Crypto Basics Concepts

Learning to trade the bitcoin market is much easier for beginners when beginners start by learning the bitcoin basics. This way the other concepts become much easier to learn because the new bitcoin trader will have already learnt about the basic ideas before proceeding to the other bitcoin concepts.

The bitcoin basics that traders should learn first before starting are:

What is BTCUSD Crypto?

Bitcoin is the simultaneous buying and selling of one financial instrument for another. Bitcoin traders buy & sell for speculation purpose and for the purpose of trying to earn a profit. Bitcoin traders will buy bitcoin that they think will appreciate in value & sell bitcoin which they think will depreciate in value.

In Bitcoin traders buy crypto instruments when they become undervalued & sell instruments when they become overvalued. This is the basic concept of trading bitcoin, as a beginner if you want to become successful when trading btcusd you must learn to buy undervalued crypto instruments & sell overvalued cryptocurrency instruments. Many Bitcoin traders miss this concept and do the exact in the opposite market trend buying overvalued crypto instruments because that is when these instruments seem to be moving up and up and they sell undervalued crypto instruments because these instruments seem as if they will continue to move lower.

Just like in stock market successful trader buy stocks when the stock bitcoin price is low & sell stocks when the stock bitcoin price is high. This is the same concept which traders should follow when trading bitcoin.

What is Bitcoin Crypto?

Bitcoin trading is the simultaneous exchange of one financial instrument for another, for this reason bitcoin is traded in symbols known as crypto trading instruments.

What is a Bitcoin Quote?

Because crypto instrument is traded in symbols, the bitcoin price at which these instruments are exchange is determined by the bitcoin quote.

BTC USD Crypto is quoted in the format of decimal places.

What's a Pip?

Crypto Currency is quoted in the format of decimal places. Second last decimal point represents a Pip which is the smallest movement used to calculate profit & loss in market moves.

Pip means Bitcoin Price Interest Point: it's a one point move in the bitcoin quote.

What is a Lot?

Bitcoin is traded in units known as lots. There is also the Mini lot which is made up of fractions of the standard lots & the Micro cryptocurrency lots which are fractions of the bitcoin trading mini lots.

What is Bitcoin Leverage?

Because not many traders can afford to trade the standard contracts which require a lot of money to trade, there's bitcoin leverage in Bitcoin which means that traders can borrow money and use the borrowed money to make trade positions with. For illustration leverage of 100:1 means that a trader with capital of $10,000 can borrow up to 5 times using the 5:1 cryptocurrency leverage option & therefore after borrowing using this bitcoin leverage the trader will have a total of $10,000 multiplied by 5, which means that the online trader will have a total of $50,000 dollars. This leverage is what makes Bitcoin accessible to retail bitcoin traders because retail traders can start with little capital of their own & use bitcoin leverage to borrow the rest of funds required for trading. Money that the trader deposits is referred to as a bitcoin trader’s margin & a btc usd trader can continue to borrow money using this leverage as long as they have the required margin in their trading account. This is why the online traders must have the required account balance in their account to open the trade transactions they want to.

What is BTCUSD Trading Margin?

Margin is the particular amount of money that a trader is required to put aside in order to continue holding an open bitcoin leveraged trade. Margin also can be presented as the deposit a bitcoin trader is required to maintain so that to keep the open trades. This margin is a percent of account equity that has to be placed aside & allocated as the margin deposit for the open positions which are held by a bitcoin trader.

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