Basic of Trading (#Part 1)

in Beauty of Creativitylast month

Hello guys
Today i have come with the basic of Trading. We do Trading but we don't know some short forms,some basic things. For them my today's blog.
I also unaware of some of this basic things.
Hope you all will read it.

Bitcoin Trading Terminology

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Websites for Chart Analysis

There are many websites that offer crypto-assets charts. Tradingview is one of the best websites
for chart reading and analysis. Tradingview offers many tools and indicators for chart analysis.
Coinmarketcap and Coingecko also provide charts for cryptocurrencies but not have many tools
and indicators available for analysis.

1 Bitcoin = 100 Million satoshis (1.00000000 BTC)

An exchange is a platform that connects buyers and sellers. Users can buy and sell
the available cryptocurrencies on the exchange. The top exchange for trading is Binance,
BitMex, and Kucoin.


Fear of Missing Out. This happens when we see a coin rapidly and buy the
coin without any research just for making quick profits or not to leave behind by the train.


FUD means Fear, Uncertainty, and Doubt. The investors or traders are not sure
about the next movement of the coin and sell their coins at market price cause panic and
heavy selloff.

Total Supply-

The total number of coins ever exists. The total supply in the case of Bitcoin is 21

Circulating Supply-

The number of coins in circulation means the number of coins that are
already mined.

Bull market-

Bull market means the price is in an uptrend. The coin is making higher highs on a
given timeframe. Bull markets depend on time frames. If you see the BTC chart from 2010 to
2020 you will find out many bull markets on the chart.

Bear market-

Bear market means the price is in a downtrend. The coin is making a lower low
on the given time frame.
See the chart below


Current Market Price.

Market Cap:

Market Cap is the product of the current price and circulating supply.


A condition where the market is increasing without any technical or fundamental basis.
The market continues increasing irrespective of market conditions and sentiments. The best
example of a bubble market is Tulip Mania.


Trading bots will continue trading the whole day according to their setups.

Swing trading-

Swing traders buy and sell a coin in a daily or weekly time frame. Swing traders
not hold the position for long.

Positional trading-

Positional traders wat for the best entry and hold the trades for weeks or
months to gain maximum profits.

Day trading-

Day traders complete the trades daily. Either they are in profit or loss they will close
all positions at the end of the day.


Some exchanges allows you to buy or sell the coins in more quantity than you have.
This can be possible with leverage.
E.g. Many exchanges like Binance, BitMex, Kucoin, Bitfinex provides leverage trading. The
exchanges allow users to borrow extra money from the exchange and trade with that. You can
open a position of $2000 with just $200 by using the 10x leverage. Leverage may vary according
to exchanges and coins.


The total amount of funds required to open a leveraged trade. If the margin value drops
below of the position value, the position will be closed.
E.g. If you want to open a $2000 trade with 5x leverage than the margin required will be $400.

Long Position-

Long position means buying assets with leverage. The profit and loss
depend on the leverage takes.
If the leverage taken is 5x and the spot price moves 10% up than the total profit on a
long position is 50% - the exchange fee.

Short Position-

Short entry is the opposite of a long position. If you think the price of the coin will
go down in the coming days or weeks, you can. open a short position with leverage.

It was for today,hope you all will read it. Thanks