What are the key stock market terms that cryptocurrency investors should be familiar with?

3 answers

• Dec 26, 2021 · 3 years ago
  One key term that cryptocurrency investors should be familiar with is 'market capitalization.' Market capitalization refers to the total value of a company or cryptocurrency. It is calculated by multiplying the current price per share or token by the total number of outstanding shares or tokens. Market capitalization can give you an idea of the size and potential of a cryptocurrency. The larger the market capitalization, the more established and widely adopted the cryptocurrency is likely to be. However, it's important to note that market capitalization alone should not be the sole factor in making investment decisions. It's just one piece of the puzzle.
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• Dec 26, 2021 · 3 years ago
  Another important term is 'volume.' Volume refers to the number of shares or tokens traded in a specific period of time. It indicates the liquidity of a cryptocurrency and can give you an idea of how active the market is. Higher volume generally means there is more interest and activity in the cryptocurrency, which can be a positive sign. However, it's important to consider other factors such as price movements and market trends when analyzing volume.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends that cryptocurrency investors also familiarize themselves with the term 'market order.' A market order is an order to buy or sell a cryptocurrency at the best available price in the market. It is executed immediately and guarantees that the order will be filled, but the actual price at which the order is executed may vary. Market orders are commonly used when investors want to execute trades quickly and are less concerned about the specific price at which the trade is executed. It's important to note that market orders may be subject to slippage, which is the difference between the expected price and the actual execution price. Therefore, it's important to use market orders with caution and consider the potential impact of slippage on your trades.
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