Crypto Glossary
Every term.
Clearly defined.
300 essential crypto and investing terms — from beginner basics to advanced on-chain, futures, macro, and DeFi concepts. No jargon. No fluff. Just clear definitions from someone active in live markets.
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300 terms
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A
AccumulationBeginner
▼The phase of a market cycle where smart money quietly builds positions while prices are low and sentiment is negative. Accumulation follows bear markets and precedes the next bull run. Identifying it early through on-chain data and price structure is one of the most valuable skills in crypto investing.
Wallet AddressBeginner
▼A unique alphanumeric string used to receive cryptocurrency — like a bank account number for crypto. Public and safe to share. Always double-check before sending — transactions are irreversible and sending to the wrong address means permanent loss.
AirdropBeginner
▼A free distribution of cryptocurrency tokens to wallet addresses. Used as a marketing strategy or reward for early protocol users. Always verify through official channels — scam airdrops are extremely common and designed to steal wallet credentials.
AltcoinBeginner
▼Any cryptocurrency that is not Bitcoin. Includes Ethereum, Solana, XRP, and thousands of others. Altcoins typically follow Bitcoin with amplified volatility — larger gains and larger losses. Understanding when to rotate from Bitcoin into altcoins is one of the most valuable cycle timing skills.
Altcoin SeasonBeginner
▼A period when altcoins significantly outperform Bitcoin — typically occurring when Bitcoin dominance falls after a BTC-led bull run. Capital rotates from Bitcoin into smaller assets chasing higher percentage returns. Identifying the start of altcoin season early is one of the most profitable timing decisions in crypto.
AMM — Automated Market MakerDefi
▼A type of decentralised exchange using algorithms and liquidity pools instead of order books to set prices. Uniswap and Curve are examples. Prices are determined by a mathematical formula — typically x × y = k — ensuring liquidity is always available regardless of trade size.
ArbitrageMacro
▼Profiting from price differences for the same asset across different exchanges. Arbitrageurs help keep markets efficient by closing price gaps. High-frequency trading bots now capture most arbitrage opportunities within milliseconds, leaving little room for manual arbitrage in well-connected markets.
Area of ValueTechnical
▼A price zone — rather than a precise level — where significant buying or selling has previously occurred. Areas of value are more realistic than single price lines because markets rarely react to exact levels. Helps set more forgiving stop losses and more realistic entry targets.
Ascending TriangleTechnical
▼A bullish chart pattern with a flat upper resistance and rising lower support. Each dip is bought at a higher level, showing accumulating buying pressure. A breakout above the flat resistance on high volume is a strong bullish signal.
ATR — Average True RangeTechnical
▼A volatility indicator measuring the average range between high and low prices over a set period. Higher ATR = more volatile market. Used to set appropriate stop losses. A stop loss set at 1-2x ATR from entry gives a position room to breathe without being stopped out by normal market noise.
ATH — All Time HighBeginner
▼The highest price an asset has ever reached. Bitcoin's current ATH is $126,272, set in October 2025. When an asset breaks its ATH, all existing holders are in profit and there is no overhead resistance — a significant bullish signal that often triggers accelerated upside momentum.
ATL — All Time LowBeginner
▼The lowest price an asset has ever recorded. ATLs typically occur during extreme bear market capitulation. For established assets like Bitcoin, ATLs from previous cycles act as historical anchors. New ATLs in altcoins are common during bear markets and can signal projects in serious distress.
Adoption CurveMacro
▼The S-shaped growth trajectory of new technology adoption. Crypto is still in early stages — analogous to internet adoption in the mid-1990s. Early adopters capture the most value. Understanding where crypto sits on the adoption curve helps frame the long-term investment case beyond short-term price cycles.
Active AddressesOnchain
▼The number of unique blockchain addresses participating in transactions daily. Rising active addresses — growing network usage, bullish signal. Declining active addresses despite stable or rising price can signal weakening fundamentals. Historically, sustained growth in active addresses has preceded significant price appreciation.
Average VolumeTechnical
▼The average number of units traded over a defined time period — providing a baseline for current volume comparison. Volume significantly above the average on a breakout confirms the move. Volume significantly below average during a trend signals weakening participation and potential reversal.
Adding to Position / Scaling InFutures
▼Increasing the size of an existing trade or investment in stages rather than all at once. Scaling in on dips during an uptrend reduces average entry cost and manages risk. Pyramiding — adding to winning positions as they move in your favour — is a professional technique for maximising gains while keeping initial risk small.
Asset ClassMacro
▼A grouping of investments with similar characteristics and market behaviours. Traditional asset classes include equities, bonds, commodities, and real estate. Bitcoin is increasingly recognised as a distinct asset class — digital store of value — with unique supply properties and a growing institutional investor base.
ATH BreakoutTechnical
▼When an asset breaks above its all-time high for the first time — entering price discovery with no overhead resistance. All existing holders are in profit, removing selling pressure from those waiting to break even. ATH breakouts have historically led to the most explosive price moves in crypto — the final phase of a bull market before euphoria peaks.
B
BackwardationFutures
▼When futures prices trade below the current spot price. In crypto, backwardation signals bearish sentiment as traders expect prices to fall. Persistent backwardation in a declining market confirms the bearish trend. Backwardation reversing to contango can be an early signal of a sentiment shift.
Basis / Futures PremiumFutures
▼The difference between the futures price and the spot price. Positive basis (contango) — futures above spot, bullish sentiment. Negative basis (backwardation) — futures below spot, bearish. A shrinking basis can signal weakening momentum ahead of a price reversal.
Bear FlagTechnical
▼A bearish continuation pattern — a sharp price drop (the pole) followed by a brief consolidating recovery (the flag). A breakdown below the flag confirms the pattern, with a projected target equal to the length of the initial pole. One of the most reliable short-side continuation setups.
Bear MarketBeginner
▼A sustained period of falling prices and negative sentiment. Crypto bear markets typically see 70–90% drawdowns from peaks. They are psychologically difficult but historically the best time to accumulate. Every crypto bear market has been followed by a bull market.
Bitcoin (BTC)Beginner
▼The first and largest cryptocurrency. Created in 2009 by Satoshi Nakamoto. Fixed supply of 21 million coins — no more can ever be created. Operates on a decentralised blockchain with no central authority. Bitcoin leads every major crypto market cycle.
BlockchainBeginner
▼A distributed digital ledger recording all transactions across a network of computers. Each block is cryptographically linked to the previous one — making records immutable and resistant to alteration. The foundation technology behind all cryptocurrencies and DeFi applications.
Bollinger BandsTechnical
▼A volatility indicator with a moving average and two standard deviation bands. Bands squeezing — decreasing volatility, often preceding a large breakout. Price at the upper band can indicate overbought conditions; at the lower band, oversold.
BreakoutTechnical
▼When price moves decisively beyond a key support or resistance level. Bullish breakout — price breaks above resistance. Breakdown — price breaks below support. Volume on the breakout confirms conviction. Low-volume breakouts frequently fail and reverse.
BTC DominanceTechnical
▼Bitcoin's share of total crypto market cap as a percentage. Rising dominance — capital flowing into BTC. Falling dominance — capital rotating into altcoins. The peak of dominance historically signals the start of altcoin season.
Bull MarketBeginner
▼A sustained period of rising prices and positive sentiment. In crypto, typically preceded by Bitcoin halvings. Characterised by increasing media coverage, retail participation, and euphoria at the peak. Understanding the phases of a bull market — and where you are within it — is critical for making good decisions.
Burning (Token Burn)Beginner
▼Permanently removing tokens from circulation by sending them to an unspendable wallet address. Reduces total supply — potentially increasing scarcity and value if demand is constant. Ethereum burns a portion of every transaction fee. Some projects use buyback-and-burn mechanisms funded by protocol revenue.
Bitcoin Supply DistributionOnchain
▼The breakdown of how Bitcoin supply is distributed across wallet sizes — from wallets holding less than 1 BTC to those holding 1,000+ BTC (whales). Increasing smaller wallet addresses historically reflects growing retail adoption. Declining exchange supply alongside rising small wallet counts is a strong accumulation signal.
Balance Sheet (Fed)Macro
▼The total assets and liabilities held by the Federal Reserve. When the Fed expands its balance sheet through QE, it injects liquidity into the financial system — historically bullish for crypto. When the Fed shrinks it through QT, liquidity contracts. The size and direction of the Fed balance sheet is a key macro indicator.
Breakeven PriceTechnical
▼The price at which a trade or investment neither profits nor loses — your average entry price including fees. Knowing your breakeven price is fundamental to position management. In DCA strategies, the breakeven price is the weighted average of all purchase prices to date. Tracking breakeven price helps define rational exit strategies.
Bull FlagTechnical
▼A bullish continuation pattern — a sharp price rise (the pole) followed by a brief, shallow consolidation (the flag). The flag represents a temporary pause before the uptrend resumes. A breakout above the flag's upper boundary confirms the pattern, with a target equal to the length of the initial pole.
Buy the DipBeginner
▼A strategy of purchasing an asset when price temporarily declines, expecting it to recover and continue higher. Effective during bull market pullbacks when the overall trend is intact. Dangerous when used indiscriminately in downtrends — buying dips in a bear market is commonly referred to as "catching a falling knife."
Bank RunMacro
▼A rapid mass withdrawal of deposits when customers lose confidence in a bank's solvency. The collapse of Silicon Valley Bank in 2023 — which held crypto company deposits — caused significant market disruption. Bitcoin's design explicitly removes the possibility of bank runs: there is no fractional reserve, no counterparty, and no custodian to fail.
Bitcoin Days Destroyed (BDD)Onchain
▼Similar to Coin Days Destroyed but measured in raw bitcoin terms — weighting the metric by coin size rather than just activity. When large amounts of long-dormant, large-balance Bitcoin start moving, BDD spikes dramatically. These spikes have historically coincided with long-term holders distributing into bull market strength near cycle tops.
Black SwanMacro
▼An unpredictable event with extreme consequences that, in hindsight, seems obvious but was not anticipated beforehand. Crypto examples include the FTX collapse (2022), COVID-19 selloff (2020), and the LUNA/UST collapse (2022). Black swans cannot be predicted but risk management — including position sizing and diversification — helps limit their impact on a portfolio.
Change of Character (CHoCH)Technical
▼A key concept in Smart Money Concepts — when price breaks a significant swing point that invalidates the current trend. A bullish CHoCH occurs when price breaks above a significant lower high in a downtrend, signalling potential trend reversal. A bearish CHoCH occurs when price breaks below a significant higher low in an uptrend. The first signal that a trend may be ending.
C
CandlestickTechnical
▼A chart element showing open, high, low, and close prices for a time period. Green candle — close higher than open. Red candle — close lower than open. Wicks show extreme highs and lows. Candlestick patterns — engulfing, doji, hammer — give insight into potential reversals.
Capital Gains Tax (CGT)Beginner
▼In the UK, profit when you sell, swap or spend crypto is generally subject to CGT. For 2026/27 the first £3,000 of gains each tax year is tax-free, then gains are taxed at 18% or 24% depending on your income. Crypto-to-crypto swaps count as disposals. Rules change — check HMRC guidance or a crypto-aware accountant.
