What is a cryptocurrency broker?
What is a cryptocurrency broker? A cryptocurrency broker is a middleman between the buying party (the consumer) and the cryptocurrency exchange. An some cases a broker buys up big amounts of cryptocurrency and offer them on their own platform. Lately, we see more and more brokers that do not have a stock, but immediately places […]
What is a cryptocurrency exchange?
What is a cryptocurrency exchange? Cryptocurrency can be sent without the intervention of third parties, like a bank. If you want to find another person who wants to trade Bitcoin with you against another coin, this can be quite difficult. Luckily, this is the reason exchanges have been brought to life. A cryptocurrency exchange brings […]
What is margin trading?
What is margin trading? If you want to buy cryptocurrency, you can easily do so at a broker. Brokers make sure that a lot of crypto coins are available to a wide audience. Once you have cryptocurrency in your possession, you can sell it again for euros as soon as the value of the coin […]
What is a Long or Short position?
What is a Long or Short position? When you invest in crypto, you often come across some complicated investment terms. When you buy cryptocurrency, you invest money the same way as when you buy a stock. Just like the price of a stock, a crypto also has a value. This way you can make money […]
What is the cryptocurrency market cap?
What is the cryptocurrency market cap? The market capitalization of cryptocurrency is a value that indicates the current market value of cryptocurrency. The market capitalization is calculated using the following formula: The current market price * number of coins in circulation = the current market capitalization of a currency. Example: The current value of Bitcoin is […]
What is a short squeeze?
What is a short squeeze? The cryptocurrency space has borrowed so much from traditional finance. Among the borrowed phenomenon is short and long trading. With short selling comes a short squeeze. To understand what is a short squeeze, let’s take a step back and look at short selling or shorting. Shorting is selling a cryptocurrency […]
What is FOMO (Fear Of Missing Out)?
What is FOMO? Fear Of Missing Out (FOMO) is a commonly used term in the cryptocurrency world. But what is FOMO? Can it be avoided? FOMO is the fear that a trader will miss out on a critical increase in a cryptocurrency price. With the considerable fluctuations in the price of a cryptocurrency, a trader […]
What is a market maker or a market taker?
What is a market maker or a market taker? If you are new to cryptocurrency trading, you will likely have either been a market maker or a market taker without knowing. This applies to both buyers and sellers. Before defining a market maker or market taker, let’s look at liquidity and major types of orders […]
What is wash trading?
What is wash trading? You want a bank loan, but the bank wants an active bank account. So, you tell a friend to deposit funds to your account, and you then transfer the money to their account. After a while, your account qualifies for a loan based on fake account activity. When applied in the […]
What is arbitrage trading?
What is Arbitrage Trading? Arbitrage trading is a trading method that cashes in on the differences in the price of a cryptocurrency in different exchanges at the same time. For instance, consider the price of a cryptocurrency like Bitcoin; $8,000 on the Coinbase exchange, but $8,100 on the Binance exchange at precisely the same time. […]
What is an Atomic Swap?
What is an Atomic Swap? Although cryptocurrencies revolutionize traditional finance, multiple concerns hinder their widespread adoption. For example, they use a complex addressing system. Also, the trading of virtual currencies is mainly reliant on centralized exchanges (CEX). Assets held on CEXs are worth billions of dollars, providing an incentive for hackers to compromise their security […]
What is Crypto Peer-to-Peer Trading?
What is Crypto Peer-to-Peer Trading or P2P trading? Cryptocurrencies are becoming increasingly popular both as investment assets and as payment methods. Investors will have to convert their fiat money to crypto by buying them as well as those who wish to use it to pay for goods or services. Those holding crypto will also want […]
What is the Relative Strength Index (RSI)?
What is the Relative Strength Index (RSI)? There are several indicators used in technical analysis of cryptocurrencies by traders. Before placing a trade and deciding your position and your take profit and stop loss, there is a need to do some analysis to have an idea of what is bound to happen to the asset […]
What is a Fibonacci Retracement?
What is a Fibonacci Retracement? One of the most commonly used and also highly misunderstood technical indicators is the Fibonacci Retracement. While it can be very effective in deciding entry and exit positions in a market, it can also be very risky if not properly used. It is mostly used by advanced traders who have […]
What is Technical Analysis in Crypto?
What is Technical Analysis (TA) in Crypto? Traders and investors in the crypto space bet on what the market is likely to do at any point in time. It is on the basis of this bet that they put in money or decide to place or exit a trade. To make such bets or decisions, […]
What is the Moving Average?
What is Moving Average? There are important technical analysis indicators used by traders and investors to analyse the price behavior of an asset. In the cryptocurrency space, such indicators form a critical part of traders and investors strategy for making important investment decisions. One of the most commonly used of such is the Moving Average […]
What is the Moving Average Convergence Divergence (MACD)?
What is the Moving Average Convergence Divergence (MACD)? Technical analysis requires the use of tools known as technical indicators. There are many of them out there, but technical analysts use some more often than they do others. One of the most important of the indicators is the Moving Average Convergence Divergence (MACD). In this article, […]
What is Fundamental Analysis in Crypto?
What is Fundamental Analysis in Crypto? Before trading or investing in a cryptocurrency, investors carry out some analysis to determine the suitability of such an asset. There two methods of doing this analysis. The first is technical analysis which involves using technical indicators to determine the behaviour of the asset. The second method is fundamental […]
Crypto Day Traders vs. Crypto Swing Traders
Crypto Day Traders vs. Crypto Swing Traders There are different ways to trade cryptocurrencies. While some traders trade in the short term, others trade in the long term. The former are called day traders while the latter are called swing traders. These are the two major types of traders and the most common methods of […]
What is a Decentralized Exchange?
What is a Decentralized Exchange? With the emergence of cryptocurrencies, is the emergence of the need to trade them for one another crypto and for fiat currencies. This brought exchanges to the market. Most people in the crypto space are familiar with the traditional centralized exchanges, but there is a new group of exchanges known […]