Crypto core terms explainer—short-term traders, save this



一、Basic Terms

1、USDT(U):a stablecoin, 1U ≈ $1, the industry-standard “cash” in the crypto world. Buying and selling U is called OTC/C2C fiat trading.

2、BTC Bitcoin:the large-cap leader. The vast majority of altcoins follow BTC’s trend, so when checking the market, start by watching “the big cake” (BTC).

3、ETH Ethereum:the old No. 2 in crypto, a public-chain leader, and a barometer for sector momentum.

4、Spot:directly buy a coin and hold it waiting for price changes—no leverage, so you won’t get liquidated (no爆仓).

5、Futures/Contracts:come with leverage—you can go long or short. Profits are amplified while risks are also amplified; if your judgment is wrong, you can easily get liquidated.
Go long (bullish):buy at a low price, sell at a high price—make money when it rises
Go short (bearish):sell at a high price first, then buy back at a lower level—make money when it falls

二、Basic Market Terminology (used daily in short-term trading)

1、Resistance level:when price rises to this level, it’s likely to face pressure and pull back;
2、Support level:when price drops to this level, it’s likely to stop falling and rebound;
✅ Advanced key point:high-quality levels can flip between support and resistance; they get touched back and forth multiple times on K-lines, with higher validity.
3、Increasing volume:trading volume increases significantly, indicating funds are entering / exiting;
4、Decreasing volume:trading volume shrinks, with bulls and bears temporarily watching—washing consolidation is highly likely;
5、Breakout:price holds above the resistance. Retest:after breaking out, there’s a brief pullback to test the support;
6、FVG (gap):a “vacuum” zone left behind by a fast price jump; it will most likely be filled later and is an important observation area.

三、Sector and Capital Logic

1、Leader coins:the coins that start first in the sector and have the strongest gains; large funds target them directly. In a sector’s行情, prioritize the leader, while the back-of-pack follower coins tend to have weaker trend continuity.
2、Rotation:funds keep switching tracks—today it’s GameFi, tomorrow it’s the AI sector; hot spots won’t last continuously.
3、What drives up/down in coin price:in the short term, it’s driven by funds and sentiment; in the long term, it relies on narratives and ecosystem delivery. Small-cap coins are extremely easy for speculators to manipulate, with huge volatility.

四、Trading Basics (aligned with your short-term system)

1、High-quality opportunities:volume breakout + retest with shrinking volume and stabilization + resonance from the sector’s hot leader;
2、Be resolute in avoiding:bullish pumps with no volume, obscure coins with no funds, and blindly chasing gains at high levels;
3、Iron rule:position management and strict stop-loss. If you can’t read the market, stay in cash (no position) and wait—frequent trading is a main reason for losses.

五、Risk Common Sense (must read)

1、Small-coin risk:low market cap and poor liquidity, easy “needle” spikes and extreme pumps/dumps, and easy to be “harvested” by major players;
2、Frozen card risk:when you participate in OTC trading of U, once you receive stolen funds, your bank card can be frozen by the police; long-term doing “acceptance U” business carries legal risks;
3、Futures leverage risk:with high leverage, one extreme move can directly liquidate everything;
4、Exchange platform risk:small, unknown exchanges may run away or fail to let you withdraw—choose top-tier platforms first.

六、Macro market impact

Rate-hike/cut expectations from the Fed, US stock market performance, and regulatory policies across countries will all directly affect the overall direction of the crypto market. During major news events, market volatility increases sharply—this is suitable for lowering leverage and operating carefully.
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RetailLighthouse
· 4h ago
Saved it—this guide is very comprehensive, and especially the practical section on support/resistance swapping is particularly useful.
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