ChannelTechnical
▼A price structure formed by two parallel trend lines — one connecting highs (resistance) and one connecting lows (support). Price bounces between these lines. Ascending channel — uptrend. Descending channel — downtrend. Breakouts from channels are significant, particularly with volume confirmation.
Cold WalletBeginner
▼A cryptocurrency wallet storing private keys offline — not connected to the internet. Significantly more secure against hacking. Hardware wallets like Ledger and Trezor are examples. For significant holdings, cold storage is essential. Not your keys, not your coins.
Coin Days Destroyed (CDD)Onchain
▼An on-chain metric measuring the activity of long-dormant coins. Each day a coin sits unmoved, it accumulates "coin days." When moved, those days are destroyed. High CDD spikes — long-term holders selling into strength, often near market tops. Low CDD — experienced holders holding, suggesting conviction.
ContangoFutures
▼When futures prices trade above spot price — the normal state in crypto bull markets. Indicates bullish sentiment as traders expect prices to be higher in the future. Extreme contango can signal an overheated market vulnerable to a correction as the premium collapses.
ConsolidationTechnical
▼A period where price moves sideways within a defined range after a significant move. Allows the market to digest previous moves before the next directional break. Tight consolidation at highs is typically bullish. High open interest during consolidation often precedes a sharp breakout.
CorrelationMacro
▼The degree to which two assets move together. Positive correlation — assets move in the same direction. Negative correlation — assets move oppositely. Crypto has historically been positively correlated with equities and negatively correlated with the US Dollar.
CPI — Consumer Price IndexMacro
▼A measure of inflation tracking price changes of a basket of consumer goods. High CPI leads to rate hikes — tightening liquidity, bearish for crypto. Lower-than-expected CPI prints have historically triggered crypto rallies as they signal potential rate cuts ahead.
CryptocurrencyBeginner
▼A digital currency secured by cryptography, operating on decentralised blockchain networks. Unlike traditional currencies controlled by central banks, most cryptocurrencies have fixed or predictable supply schedules. Bitcoin was the first. There are now thousands — ranging from highly established to highly speculative.
Cup & HandleTechnical
▼A bullish continuation pattern — a rounded decline and recovery to the previous high (cup), followed by a brief consolidation (handle). A break above the handle confirms the pattern. Target is typically the depth of the cup added to the breakout point.
Custodial vs Non-CustodialBeginner
▼Custodial — a third party holds your private keys. Convenient but introduces counterparty risk. Non-custodial — you hold your own keys. Full ownership and control, but also full responsibility. The collapse of FTX reminded the industry that custodial holdings carry significant risk if the custodian fails.
Circulating SupplyOnchain
▼The amount of a cryptocurrency currently in public circulation — not locked, not reserved. Used alongside price to calculate market cap. Tokens with large portions of supply locked or vesting can see significant selling pressure when those tokens unlock. Always check circulating supply versus max supply when evaluating a project.
CEX — Centralised ExchangeBeginner
▼A traditional-style cryptocurrency exchange operated by a company that holds your funds in custody. Examples: Binance, Coinbase, Kraken. Offer high liquidity, advanced trading features, and regulatory compliance. The tradeoff is counterparty risk — if the exchange is hacked or becomes insolvent, your funds may be lost.
Closing PriceTechnical
▼The final traded price of an asset at the end of a time period. The daily and weekly closing price are highly significant in technical analysis — more so than intraday highs or lows. A weekly close above a key resistance level is far more meaningful than an intraday spike. Professional traders watch candle closes carefully.
Candlestick PatternsTechnical
▼Specific formations of one or more candlesticks that signal potential reversals or continuations. Key patterns include: Hammer — bullish reversal at support. Shooting Star — bearish reversal at resistance. Doji — indecision. Engulfing candles — trend reversal. Each is most reliable at key support/resistance levels with volume confirmation.
Central BankMacro
▼A national institution that manages a country's monetary policy, money supply, and interest rates. The Federal Reserve (US), Bank of England (UK), ECB (Europe), and Bank of Japan are the most globally influential. Central bank policy decisions are the most powerful macro forces affecting crypto prices globally.
Chart Timeframe AnalysisTechnical
▼Analysing price action across multiple timeframes simultaneously to build a complete market picture. The weekly chart defines the macro trend. The daily chart defines the intermediate structure. The 4-hour or 1-hour chart defines precise entry and exit levels. Conflicting signals across timeframes should reduce conviction; aligned signals across all timeframes increase it.
Compound ReturnsBeginner
▼Returns generated on both the original investment and previously earned returns — creating exponential growth over time. In crypto, compounding is achieved by reinvesting gains or staking rewards back into the position. The longer the time horizon, the more powerful the compounding effect. A key argument for consistent long-term DCA strategies over active trading.
D
DAO — Decentralised Autonomous OrganisationDefi
▼An organisation governed by smart contracts and token holders rather than traditional management. Token holders vote on protocol decisions — upgrades, treasury spending, fee changes. DAOs have attracted significant capital but face challenges around voter participation and governance attacks.
DCA — Dollar Cost AveragingBeginner
▼Investing a fixed amount at regular intervals regardless of price. Removes the need to time the market. Buying at fixed intervals means buying more when prices are low and less when high — automatically averaging your entry. Highly effective during accumulation phases.
Death Cross / Golden CrossTechnical
▼Death Cross — 50-day MA crosses below the 200-day MA. Bearish signal. Golden Cross — 50-day MA crosses above the 200-day MA. Bullish signal confirming a new uptrend. Both are lagging — price has usually already moved significantly by the time they occur.
DecentralisationBeginner
▼The distribution of control across many participants rather than a single central authority. Bitcoin is highly decentralised — thousands of nodes globally maintain the network with no single point of failure. Decentralisation is a spectrum — some blockchains sacrifice it for speed.
DeFi — Decentralised FinanceDefi
▼Financial services built on blockchain networks without traditional intermediaries. Includes lending, borrowing, trading, and earning yield via smart contracts. Higher potential returns come with significant risks — smart contract bugs, liquidity risks, and rug pulls.
Descending TriangleTechnical
▼A bearish chart pattern with a flat lower support and a falling upper resistance. Each rally reaches a lower high, showing diminishing buying pressure. A breakdown below the flat support on high volume is a strong bearish signal and often leads to accelerated downside.
DivergenceTechnical
▼When price and a momentum indicator move in opposite directions. Bearish divergence — price makes new high, RSI makes lower high. Weakening momentum. Bullish divergence — price makes new low, RSI makes higher low. Decreasing selling pressure. One of the most reliable leading indicators for reversals.
DojiTechnical
▼A candlestick where open and close are at nearly the same price — creating a cross shape. Signals indecision. A doji at a key support or resistance level is a significant reversal signal. The type of doji — gravestone, dragonfly, long-legged — provides additional context.
Dormancy / Dormant SupplyOnchain
▼Bitcoin that has not moved for an extended period. Rising dormant supply — holders not selling, conviction high. When large amounts of previously dormant supply begin moving, it can signal long-term holders taking profits — often near market tops.
DrawdownBeginner
▼The percentage decline from a portfolio peak to its lowest point. Bitcoin maximum drawdowns from cycle peaks have historically been 70–90%. A 50% drawdown requires a 100% gain to break even. Understanding drawdown helps investors size positions appropriately and set realistic volatility expectations.
DXY — Dollar IndexMacro
▼Measures US Dollar strength against a basket of major currencies. Bitcoin and DXY have historically shown inverse correlation — dollar strengthens, crypto falls; dollar weakens, crypto rises. Monitoring DXY gives investors a macro directional signal for all risk assets.
DYOR — Do Your Own ResearchBeginner
▼A fundamental principle — always verify information independently before investing. Never rely solely on social media, influencers, or tips. Understand what you own and why before putting capital at risk. The most expensive trades are made based on someone else's conviction without your own understanding.
DEX — Decentralised ExchangeBeginner
▼A peer-to-peer cryptocurrency exchange operating via smart contracts without a central operator. Examples: Uniswap, Curve, dYdX. No KYC required, no central point of failure. Users retain control of their private keys throughout. Lower liquidity than CEXs for most pairs, and vulnerable to smart contract risk, but increasingly competitive with centralised venues.
Distribution PhaseOnchain
▼The phase of a market cycle where smart money sells into retail buying — typically near market tops. Prices may still appear to rise while large holders quietly exit. On-chain signals of distribution include LTH supply declining, exchange inflows rising, and older coin movement increasing. The most important phase to identify correctly.
Deflationary AssetBeginner
▼An asset with a decreasing or fixed supply over time — making each unit potentially more scarce and valuable if demand grows. Bitcoin is deflationary by design: the max supply is fixed at 21 million and the issuance rate halves approximately every four years. Post-EIP-1559 Ethereum can also be deflationary during high-usage periods.
Demand Zone / Supply ZoneTechnical
▼Price areas where significant buying (demand) or selling (supply) has previously occurred, creating imbalances that price tends to return to. Used prominently in Smart Money Concepts (SMC) trading. Demand zones are areas of concentrated unfilled buy orders — price typically rises sharply from them. Supply zones are areas of concentrated sell orders — price typically falls sharply from them.
DeflationMacro
▼A general decline in prices across the economy. While lower prices seem positive, deflation often signals economic weakness — consumers delay spending expecting further price drops, businesses cut production, unemployment rises. Significant deflationary environments are typically risk-off and bearish for crypto. Central banks fear deflation more than moderate inflation.
Double Top / Double BottomTechnical
▼Double top — price makes two equal highs at the same resistance level, failing both times to break through. A break below the support (neckline) between the two tops confirms a bearish reversal. Double bottom — price makes two equal lows at the same support, failing to break lower. A break above the resistance between the bottoms confirms a bullish reversal.
Dust AttackOnchain
▼A privacy attack where tiny amounts of cryptocurrency (dust) are sent to many wallet addresses. When the recipient moves the dust, it links previously separate wallets together, compromising anonymity. Used by analytics firms and malicious actors to map wallet ownership. Privacy-conscious Bitcoin holders avoid moving dust or use coin control features to manage it.
E
EMA — Exponential Moving AverageTechnical
▼A moving average giving more weight to recent prices — more responsive than a simple MA. The 21 EMA and 50 EMA are commonly used for short to medium-term trend identification. Price bouncing off the EMA in an uptrend is often used as an entry signal.
Engulfing CandleTechnical
▼A candlestick pattern where a large candle completely engulfs the previous candle's body. Bullish engulfing — a large green candle engulfs a red candle at support, signalling buyers overpowering sellers. Bearish engulfing — a large red candle engulfs a green candle at resistance. Most powerful at key levels.
ERC-20Defi
▼The technical standard for creating fungible tokens on Ethereum. The vast majority of altcoins and DeFi tokens are ERC-20 tokens. They always require ETH to pay gas fees regardless of the token being transacted. Understanding this prevents the frustrating experience of being unable to move tokens due to insufficient ETH.
