10 Basic Market Terms You Should Know

Do You Speak Crypto: Episode 8

4 min readJun 10, 2022


Welcome to our “Do You Speak Crypto?” series!

At DIFX, we’re constantly looking for ways to raise awareness and improve knowledge within the crypto industry to lower the barriers to entry and drive mass adoption. Therefore, we’ve prepared a series of articles for you in which we’ll discuss common terms in different sections of the blockchain and crypto industry together.

Episode 8: Basic Market Terms

Whether you’re a passionate investor focusing on traditional markets or a day trader enjoying the volatile cryptocurrency space, there are some basic terms you should be aware of.

In this episode of the “Do You Speak Crypto?” series, we’re going to talk about some of the most fundamental terms that you may hear in all financial markets!

1. Bull Market

A market condition in which prices increase consistently.

In a bull market, the buyers (bulls) have control over the market and the market sentiment is quite positive (bullish). Positive news regarding regulation or adoption may start a bull market in the crypto space.

2. Bear Market

The opposite of a bull market: a market condition in which prices drop consistently.

In a bear market, the sellers (bears) are in control and the market sentiment may become very negative (bearish). Bear markets are known as the “Crypto Winter” in the cryptocurrency sphere.

3. Market Trend

A trend shows the overall price direction in the market.

We have 3 main market trends: upward, downward, and sideways. Bull markets and bear markets indicate an upward and downward trend respectively.

In a sideways trend, on the other hand, the bulls and bears are both equally in control and the price tends to move horizontally.

4. TA

Technical Analysis (TA)

TA is based on the fact that future price movements can be predicted using the previous market trends and patterns. TA was first presented by Charles Dow, the creator of the Dow Theory in the late 1800s.

Additionally, Fundamental Analysis (FA) is another way to assess the intrinsic value of an asset which focuses more on the economic and underlying factors.

5. Volatility

Volatility refers to the degree of market price movements over a specific period of time; The sharper the price fluctuations, the higher the volatility.

The crypto market, for instance, is considered a highly volatile market as prices may drop or increase significantly overnight.

6. Bubble

In financial markets, a bubble is formed when the price of a specific asset increases well beyond its true value. The price declines to a more reasonable level once the bubble bursts.

7. AML

Anti-Money Laundering (AML)

By using Money Laundering methods, criminals try to give a legitimate origin to their dirty money. So as the name suggests, AML legislation tries to prevent money laundering activities.

You may have heard about the Know Your Customer (KYC) process, now mandatory in most crypto exchanges. KYC helps crypto platforms, like DIFX Exchange, to know their customers better and identify potential money laundering activities.

Complete Your KYC on DIFX and Earn $20 Worth of DIFX Tokens Now!

8. CFT

Combating the Financing of Terrorism (CFT)

CFT refers to a set of rules and regulations that aim to restrict the transition of funds to dangerous organizations labeled as terrorists by governments.

It’s worth mentioning that the Financial Action Task Force (FATF) is the global watchdog for money laundering and terrorist financing.

9. ROI

Return On Investment (ROI)

ROI can gauge the profitability of an investment. It’s quite simple to use and can be calculated by dividing the net profit by the initial cost.

ROI does not consider the duration of an investment.

10. APY

Annual Percentage Yield (APY)

APY represents the total interest you may earn if you hold your investment for one year.

APY is a standard measure that allows you to compare different investment opportunities and make a well-informed decision.

Didn’t find the terms you were looking for? No worries. Let us know in the comments so we can cover it for you in our next episode.

You can also join our DIFX Academy to learn more about trading strategies, financial markets, crypto and blockchain fundamentals, and much more!


Please note that trading cryptocurrencies may carry a high level of risk. It’s recommended to always seek professional advice before any investment and only investment the amount you can afford to lose.

About DIFX

DIFX is a CEX that uses blockchain technology to incorporate centralized finance. It is an easy-to-use platform for both new and experienced traders, establishments, and investors. As covered by Cointelegraph, BeInCrypto, and many other media outlets, DIFX allows users to nominate anyone from their family, friends, or loved ones and allows them to legitimize their claim upon the primary user’s demise.

Additionally, the company hopes to increase the use of digital currencies for direct settlement between beneficiary and payer by eliminating intermediaries. To begin your journey with Endless Possibilities, download the app now from the iOS or Google Play Store, or visit us at difx.com.