What Is Bitcoin Mining? Bitcoin mining is the process of creating and adding new Bitcoins to circulation. At its core, it involves verifying and recording transactions on the Bitcoin network, ensuring that all transactions are accurate and secure. Miners carry out this process by using powerful computers to solve complex mathematical puzzles. Once a miner…

What Is Bitcoin’s Halving? Bitcoin halving event is a key feature of its design, programmed into its code to reduce the rate at which new Bitcoin is created. Every 210,000 blocks mined (approximately every four years), miners’ reward for verifying transactions is cut in half. This event is known as Bitcoin’s halving. For example, when…

A crypto market correction happens when the price of a cryptocurrency or the entire market drops by 10% to 20% from its recent high. It’s a natural and temporary decline that often occurs after a period of rapid price increases. Corrections differ from crashes because they are less severe and usually don’t signal a complete…

Derivatives are financial contracts whose value is derived from an underlying asset, like a cryptocurrency. They allow investors to speculate on future price movements without owning the underlying asset itself. This provides flexibility and risk management opportunities. Crypto derivatives come in various forms, including futures (agreements to buy or sell at a set price in…

Position sizing in crypto trading refers to deciding how much of your capital to allocate to a specific trade. It determines the size of your trade, which directly impacts your potential profit or loss. Position sizing helps you balance risk by ensuring you don’t invest too much in a single trade, protecting your overall portfolio….

The risk-reward ratio in crypto trading measures how much potential reward you can earn for every dollar you risk. It compares your possible loss (risk) to your potential profit (reward) in a trade. For example, if you set a stop-loss at $10 below your entry price and a take-profit at $20 above your entry price,…

Leverage trading in cryptocurrency allows traders to borrow funds to increase their trading position, enabling them to control larger amounts of capital than they own. This strategy amplifies both potential profits and potential losses, making it a high-risk, high-reward trading approach. Here’s a detailed guide to help you understand the basics of leverage trading, including…

Hedging is a risk management strategy used by traders and investors to protect their assets from potential losses due to market volatility. In the context of crypto markets, hedging involves using various tools and strategies to offset potential losses when prices fluctuate unexpectedly. In simple terms, hedging means taking a position in a financial instrument…

Risk tolerance in crypto trading refers to an individual’s capacity to withstand potential losses in the market. It’s essentially a measure of how comfortable someone is with taking risks in their investments. A higher risk tolerance means an individual is more willing to accept potential losses in exchange for higher returns. Conversely, a lower risk…

Take profit orders are a type of limit order that automatically sells a portion or all of your cryptocurrency position when it reaches a specific price target. This pre-set price level is determined by the trader based on their analysis of the market and risk tolerance.   Once a take-profit order is placed, it remains…