Crypto & Trading Glossary

How to use:

A–C

Address: Public identifier on a blockchain where assets are held. See Crypto Basics.
Altcoin: Any cryptocurrency that is not Bitcoin. Often higher risk and volatility.
Ask / Bid: The sell (ask) and buy (bid) prices visible in the order book.
Bear / Bull market: Bear: prolonged downward trend. Bull: sustained upward trend.
Blockchain: Distributed ledger that records transactions in blocks linked together. Core to cryptocurrencies.
Collateral: Assets you pledge when borrowing or using margin. If value falls too low you can be liquidated.

DEX (Decentralized Exchange): Smart-contract powered marketplace that lets you swap tokens without a central custodian.
Drawdown: The peak-to-trough decline of your equity. Track it to manage risk.
Fiat: Government-issued currency such as USD or EUR.
Gas fee: Transaction cost paid to validators/miners. Varies by network congestion.
Hardware wallet: Physical device that stores private keys offline. Recommended for long-term holdings.

Index (Strategy List): Table on this site showing evaluated strategies with metrics. See Tools guide.
Leverage: Borrowing capital to increase position size. Increases both gains and losses.
Limit order: Order that executes only at a specified price or better.
Liquidity: How easily an asset can be bought/sold without moving price. Higher liquidity means tighter spreads.
Order book: List of buy and sell orders on an exchange. Useful for gauging supply/demand.
PnL (Profit and Loss): Difference between entry and exit value of a trade. Track both realized and unrealized PnL.

Risk-reward ratio: Potential gain compared to potential loss. Target > 2:1 when possible.
Slippage: Difference between expected fill price and actual fill price.
Stablecoin: Token designed to maintain a stable value, often pegged to USD.
Stop-loss: Order to close a position if price moves against you, limiting downside.
Volatility: Magnitude of price swings. High volatility increases risk; use position sizing to compensate.
Whitelist: Security feature allowing withdrawals only to approved addresses.

How much capital should I start with?: Only what you can afford to lose. Many traders begin with small amounts ($100–$500) to focus on process.
How do I pick my first strategy?: Use the Learning Hub workflow. Start with high-score strategies on major pairs and paper trade first.
What if I make a mistake sending crypto?: Blockchain transactions are irreversible. Send small tests, verify addresses, and use QR codes when possible.
Do I pay taxes on crypto?: Usually yes. Rules differ by country. Keep detailed records and consult a tax professional.