If you're just starting to understand crypto trading, these basic terms are essential to know. Let's get familiar with the main concepts.

Long — this is when you buy an asset expecting the price to rise and then sell it higher. Short — the opposite strategy, where you sell hoping to buy back cheaper. This is basically how all speculative trading is built.

TVH is the entry point into a position, meaning the price at which you open a trade. TVH is the foundation of any trading setup because it determines all subsequent risk calculations. Choosing the right TVH is half the success in trading.

Next are two tools for protection and profit locking. Stop — this is a pending order you place in advance to limit losses if the market moves against you. When the price reaches the stop level, the position automatically closes. Take-profit works the opposite — it’s an order that locks in your profit when the market moves in the desired direction.

Setup — this is the entire working trading scenario, which includes the TVH as the entry point, the stop level, and the take-profit levels. Without a clear setup, you're just guessing.

It’s also important to understand MTF and STF — the lower and higher timeframes. Experienced traders analyze multiple timeframes at once to avoid falling into a trap. A trap is when the market gives a false signal, supposedly indicating the asset will go up or down, but then unexpectedly reverses in the opposite direction.

And finally — correction. This is simply a price pullback against the current trend. If the trend is upward, correction is a movement downward, and vice versa. Don’t confuse correction with a trend reversal — they are different things. Understanding these basics will help you avoid losing money in the early stages.