ETF — Exchange Traded FundBeginner
▼A financial product traded on stock exchanges tracking the price of an underlying asset. Spot Bitcoin ETFs approved in January 2024 allowed institutions to gain Bitcoin exposure through regulated products. ETF inflows from BlackRock and Fidelity became major price drivers in the 2024–2025 bull run.
Ethereum (ETH)Beginner
▼The second largest cryptocurrency by market cap. A programmable blockchain enabling smart contracts and decentralised applications. Powers most of the DeFi ecosystem and thousands of tokens. Has a deflationary mechanism that burns a portion of every transaction fee, reducing supply during high-usage periods.
Exchange ListingBeginner
▼When a cryptocurrency is added to a major exchange for trading. Major exchange listings — particularly on Coinbase, Binance, or Kraken — historically cause significant price spikes as new capital gains access. The "buy the rumour, sell the news" pattern is common around listings. Being aware of upcoming listings is part of altcoin market intelligence.
Exchange Outflow / InflowOnchain
▼Outflow — crypto moving off exchanges to private wallets. Bullish — supply removed from potential selling. Inflow — crypto moving onto exchanges. Can indicate intent to sell. Sustained outflows during accumulation have historically preceded significant price appreciation. One of the most reliable on-chain bullish signals.
Economic CycleMacro
▼The recurring pattern of economic expansion and contraction. Expansion — GDP growing, employment rising, risk appetite high. Recession — GDP contracting, unemployment rising, risk appetite low. Crypto is a risk-on asset — it typically performs well during expansion phases and poorly during recessions. Macro cycle positioning should inform crypto allocation.
Elliott Wave TheoryTechnical
▼A technical analysis theory proposing that markets move in predictable wave patterns driven by investor psychology. Five impulse waves in the direction of the trend, followed by three corrective waves. Widely watched but highly subjective — different analysts regularly reach opposite conclusions from the same chart using the same framework.
Entry PriceBeginner
▼The price at which you open a trade or investment position. Choosing a good entry price — at or near key support levels rather than chasing momentum — significantly improves the risk/reward profile of any trade. A good entry gives your position more room to breathe before reaching the stop loss, reducing the chance of a premature exit.
Exchange ReserveOnchain
▼The total amount of Bitcoin held on centralised exchanges. Declining exchange reserves — supply being removed for long-term holding, bullish. Rising exchange reserves — supply moving to exchanges, potential sell pressure ahead. Exchange reserves have been declining throughout the 2024–2026 period as institutional demand via ETFs absorbs available supply.
Exit StrategyBeginner
▼A predetermined plan for closing a trade or investment at specific price targets or conditions. Defining your exit before entering removes emotion from the decision. Exit strategies should include both profit-taking targets (where you sell gains) and stop loss levels (where you cut losses). The lack of a defined exit strategy is one of the most common causes of avoidable losses.
Emerging MarketsMacro
▼Developing economies with rapidly growing financial markets. Emerging markets in Southeast Asia, Latin America, and Africa have shown the highest rates of crypto adoption by population. In countries with high inflation, currency instability, or limited banking access, crypto adoption is driven by genuine financial necessity rather than speculation.
Entry and Exit DisciplineBeginner
▼The practice of only entering and exiting trades based on pre-defined, systematic criteria rather than emotion. Entry discipline means waiting for your exact setup — not chasing. Exit discipline means sticking to predefined stop losses and take profits — not moving them under pressure. The most successful traders are distinguished not by their analytical skill but by their ability to follow their own rules consistently.
F
FDV — Fully Diluted ValuationDefi
▼A token’s price multiplied by its maximum supply, not just what’s circulating today. A big gap between market cap and FDV means a lot of future supply is still to come.
Fear & Greed IndexBeginner
▼Sentiment indicator measuring market emotion from 0 (Extreme Fear) to 100 (Extreme Greed). Extreme fear historically marks buying opportunities. Extreme greed historically precedes corrections. The best buying opportunities in every cycle have come when this index was in extreme fear territory.
Federal Reserve (Fed)Macro
▼The central bank of the United States. Its decisions on interest rates are the single most powerful macro force on global financial markets including crypto. Rate cuts — expand liquidity, bullish for risk assets. Rate hikes — contract liquidity, bearish. Every FOMC meeting is a significant market event.
Fiat CurrencyMacro
▼Government-issued money not backed by a commodity — pounds, dollars, euros. Its value rests on trust in the issuer, and central banks can create more of it. That unlimited supply is the contrast Bitcoin’s fixed 21 million cap is built on.
Fibonacci RetracementTechnical
▼Horizontal lines at key Fibonacci ratios — 23.6%, 38.2%, 50%, 61.8% — used to identify potential support and resistance during pullbacks. The 61.8% level (the golden ratio) is widely watched as a deep retracement that still maintains the trend. Bitcoin has frequently respected Fibonacci levels across multiple cycles.
Flash LoanDefi
▼An uncollateralised loan in DeFi that must be borrowed and repaid within the same transaction block. Used for arbitrage and liquidations. Also used in flash loan attacks — exploiting protocol vulnerabilities to drain funds within a single transaction. A significant risk vector that has cost the ecosystem billions.
FOMCMacro
▼The Federal Open Market Committee — the body within the Federal Reserve that sets US interest rate policy. Meets eight times per year. Markets move on the rate decision, the statement, and the press conference. Even when rates are held, shifts in language signal future policy direction — causing significant market moves.
FOMO — Fear Of Missing OutBeginner
▼The anxiety of missing a price move, leading to impulsive buying near market tops. Investors who buy based on FOMO — when prices are elevated and media coverage is intense — are often the last buyers before a significant correction. The antidote is a pre-defined strategy followed without emotion.
Funding RateFutures
▼Periodic payments between long and short traders in perpetual futures. Positive rate — longs pay shorts (market leaning bullish). Negative rate — shorts pay longs (market bearish). Extremely high positive funding signals an overheated market — a potential warning for a sharp correction as overleveraged longs get liquidated.
Futures ContractFutures
▼A contract to buy or sell an asset at a predetermined price. In crypto, perpetual futures have no expiry date and use funding rates to stay anchored to spot price. Leverage amplifies both gains and losses — the majority of retail traders lose money trading futures.
FUD — Fear, Uncertainty, DoubtBeginner
▼Negative information — whether true or false — spread to create fear and drive selling. Common crypto FUD: "Bitcoin is going to zero," regulatory crackdowns, environmental concerns, exchange hacks. Learning to distinguish genuine fundamental risk from manufactured FUD is an important skill. Some of the best buying opportunities have occurred during peak FUD moments.
Falling WedgeTechnical
▼A bullish chart pattern formed by two converging downward-sloping trend lines — with the lower line falling faster than the upper. Each rally reaches a higher low relative to the previous swing, showing declining selling pressure. A breakout above the upper trend line confirms the pattern and signals a potential trend reversal.
Forced LiquidationFutures
▼When exchange engines automatically close leveraged positions because they have breached the maintenance margin level. Unlike voluntary stop losses, forced liquidations happen at market price regardless of conditions — often causing significant slippage. Large forced liquidation events are visible on-chain and in exchange data, often marking short-term price extremes.
Fair Value Gap (FVG)Technical
▼A price imbalance created when price moves so rapidly that a gap forms between two candle wicks — leaving an area with no prior trading activity. Price tends to return to fill these gaps as the market seeks efficient pricing. Fair value gaps are a core concept in Smart Money Concepts (SMC) trading, used as high-probability entry and target zones.
Flag PatternTechnical
▼A continuation pattern consisting of a strong directional move (the flagpole) followed by a brief parallel consolidation (the flag). Flags can be bullish or bearish and represent a pause before the prevailing trend resumes. The measured move target is the length of the flagpole added to the breakout from the flag boundary.
Flow of FundsOnchain
▼Tracking the movement of capital between different addresses, wallets, and exchanges to understand where money is going and from where. On-chain flows between exchange wallets, miner wallets, long-term holder wallets, and OTC desks tell a story about smart money positioning that is not visible in price action alone.
Front RunningTechnical
▼Trading ahead of a known large order to profit from the price impact that order will cause. In traditional markets, front running by brokers is illegal. In DeFi, MEV (Maximal Extractable Value) bots front run large on-chain transactions automatically — inserting their own transactions ahead of detected large trades to profit from the price movement they create.
Financial ContagionMacro
▼The spread of financial instability from one market or institution to others — like a domino effect. The 2022 crypto contagion: LUNA/UST collapsed → Three Arrows Capital failed → Celsius froze withdrawals → FTX collapsed. Each failure triggered the next as counterparties and lenders were exposed. Understanding contagion risk is essential for managing portfolio exposure to interconnected crypto entities.
G
Gap / Gap FillTechnical
▼A gap occurs when price opens significantly above or below the previous close. In crypto, gaps in CME Bitcoin futures charts have historically been filled — price returns to the gap level at some point. Gap fills are not guaranteed but are watched by technical traders as potential price targets.
Gas FeesBeginner
▼Transaction fees paid to network validators for processing blockchain transactions. On Ethereum, gas fees fluctuate based on network demand — rising during high activity and falling during quiet periods. High gas fees during peak bull markets have driven users to alternative blockchains with lower costs.
Global Liquidity / M2Macro
▼The total money supply in the global financial system. Expanding M2 — more money seeking returns, crypto benefits. Contracting M2 — capital flows to safer assets. Global M2 expansion is one of the most reliable leading indicators for crypto bull markets.
GlassnodeOnchain
▼One of the leading on-chain data analytics platforms providing metrics on Bitcoin and Ethereum holder behaviour, exchange flows, miner activity, and market cycles. Widely used by institutional and professional investors to supplement price analysis with blockchain-level intelligence.
Governance TokenDefi
▼A token giving holders the right to vote on protocol decisions — fee changes, treasury allocation, upgrades. Examples include UNI (Uniswap) and AAVE. The value of governance tokens is tied to the value of the protocol they govern. When DeFi protocols generate significant revenue, governance tokens can capture meaningful value.
Grid TradingTechnical
▼An automated trading strategy placing buy and sell orders at regular price intervals — creating a grid. Profits from price oscillation within a range. Works best in sideways markets. Can be devastating in a strongly trending market if price moves outside the grid range without proper boundaries.
GDP — Gross Domestic ProductMacro
▼The total monetary value of all goods and services produced in a country over a period. Strong GDP growth supports risk-on sentiment, which historically benefits crypto. Two consecutive quarters of negative GDP technically defines a recession. GDP data releases are significant market events, particularly when they significantly beat or miss expectations.
Geopolitical RiskMacro
▼The risk that international political events — wars, sanctions, trade disputes — will disrupt financial markets. Bitcoin has shown mixed reactions to geopolitical crises: sometimes acting as a safe haven (as seen during early 2022 Russia-Ukraine conflict), and sometimes selling off with broader risk assets. The reaction depends heavily on whether the event creates liquidity stress.
