Learning Binance trading: (part 4)
3. Essential Trading Concepts
A. Liquidity:
- How easily an asset can be bought/sold without affecting price.
- High liquidity (e.g., BTC, ETH) → Tighter spreads, faster execution.
- Low liquidity (small altcoins) → Slippage risk.
B. Bid-Ask Spread:
-Bid: Highest price buyers are willing to pay.
-Ask: Lowest price sellers are willing to accept.
- Narrow spread = Better for traders.
C. Volume:
- Indicates trading activity.
- High volume → Strong trend confirmation.
D. Volatility
- Measures price fluctuations.
- High volatility → More profit opportunities (but higher risk).
4. Risk Management Basics:
-Never risk more than 1-2% of capital per trade.
-Use Stop-Loss on every trade.
-Avoid over-leveraging (start with 2x-5x in futures).
Next Steps:
✅ Practice on a Demo Account (e.g., Binance Testnet).
✅ Study Candlestick Patterns & Technical Analysis (Step 2).
✅ Follow Crypto News (CoinMarketCap, Cointelegraph).
