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Essential Trading Terms for Crypto TradersGreetings everyone! Here are ten crucial terms every crypto trader should know: ATH - The highest price ever recorded. It represents an asset's peak value and often signals potential profit for early investors. ATL - The lowest price ever recorded. Breaking ATL can trigger further price declines, leading to potential buying opportunities or increased risks. ROI - Measuring investment performance. ROI helps assess the returns of an investment relative to its initial cost, aiding in comparing different investment options. FUD (Fear, Uncertainty, and Doubt) - Spreading fear and misinformation to gain an advantage. Recognizing FUD is essential for avoiding emotional trading decisions and whales trap. KYC - Verification of customer identity for regulatory compliance. KYC ensures that trading platforms adhere to regulations and prevent money laundering. AML - Regulations to prevent money laundering. AML measures make it harder for criminals to disguise illegally obtained funds as legitimate income. DD - Conducting due diligence before making investment decisions. DD involves thorough research and analysis to assess potential risks and rewards. DYOR - Doing your own research and verifying information. DYOR is a fundamental principle for successful trading, emphasizing the importance of independent research. FOMO - The panic-driven urge to buy or sell an asset. FOMO can lead to impulsive trades and is often seen during bull markets later stages. HODL - Holding onto an investment for the long term. HODLers believe in the potential for long-term gains and resist short-term price fluctuations. Understanding these terms can help you navigate the cryptocurrency communities more confidentl. So, remember to DYOR, stay vigilant about FUD, and consider your HODL strategy while keeping an eye on ROI, ATH, and ATL 💜💜
CRYPTO:BTCUSDEducation
by Vestinda
📊 Popular Trading Terms CheatsheetThese are some of the most common terms you will hear around social media and often see them mentioned around trading related content. The best advice is to trade what you see in your chart, not the psychological noise of others 📌 FOMO Fear of missing out is a common psychological event, especially when it comes to trading. You see prices go up and you feel guilty that you didnt enter on a trade and you missed that sweet 10-20% profit. The worst thing to do is be careless and enter a trade while the move has already happened. Trading is about patience and having a plan to execute. If you missed the move, you wait for the next one. 📌 FUD Fear, uncertainty and doubt, usually spread by people that have zero idea of what they are doing. Very common observation around trading communities where they grab a headline and make it as if the world is going to end and everything is going to zero. Classic example is the whale alerts where they see big numbers of USDT moving from wallet to wallet, saying "dumb is coming sell everything". It never comes. Trade the charts not what clueless people have to say about it. 📌 HODL Hold on for dear life, basically doubling down that you made a good trade and you should stick with it even if you know for a fact your entry was invalidated. If your plan is to day-trade and not "invest" into an asset, you should consider not hodling on losing trades. Depending how volatile that market you chose to trade is, you could hold into trades that can potentially wipe your whole account while copping with the fact that "it will get back to break even". Risk management is key, if you holding a losing trade which you invested more than 1-3% of your portfolio into it, you're already doing it wrong. 📌 MOONING Price is actively increasing, the paradise of only up never down. A classic observation of moonboys and how they think price has only one direction. It doesn’t. This psychological state can be referred to as Euphoria and Greed. There is nothing going one direction so make sure you're a guard of your own mind and not let people like that influence what you actually see in the charts. 📌 WHALE Wealthy investors who have enough shares of an asset to manipulate it. Basically people that bought early and cant wait for the next hype to dump their bags on new investors. Very common on the crypto world where people that bought before the hype happened, sell when the liquidity allows for it. 📌 ATH All time high, basically the price of that asset has reached the highest it has ever been. It can have a powerful psychological impact on market participants because it makes them optimistic and over confident. If you're buying an asset that just made an ATH you add liquidity to the early investors of that asset. 📌 SHILL Best observation of this are people promoting sh*tcoins around social media just so they can run their pump and dump schemes on their followers. When you see a "crypto" account run "airdrops" and "we will tell you the next x10000 pump coin in 10 mins" they aren't trading and you're already participating on their schemes by giving them engagements to promote what they are doing. Stay away from anything related to that, it doesn't exist. BULLISH The classic investors that always gonna double down that for example Bitcoin will go to 300k this year and long every dump of the market. It's never good to be doubling down on which direction the market will go then constantly long all day over a certain period of time if you're actively day trading. 📌 BEARISH The opposite of bullish. They will tell you they will go long on Bitcoin once it gets back to 1k. Doubling down that the whole market will crash to that extend and shorting every pump. Trade the markets and what you see, having a bias such as this will likely get you rekt before you manage to see any major move to confirm your years long bearish take. ‌ 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
3
