📗Basic Trading Terms

Asset – An item with value that can be traded, such as a cryptocurrency or token.
Pair – Two assets being traded against each other, like BTC/ETH. The first asset (BTC) is what you’re buying or selling, and the second (ETH) is what it’s being compared to in price.
Market Order – A trade to buy or sell immediately at the current market price.
Limit Order – A trade set to execute only at a specific price.
Liquidity – The ease of buying/selling an asset without impacting its price too much. High liquidity means more buyers and sellers.
Spread – The difference between the highest buying price (bid) and the lowest selling price (ask).
Volatility – How much an asset’s price changes over time; high volatility can mean larger price swings.
Market Cap (Market Capitalization) – The total value of an asset, calculated by multiplying its price by the total supply.

DEX (Decentralized Exchange) – An exchange where you trade directly from your wallet using a peer-to-peer network, such as Uniswap or Raydium.
Liquidity Pool (LP) – A pool of tokens that enables trading on a DEX, funded by users who provide tokens in pairs (e.g., ETH and the token being traded).
Deployer – The creator of a token contract; they initially set the token’s rules.
Renounced – When a contract creator gives up control, meaning they can no longer alter the contract or its settings.

Rug – A scam where the developer withdraws liquidity or abandons the project, often resulting in a token's value dropping to zero.
Honeypot – A token that can be bought but not sold, effectively trapping buyers.
Liquidity Pulled – When the deployer removes liquidity from a token’s trading pool, making it unsellable.
Locked Liquidity – Liquidity that has been “locked” to prevent the deployer from pulling it. Often done via a burn address or a third-party service.
Verified – A contract marked as readable and verified on platforms like Etherscan, allowing users to examine its code.
Blacklisting – The act of blocking certain wallets from selling a token, a red flag in token safety.

Gas Fees – The fees paid for processing transactions on blockchain networks (higher during peak times).
Slippage – The acceptable price variation allowed during a trade. High slippage can cause unexpected costs.
Sandwich Bot – A bot that manipulates high-slippage trades, buying before your transaction to raise the price, then selling immediately after, reducing your profit.

Primary Token – The main token in a trading pair, paired against a commonly known token (e.g., ETH, USDC).
Created – The creation date of the token contract.
Marketcap – The current market capitalization of the pair, used to measure the token’s total value.
Taxes – Buy and sell fees for a token. Higher tax rates (over 20-30%) can impact profitability.
Holders – Accounts or wallets holding the token, which could be individual wallets or smart contracts.

CT (Crypto Twitter) – Refers to the influencers and hype-driven marketing on Twitter that can affect token popularity.
Calls/Callers – Individuals on platforms like Telegram who promote tokens, often for a fee or personal investment.
Buy Contests – Promotional events where the biggest buyers in a set time win prizes.
Insider – Someone with early information on a token launch, potentially benefiting from lower entry prices.
Larp – A token marketed as connected to a well-known figure or project without proof, often creating speculative hype.

Smell Test – A quick, informal evaluation of a token’s safety based on factors like verified contracts, locked liquidity, and the deployer’s history.
Funding Sources – Accounts sending ETH or other assets to the deployer wallet, sometimes indicating outside financial support.
Max Wallet & Max Transaction – Limits set on how many tokens can be held or traded at once; used to prevent concentration of supply.
Contracts – Additional contracts related to the token, including those deployed by the deployer or funding sources.

Last updated 1 month ago