5 Terms Every Crypto Trader Must Know

Cryptocurrency continues to reshape the financial world, empowering millions to trade and build wealth outside of traditional banking systems. But whether you're a beginner or looking to sharpen your edge, understanding the language of crypto is critical.

Here are the5 essential terms I believe every serious crypto trader must know:

Bitcoin (BTC)

Often referred to as the "king of crypto," Bitcoin is the first and most well-known cryptocurrency. Created in 2009by the pseudonymous Satoshi Nakamoto, Bitcoin enables individuals to send and receive digital currency without relying on banks, borders, or intermediaries.

Why it matters: Most crypto prices are bench-marked against Bitcoin. If you understand Bitcoin, you understand the foundation of the entire crypto market.

On-Ramp

An on-ramp is the method or platform you use to convert fiat currency (like dollars, euros, or cedis) into cryptocurrency.

Example: Using Mobile Money to buy Bitcoin on platforms like Mybitstore in Ghana is an on-ramp.

Why it matters: On-ramps are the gateway into crypto. Choosing a reliable one affects your security, fees, and user experience.

Off-Ramp

The reverse of an on-ramp, an off-ramp, is how you convert your cryptocurrency back into traditional money.

Example: Selling Ethereum on a P2P platform and receiving your cash through a bank or mobile wallet is an off-ramp.

Why it matters: Traders need efficient off-ramps to cash out profits, pay bills, or reinvest. The easier the off-ramp, the more usable crypto becomes.

P2P (Peer-to-Peer)

P2P trading allows users to buy and sell crypto directly with each other, without going through a centralised exchange.

Example: A Ghanaian user selling Bitcoin directly to another user in Kenya through a P2P platform like Mybitstore.

Why it matters:P2P offers flexibility, better rates, and local payment options, especially in markets where bank-based platforms are limited.

Liquidity

Liquidity refers to how easily you can buy or sell an asset without significantly affecting its price.

High liquidity = fast trades with minimal price slippage.

Why it matters: Low liquidity can trap traders in positions or lead to unexpected losses. Always assess a platform’s or token’s liquidity before trading.

The crypto space moves fast, but these core terms remain foundational. Whether you're trading daily or holding for the long term, mastering the vocabulary helps you make smarter, more informed decisions.