With the recent market boom, many hesitant newcomers are eager to join the crypto world—but lack foundational knowledge! This comprehensive guide decodes essential crypto terminology to help beginners navigate the space confidently.
Core Crypto Concepts
Fiat Currency in Crypto
Fiat currencies (e.g., RMB, USD) are government-issued legal tender backed by state credit.
Token
A token (or 通证 in Chinese) represents a blockchain-based proof of equity, not just a "coin." Key attributes:
- Digital proof of equity – Certifies rights/intrinsic value.
- Encryption – Secured by cryptography for authenticity and privacy.
- Transferability – Verifiable across networks.
Position Opening
Buying or selling a new batch of cryptocurrencies.
All-In (梭哈)
Investing 100% of one’s capital.
Airdrop
A marketing tactic where free tokens are distributed to promote awareness.
Lock-Up (锁仓)
Opening a counter-position to hedge against unfavorable price movements.
Candy
Free tokens distributed during ICOs for promotional purposes.
Break Issue (破发)
When a token’s price falls below its initial offering price.
Private Placement (私募)
A fundraising method where projects sell tokens to select investors pre-launch.
Candlestick Charts (K线)
Visual tools displaying opening/closing prices, highs, and lows per analysis period.
Arbitrage (搬砖)
Buying crypto on low-priced exchanges and selling it higher elsewhere.
ICO (Initial Coin Offering)
Blockchain projects raise funds by issuing tokens in exchange for established cryptocurrencies.
Trading Terminology
Position Management
- Full Position: All funds invested in Coin A.
- Partial Close: Selling some but not all holdings.
- Heavy Position: Portfolio skewed toward Coin A.
- Short Position: Betting on price drops by borrowing/selling coins.
Market Trends
- Bull Market: Sustained price rises.
- Bear Market: Prolonged declines.
Risk Strategies
- Stop-Loss: Selling to limit further losses.
- Stop-Profit: Selling to lock in gains.
Price Actions
- Rebound: Temporary recovery during a downtrend.
- Sideways (横盘): Minimal price fluctuations.
- Plunge (瀑布): Rapid, steep price drops.
Psychological Traps
- Bull Trap (诱多): Fake price surge luring buyers before a drop.
- Bear Trap (诱空): Artificial dip tricking sellers before a rally.
FAQ
1. What’s the difference between a coin and a token?
Coins (e.g., Bitcoin) operate on their own blockchains; tokens (e.g., ERC-20) rely on existing networks like Ethereum.
2. How do airdrops work?
Projects distribute free tokens to wallets—often to reward early adopters or boost engagement.
3. Why is arbitrage possible?
Price disparities across exchanges arise from liquidity gaps, creating profit opportunities.
4. What causes break issues?
Weak demand, poor project fundamentals, or market crashes can drive prices below ICO levels.
5. How to identify bull/bear traps?
Check trading volumes: traps often lack sustained momentum. Use technical indicators like RSI for confirmation.
👉 Master crypto trading strategies
Pro Tip: Bookmark this guide for quick reference during volatile markets!
Disclaimer: This content is educational; always conduct independent research before investing.
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