Golden PocketTechnical
▼The price zone between the 61.8% and 65% Fibonacci retracement levels — considered the most powerful retracement zone. The golden pocket often provides the last support before a continuation of the prior trend. Bitcoin has historically found significant support at the golden pocket during bull market pullbacks, making it one of the most watched DCA and accumulation zones.
GreedBeginner
▼The emotional state of wanting more gains than a strategy rationally justifies — leading to holding positions too long, increasing size irrationally, or chasing unrealistic targets. Greed is most dangerous at market tops when euphoria creates the illusion that prices can only go up. The Fear & Greed Index quantifies greed levels — extreme greed is a contrarian warning signal.
Gas OptimisationDefi
▼Strategies to minimise the Ethereum gas fees paid when executing smart contract transactions. Includes transacting during low-network-activity periods, using Layer 2 networks, batching transactions, and using gas-efficient protocols. For frequent DeFi users, gas optimisation can save significant costs over time, particularly during bull markets when network congestion pushes gas prices to extreme levels.
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HalvingBeginner
▼A pre-programmed event every ~4 years cutting the Bitcoin mining reward in half. Reduces new supply entering the market. Every halving has been followed by a significant bull run within 12–18 months. Last halving: April 2024 at $64,968. Cycle peak: October 2025 at $126,272. Next halving: 2028.
Hardware WalletBeginner
▼A physical device that stores your private keys offline, so they never touch an internet-connected computer. The safest way for most people to hold crypto long term. Buy direct from the manufacturer, never second-hand.
Head & ShouldersTechnical
▼A bearish reversal pattern — three peaks with a higher middle peak (head) flanked by two lower peaks (shoulders). A break below the neckline confirms the pattern. Target is the distance from head to neckline, projected below the breakout. One of the most watched reversal patterns in technical analysis.
Higher Highs / Lower HighsTechnical
▼The building blocks of market structure. Higher highs and higher lows — uptrend, buyers in control. Lower highs and lower lows — downtrend, sellers in control. The first lower high in an uptrend is the first warning of potential trend deterioration.
HODL / Long-Term HolderOnchain
▼HODL originated from a misspelled "hold." On-chain, long-term holders (LTH) are wallets unmoved for 155+ days. LTH accumulation during bear markets is one of the strongest bullish signals. When LTHs begin distributing into bull market strength, it signals a cycle top approaching.
HODL WavesOnchain
▼An on-chain chart showing the age distribution of Bitcoin supply — what percentage last moved 1 day ago, 1 week, 1 year, and so on. Growing older bands indicate long-term holding. Shrinking older bands indicate distribution. One of the most comprehensive views of holder behaviour available.
Hammer CandleTechnical
▼A candlestick with a small body near the top of the candle and a long lower wick — showing that sellers pushed price significantly lower during the session but buyers recovered most of the losses before close. A hammer at a key support level is a strong bullish reversal signal, particularly when confirmed by the following candle.
Heatmap (Liquidation)Technical
▼A visual representation of where large clusters of leveraged positions will be liquidated at different price levels. Liquidation heatmaps help traders identify where cascading liquidations are likely to occur. Price frequently gravitates toward areas of high liquidation density, as market makers and algorithms hunt these clusters to fill large orders.
HedgingFutures
▼Taking an offsetting position to reduce risk on an existing holding. Example: holding spot Bitcoin while simultaneously opening a short futures position to offset downside risk. Hedging reduces potential losses but also caps potential gains. Professional portfolio managers use hedging to maintain exposure through uncertain periods without full liquidation.
Hot WalletBeginner
▼A wallet connected to the internet — a browser extension, phone app or exchange account. Convenient for spending and trading, but more exposed to hacks than a hardware (cold) wallet. Keep only what you actively use in one.
HTF — Higher Time FrameTechnical
▼A timeframe that provides a broader view of market structure — typically the daily, weekly, or monthly chart. HTF analysis defines the macro trend and the most significant support and resistance levels. All trade entries on lower timeframes should be taken in the direction of the HTF trend. When HTF is bullish, only bullish setups on lower timeframes have the highest probability.
Harmonic PatternsTechnical
▼Advanced chart patterns using Fibonacci ratios to identify precise reversal zones. Common patterns include the Bat, Gartley, Butterfly, and Crab. Each has specific Fibonacci ratio requirements for its legs. When price reaches the completion zone (PRZ — Potential Reversal Zone), traders look for reversal signals to enter. More complex than basic patterns but offer precise entry and risk levels.
HyperinflationMacro
▼Extremely rapid and out-of-control inflation causing a currency to lose most of its value. Examples include Zimbabwe (2000s), Venezuela (2010s), and Weimar Germany (1920s). In countries experiencing hyperinflation, Bitcoin adoption has grown rapidly as citizens seek a store of value outside the collapsing fiat system. The hyperinflation use case is one of Bitcoin's most compelling real-world applications.
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Ichimoku CloudTechnical
▼A comprehensive indicator showing support, resistance, trend direction, and momentum simultaneously. The cloud (Kumo) acts as a dynamic support/resistance zone. Price above the cloud — bullish. Price below — bearish. Price inside — indecision. Widely used for identifying trend direction across multiple timeframes.
Impermanent LossDefi
▼The loss experienced by liquidity providers in an AMM when the prices of their deposited tokens diverge from when they were deposited. Compared to simply holding the tokens, significant price divergence results in less value when withdrawing. Called "impermanent" because the loss only becomes permanent upon withdrawal.
InflationMacro
▼The rate at which the general level of prices rises over time, eroding purchasing power. Central banks target ~2% annual inflation. Above-target inflation triggers rate hikes — bearish for crypto. Below-target or falling inflation signals rate cuts ahead — bullish for crypto.
Inflation HedgeMacro
▼An asset expected to maintain or increase its value as inflation rises and currency purchasing power falls. Bitcoin's fixed supply has led many to view it as a digital inflation hedge similar to gold. However, in the 2022 inflation surge, Bitcoin fell alongside risk assets, adding nuance to the pure inflation hedge argument.
Institutional InvestorMacro
▼Large organisations investing on behalf of others — hedge funds, pension funds, asset managers. Institutional participation in crypto accelerated significantly after spot Bitcoin ETF approval in 2024. Tracking institutional flows gives insight into smart money positioning across the market cycle.
Inverse Head & ShouldersTechnical
▼A bullish reversal pattern — the mirror image of head and shoulders. Three troughs with a deeper middle low (head) flanked by two higher lows (shoulders). A break above the neckline confirms the pattern. Typically forms at bear market bottoms. One of the highest-conviction bullish reversal setups in technical analysis.
Island ReversalTechnical
▼A candlestick reversal pattern created by two gaps in the same direction — leaving a cluster of candles isolated like an island. A bearish island reversal at market tops is a strong exhaustion signal. The gaps represent violent sentiment shifts and are often accompanied by significant volume. One of the more unusual but reliable reversal patterns.
Interest RateMacro
▼The cost of borrowing money, set by central banks as a primary tool of monetary policy. Higher rates — borrowing more expensive, less money available for risk assets, bearish for crypto. Lower rates — borrowing cheaper, more liquidity available, historically bullish for crypto. Interest rate decisions are the most market-moving macro events globally.
InteroperabilityDefi
▼The ability of different blockchain networks to communicate and transfer value between each other. Cross-chain bridges enable tokens to move between blockchains. Bridge security has been a major vulnerability — several cross-chain bridges have been exploited for hundreds of millions of dollars. Interoperability remains one of the most important unsolved challenges in blockchain infrastructure.
Implied VolatilityTechnical
▼A measure of the market's expectation of future price volatility — derived from options prices. High implied volatility means the market expects large price swings ahead. In crypto, implied volatility from Bitcoin options markets provides a forward-looking view of expected volatility. Spikes in implied volatility often precede major market moves in either direction.
Illiquid SupplyOnchain
▼Bitcoin held in wallets that have historically never sold — classified by on-chain analytics as illiquid. When illiquid supply rises, available supply for trading decreases, creating scarcity pressure on price. Illiquid supply has been rising throughout the 2025–2026 accumulation phase, as long-term holders absorb available supply and remove it from market circulation.
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JeetBeginner
▼Crypto slang for a trader who sells too early — often at the first sign of profit — before a larger move plays out. Typically driven by fear and lack of conviction. The antidote to jeet behaviour is a pre-defined exit strategy with clear take profit levels set before entering, removing the temptation to exit prematurely.
Just HODLBeginner
▼A simple long-term investment approach of buying and holding regardless of short-term volatility. Historically, investors who simply bought Bitcoin at any point in a cycle and held for 4+ years have generated positive returns. Requires conviction, emotional discipline, and the financial security not to need the invested capital in the short term.
January EffectTechnical
▼A seasonal tendency for asset prices to rise in January — historically attributed to year-end tax-loss selling followed by reinvestment in the new year. In crypto, the pattern is less reliable than in equities but Q1 has historically shown strong performance following Bitcoin halving years. Seasonal patterns are not guarantees — they are tendencies that inform probability, not certainty.
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Key LevelTechnical
▼A price level of significant historical importance — all-time highs, all-time lows, previous cycle highs, round numbers, or areas of high-volume trading. The more times a level has been tested and respected, the more significant it becomes. Key levels are the foundation of all technical analysis.
Key Liquidation LevelsFutures
▼Price levels where large clusters of leveraged positions will be forcibly closed — triggering liquidation cascades. These levels can be estimated using open interest data and liquidation heatmaps. Price often moves rapidly toward high-liquidity zones where large stop losses and liquidations cluster.
KYC — Know Your CustomerBeginner
▼Identity verification process required by regulated exchanges to comply with anti-money laundering laws. Typically requires government ID and proof of address. Centralised exchanges in regulated jurisdictions require KYC before full trading access. Decentralised exchanges generally do not require KYC, though regulations are evolving.
Known Wallets / LabelsOnchain
▼On-chain analytics platforms like Glassnode and Arkham Intelligence identify and label wallets belonging to exchanges, miners, institutions, and known entities. Tracking the activity of these labelled wallets provides high-signal intelligence about what major players are doing with their holdings. Seeing a known whale accumulate is a fundamentally different signal from an anonymous wallet moving coins.
Kill ZoneTechnical
▼A specific time window during a trading day when institutional participants are most active and price movements are most meaningful. Common kill zones include the London open (08:00–10:00 GMT) and New York open (13:30–15:30 GMT). Price reversals and breakouts that occur during kill zones carry more significance than moves in low-volume overnight sessions.
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Layer 1 / Layer 2Beginner
▼Layer 1 — the base blockchain (Bitcoin, Ethereum, Solana). Layer 2 — a secondary network built on top to improve speed and reduce costs (Lightning Network on Bitcoin, Arbitrum and Optimism on Ethereum). Layer 2 scaling solutions were a major narrative in the 2024 cycle.
LeverageFutures
▼Borrowing capital to increase position size. 10x leverage — a 10% move in your favour doubles your money; a 10% move against you wipes the position. Amplifies both gains and losses. Most retail traders who blow accounts do so through excessive leverage. Always use leverage sparingly with tight stop losses.
