Last Updated: December 9th, 2023

10 Most Common Bitcoin Trading Terms [ Beginners Must Know]

10 Most Common Bitcoin Trading Terms [ Beginners Must Know]

Trading in bitcoins has become extremely popular. With the passing of time, more and more people are getting involved in cryptocurrency trading, but Bitcoin trading is indeed the most popular one. Bitcoin is also a cryptocurrency that has also become quite popular in the mainstream. If you are a beginner, it is first essential for you to learn about trading basics. It is also essential for you to know that if you are trading with Bitcoin, you should also have a wallet where you will store these Bitcoins.

If you are interested to know about some of the phrases and the words related to Bitcoin, then you can go through the discussion below:

10 Most Common Bitcoin Trading Terms [ Beginners Must Know]


When you are trying to take advantage of trading, then this term is used. The benefit that is being referred to here is the differences between the two exchanges. Let us explain this with the help of an example.

For example, there is one exchange where you are selling Bitcoin at $7000, and there is another exchange where you are selling Bitcoin at $8000. For arbitrage ( take advantage of the situation), you will have to buy the Bitcoin from the first exchange, and then you will have to sell them in the second exchange. Thus you can generate a profit of $1000.


The address is a place that is very similar to the bank account. This is the place where you make the various bitcoin transactions. The address is something that every Bitcoin trader is bound to have.


The ledger system that is distributed is referred to as the Bitcoin Blockchain. There are various blocks, and each of these blocks contains transactions that are verified. This is a decentralized system, as you will not b able to erase the transactions on the ledger.


The term exchange is also quite popular, and this is similar to the marketplace. Just as you go to the market to buy things, similarly for bitcoin-related transactions, you will have to go to an exchange. There are many websites available that will help you in these transactions.


The term Bull is given to the traders. These traders believe that the price of the assets is going to rise. When a trader feels optimistic that the price will rise, it is referred to as a bullish mind frame.


A specific type of traders always feel that the prices will decline, and these types of traders are referred to as the bearish mind frame.


Any other cryptocurrency other than Bitcoin is referred to as Altcoin. When you are trading online, you will come across different types of cryptocurrencies. Some of these are quite popular, and some others have been newly launched in the market.


When you are trading, you need to understand that Bitcoin belongs to a highly volatile market. But with the help of the ATH, you will be able to assess the price and determine the number of profits you might be earning. Before reaching a new ATH, Bitcoin might have to come across several highs.


FOMO happens when the investors start investing in a particular asset because they feel that the asset prices are going to rise. This also draws the other investors’ attention who starts investing in the same asset because they start feeling that they might miss out on something important.

The problem with this is that these investors’ mindset is often manipulated, and they are forced into buying an asset whose value might go down.


When you get new Bitcoins because a particular block has been depleted, it is referred to as mining. The miners of Bitcoin need both hardware and also electricity. Since the miners are contributing to the resources, they get digital coins as rewards.

You will also come across different wallets, including paper, mobile, desktop, web, and others. You can select the wallet that best suits your requirements. Another thing that is important for you to know is the difference between a Bitcoin trader and a Bitcoin investor.


There are different types of tradings available, and you should know about these different types of trading. It would help if you also learned to know about the proper analysis. This will help you to know about the pricing better. Another thing that you should know is the trading lingo of Bitcoin.