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What is market capitalisation (market cap) and why does it matter?

The term “market capitalisation” or “market cap” is an important metric in the evaluation of the market value of a cryptocurrency.

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Investing

Lesson 2

9 min

The difference between a cryptocurrency broker and an exchange

While a crypto broker acts as an intermediary, a crypto exchange allows traders to buy and sell directly to each other.

How to start trading cryptocurrencies

Successful cryptocurrency traders have made cumulative gains over several years marked by perseverance, careful research, unemotional decisions, realistic approaches and invested time and patience.

What are market orders, limit orders, stop limit orders?

Trading is basically the exchange of assets between a buyer and a seller while a trading order is an agreement to exchange an asset like Bitcoin for another asset at a specific price or price range. Trade order types like market orders, limit orders and stop limit orders are among the three most common order types in cryptocurrency trading.

What are candlesticks in cryptocurrency trading?

An overview of the topic of candlesticks trading patterns: definition, explanation, examples & tips. ► Read more in our article.

What are maker fees and taker fees for cryptocurrency traders?

Liquidity on an exchange is created by putting orders in the order book that wait to be filled. A crypto trader who places limit orders in the order book that don’t get filled immediately creates liquidity.

What is an atomic swap?

Atomic swaps offer a way to swap cryptocurrencies peer-to-peer from different blockchains directly without the requirement for a third party, such as an exchange.

What is inflation?

Inflation is when prices rise but purchasing power decreases.

What is a stock?

A stock represents a small portion of ownership in a company.

What is a shareholder?

A person who holds at least one share of the stock of a company is considered a shareholder or stockholder.

What are fractional shares?

A fractional share is a smaller portion of one share.

What is a dividend?

A dividend is a payment made by a company to its shareholders.

How do investments earn you money?

People invest in order to make financial gains from their investments.

What are the biggest risks in investing?

Investing decisions are based on balancing risk and return, so understanding the risks associated with investing is essential.

What is an index?

An index is a measure to indicate a change in the size of values such as the price of securities over time.

What is a bond?

A bond is a type of loan contract that outlines the amount of money, the interest rate and the maturity date of the loan between a debtor and a creditor.

What is a mutual fund?

A mutual fund is a portfolio of stocks, bonds and various other securities managed by expert brokers.

What is an exchange-traded fund (ETF)?

An exchange-traded fund (ETF) is made up of different securities tracking an index.

What is a derivative?

A derivative is, as the name implies, a secondary security derived from another security.

The magic triangle of investing

Every type of investment can be analysed based on three criteria: returns, liquidity and risk. You, as an investor, are going to attribute importance to each of these three factors depending on your personal risk profile.

How tokenisation could democratise investing

The regulated tokenisation of assets could open up investing to a large group of new investors that were excluded from the markets until now.

What is an ESG rating and why is it important for investors?

“ESG” stands for “environment, social and governance”. These are known as non-financial factors. An ESG rating is an important indicator for investors as it measures the ethical impact and sustainability of a company and its fulfilment of ESG criteria.

What is decentralised finance (DeFi)?

Decentralised finance (DeFi) has the objective to move technologies and processes involved in transactions into the hands of individual players.

How gold became the queen of precious metals

Gold is a reputed store of value and the optimal choice for investors who want to diversify their portfolio by adding precious metals.

What is an exchange-traded cryptocurrency note (ETN)?

Cryptocurrency exchange-traded notes (short: ETN) offer investors an alternative to invest in crypto while mitigating risks such as wallet hacks and risks that may be involved in asset storage.

Bullish candlestick patterns in crypto trading you should know

Every trader has a unique strategy and analysis process during the trading journey. Candlesticks can be used for predicting future price movement and possible market developments. Learning to read candlesticks is the easy part, while practice is more market developments.

Bearish candlestick patterns you should know

Just like bullish candlestick patterns can help traders to predict potential upcoming positive price action in assets, traders may use bearish candlesticks to anticipate declining prices in markets.

What is a market maker?

Market makers are employed to ensure sufficient liquidity and efficient trading on financial markets.

Important indicators in crypto trading

Certain indicators in crypto trading show clear signals whether to sell or to buy, however, several different indicators are commonly used at the same time to get a better picture of a situation in a market.

What are commodities and how do people invest in them?

Commodities are physical assets that are used to manufacture products.

What is a recession?

Recessions are periods of significant but temporary decline in a country’s gross domestic product that result in decreased consumer spending and increased unemployment.

Traditional banks, fintech and trust

The question of trust and security in financial institutions has become more important than ever before - we explore the differences and similarities between banks, neobanks and crypto platforms.

What is leverage in trading?

Leverage trading is a high-risk/high-reward trading strategy that experienced investors use with the aim of increasing their returns.

What is a contract for differences (CFD)?

A type of leverage trading, a contract for differences (CFD) allows investors to participate in the price movement of assets without actually buying or owning the assets themselves.

What is earnings season?

Earnings Season is when publicly traded companies publish their quarterly figures.

Investing in AI: Everything you need to know

Discover the best strategies for investing in artificial intelligence: tech giants, chipmakers, specialized ETFs, and AI crypto projects.

What is a bear market?

Learn how to navigate bear markets successfully. With smart strategies, you can minimise losses and spot opportunities—for long-term success.

What is a bull market?

Discover how to seize the opportunities of a bull market. Learn how to benefit from rising prices and sustainably grow your portfolio.

Trading Bot

Trading bots automate trading around the clock, are based on algorithms and offer advantages such as time-saving trades - ideal in the crypto market, but not without risks.

Smart Order Routing (SOR): definition and function explained simply

Smart Order Routing (SOR) is an automated process that optimises the execution of trading orders across different trading platforms.

Order types and order restrictions explained - overview and differences

What are order types and what do the individual order supplements mean? Order types and their significance for trading. ► Read now!

Limit order: How to optimise your trades

A limit order specifies a limit price at which a security is bought or sold. Limit order: what exactly is it? ► Read now!

What is spot trading?

Spot trading describes the direct buying and selling of assets, such as cryptocurrencies, at the current market price. More about spot trading.

What is scalping?

Fast, faster, scalping: This rapid trading strategy involves executing trades within seconds to profit from microscopic price fluctuations. If you're stress-resistant and familiar with analytical tools, read on to learn everything about scalping!

What is swing trading?

Learn about swing trading, a short-to-medium-term strategy where traders aim to profit from market trends using technical analysis and careful risk management.

What is forex trading?

Learn about Forex trading, the global currency exchange market where traders buy and sell currencies to profit from fluctuating exchange rates. Find out more.

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