What are the key stock market terms that cryptocurrency investors need to know?

3 answers

• Mar 07, 2022 · 3 years ago
  One key stock market term that cryptocurrency investors should know is 'market capitalization.' Market capitalization refers to the total value of a company's outstanding shares of stock. In the cryptocurrency world, market capitalization is often used to determine the size and popularity of a particular cryptocurrency. It can be calculated by multiplying the current price of a cryptocurrency by the total number of coins or tokens in circulation.
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• Mar 07, 2022 · 3 years ago
  Another important term is 'volume.' Volume refers to the number of shares or contracts traded in a security or market during a given period of time. In the cryptocurrency market, volume can indicate the level of interest and activity in a particular cryptocurrency. Higher volume often suggests greater liquidity and can be a positive sign for investors.
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• Mar 07, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends that cryptocurrency investors also familiarize themselves with the term 'bid-ask spread.' The bid-ask spread is the difference between the highest price that a buyer is willing to pay for a security and the lowest price that a seller is willing to accept. Understanding the bid-ask spread can help investors assess the liquidity and market efficiency of a cryptocurrency.
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