LiquidationFutures
▼When a leveraged position is forcibly closed because losses have consumed the margin. Cascading liquidations — one large liquidation forces others, creating sharp sudden price moves. Understanding liquidation levels helps predict where cascades might occur.
LiquidityMacro
▼The availability of money in the financial system and the ease of converting assets to cash. High liquidity — cheap money, risk assets rise. Low liquidity — tight money, risk assets fall. In markets, also refers to how easily you can buy or sell without significantly moving price.
Liquidity PoolDefi
▼Smart contract pools of tokens used to facilitate decentralised trading on DEXs. Users provide liquidity and earn fees in return. Impermanent loss is the risk that providing liquidity results in less value than simply holding the assets if prices diverge significantly.
Long PositionTechnical
▼Buying an asset with the expectation the price will rise. In spot trading, going long simply means buying. In futures, opening a long contract profits when price increases. Long positions are liquidated when price falls below the maintenance margin level in leveraged trading.
LTH SupplyOnchain
▼The total amount of Bitcoin held by long-term holders — wallets unmoved for 155+ days. Rising LTH supply during bear markets signals accumulation by experienced investors. Falling LTH supply as price rises signals distribution. One of the most watched on-chain metrics for cycle positioning.
Lagging IndicatorTechnical
▼A technical indicator that confirms trends after they have already begun — as opposed to leading indicators that attempt to predict. Moving averages, MACD, and the death/golden cross are all lagging indicators. They sacrifice speed for reliability — by the time they signal, the move is underway, but the confirmation reduces false signals.
Legal TenderMacro
▼Currency that must be accepted for payment of debts by law. El Salvador was the first country to designate Bitcoin as legal tender in 2021. Most countries still classify crypto as a digital asset or commodity, not legal tender. The regulatory status of crypto varies significantly by jurisdiction and continues to evolve rapidly.
Loss AversionBeginner
▼The psychological tendency to feel the pain of losses more strongly than the pleasure of equivalent gains. Loss aversion causes investors to hold losing positions too long — hoping to break even — while selling winning positions too early. Recognising loss aversion is the first step to overcoming it. Pre-defined stop losses and take profits bypass this bias entirely.
Liquidity SweepTechnical
▼A price move designed to trigger stop losses and liquidations clustered above a recent high or below a recent low — allowing large participants to accumulate or distribute at those prices. After sweeping liquidity, price often reverses sharply in the opposite direction. Recognising liquidity sweeps helps avoid being stopped out by engineered volatility before a major move.
Lending ProtocolDefi
▼A DeFi protocol that enables users to lend and borrow cryptocurrency. Lenders deposit assets and earn interest. Borrowers provide collateral and pay interest. Examples: Aave, Compound. Interest rates adjust algorithmically based on supply and demand. Overcollateralisation is required — you must provide more value than you borrow. Liquidation occurs if collateral value falls below a threshold.
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MACDTechnical
▼Moving Average Convergence Divergence — a momentum indicator showing the relationship between two moving averages. MACD crossing above signal line — bullish signal. Crossing below — bearish. MACD divergence from price is one of the most watched reversal signals in technical analysis.
MarginFutures
▼The collateral deposited to open and maintain a leveraged position. Initial margin — required to open. Maintenance margin — minimum to keep it open. If losses bring margin below maintenance level, the position gets liquidated. Always maintain sufficient buffer to avoid unnecessary liquidations from normal volatility.
Market CapBeginner
▼Total value of a cryptocurrency — price multiplied by circulating supply. Large cap (BTC, ETH) — more stable, lower risk/reward. Mid cap — established altcoins. Small cap — higher risk, higher potential reward. Market cap is a far better measure of size than price alone.
MemecoinBeginner
▼A coin driven by community, jokes and attention rather than utility — DOGE, SHIB, PEPE. They can move hundreds of percent in days and lose most of their value just as fast. Treat them as lottery tickets, sized accordingly.
MempoolBeginner
▼The queue of pending Bitcoin transactions waiting to be included in a block. When congested, fees rise as users compete to get transactions confirmed. A growing mempool indicates high network activity — common during bull market peaks when on-chain activity surges.
Miner Revenue / Hash RateOnchain
▼Miners secure the Bitcoin network by validating transactions — receiving newly minted BTC and transaction fees as revenue. Hash rate — the total computational power of the network. Rising hash rate signals miner confidence. Miner capitulation historically coincides with bear market bottoms.
MomentumTechnical
▼The rate of acceleration of a price movement. Strong momentum means price is moving quickly with conviction. Weakening momentum — even while price makes new highs — is a warning signal. Momentum indicators like RSI and MACD measure this acceleration and help identify when moves are exhausting.
Moving Average (MA)Technical
▼A line showing average price over a set number of periods. 50-day MA — medium-term trend. 200-day MA — long-term trend, the most widely watched level in all markets. Price above the 200 DMA = long-term uptrend. Moving averages act as dynamic support and resistance.
MultisigBeginner
▼A wallet that needs more than one key to approve a transaction — for example, 2 of 3. It removes the single point of failure, which is why businesses and serious holders use it for large amounts.
MVRV RatioOnchain
▼Market Value to Realised Value — compares Bitcoin's current market cap to its realised cap (value of all coins at the price they last moved). High MVRV (3+) — historically near cycle tops. Low MVRV (below 1) — historically strong buying opportunity. One of the most reliable on-chain cycle timing tools.
Max SupplyBeginner
▼The maximum number of tokens or coins that will ever exist for a given cryptocurrency. Bitcoin's max supply is 21 million — hard-coded and immutable. Knowing max supply helps evaluate long-term scarcity. Tokens with no max supply can be inflationary — meaning new tokens are continuously minted, potentially diluting existing holders.
Market Order / Limit OrderBeginner
▼Market order — executes immediately at the best available price. Fast but may slip in volatile markets. Limit order — executes only at your specified price or better. Offers price control but no guarantee of execution. In fast-moving crypto markets, limit orders are generally preferred for precise entries and exits.
Market Structure Break (BOS)Technical
▼A break of market structure occurs when price decisively breaks through a previous significant swing high or low. A bullish BOS — price breaks above the previous higher high, confirming the uptrend. A bearish BOS — price breaks below the previous higher low, signalling trend deterioration. Widely used in Smart Money Concepts trading.
Miner CapitulationOnchain
▼When mining becomes unprofitable and miners are forced to sell their Bitcoin holdings to cover operational costs. Often occurs after halvings (when revenue is cut in half) or during severe price declines. Miner capitulation has historically marked bear market bottoms — as the weakest miners exit the market and selling pressure exhausts.
Mean ReversionTechnical
▼The tendency of asset prices to return to their historical average over time. After extreme moves above or below the mean, prices tend to revert. Bitcoin consistently returns to key moving averages (like the 200-day MA) after parabolic moves in either direction. Mean reversion strategies look to profit from these returns to equilibrium.
Miner to Exchange FlowOnchain
▼On-chain tracking of Bitcoin moving from miner wallets to exchanges. High miner-to-exchange flow signals miners are selling — adding supply pressure. This metric is most significant around halvings, when miner revenue is cut in half and operational costs must still be met. Sustained high miner selling can suppress prices; its cessation often precedes rallies.
Mental AccountingBeginner
▼The psychological tendency to treat money differently depending on its source or intended use — for example, treating a crypto gain as "house money" and taking more risk with it than with originally invested capital. All capital should be evaluated equally regardless of source. Mental accounting leads to irrational risk-taking with gains and excessive risk aversion with principal.
Multi-Timeframe AnalysisTechnical
▼Examining price action across multiple timeframes simultaneously to build a complete market picture before entering a trade. A setup confirmed by trend alignment on the weekly, daily, and 4-hour chart simultaneously is far more reliable than one visible on a single timeframe. Confluent signals — where multiple timeframes, indicators, and on-chain data all agree — represent the highest-probability trading setups.
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NarrativeBeginner
▼A broad theme or story driving capital into a specific crypto sector. DeFi (2020), NFTs (2021), AI tokens (2024), RWA (2024–2025). Identifying narratives early — before mainstream attention — is one of the highest-leverage skills in altcoin investing. Narratives attract capital. Capital drives price.
NecklineTechnical
▼A key support/resistance level in chart patterns — most commonly in head and shoulders formations. Connects the lows (or highs) between the pattern's peaks. A confirmed break of the neckline triggers the projected price target. Volume on the break confirms the move's validity.
NFT — Non-Fungible TokenDefi
▼A unique digital asset on a blockchain proving ownership of a specific item. Unlike cryptocurrencies (fungible), each NFT is unique. The NFT market experienced massive speculation in 2021–2022 before a significant collapse in value for most projects. Understanding the distinction between speculation and utility is critical.
NodeBeginner
▼A computer participating in a blockchain network by maintaining a copy of the blockchain and validating transactions. Bitcoin has thousands of nodes globally. More nodes = greater decentralisation = more censorship resistance. Running a full node gives you the highest level of trustless verification.
Network EffectMacro
▼The phenomenon where a network becomes more valuable as more participants join — described by Metcalfe's Law. Bitcoin's security, liquidity, and adoption all benefit from network effects. A network with twice as many participants is more than twice as valuable. Understanding network effects helps explain why Bitcoin's first-mover advantage is so durable.
Normalised IndicatorTechnical
▼An indicator that has been adjusted to display within a fixed range — typically 0 to 100 — regardless of the asset's absolute price level. RSI is a prime example. Normalised indicators allow consistent interpretation across different assets and price levels, making it easy to compare current readings to historical extremes.
NGMI / WAGMIBeginner
▼Crypto community slang. NGMI — "Not Gonna Make It" — used to describe behaviour or decisions that seem destined to result in losses (panic selling, ignoring fundamentals). WAGMI — "We Are All Gonna Make It" — collective optimism, often used during bull markets. Understanding crypto culture and community sentiment is part of understanding crypto markets.
NFP — Non-Farm PayrollsTechnical
▼A major monthly US economic report measuring employment changes outside the farming sector. Released on the first Friday of each month. Significantly above-expectation NFP data supports rate hike expectations — bearish for crypto. Below-expectation data supports rate cut expectations — bullish. NFP releases cause significant volatility across all financial markets including crypto.
NUPL — Net Unrealised Profit/LossOnchain
▼Shows how much of Bitcoin’s market value is unrealised profit or loss across all holders. Very high readings have marked euphoric tops; negative readings (holders in loss on average) have marked capitulation and bottoms.
O
On-Chain AnalysisOnchain
▼Analysing blockchain data — wallet activity, exchange flows, holder distribution, miner behaviour — to gain market insight. Unlike price charts showing what has happened, on-chain data can show what large participants are doing before it appears in price. One of the most powerful analytical edges in crypto.
Open Interest (OI)Futures
▼Total outstanding futures contracts not yet settled. Rising OI + rising price — strong trend. Rising OI + falling price — strong downtrend. Falling OI — positions closing, potential reversal. High OI during consolidation often precedes a violent breakout.
Order BlockTechnical
▼A price zone where large players placed significant orders, usually the last opposing candle before a strong move. Price often returns to these zones and reacts, which is why smart-money traders use them for entries.
