April 12, 2021

The ABC's of Trading: Cryptocurrency Slang

"Bear market! Fix the losses, the whales are dumping BTC to cut the hamsters! The correction will end. A reversal trend is about to happen!" It's enough to make your head spin. It seems to be written in English but still makes no sense. 

If you just get started with trading, that's perfectly normal to feel that way. Now, mate, don't make a big deal out of this. The good news is: it's probably not as bad as you think. It is all about trading slang!

In order not to fall into ridiculous situations, we have prepared a dictionary for novice players. More experienced users can check how highly trained they are, so it's a win-win. Let's translate and understand together with Equite!

Bears are the exact opposite of bulls. They enter the digital money market in the hope that the price will fall. They are pessimistic about the future aspects of the market and believe that it is going to be in RED.

Bubble-no, it is not about bitcoin that is often criticized for being a speculative bubble. This is a special situation on the exchange when the demand for the currency is extremely high. At such times, the price is also high.

Bulls - have you ever heard a saying: "Bulls make money, bears make money, pigs get slaughtered”? No? Then remember it, it will make it easier to navigate the market in the future. So, bulls and bears are the most common types of players. To cut a long story short, the first ones are investors and traders who buy an asset in the hope that its price will grow.

Cutting hamsters - the flow of funds from hamsters to experienced players as a result of the “Pump and Dump” scheme.

Dealer - is a kind of bridge between the site and users. This is a representative of the platform that handles traders ' requests. He carries out the orders of visitors related to crypto transactions.

Drain — massive sale of virtual currency. Against the background of panic, this leads to a sharp decline in the exchange rate.

Dump – the situation in the market, completely opposite to the pump. Intentional sale of an asset in large quantities.The goal: the artificial lowering of the price level in the short term.

Hamsters - as you have probably guessed, they are newbies in crypto. They are driven by emotions, greed, and fear.

Pigs - impatient, greedy, emotional, and biggest losers in the market. The pigs don’t do any kind of analysis and usually have FOMO (stands for the fear of missing out ).

Pump - artificial pumping of the value of an asset by placing a large number of orders on the exchange. The goal: to generate some heat for potential buyers and make them react to the rise in rates in the near term.

Sheeps - they follow the herd and aren’t interested in developing their own strategy. They stick to one investing style and do not change according to the market conditions.

Swings - spikes in the exchange rate that occur within a small time range. What do they affect? As a rule of thumb, nothing.

To the moon - one of the fancy terms used by crypto traders. Basically means that the prices are increasing so high that they will reach the moon.

Wall - indicate a market trend. It is a huge buy or sell order that can stop the price from rising or falling, respectively.

Whales - the ones that were dumping BTC at the very beginning. They are essentially big players in the crypto world that can create price fluctuations. As a rule, people with strong capital. You can make a lot of money if you trade alongside the right whale.

Good luck with your trading!

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