In the past one year (2018) I have had a chance to see new cryptocurrencies and also develop one (Ubricoin). It has been the biggest and toughest challenge that I have ever faced as a programmer. I found myself searching and learning the new terms/pseudocode used in cryptocurrency. So that I can learn and grasp more of the new technological terms. Having had difficulties in finding a relevant site to study. It has taken me months to understand cryptocurrency in terms of creating a cryptocurrency and tradings of the coins.

It is tough to admit not knowing trading terms. It’s okay not to know rather than to believe in speculation. Nobody wants to look foolish in front of his or her friends. This piece defines some of the basic trading terminologies of the cryptocurrency ecosystem. Understand that this guide is directed towards crypto-rookies. Even if you have been trading for a while, maybe it will help you fill in a few blanks.

Due to the above reason, I was motivated to start a blog to document every step of my journey as we explore this world of cryptocurrency. This article being the first of many more articles that I will write will give you a brief overview of:

1. What are cryptocurrencies?
2. General terms of trade
3. Where to find them

What are cryptocurrencies?

Cryptocurrencies are digital currencies in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. “Decentralized cryptocurrencies such as bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation”

General terms of trade

Order: an investor’s instruction to a broker or exchange to purchase or sell a specified amount of a cryptocurrency.
Fill: the action of completing an order.
Order book: an electronic list of buy and sell orders for a specific cryptocurrency.
Market order: an order to buy or sell cryptocurrency immediately; this guarantees that the order will be executed, but does not ensure a certain price since “slippage” may occur.
Market capitalization (or “market cap”): the total dollar value of a cryptocurrency’s outstanding units; market cap is calculated by multiplying total units by the current market price of one unit.
Note: CoinMarketCap(Ubricoin details) provides these details for each cryptocurrency
Trading volume: the number of units of cryptocurrency traded during a designated time period; often measured in 24-hour increments (weekly and monthly measurements are also common).
Note: Unlike securities markets, cryptocurrency markets do not have set open/close times. Ether and bitcoin trade 24/7.
Volatility:the fluctuation of a cryptocurrency’s price; may also refer to the market more broadly.
Buy Orders
Buy limit order: an order to purchase cryptocurrency at or below a specific price; the order may or may not be filled since the market must reach the selected price before being executed.
Buy-stop order: an order to purchase cryptocurrency when the market price reaches a specified level above the current offering price; if the price reaches or exceeds the specified value, then the buy-stop becomes a market order.
Note:This order type may seem bizarre on its face. Traders may use this tactic to take advantage of momentum swings (i.e., “buy high, sell higher”). In some cases, a buy-stop may be used to protect a short position.
Sell Orders
Sell limit order: an order to sell cryptocurrency at or above a specific price.
Sell-stop order (aka “stop-loss order”): an order to sell cryptocurrency when the market price drops to a specified level; if the price falls to or below the specified value, then the sell-stop becomes a market order.