Order BookTechnical
▼A real-time list of all pending buy (bid) and sell (ask) orders. Large buy walls — significant demand, potential support. Large sell walls — significant supply, potential resistance. Reading the order book helps identify where large players are positioned and where significant reactions are likely.
Overbought / OversoldTechnical
▼Technical conditions indicating a potential price reversal. Overbought — RSI above 70, potential pullback. Oversold — RSI below 30, potential bounce. In strong trends, assets can remain overbought/oversold for extended periods. Most reliable at key support/resistance levels with confirmation from other indicators.
OTC — Over The CounterBeginner
▼Large trades executed directly between parties — outside of public exchanges. Institutions and whales use OTC desks to buy or sell large amounts of Bitcoin without moving the public market price. OTC activity is not visible in exchange order books but can be observed indirectly through on-chain flows.
Opportunity CostMacro
▼The potential return foregone by choosing one investment over another. When holding cash during a bull market, the opportunity cost is the gain you missed. When holding Bitcoin during an altcoin season, the opportunity cost is the higher returns altcoins generated. Understanding opportunity cost prevents both FOMO and irrational portfolio decisions.
OscillatorTechnical
▼A technical indicator that fluctuates within a bounded range — like RSI (0–100) or Stochastic. Oscillators are useful for identifying overbought and oversold conditions, particularly in ranging markets. In strong trending markets, oscillators can remain at extremes for extended periods — making them less reliable when used in isolation.
On-Ramp / Off-RampBeginner
▼On-ramp — any service that converts fiat currency into cryptocurrency (buying BTC with GBP on an exchange). Off-ramp — any service that converts cryptocurrency back to fiat. On-ramps and off-ramps are gateways between the traditional financial system and crypto. Their accessibility, fees, and speed significantly affect how easily capital can flow into and out of the crypto market.
Over-ExtensionTechnical
▼When price moves significantly beyond its historical average relationship to key moving averages — becoming unsustainably far from equilibrium. Over-extended prices typically revert toward the mean. Bitcoin over-extensions above the 200-day MA have historically been followed by significant corrections even within bull markets. Over-extension is not a timing tool but a risk awareness indicator.
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Perpetual Futures (Perps)Futures
▼Futures contracts with no expiry date, the most traded crypto derivative. A funding rate paid between longs and shorts keeps the price close to spot. Usually traded with leverage — and not available to UK retail investors.
Pivot PointTechnical
▼A calculated price level based on the previous period's high, low, and close. Used to identify potential support and resistance levels for the current session. Price above the pivot is generally bullish; below is bearish. Pivot points are widely used by institutional traders and often become self-fulfilling.
Portfolio AllocationBeginner
▼How capital is distributed across different assets. Typical allocation frameworks consider: Bitcoin as the core holding, Ethereum as a secondary large-cap, and altcoins as high-risk/high-reward positions. The cycle phase should inform allocation — more Bitcoin dominance in early cycles, progressive altcoin rotation as the cycle matures.
Position SizingFutures
▼Determining how much capital to allocate to a single trade. The 2% rule — never risk more than 2% of your total portfolio on a single trade. Most losing traders fail not because of their win rate but because losses are larger than wins. Position sizing is arguably the most important aspect of trading.
Price ActionTechnical
▼Trading based purely on price movements and patterns without relying on indicators. Involves reading candlestick patterns, support/resistance levels, trend lines, and market structure. Many experienced traders favour price action because it focuses on what the market is actually doing rather than lagged interpretations.
Private Key / Seed PhraseBeginner
▼A private key proves ownership of a crypto wallet. A seed phrase is its human-readable form — 12 or 24 words. Never share your seed phrase with anyone, ever. Anyone with your seed phrase has complete and permanent control of your funds. Store it offline in a physically secure location.
Proof of StakeBeginner
▼A way of securing a blockchain where validators lock up (stake) coins instead of using mining hardware, and can lose part of that stake for cheating. Ethereum and Solana use it. Staking rewards come from this system.
Proof of Work (Mining)Beginner
▼How Bitcoin secures its network: miners spend real energy competing to add the next block and earn new BTC plus fees. That cost is what makes rewriting Bitcoin’s history prohibitively expensive.
Puell MultipleOnchain
▼An on-chain metric measuring daily mined Bitcoin value against the 365-day moving average. Very high values (above 4) — historically near cycle tops. Very low values (below 0.5) — historically near cycle bottoms. Useful for identifying when miner revenue is unusually high or low relative to historical norms.
Pattern RecognitionTechnical
▼The identification of repeating chart formations — triangles, flags, head and shoulders, channels — that historically resolve in predictable ways. Pattern recognition is not predictive with certainty but provides probabilistic setups with defined risk/reward. The more a pattern is tested at key levels with supporting volume and indicators, the higher the probability of the expected resolution.
% Supply in ProfitOnchain
▼An on-chain metric showing what percentage of Bitcoin supply is currently held at a profit based on the price it last moved. Very high values (above 95%) — historically near cycle tops. Very low values (below 50%) — historically near cycle bottoms. Provides a clear view of the overall market's unrealised gain/loss situation.
Profit TakingBeginner
▼Selling a portion or all of a position to realise gains. A key discipline in crypto — where volatility means paper profits can evaporate rapidly. Scaling out of positions at predetermined levels — selling a portion at each target — allows participation in continued upside while locking in gains. The hardest discipline to execute during periods of strong upside momentum.
Paper TradingBeginner
▼Practicing trades in a simulated environment with virtual money before risking real capital. Allows strategy testing and skill development without financial risk. The psychological pressure of risking real money differs significantly from paper trading — but paper trading is valuable for learning mechanics, testing systems, and building confidence before live trading.
Parabolic MoveTechnical
▼A rapid, accelerating price increase with an increasingly steep slope — visually resembling the curve of a parabola. Parabolic moves are unsustainable by definition. Bitcoin has experienced multiple parabolic advances in each cycle — each followed by a significant correction. The steeper the parabola, the sharper the eventual correction. Euphoria peaks coincide with the most extreme parabolic extensions.
Peak EuphoriaTechnical
▼The point in a bull market cycle where optimism and greed reach their maximum. Characterised by mainstream media coverage, celebrity endorsements, retail FOMO, and widespread certainty that prices will continue rising indefinitely. Peak euphoria historically marks the cycle top — the point of maximum financial risk for new entrants and the best time for disciplined holders to distribute.
Purchasing PowerMacro
▼The real value of money — how much goods and services a given amount of currency can buy. Inflation erodes purchasing power over time. $100 in 2000 buys significantly less today than it did then. Bitcoin's fixed supply is designed to preserve purchasing power against monetary debasement. The long-term case for Bitcoin is fundamentally a case against fiat currency's persistent loss of purchasing power.
Q
QE / QTMacro
▼QE (Quantitative Easing) — central bank creates money and buys assets, expanding money supply. Historically very bullish for crypto. QT (Quantitative Tightening) — central bank shrinks balance sheet. Historically bearish. The 2022 bear market coincided directly with the most aggressive QT cycle in decades.
Quantitative AnalysisTechnical
▼Using mathematical and statistical models to analyse markets and make investment decisions. In crypto, quantitative approaches range from simple moving average crossover systems to complex multi-factor models incorporating on-chain data, sentiment indicators, and macro variables. Quantitative models remove emotional bias but can fail during regime changes not captured in historical data.
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Realised PriceOnchain
▼The average price at which all existing Bitcoin last moved — the average cost basis of all holders. Market price above realised price — average holder in profit. Market price below realised price — average holder at a loss. When price falls below the realised price, it signals a deep bear market and historically a strong buying opportunity.
ResistanceTechnical
▼A price level where selling pressure has historically stopped or reversed an upward move. Previous highs, round numbers, and old support levels all act as resistance. A resistance level broken on high volume is significant — buyers have overwhelmed sellers. Broken resistance often flips to become new support.
Risk/Reward RatioFutures
▼The comparison between potential profit and potential loss on a trade. 1:3 ratio — risk £100 to make £300. Professional traders typically only take trades with a minimum 1:2 ratio. A good risk/reward ratio means you can be right less than 50% of the time and still be profitable.
Risk-On / Risk-OffMacro
▼Risk-on — investor appetite for higher-risk assets is high. Capital flows into equities, crypto, and commodities. Risk-off — investors seek safety. Capital moves into bonds, gold, and cash. Crypto falls significantly in risk-off environments. Identifying the macro risk environment helps calibrate crypto exposure.
Role ReversalTechnical
▼When a support level breaks and becomes resistance, or resistance breaks and becomes support. One of the most important concepts in technical analysis. After a breakout, a retest of the broken level — now acting in the opposite role — provides a high-probability entry point in the direction of the break.
RSI — Relative Strength IndexTechnical
▼Momentum indicator measuring price change speed from 0–100. Above 70 — overbought. Below 30 — oversold. RSI divergence — price makes new high but RSI does not — signals weakening momentum. Most effective combined with support/resistance levels rather than used in isolation.
Rug PullBeginner
▼A scam where project developers abandon the project and steal investor funds — typically by removing liquidity from a pool. Warning signs: anonymous team, no audit, very high yield promises. Never invest more than you can afford to lose entirely in any project with these characteristics.
RWA — Real World AssetsDefi
▼The tokenisation of real-world assets — bonds, real estate, commodities — on the blockchain. A major narrative in the 2024–2025 cycle as institutional players explored bringing traditional assets on-chain. Seen as one of the most significant potential use cases for blockchain technology.
Realised Gain / LossBeginner
▼Profit or loss that is crystallised by closing a trade or selling an asset. In most jurisdictions, realised gains are taxable events — the specific tax treatment varies significantly by country. In the UK, crypto is subject to Capital Gains Tax on disposal. Keeping accurate records of every trade — entry price, exit price, date — is essential for tax compliance.
RetestTechnical
▼When price returns to a previously broken support or resistance level to confirm the breakout. A bullish breakout retest sees price return to the broken resistance (now support) and hold, confirming the role reversal. A bearish breakdown retest sees price return to the broken support (now resistance) and reject. Retests provide high-probability entry points with defined risk.
Rising WedgeTechnical
▼A bearish chart pattern formed by two converging upward-sloping trend lines — with the upper line rising slower than the lower. Price makes higher highs and higher lows but with diminishing momentum. A breakdown below the lower trend line confirms the pattern. Often appears near market tops and signals potential trend reversal.
Reserve RiskOnchain
▼An on-chain metric comparing the confidence of long-term holders relative to the current price. Low reserve risk — holders are confident and not selling at current prices, historically a strong buying zone. High reserve risk — holders are distributing into strength, historically near cycle tops. One of the cleaner on-chain cycle timing tools.
Risk ManagementBeginner
▼The systematic approach to identifying, assessing, and limiting financial risk in trading and investing. Includes position sizing, stop losses, portfolio diversification, and overall exposure management. The ability to preserve capital is more important than any individual trade — because losses must be recovered before gains can be made. Professional traders obsess over risk management above all else.
