📘 Crypto Glossary for Newbies – Part 1
🔹 What is a Trade?
It is simply a buying or selling operation. When you buy XRP expecting it to rise, you are going long. If you sell it expecting it to drop, you are going short.
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🔹 Spot vs Futures
• Spot: you buy crypto directly (you own the asset).
• Futures: you trade contracts on the future price (without owning the crypto), you can use leverage and profit even if the price drops.
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🔹 Long and Short
• Long: you buy expecting it to rise 📈
• Short: you sell expecting it to drop 📉
Both are done in Futures.
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🔹 What is a Stop Loss (SL)?
It is a limit that you set to stop losses if the trade goes wrong. Example: if you enter XRP at $3.50 and set an SL at $3.20, if the price falls there, it closes automatically and protects your capital.
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🔹 Take Profit (TP)
It is the opposite of the SL: a limit you set to take profits automatically. If you enter at $3.30 and set TP at $3.60, your trade closes with profit when the price reaches there 😎💰
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🔹 What is Leverage?
It is multiplying your investment. For example: with x10 leverage, you can move $1000 with only $100 of your own.
⚠️ Note: it also multiplies your losses if it goes wrong.
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🔹 Crossed vs Isolated
• Crossed: all your available balance can cover the losses.
• Isolated: you only risk what you put in that trade. Safer for newbies.
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🧠 Closing with a phrase to attract community:
Learning this is like having your bulletproof vest in the crypto market 💼
Start with knowledge, and the profits come 💸
#Criptotips $XRP #BinanceSquareTalks #tradin #CryptoEducation💡🚀 #xrp