When you’re starting out in the currency markets you are going to come across a number of terms that are used in the trade. We are going to discuss some terms related to crypto trades in this article. You should study these and incorporate them into your trading lifestyle. The more you learn about the markets, the more profitable you will be. For more information visit, the Client’s website.
10 Common Terms Every Crypto Trader Should Know
- One of the first terms is Fundamental Analysis. It is simply an analysis of the market that compares prices from yesterday, today, and into the future. It will take a look at the big picture and not just the recent price movements.
- The second term is Technical Analysis, which means- predict exactly where the market will go next and it compares the current conditions with how the market was original. It will study how various factors affect the market to determine if it should go up or down.
- One term you will come across frequently is “Risk” which means the risk of losing money if you do not properly strategize and manage your trades. This is why it is so important to understand the basic concepts of managing your trades before you go into the Forex markets.
- Another term is Anti-Money Laundering, an indicator of rules related to cryptocurrency and trading platforms to prevent money laundering.
- Know your customers is a term that can be helpful for organizations to recognize customer’s identities. “Know your customer” is connected with currency exchange and trading platforms in the crypto marketing site. This term is used to identify the real identities of customers.
- Investigate all the facts that are related to your business before coming to an agreement or contract with another company.
- Future is a term used to describe a contract in which you sell a particular currency at a specific date for a specific price. Futures contracts are usually used to protect yourself in case the market is facing an unexpected downturn. You can also use futures to protect yourself against the risk of holding a stock or currency since you can sell that particular asset and gain money if it drops in value the following day.
- ‘Returns on investment’ is a process to measure the performance of an investment in a crypto market. You can calculate ROI by comparing the current value with the original values and divide by the original cost.
ROI= current value – original value/ original cost
- ATH or all-time high means the highest value of a coin or token in the crypto trading platform. After many ups and downs of currency value, when a currency exceeds its price than its prior value, it will be able to reach an All-Time High state.
- ATL or all-time low means the lowest value of a certain asset in the trading platform. In ATL state, it can be a serious issue for the crypto traders who have invested in the asset.
By understanding these terms, you will be able to increase your chances of making trades with a good percent of success.
