Just entered crypto and feeling like everyone speaks another language? Don’t worry, I was in your shoes too. In this part we’ll have a look at 6 essential terms in crypto, that you should 100% know, before starting!
Let’s get started!
✨Blockchain — The technology behind crypto. A decentralized digital ledger that records transactions securely and transparently.
✨Altcoin — Any cryptocurrency that isn’t Bitcoin. Different projects, different goals, different potential. Examples: $ETH $SOL $LTC
✨Stablecoin — A crypto asset designed to stay stable in price (usually pegged to USD). Traders use it to reduce risk during volatility. Examples: $USDC $USDT
✨Market Capitalization (Market Cap)
Formula: Price × Circulating Supply
This metric reflects the total market value of a cryptocurrency and is used to compare project scale and relative market dominance. Large-cap assets generally exhibit lower volatility compared to small-cap tokens.
✨Volatility — the mood swings. How fast and how much price moves. +20% today, -15% tomorrow. Welcome to crypto 🎢
✨Liquidity — how easy it is to get in and out. The ability to buy or sell an asset without significantly impacting its market price.
High liquidity = smooth trades.
Low liquidity = surprise price jumps.
Did you find this info useful? What terms should I write about in the next part of our survival kit?
#CryptoEducation💡🚀 #Marketstructure #tradingbasics #Write2Earn