Range-Bound MarketTechnical
▼A market trading between a defined support and resistance level without a clear trend direction. Range-bound markets reward different strategies than trending markets — buying near support and selling near resistance rather than trend-following. Identifying a range-bound phase early prevents applying trend-following strategies in the wrong market environment.
S
Sideways MarketTechnical
▼A market trading in a tight range without a clear directional trend. Neither bulls nor bears have control. Challenging for trend-following strategies but creates opportunity for range-trading — buying near support and selling near resistance. Extended sideways action often precedes a large directional move when the range finally breaks.
Short SellingFutures
▼Profiting from a falling price by opening a short futures contract. If you short Bitcoin at $80,000 and it falls to $70,000, you profit from the $10,000 drop. Short squeeze — rapid price rise forces short sellers to buy back, accelerating the upward move.
Short SqueezeFutures
▼A rapid price surge forcing short sellers to buy back positions to cover losses — itself driving price higher in a self-reinforcing spiral. High short open interest alongside price consolidation signals potential short squeeze setup. Short squeezes can move price 10–20% in minutes.
SlippageBeginner
▼The difference between the price you expected and the price you actually got. It happens when the market moves fast or there isn’t enough liquidity at your price. Large market orders on small coins suffer the most.
Smart ContractDefi
▼Self-executing code stored on a blockchain that automatically performs actions when predetermined conditions are met — without intermediaries. The foundation of all DeFi applications. Smart contract vulnerabilities have led to billions in hacks. Always research the audit history of any DeFi protocol before interacting.
SMC — Smart Money ConceptsTechnical
▼A trading framework based on the premise that institutional "smart money" moves markets in predictable ways that retail traders can learn to identify. Key concepts include: order blocks, fair value gaps, liquidity sweeps, change of character, and break of structure. SMC has grown significantly in popularity among retail traders as an alternative to traditional technical analysis.
SOPROnchain
▼Measures whether coins being moved are in profit or at a loss. SOPR above 1 — coins moving at a profit (potential selling pressure). SOPR below 1 — coins moving at a loss (capitulation). When SOPR resets to 1 from below in a bull market, it signals exhausted selling — often a strong buy signal.
Spot TradingBeginner
▼Buying or selling the actual cryptocurrency at the current market price. You own the asset. No leverage, no expiry, no liquidation risk. For most retail investors, building a spot portfolio and holding through cycles produces better risk-adjusted returns than trading futures.
StablecoinBeginner
▼A cryptocurrency designed to maintain stable value, typically pegged 1:1 to USD. Examples: USDT, USDC. Used to preserve value without leaving the crypto ecosystem. Stablecoin dominance rising — capital moving to safety, potentially bearish. Stablecoin dominance falling — capital deploying into risk assets, potentially bullish.
Stop LossFutures
▼A pre-set order automatically closing a trade when price reaches a specified level — capping maximum loss. Never trade without a stop loss. Set it based on market structure — not on how much you're willing to lose. A proper stop loss is the cornerstone of professional risk management.
SupportTechnical
▼A price level where buying pressure has historically stopped or reversed a downward move. Previous lows, round numbers, and old resistance levels all act as support. A support level breaking on high volume is a significant bearish signal — the next lower support becomes the new target.
Supply ShockBeginner
▼A sudden reduction in available supply that, if demand remains constant or grows, drives prices higher. Bitcoin halvings create a supply shock by cutting daily issuance in half. Post-halving supply shocks are the primary mechanism driving Bitcoin's four-year bull cycles.
StagflationMacro
▼A rare economic condition combining slow growth with high inflation. Particularly difficult for central banks because standard responses conflict — rate hikes control inflation but worsen growth. Historically very bearish for risk assets including crypto.
Satoshi (Sats)Beginner
▼The smallest unit of Bitcoin — one hundred millionths of one Bitcoin (0.00000001 BTC). Named after Satoshi Nakamoto. Bitcoin's divisibility means you can own and transact with tiny fractions. Thinking in sats — rather than whole Bitcoin — makes accumulation accessible at any price level and helps remove the psychological barrier of "I can't afford a whole Bitcoin."
SEC — Securities and Exchange CommissionMacro
▼The US financial regulator responsible for enforcing securities laws. Has been a major source of regulatory uncertainty for crypto — pursuing enforcement actions against multiple exchanges and tokens. The SEC's classification of tokens as securities significantly impacts which projects can operate in the US market. SEC decisions are major market-moving events.
Stablecoin DominanceOnchain
▼The percentage of total crypto market cap held in stablecoins. Rising stablecoin dominance — investors moving to cash equivalents, bearish signal. Falling stablecoin dominance — dry powder being deployed into the market, bullish signal. Large amounts of stablecoins sitting on exchanges represents potential buying power waiting to be deployed into risk assets.
StakingBeginner
▼Locking cryptocurrency in a blockchain network to validate transactions and earn rewards. Proof-of-stake networks like Ethereum use staking instead of mining. Staking rewards act like a yield on your holdings. Staking reduces circulating supply, which can be bullish for price. Risks include lock-up periods, slashing penalties, and smart contract vulnerabilities.
STH — Short-Term HolderOnchain
▼Bitcoin held by wallets that have not moved in less than 155 days — the opposite of long-term holders. Short-term holders are more likely to sell during volatility as they may not yet be deeply convicted in their position. STH supply in loss during downturns can lead to panic selling cascades as recent buyers capitulate.
Solana (SOL)Defi
▼A high-performance blockchain designed for speed and low transaction costs. Capable of thousands of transactions per second. Solana became a major DeFi and NFT hub in 2021 before suffering several network outages. It recovered strongly in 2023–2024 and became the leading chain for meme coin activity in the 2024–2025 bull run, generating significant trader attention.
Swing High / Swing LowTechnical
▼Price points where the market changes direction. A swing high is a peak where price reverses downward. A swing low is a trough where price reverses upward. Connecting swing highs and lows defines market structure — the foundation of all technical analysis. A break of a previous swing high confirms bullish structure; a break of a swing low confirms bearish structure.
Symmetrical TriangleTechnical
▼A chart pattern with converging trend lines — both the upper resistance line and the lower support line slope toward each other at roughly equal angles. Unlike ascending or descending triangles, a symmetrical triangle is neutral — the breakout direction is determined by the prevailing trend and the direction of the eventual break. Tight symmetrical triangles typically precede large moves.
Sandwich AttackDefi
▼A MEV (Maximal Extractable Value) attack in DeFi where a bot sees a large pending swap, front-runs it with a buy order, lets the target transaction execute (pushing price higher), then immediately sells — profiting from the price impact. Costs DEX users value on large trades. Using slippage limits and private transaction relays can reduce vulnerability to sandwich attacks.
Senkou Span (Cloud Thickness)Technical
▼The thickness of the Ichimoku Cloud (Kumo) represents the strength of support or resistance. A thick cloud provides strong support/resistance — price is less likely to break through quickly. A thin cloud is weaker — breakouts through thin clouds are more likely to succeed and sustain. The cloud's colour and thickness together give a comprehensive view of trend strength.
T
Take Profit (TP)Technical
▼A pre-set order automatically closing a trade when price reaches a profit target. Defines the exit before entry — critical for disciplined trading. Most traders spend too much time thinking about when to buy and too little time thinking about when to sell. Predetermined take profits remove the greed that leads to giving back gains.
Timeframe (HTF / LTF)Technical
▼The period each candlestick represents. Higher timeframes (HTF) — daily, weekly, monthly — show the macro trend. Lower timeframes (LTF) — 1 hour, 15 minute — show short-term moves. Always trade in the direction of the higher timeframe trend.
Token Unlock / VestingDefi
▼Tokens held by teams and early investors are often locked and released (vested) on a schedule. Large unlocks add new supply to the market and can pressure the price — check the schedule before you buy.
Token vs CoinBeginner
▼Coin — native currency of its own blockchain (Bitcoin, ETH on Ethereum). Token — built on top of an existing blockchain. Most altcoins are ERC-20 tokens built on Ethereum. Interacting with Ethereum tokens always requires ETH to pay gas fees.
Transaction Hash (TXID)Beginner
▼A unique identifier assigned to every blockchain transaction. Used to verify and track a transaction on a block explorer. When you send crypto and need to confirm it was received, the TXID allows you to look up the exact transaction on-chain in real time.
Treasury YieldMacro
▼The return on US government bonds. Rising yields — bonds more attractive, money flows from risk assets, bearish for crypto. Falling yields — bonds less attractive, money seeks higher returns. The 10-year US Treasury yield is one of the most important macro signals for all risk assets.
Trend LineTechnical
▼A line connecting a series of price highs or lows to visualise trend direction. A break of a significant trend line on high volume is often an early signal of trend reversal. The longer a trend line has been tested, the more significant a break becomes.
Triple Top / Triple BottomTechnical
▼Triple top — price makes three failed attempts to break the same resistance. A break below the support between the peaks confirms a bearish reversal. Triple bottom — the inverse, signalling a bullish reversal when resistance is broken.
TVL — Total Value LockedOnchain
▼The total value of assets deposited in a DeFi protocol. A measure of protocol adoption and user confidence. Rising TVL indicates growing usage. Always check TVL in a stable denomination like USD — not the native token — to avoid inflation from token price increases masking real growth.
Tariffs / Trade PolicyMacro
▼Government-imposed taxes on imported goods that can trigger economic uncertainty and market volatility. Major tariff announcements — particularly US-China trade disputes — have historically caused correlated selloffs across risk assets including crypto. Trade policy uncertainty can create risk-off conditions that temporarily suppress crypto prices regardless of on-chain fundamentals.
Trailing Stop LossTechnical
▼A stop loss that automatically adjusts as price moves in your favour — locking in gains while still allowing a position to run. Example: a 10% trailing stop rises as price rises, but holds if price falls. Useful for trend-following strategies. Must be set wide enough to survive normal market noise without being triggered by routine volatility.
Technical Analysis (TA)Technical
▼The study of price action, chart patterns, and market indicators to predict future price movements. Based on the premise that all known information is already reflected in price, and that price patterns repeat over time due to human psychology. TA provides a framework for structured decision-making — not certainty. Most effective when combined with macro analysis and on-chain data.
TokenomicsMacro
▼The economic design of a cryptocurrency token — including its total supply, issuance schedule, distribution, inflation/deflation mechanisms, and utility. Strong tokenomics align incentives between the project team, early investors, and community. Poor tokenomics — like heavy insider allocation or unlimited inflation — create structural selling pressure that caps price appreciation regardless of product quality.
Trade Deficit / SurplusMacro
▼When a country imports more than it exports (deficit) or exports more than it imports (surplus). Large persistent trade deficits can weaken a currency — which tends to benefit Bitcoin as an alternative store of value. US trade deficits have contributed to long-term dollar weakness arguments that support the Bitcoin thesis as a global reserve asset alternative.
Two Percent RuleBeginner
▼A fundamental risk management principle: never risk more than 2% of your total trading capital on any single trade. If your account is £10,000, your maximum loss on any trade should be £200. This rule ensures that no single losing trade is catastrophic and that a string of 10 consecutive losses only reduces your account by ~18% — leaving ample capital to recover.
