Whether you’re just getting started in the crypto market or already have some experience, understanding trading terminology is crucial for making smarter and more strategic decisions. The crypto world has its own set of jargon, with many terms borrowed directly from English. Not knowing these terms can interfere with how you read the market or even lead to losses.
In this glossary, we’ve put together 30 essential crypto trading terms that every trader should know. These are words and abbreviations that appear all the time in charts, analysis, videos, and trading platforms.
Bookmark this page and come back to it whenever you need a quick reference. Let’s get started!
Category 1: Technical Trading Terms
- Long
Entering a long position means you’re betting that the price of a cryptocurrency will rise. The trader buys the crypto expecting to sell it later at a higher price. - Short
A short position (short selling) is the opposite of a long. The trader profits when the price of the cryptocurrency drops. They sell first and buy it back at a lower price. - Leverage
Using borrowed capital to increase the potential profit and risk of a trade. For example, 10x leverage means trading with ten times more than you actually have in your account. - Stop Loss
An automatic order to limit losses. If the price reaches a certain level, the position is closed to prevent further loss. - Take Profit
An order to automatically close a trade when a target profit is reached. It helps traders lock in gains without having to monitor the market constantly. - Volume
The amount of a cryptocurrency traded over a specific time period. High volume usually indicates stronger liquidity and more market interest. - Liquidity
The ease of buying or selling a cryptocurrency without significantly affecting its price. Highly liquid assets have tighter spreads and are better suited for active trading. - Breakout
When the price moves beyond a key level, such as a resistance, it is called a breakout. It often signals a potential trend continuation. - Pullback
A temporary price correction after a breakout. Many traders wait for the pullback to enter a position with more confidence. - Volatility
Measures how much the price of an asset fluctuates over time. Cryptocurrencies are known for high volatility, which can present both opportunity and risk.
Category 2: Indicators and Strategies
- RSI (Relative Strength Index)
An indicator that measures the strength of price movement. It ranges from 0 to 100. Values above 70 indicate overbought conditions (possible price drop), while values below 30 indicate oversold conditions (possible price increase). - MACD (Moving Average Convergence Divergence)
A tool that shows the relationship between two moving averages. It helps identify trend changes and generate buy or sell signals. - Moving Average (MA/EMA)
Indicators that smooth out price data over time. MA is a simple average, while EMA gives more weight to recent prices. Widely used to detect trends. - Support
A price level where an asset tends to stop falling and reverse upward. Traders use support levels to find potential entry points. - Resistance
A price level where an asset tends to stop rising and pull back. It can be a good point to take profits or start a short position. - Fibonacci
A tool based on the Fibonacci sequence, used to find possible retracement and extension levels after strong price moves. - Candlestick Patterns
Formations on candlestick charts that indicate possible reversals or trend continuation. Examples include hammer, engulfing pattern, and morning star. - Scalping
An ultra-short-term strategy where traders aim for small, frequent profits, often within minutes. It requires constant focus and quick execution. - Day Trading
Trades that are opened and closed within the same day. The focus is on capturing short-term price movements using technical analysis and risk management. - Swing Trading
Trades that last for several days or weeks, aiming to profit from medium-term price swings. A good option for those who can’t monitor the market all day.
Category 3: Crypto-Specific Terms
- Blockchain
A technology that records all transactions in a decentralized and immutable way. It is the foundation of cryptocurrencies like Bitcoin and Ethereum. - Token
A digital unit issued on a blockchain, often used in projects, platforms, or decentralized apps (DApps). Not all tokens are considered currencies. - Altcoin
Any cryptocurrency that is not Bitcoin. Examples include Ethereum, Solana, and Cardano. Many altcoins serve specific use cases. - Stablecoin
A cryptocurrency that is pegged to a stable asset, such as the US dollar (e.g., USDT, USDC). Used to protect against volatility. - DeFi (Decentralized Finance)
An ecosystem of financial applications built on blockchains that allows users to lend, trade, and earn interest without intermediaries. - Exchange
A platform where you can buy, sell, or trade cryptocurrencies. It can be centralized (CEX) or decentralized (DEX). - DEX (Decentralized Exchange)
A decentralized exchange that operates without a central authority. Trades happen directly between users through smart contracts. - Wallet
A software or physical device used to securely store cryptocurrencies. It can be connected to the internet (hot wallet) or kept offline (cold wallet). - Gas Fee
A fee paid to process transactions on certain blockchains, like Ethereum. The more congested the network, the higher the fee. - Slippage
The difference between the expected price of a trade and the actual execution price. It’s common in low-liquidity or high-volatility markets.
Conclusion
Understanding crypto trading terms is more than just a language issue. It’s a key part of your strategy as a trader. Every concept in this glossary has a direct impact on your buying, selling, and risk management decisions.
Whether you’re a beginner or an experienced trader, mastering this terminology is an important step toward trading with more confidence, clarity, and efficiency.