The world of trading is full of terms that can seem confusing to beginners. Understanding these terms is the first step to building a solid foundation on your journey as a trader. In this article, we’ll explain the most important basic terms you need to know to trade cryptocurrencies with confidence.

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1. The most important terms in trading:

A. Cryptocurrencies:

Digital assets based on blockchain technology. The most famous of which are: Bitcoin and Ethereum.

B. Exchange platform:

An online place where you can buy and sell digital currencies.

C. Digital Wallet:

A tool for storing digital currencies. It is divided into two types:

Hot Wallet: Connected to the internet, easy to use but less secure.

Cold Wallet: Offline and more secure.

Dr. Spread:

The difference between the Bid price and the Ask price.

H. Liquidity:

How easy it is to buy or sell a particular asset without significantly affecting its price.

W. Orders:

Market Order: Buy or sell at the best currently available price.

Limit Order: Specifying a specific price to execute the trade.

Stop Loss Order: Close the trade at a certain point to limit losses.

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2. Technical analysis terms:

A. Japanese candlesticks:

Charts that reflect price movement over a specific period of time.

B. Support and Resistance:

Support: A price level at which the price is expected to stop falling.

Resistance: A price level at which the price is expected to stop rising.

C. Moving Averages:

Lines reflecting the average price movement over a period of time.

D. Technical indicators:

Analysis tools such as:

Relative Strength Index (RSI): Measures the strength of price momentum.

MACD: Helps identify trends and momentum.

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3. Financial trading terms:

A. Leverage:

A tool that allows you to trade with more money than your capital, but increases the risk.

b. Margin:

The amount you need as collateral to trade using leverage.

C. Market Volatility:

How quickly and how much prices change. Highly volatile markets present significant opportunities and risks.

D. Capital:

The amount you invest in trading.

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4. Fundamental Analysis Terminology:

A. Market Cap:

Total market value of the cryptocurrency.

Calculation: Number of coins × current price.

B. Supply and Demand:

Supply: The amount of currency available in the market.

Demand: The number of buyers interested in purchasing the currency.

C. Economic news and events:

News related to currency projects or government policies can greatly affect prices.

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5. Other important terms:

A. Day Trading:

Buy and sell currencies during the day to make short-term profits.

b. Long-term investment (HODL):

Hold currencies for a long time regardless of daily fluctuations.

C. Stablecoin:

Cryptocurrencies pegged to the value of real currencies such as the dollar (USDT, USDC).

Dr. Whale:

An investor who owns a large amount of currency and can influence the market with his movements.

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conclusion:

Understanding the basic terms will help you better communicate with the trading community and make more informed decisions. Feel free to refer back to this article as needed. The more you know, the more confident you will be in your trading decisions.