higher high, while an indicator (such as the RSI, OBV etc.) makes a lower high, or vice versa; this typically indicates a potential trend reversal

ERC-20 – A technological standard for issuing tokens on the Ethereum blockchain

Fiat – Money issued by the government and not backed by e.g. gold

HODL – Hold on for Dear Life, misspelling of “hold,” which became popular in crypto and refers to holding a cryptocurrency rather than selling

ICO – Initial Coin Offering, the stage in which a project offers its coin or token to investors before it enters the open market

IDO – Initial DEX (decentralized exchange) offering, the launch of a token on a decentralized exchange

IEO – Like an IDO, but held on a centralized exchange

Index (plural: indices) – An exchange-traded instrument which tracks the price of a number of assets

Ledger – 1. A record of transactions, in this sense blockchain is one type of (distributed and public) ledger; 2. A popular brand of hardware wallets

Leverage – Trading with a position size larger than your collateral, this can be done either through derivatives (futures or options contracts) or through margin trading on the spot market

Liquidity – The amount of buy and sell orders on centralized exchanges, or the amount of pooled assets in decentralized exchanges; this affects the ease with which you can buy/sell large amounts without moving the price

Listing – The addition of a new asset or trading pair to an exchange

Margin trading – Trading with borrowed funds

Market capitalization (or market cap) – The number of tokens in circulation multiplied by the price of each token

Mining – Verifying transactions on a blockchain network that uses Proof-of-Work

Moon – An extreme, and often rapid, increase in price

Node – A network participant which monitors the activity on a blockchain

Ponzi scheme – A type of fraud in which money from new investors is used to pay back earlier investory; eventually, this inevitably collapses

Pump – A steep increase in price

Pump and Dump (P&D) – A type of fraud where insiders slowly buy a large amount of an asset, before convincing retail traders to buy it, driving the price up sharply, and then dumping their assets to make a quick profit

Satoshi Nakamoto – Bitcoin’s pseudonymous creator (or group of creators)

Satoshi – Smallest unit of Bitcoin (0.00000001 BTC)

Staking – Locking the native token on a Proof-of-Stake blockchain in order to validate transactions (analogous to mining)

Total Supply – Total number of tokens in existence

Whale – A person or organization that owns a significant proportion of an asset, which means that they can easily influence its price

Whitelist – A list of individuals or wallet addresses allowed to participate in a service (for example an IEO)

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