Trading Fundamentals in Crypto !!!#TradingTypes101

🔑 1. Market Structure Basics

Crypto markets are decentralized and run 24/7.

Spot Market: Buy/sell crypto at current market price.

Derivatives Market: Includes futures, options, and perpetuals (trading contracts on price direction).

Order Types:

Market Order: Executes immediately at best price.

Limit Order: Executes only at your specified price.

Stop Order: Triggers a market or limit order at a specific price (used to manage risk).

🧠 2. Key Fundamental Concepts

🏗️ Supply & Demand

Max Supply: Bitcoin has a cap of 21M coins — scarcity can drive demand.

Tokenomics: Check inflation rate, distribution (VC unlocks), and emission schedules.

Burn Mechanisms: Some projects (e.g., BNB, ETH) burn tokens to reduce supply.

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🛠️ Development Activity

Is the project actively developed?

Frequent commits on GitHub, updates, or testnet/mainnet launches are good signs.

👥 Community & Adoption

Large, engaged communities = stronger organic growth.

📊 3. Technical Analysis (TA) Tools

While fundamentals matter, crypto trading is heavily influenced by chart behavior.

Support & Resistance: Historical price levels where buyers/sellers act.

RSI (Relative Strength Index): Measures overbought/oversold conditions.

MACD: Momentum indicator.

Moving Averages: Tracks trends (e.g., 50-day, 200-day MA).

Fibonacci Levels: Predict retracement zones after big moves.

⚖️ 4. Risk Management

Never risk more than 1–2% per trade.

Use stop-loss and take-profit levels.

🪙 5. Sentiment & Macro

Crypto is highly reactive to global events.

Bitcoin Dominance (BTC.D): When rising, altcoins often suffer.

Fear & Greed Index: Gauges market sentiment.

Fed Policy / Interest Rates: Risk assets like crypto react to U.S. monetary decisions.

🧾 6. On-Chain Metrics (Advanced)

Exchange Inflows/Outflows: Big withdrawals → accumulation.

Whale Wallet Movements: Large holders’ actions.

Active Addresses: More users = more real utility.