/ Trading 101

Top 10 Terms to Master Before Trading Crypto

Before you start investing with digital assets, take some time to learn the most important terms and concepts. Knowledge is power, and you'll want plenty of it as you navigate these exciting new markets, so let's begin!


If you spend any amount of time researching digital assets online or even just reading some news stories, you are sure to run into some FUD.

FUD Definition: FUD stands for Fear, Uncertainty, and Doubt and refers to spreading false or questionable information. It may be used to compete in an unfriendly way, to shape public opinion, or by anyone who wants to gain attention (i.e. clicks and likes) by spreading fake news.

To avoid FUD, always look to the source when researching crypto projects and digital assets. Check the website for official community channels and documentation.

”what-is-fud” Example of Twitter Bitcoin FUD


FUD is often at the root of FOMO, which is a phenomenon that breeds bad trading habits.

FOMO Definition: Fear of Missing Out ( FOMO) happens when investors fear they will miss out on a good opportunity and they end up buying “at the top” or when the price of an asset is very high.

Generally, it’s best to buy when others are afraid of buying, and it’s not a good time to buy when everyone else is.

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HODL is a term for what to do during times of FUD and FOMO.

HODL Definition: HODL can refer to the acronym “Hold On for Dear Life” but it originated with a simple typo when someone meant to say “HOLD” (and not sell) during a volatile crypto market. Either way, it means to remain steady and don’t let emotions drive your investment decisions.

Crypto markets can be very volatile and unless you're a seasoned day trader, it’s best to zoom out and look at things over the long run. When you see a price drop for one of favorite coins, it may be a time to HODL.


KYC is an important process for onboarding crypto investors.

KYC Definition: Know Your Customer (KYC) is a set of rules created by central banks and government agencies to deter money laundering and financial crimes. It’s based on the premise of “knowing your customer” by verifying their identity in various ways.

When you invest in a crypto public sale, for instance, you will likely have to go through KYC verification by submitting your I.D., address, and other information.


Everyone in crypto is waiting for the next ATH…

ATH Definition: An All Time High (ATH) refers to the highest price of a digital asset as listed on a cryptocurrency exchange. Bitcoin recently reached a new ATH of about $68,000 in October of 2021:

”what-is-ath” Bitcoin ATH from Quadency Trading Terminal

When a cryptocurrency reaches a new All Time High, there may be a lot of FUD and FOMO around that asset; it may not be the best time to buy.


ROI is a key statistic in determining how a digital asset is performing over time.

ROI Definition: Return on Investment (ROI) calculates the profitability of a certain crypto trade or investment by taking the current value of an investment, subtracting the initial value, and dividing by the initial value. You end up with a percentage; the higher the ROI %, the higher the profits a particular investment has “returned”.

Cryptocurrency platforms and exchanges usually provide ROI data, as with Quadency's historical ROI show below for ETH/USD:

”what-is-roi”Historical ROI for ETH/USD on Quadency Dashboard


APIs are an integral part of the cryptocurrency trading infrastructure.

API Definition: An Application Programming Interface (API) may sound complex, but essentially it’s a way for crypto platforms and projects to connect to each other’s data. Quadency’s portfolio dashboard, for example, enables you to link up with all your favorite exchanges using an API key that you can easily retrieve from each exchange.

Through Quadency’s system of API Trading, you can download or stream market data, place orders, and view balances across multiple exchanges from one convenient dashboard.

”how-api-trading-works-quadency”How API Trading works at Quadency


DYOR is an essential tool for navigating the territory of crypto!

DYOR Definition: Do Your Own Research, may sound like a rude statement at first. But it’s absolutely essential in the digital assets environment. When you first enter cryptocurrency markets, you’ll want to be careful of learning about projects through social media influencers who may be getting paid to “shill” the coin.

You can DYOR on a specific project by reading the website, support documentation, blog, white paper, and official social media accounts.

9-Technical Analysis vs. Fundamental Analysis

Technical Analysis (TA) and Fundamental Analysis (FA) are two distinct ways to gain insights on a crypto project’s viability.

TA Definition: Technical Analysis places a focus on historical market data, price movements, and trading volume. It’s a trading tool that helps to predict future price action by analyzing past trends using moving averages, indicators and other types of charts.

”TechnicalAnalysisBollingerBands”Example of Technical Analysis: Bollinger Bands from Quadency Trading Terminal

FA Definition: Fundamental Analysis focuses on a wide range of determining factors when evaluating the viability of a crypto asset. FA tends to get more of an overall picture by examining factors such as industry outlook, business model, and economic conditions to determine a ‘real’ current value.

In general, crypto traders find both TA and FA valuable ways to gain insights.

Start Technical Analysis the easy way with Quadency’s MACD trading bot.

10-Take Profit & Stop Loss

Take Profit and Stop Loss are both types of “Limit Orders”, which are automation strategies that help traders manage volatile price swings in crypto markets.

Take Profit Definition: Take Profit (TP) is a setting you can configure when placing a trade on crypto platforms like Quadency. When you enter the trade, simply set the price where you want to take some profit and it will automatically take out your desired gains while keeping the trade active.

Stop Loss Definition: A Stop Loss (SL) is a limit order that traders can configure to exit a trade at a certain price, to help them avoid greater losses.

Usually, you can set up both types of limit orders on a crypto trade to help you when the price gets high enough to carve out some profits, or too low for comfort.


Now that you are armed with all this knowledge, be sure to set up your free Quadency account and view and analyze all your crypto assets from one sleek dashboard!

Be sure to join us on Telegram and Twitter!

Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.

Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.