Buy at the tops & sell the bottoms! Richard Ney spoke about think of the market like a warehouse, the owners of the warehouse CM (composite man) needs to fill the building with inventory, they need to sell some as they acquire more - issuing news releases of their grand launch. But their whole objective is to buy at the wholesale rate & sell at retail prices. Think of this in a simple chronology form; Strong hands buy cheap and sell at a higher price – to the retail clients, willing to pay more. This is usually due to the retail buying the tops and selling the bottoms. If you take a look at the CryptoQuant chart - replicated from their site, into @TradingView You will notice the drop off towards the end of Feb. this was in essence the buyers climax. I’ve had several people ask – why would the big boys bail at 40k? Again, you need to think of the wholesale/retail scenario. CM buys low and sells high, retail buy high and sell low. If you apply some Elliott logic here, you will see we were at a weekly 3 & that was finished with a daily 5 – giving the need of a correction (in Warehouse terms) selling inventory, in trading lingo – it’s distribution. Here I posted the map in March; As you can see it played out as expected. Let’s go back to the Wholesale logic by Mr Ney; This is by far the easiest way to think about it. The primary goal of composite man (the market maker) or in the warehouse owner. Is to make money. To do this, they acquire stock or BTC and fill their warehouse(fund). In the accumulation phase, CM (Composite man) needs enough inventory to make it worthwhile, making demand – you will see positive news, attracting the retail to the store. The whole process is about supply and demand. Does he have enough supply for the demand? The warehouse will not be filled with only one truck – it will take several months and multiple deliveries to accumulate enough stock/BTC. Then the emphasis is put on mass marketing! Think a Musk tweet, positive news and so on! Attracting retail buyers – who now have confidence in the product on sale as it’s shot up recently. Supply seemingly limited and demand high! As buyers buy – CM is selling as seen by the Blockfi wallet image above. Price driven up as supply becomes exhausted and demand is peaked! Now what? – well Price is too much for CM to want to buy anything back at an ATH. He wants it back at a new fair value – wholesale price. So, the best thing to do is – cause a little fear and doubt, a political statement or a tweet or two in today’s world. The media is basically yesterday’s news, tomorrow. But so many people buy into it and that allows for the puppeteering. And this is known as the distribution phase. We are now at a 1,3 or 5 Elliott wave. Let’s go with only at 1 in Elliott terms. CM can’t frighten retail too much and needs to keep the dream alive. Or there would be no dumb money buying into the next rally. So, the distribution & re-accumulation phase often blends in the 2nd wave of an Elliott move. If you look inside, you will see the ABC type moves giving hope to retail and gathering a strong position to go again. All CM is doing is filling the shelves in the warehouse. He continues to buy new inventory and sell the old (hedging) And once there’s enough supply to make a new campaign – off he goes, selling to the world. If news is bad at the highs, retail suckers would not buy anymore & CM would be left carrying the weight. Instead, the news is good, knowing a drop is imminent. The same applies at the bottom, if news is good – then retail will be buying in preparation for a move up. CM knows how to balance these moves without showing his hand. It’s knowing that retail fools – will always try to catch the bottom and stay in until the top. And you wonder why it is that retail lose 75% of the time or more! CM simply takes advantage of the retail’s fear and greed. I recently wrote another TradingView article on emotional analysis. This explains a little as to why Elliott, Wyckoff and Dow theory are still used today. The logic from re-accumulation or Elliott 2 – goes on into 3, down to 4 and then up to 5. Before the cycle is completed and a new cycle starts. We cover this in more depth with the education. But I hope you get the general idea here. Enjoy the rest of the weekend! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
47
How to play the breakouts!?!Lately, there has been a lot of buzz about BTC! Will it breakout or not? In the end, it did not as we predicted with the accuracy of a surgent in our most viewed post till now that you can find in RELATED IDEAS. Here is a nice school example of how ETH does the breakouts and probably similar pattern will be played in the near future. We will write more about that in the next posts but for now, let's focus on the lessons. A double top has been a pattern that ETH forms quiet often. Probably cause of false hopes when people just wait for ETH to do the same run as BTC and then hope gets denied or to say it better - run postponed! It happened before (2017), it happened in the near past (2019) and it will probably happen in the near future. In order to get the best return in time (RIT) and not only the best return on investment (ROI), it's important to know when to expect the moon so a trader can optimize his or her positions. Actually, trading is not about buying at the cheapest price, but buying (or selling) close to the time when the price will move the most. So when is that? In this example, it's clear that after breakout retest! People usually FOMO when the breakout happens but history shows that in most cases it will be retested. However, at the point of best entry (RIT), some start to get scared that the breakout was not successful. Some might even sell in panic (FUD - Fear, uncertainty, and doubt). This post is made in order to remember what to do and how to work with your emotions (fear, anger,...) when we are close to breakouts. Buy the retest! Patience is always the key. Keep calm, use the knowledge and you should be fine. Take care and GL! PS: You can see Elliot Waves count in this example also, but let's leave that for some other occasion. For now, it is just important to know that in this example wave 4 needs to be higher than wave 1.
