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Vocabulary

Here, you'll find key terms and concepts used in the world of trading and cryptocurrency.

Marketcap (CAP)

Market capitalization in the context of cryptocurrency refers to the total value of all circulating tokens of a particular cryptocurrency. It is calculated by multiplying the current price of a single token by the total number of tokens in circulation, offering a snapshot of the cryptocurrency's relative size and market significance.

Fully Diluted Marketcap

The fully diluted market cap of a cryptocurrency is a metric that calculates the market capitalization assuming that all of its total supply is issued and in circulation. This differs from the regular market cap, which is calculated using only the current circulating supply of the token.

Marketcap Rank

Market capitalization rank refers to the position of a cryptocurrency in comparison to others based on its market capitalization. Essentially, it's a ranking system where assets are ordered from highest to lowest market cap.

WTD, MTD, QTD, YTD

WTD, MTD, QTD, and YTD are abbreviations commonly used in finance and business to represent different time frames. They stand for:

  • WTD - Week to Date: This refers to the period starting from the beginning of the current week (usually Monday) up to the current day.
  • MTD - Month to Date: Similar to WTD, MTD means the period starting from the beginning of the current month up to the current day.
  • QTD - Quarter to Date: This indicates the period from the start of the current quarter (a quarter is three months, so Q1 is January-March, Q2 is April-June, etc.) up to the present day.
  • YTD - Year to Date: YTD refers to the period starting from the first day of the current calendar year (January 1st) up to the current date.

Simple Moving Average (SMA)

A simple moving average (SMA) is an arithmetic moving average calculated by adding recent prices and then dividing that figure by the number of time periods in the calculation average.

Shakeout

A shakeout in trading refers to a situation where a large number of traders or investors exit their positions, often in response to false signals or market panic, causing a sharp decline in the asset's price. This movement typically weeds out less committed or 'weak' holders, leaving the asset primarily in the hands of more dedicated investors.

Upcoming Catalyst

An upcoming catalyst refers to an anticipated event or piece of news that is expected to significantly impact the price of an asset. This can include product launches, partnerships, or other announcements.

Liquid Assets

Liquid assets refer to digital tokens or coins that can be rapidly converted into cash or other cryptocurrencies with minimal impact on their market price.