Crypto Trading and Basic Trading Terms.

Hello guys and welcome to my Second steem cryptoprofessor assignment, I hope you guys enjoy and find my work educative as I research different crypto trading terms and their meanings. Sit back and enjoy the ride .....

Altcoins
The Term Altcoins are generally used to refer to coins other than bitcoin, "Altcoins" is a combination of the two words "alt" and "coin they generally sell themselves as better alternatives to bitcoin hence the term. At the time of writing this post bitcoin currently holds 61.48% dominance on the crypto market with Eth and other altcoins account for 38.52%.

Stable coin
Stable coins refer to assets that are pegged to the value of the USD or any stable asset. They are usually supported by stable underlying assets. Stable coins are designed to minimize and serve as a safe haven from the volatility of the crypto market.

Trading pair
Trading pair is a function whereby two different currencies or assets are traded against each other, it could be crypto to fiat or fiat to fiat. With trading, pairs it's also possible to swap between assets or currencies. An example of a trading pair include STEEM/BTC, BTC/USDT.

Bagholder
This term is used to refer to someone or an entity holding assets or coins that are worthless or underperforming. In the crypto sphere, such coins are usually referred to as Shit coins.

HODL
This term is often backronymed as holding on for dear life. This term is used to refer to someone who is investing with a view to the future and performance of the asset. He holds any asset or coins under any market condition, he would rather buy more than selling any.

Sats
Sats is short for Satoshis, the smallest unit of Bitcoin. This unit derived from the name of the anonymous creator of the bitcoin whitepaper -Satoshi Nakamoto. One Sat is equal to 0.00000001 BTC. This means that there 100,000,000 sat in a Bitcoin.

FUD(Fear, uncertainty, and doubt)
FUD is a strategy used to induce fear in the market by spreading false information, which will cause a widespread FOMO in the market. These tactics are particularly targeted at amateur who are forced out of their positions.

Bears
Bears are traders who believe that a market, asset, or financial instrument is heading in a downward trajectory with a decrease in asset price. In that regard, they hold an opposite view to bulls, who believe that a market is going upwards.

Bear market
This term is used to refer to when the market is on a sustained downward trajectory, with little optimism from traders to bring about a rally. During a bear market most assets or cryptos are usually in double-digit loss with no hope of a harp rebound.

Bulls
Bulls are traders who believe that a market, instrument, crypto is going on an upward trajectory with an increase in asset prices.

Bull market
When a market, instrument, or sector is on an upward trend which usually leads to an increase in the price of assets, coins. it is generally referred to as a bull market.

Buy
Buying crypto or any financial security means taking ownership of it from someone else, or from the market. It could be a commodity, stock, or another asset.

Exchange
Exchange refers to an open, organized marketplace for commodities, stocks, securities, cryptos, and other financial instruments. Exchanges serve a huge role in the crypto space and in extension other financial because they serve platform connecting buyers and sellers.

Day trading
Day trading is a strategy of short-term investment that involves closing out all trades before the market closes.

Debt ratio
Debt ratio is an indication of how much debt an investor or margin trader is holding when compared to the value of his collateralized assets.

Liabilities
A company’s liabilities are the debts and obligations represented on its balance sheet. They are the opposite of assets and involves expenditure.

Limit order
A limit order is an instruction to your exchange or broker to execute a trade at a particular level that is more favorable than the current market price. This type of order is usually implored if a trader believes the price of the asset will get to a favorable price before a huge bounce.

Limit up and limit down
Limit up and limit down are the maximum amounts a commodity or crypto may increase (limit up) or decrease (limit down) in any single trading day. This action is often represented as BTCDOWN(Short BTC up to 3x) or BTCUP(Long BTC up to 3x)

Liquidity
Liquidity is used to describe how easily an asset can be bought or sold in the market without affecting its price. It also involves the basic demand and supply of any specific asset or buying and selling activity of a particular asset or collectively-Market.

Long
Long refers to a position that makes profit if an asset’s market price increases. It is closely associated with buy* an asset and making profit from the price increase.

Margin trading
Margin trading refers to trading or investing with borrowed money within an exchange. Traders provide collateral and receive loans based on their account value.

Market capitalization(Market Cap)
Market capitalization is the total market value of a company’s shares on the market. It is often abbreviated as market cap. Market capitalization is an easy way for investors to determine a company’s size, which can help to assess the risk of investing in its shares. Example- Bitcoin has a total market cap of $833 billion.

Market maker
A market maker is an individual or organization that buys and sells large amounts of a particular asset in order to facilitate liquidity.

Market order
A market order is an instruction from a trader to a broker or exchange to execute a trade immediately at the best available price.

Rally
A rally is a period in which the price of an asset sees sustained upward movement. A rally is slowly related to a bull market where prices see new highs

Risk management
Risk management is the process of identifying potential risks in your investment portfolio and taking steps to mitigate them accordingly.

Short
Short refers to a position that will incur a profit if the asset being traded falls in price. It is also often referred to as going short, shorting, or sometimes selling.

Short selling
Short selling is the act of selling an asset that you do not currently own, in the hope that it will decrease in value and you can close the trade for a profit. It is also known as shorting.

Spot
In trading, spot refers to the price of an asset for immediate delivery or the value of an asset at any exact given time. It differs from an asset’s futures price, which is the price for delivery at some date in the future, or its expected price.

Futures contracts
Futures contracts represent an agreement between two parties to trade an asset at a defined price on a specified date in the future.

Position
A position is an expression of a market commitment, or exposure, held by a trader.

P&L
A profit and loss (P&L) statement is a financial report that provides a summary of a trader's profits, and losses. It gives investors about their loss or profit over a given timeframe.

RSI
RSI stands for the relative strength index. It is a key tool used in technical analysis, evaluating the momentum of assets to calculate whether they are overbought or oversold.

Technical analysis
Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It based on the idea that the trajectory of assets can be ascertained by studying past price actions.

Trading plan
A trading plan is a strategy set by the individual trader in order to systemize evaluation of assets, risk management, types of trading, and objective setting. Most trading plans will comprise two parts: long-term trading objectives, and the route to achieving them.

Thanks for reading up to this point guys and I hope you enjoyed my #cryptoprofessor homework.

This post is made in response to the #cryptoacademy program and the #cryptoprofessor homework by @bestcofinder.

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