📚Coinstore Classroom: Crypto Trading 101 — Part 6🤓
Hello again Coin Collectors,
Carrying on from the previous part of Coinstore Classroom📒, on basic terms or phrases, we would like to share with you. We hope that through this corner, we are able to share with you some knowledge and tips 💡 on cryptocurrency! As such, we hope to be able to share and educate you on the basics and necessary information of cryptocurrency, so that you are able to make a more informed decision when trading crypto.
For this session of Coinstore Classroom, we will be sharing with you more terms that describe market trends.
Here are the 3 terms or phrases we would like to share with you:
1. Contango (Forwardation):
Contango is a situation where the futures price of a commodity is higher than the spot price.
Contango usually occurs when an asset price is expected to rise over time.
Backwardation is when the current price of an underlying asset is higher than prices trading in the futures market.
Backwardation can occur as a result of a higher demand for an asset currently than the contracts maturing in the coming months through the futures market.
Rebounds occur when events, trends, or securities switch course and move higher after a period of decline.
A company might report strong earnings in its fiscal year after the previous year’s losses, or a successful product launch after several duds.
Here are another 3 basic terms for futures or trading in general, we thought you should know before making trades in the cryptocurrency market! Stay tuned for part 7, to find learn more terms and phrases regarding cryptocurrency trading! 😉
It’s never too late to start diving into the world of cryptocurrency. Whether you’re young or old, a pro or a newbie, Coinstore welcomes you to our arcade where we learn together… the fun way! We make cryptocurrencies available for everyone in a sleek, exciting and simple fashion, equipping you with experience and techniques to buy, sell and trade on the go.
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