U
Unemployment RateMacro
▼The percentage of the labour force seeking work but unable to find it. Rising unemployment — economic weakness, pressure for rate cuts — potentially bullish for crypto. Low unemployment — can sustain rate hikes — potentially bearish. The monthly US Non-Farm Payrolls report is a major market-moving event.
Unrealised PnLBeginner
▼Profit or loss on an open position that has not yet been closed — also called "paper profit" or "paper loss." Unrealised gains are not real until the position is closed. Many investors have watched significant paper profits evaporate by failing to take profits at appropriate levels.
UptrendTechnical
▼A sustained price movement characterised by higher highs and higher lows. Each peak is higher than the last and each dip finds support at a higher level. Uptrends remain intact as long as each low is higher than the previous low. A break below the most recent higher low signals potential trend reversal.
Utility TokenDefi
▼A cryptocurrency token providing access to a specific product or service within a blockchain ecosystem. Unlike security tokens, utility tokens are used to interact with a platform — paying fees, accessing features, or participating in governance. Strong utility with genuine demand is a key fundamental to evaluate in altcoin research.
USDC / USDTBeginner
▼The two most widely used dollar-pegged stablecoins. USDT (Tether) — the largest by volume, issued by Tether Limited. USDC — issued by Circle, widely considered more transparent due to regular audits. Both are used extensively for trading, DeFi, and preserving value in crypto without converting to fiat. Understanding the difference and risks of each matters for treasury management.
US Dollar Reserve CurrencyMacro
▼The US Dollar is the world's primary reserve currency — used for most global trade and held in foreign exchange reserves by central banks worldwide. Dollar strength and weakness has a significant inverse impact on all dollar-denominated risk assets including crypto. A weakening dollar macro trend has historically been one of the strongest tailwinds for Bitcoin price appreciation.
UniswapDefi
▼The largest decentralised exchange by trading volume. Built on Ethereum, it pioneered the Automated Market Maker model for decentralised trading. UNI is its governance token. Uniswap allows anyone to list tokens and provide liquidity without permission. It became the primary venue for trading newly launched ERC-20 tokens during the DeFi and meme coin booms.
UTXO — Unspent Transaction OutputOnchain
▼The fundamental accounting unit of the Bitcoin blockchain. When you receive Bitcoin, it arrives as a UTXO. When you spend it, the UTXO is consumed and new UTXOs are created. The UTXO model allows full traceability of every Bitcoin's history. On-chain analysis tools leverage UTXO data to determine when coins were last moved and at what price — the foundation of most on-chain metrics.
V
VelocityOnchain
▼How frequently Bitcoin changes hands. Low velocity — coins not moving, holders accumulating. High velocity — active trading. Rising velocity from a low base has historically preceded bull market price acceleration as coins move from strong hands to new buyers willing to pay higher prices.
VolatilityBeginner
▼The degree of price variation over time. Crypto is significantly more volatile than traditional assets — 10–20% moves in a single day are not unusual. High volatility creates opportunity but also risk. Managing volatility through position sizing and stop losses is fundamental to long-term survival as a crypto investor.
VolumeTechnical
▼Total amount of an asset traded in a time period. High volume breakout — strong, likely to continue. Low volume breakout — weak, likely to fail. Declining volume during a rally signals weakening momentum. Volume confirms the conviction behind price moves and is one of the most underused indicators in technical analysis.
VWAP — Volume Weighted Average PriceTechnical
▼The average price of an asset weighted by trading volume. Institutional traders use VWAP as a benchmark — buying below and selling above. Price above the daily VWAP is bullish; below is bearish. VWAP acts as a dynamic support/resistance level and is widely used by professional traders to evaluate execution quality.
Verified / Audited ContractBeginner
▼A smart contract whose source code has been verified on-chain and reviewed by a professional security auditor. Audited contracts are not risk-free but provide a meaningfully higher level of confidence than unaudited code. Always check whether a DeFi protocol has been audited — and by whom — before interacting with it. Recent audits matter more than older ones.
Volatility RegimeMacro
▼The prevailing level of price volatility in a market — which can shift significantly between periods of low and high volatility. Low volatility regimes typically precede large breakouts. High volatility regimes require wider stop losses and smaller position sizes. Identifying the current volatility regime helps calibrate risk management and trade sizing appropriately.
Value AreaTechnical
▼In volume profile analysis, the price range where a specified percentage (typically 70%) of trading volume occurred during a session. The Value Area High (VAH) and Value Area Low (VAL) act as key support and resistance levels. Price trading above the value area is bullish; below is bearish. Widely used by institutional traders for precise level identification.
Volume ProfileOnchain
▼A chart tool displaying the total trading volume at each price level over a defined period. The Point of Control (POC) is the price with the highest traded volume — the most accepted fair value. Value Area High and Low frame the range of 70% of volume. Volume profiles reveal where price has been most and least efficiently traded, identifying high-probability support and resistance zones.
W
WalletBeginner
▼Software or hardware storing private keys and allowing you to send, receive, and manage cryptocurrency. A wallet does not store your crypto — it stores the keys proving ownership on the blockchain. Custodial — exchange holds your keys. Non-custodial — you hold your own keys.
Web3Beginner
▼The vision of a decentralised internet where users own their data and digital assets rather than corporations. Enabled by blockchain technology. Web1 — read-only. Web2 — read/write but platform-controlled. Web3 — read/write/own. The practical barriers to mainstream adoption remain significant and progress is gradual.
WhaleOnchain
▼An entity holding enough cryptocurrency to significantly influence market prices. Whale accumulation during bear markets is historically a reliable bullish signal. Whale selling into bull market strength can precede corrections. Understanding whale behaviour through on-chain data provides edge over pure price analysis.
Wick / ShadowTechnical
▼The thin lines extending above and below a candlestick body showing extreme high and low. Long upper wick — rejection at higher levels, sellers stepped in. Long lower wick — rejection at lower levels, buyers stepped in. Long wicks at key support/resistance levels are strong reversal signals.
Wyckoff MethodTechnical
▼A framework describing how large operators accumulate and distribute positions. Four phases: Accumulation → Markup → Distribution → Markdown. Wyckoff schematics help identify where smart money is positioned relative to retail. The current crypto market (2026) sits in a Wyckoff accumulation phase following the 2025 distribution cycle top.
Wealth EffectMacro
▼The phenomenon where rising asset prices make people feel wealthier, leading to increased spending and economic activity. Bull markets in crypto create a wealth effect — particularly among early holders — that stimulates broader economic activity. The reverse is also true: falling asset prices reduce consumer confidence and spending, amplifying economic downturns.
Wedge PatternTechnical
▼A chart pattern formed by two converging trend lines both pointing in the same direction. Rising wedge — converging upward lines, bearish reversal signal. Falling wedge — converging downward lines, bullish reversal signal. Both are continuation or reversal patterns depending on the preceding trend. Volume typically declines as the wedge forms and surges on the breakout.
Waterfall EventTechnical
▼A rapid, cascading series of price declines — where each breakdown triggers stop losses and liquidations that cause further declines in a self-reinforcing spiral. Waterfall events create near-vertical red candles on charts. They typically end with climactic volume and exhaustion selling, often followed by sharp bounces. Waterfall events within bear markets are sometimes the best buying opportunities.
Whipsaw / FakeoutBeginner
▼A false breakout that traps traders who entered on the break — price quickly reverses back through the broken level, leaving those traders with losses. Common near key support/resistance levels where stop losses cluster. Waiting for a candle close beyond a level (rather than entering on the initial spike through it) reduces the risk of being caught in a fakeout.
Wallet Age AnalysisOnchain
▼Examining the age of wallets and their holdings to understand the behaviour of different market participants. New wallet creation at market bottoms signals new entrant accumulation. Old wallets suddenly becoming active signals long-dormant holders distributing. Analysing wallet age cohorts provides a multi-dimensional view of who is holding, who is buying, and who is selling.
X
XRP (Ripple)Beginner
▼The native cryptocurrency of the Ripple network, designed for fast international payments and bank settlement. Unlike Bitcoin, XRP is highly centralised — a large portion is held by Ripple Labs. Its prolonged SEC legal battle shaped the regulatory conversation around token classification and was partially resolved in Ripple's favour in 2023.
XBTBeginner
▼An alternative ticker symbol for Bitcoin used on some exchanges — derived from the ISO 4217 currency code convention (X for supranational currencies, BT for Bitcoin). Used by platforms like Kraken and in the CME Bitcoin futures market. BTC is far more commonly used in retail contexts while XBT appears more frequently in institutional and derivatives trading venues.
Y
Yield FarmingDefi
▼Providing liquidity or staking assets in DeFi protocols to earn yield. Yields can be extremely high but involve significant risks — smart contract vulnerabilities, impermanent loss, and rug pulls. High yield always means high risk in DeFi. Many investors chasing high APY yields have lost their entire principal.
Yield CurveMacro
▼A chart plotting government bond yields across different maturities. An inverted yield curve — short-term yields higher than long-term — has preceded every US recession in modern history. Yield curve inversions signal expected economic slowdown and potential rate cuts, which can ultimately be bullish for crypto once cuts materialise.
Year-Over-Year (YoY)Macro
▼A comparison of a metric against the same period 12 months prior. Used to measure growth rates for blockchain metrics like active addresses, transaction volume, and on-chain revenue. YoY comparisons smooth out seasonal variations and provide cleaner signals of whether adoption is genuinely accelerating or declining.
Z
Zero Confirmation TransactionBeginner
▼A transaction broadcast to the network but not yet included in a block. Most exchanges require 1–6 confirmations before crediting deposits. The number depends on the risk tolerance of the platform and the value of the transaction being processed.
Zero Line CrossTechnical
▼When a momentum indicator — most commonly MACD — crosses the zero line. MACD crossing above zero — bullish momentum shift. Crossing below zero — bearish momentum shift. Zero line crosses are lagging signals but confirm that momentum has changed direction — useful for filtering trade entries.
Zone of InterestTechnical
▼An area on a chart where significant price action has previously occurred — creating a zone of likely future support or resistance. Zones are broader than single levels and account for the imprecision of real market reactions. Building a watchlist of zones of interest across timeframes helps prepare for potential entry or exit opportunities before they occur.
Zero-Knowledge Proof (ZK)Onchain
▼A cryptographic method allowing one party to prove the truth of a statement without revealing any information beyond the statement itself. Used in privacy coins and increasingly in Layer 2 scaling solutions (zk-rollups) that bundle thousands of transactions together with a cryptographic proof that allows efficient verification on the base layer. A major technical narrative in the 2023–2025 period.
ZIRP — Zero Interest Rate PolicyMacro
▼A central bank policy of setting interest rates near or at zero percent. ZIRP was deployed extensively following the 2008 financial crisis and again during COVID-19. Near-zero rates eliminate the yield advantage of holding cash or bonds, pushing capital into risk assets in search of returns. The 2020–2021 ZIRP environment was a significant driver of the crypto bull run.
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The glossary gives you the definitions. The Research Modules give you the full framework — how to apply every concept in live markets.