KRAKEN:ETHUSDEducation
by Samoto
2
4 Years of BTC and herd mentality in one chartHey guys, as you've seen on my previous forecasts on BTC and XRP, I've started to accumulate and increase my holdings. Besides the technicals, my bias is getting even more long biased due to the massive pessimism around inexperienced traders and overall media coverage. As you can see on the chart above, this is not the first time the world has witnessed such a huge drop on BTC. Back in 2014, when the total crypto market cap has dropped below 5 billion USD due to a massive sell off of -87%, the web was full of articles saying that Bitcoin is about to collapse. That it will end.During this phase, we've also witnessed the MtGox affair and the start of some regulatory talk. Some university professors and asset managers begun to throw out predictions that BTC will hit $10. Once price has started to recover, you've suddenly heard nothing more from these people. The sentiment has been switched to "keep our mouths shut" till BTC slowly gained bullish momentum again. What happened then? The very same newspapers and magazines started to write articles that BTC is now "hip" again and it might become a big thing in the future. As soon as price started to really rocket, the very same procedure has started again. Jamie Dimon/CEO of JPMorgan, marketwatch.com, CNBC journalists and many others listed thousands of reasons why Bitcoin is bad, risky, a fraud and of course why we all should stay away from it. Guess what happened when the price started to drop again in January? Right. The very same thing. There is no "this time it's different". This market is still in its infancy and yes, there are other coins that might become the crypto #1 but no one knows when it will happen and we shouldn't actually care about, because for now we clearly see a heavy BTC dependance on other alts - despite the diminishing BTC dominance. Long story short - I think it's extremely important to never, really never fall for any catching armageddon crypto headline out there. I am actually using all this as an contrarian indicator, meaning that a peak in both, heavy optimism and pessimism regarding cryptos should be a warning sign. People just went crazy in France a week ago or so, because some stores have been offering Nutella and diapers for a 70% discount. This thing has escalated so quickly that they've had to call the police. On the other hand, when people are been offering to increase their crypto holdings to buy back at a heavily discounted price of more than 70% , people are scared to death and even sell(!!!) their holdings with a massive loss. I mean..that's just insane. It's not about having the most accurate entry or exit. Think of Michael Burry (The Big Short) or other investment funds who act during or prior to such a crisis,bubble,healthy correction (call it whatever you want). They rarely squeeze a trade out from the very bottom to the absolute top. Sure, they're doing their best to do so - but in the end it's about the final result. And speaking of this, it simply doesn't matter that much if you've bought in at $6k or $7k. Hell, let BTC even drop to 5k or 4k. That would be even better, as we can buy at much cheaper levels. And once BTC and alts start to gain bullish momentum again, you'll hear the exact same words, you'll read the exact same headlines on the very same magazines and newspapers. And yes, there will be again regulatory talk going on, people spreading rumours, maybe some bans, etc. It just doesn't matter in the mid to long run. I've seriously read a comment below a tweet of Kim DotCom who advised people to buy BTC on the 5th of August 2016 with the words "Buy Bitcoin while cheap. Like right now. Trust me". You don't believe what an insane amount of hate comments he received and many were just like "mhmm alright". These peeps have probably the very same mentality to those who are laughing at others that say, BTC and alts with a proven concept will have another insane bull run in the near future. Don't be a sheep. Don't panic. Be patient
BITSTAMP:BTCUSDEducation
by BudBronson
16