SMT01 For Trading In Crypto Space

Hello! Friends,

As the new month began, I came with a new innovation that follow lecturing as far as basic trading tips on cryptocurrency is concerned. During my reasoning I came with an acronym called SMT, this acronym means many things to some people but for me, it has been what frame my move along this crypto world.
What Is SMT? SMT according to samest is derived from his name and finally brought this into what is real in life which are Smart, Measurable, and Trusted.

_{Pixabay: Crypto Space}

SMT will teach us key indications as far as trading in the crypto world is concerned. Last year many traders recorded lost due to many factors and looking at the end of first quarter of the year the crypto start to increase gradually and I feel some of us that are interested in trading we need to understand some terms and processes. When looking at graphene platform, as a result of earning via content creation users become trader even if they don't know how to trade there earning they engage in peer-to-peer but I need to stress this to your hearing, if you don't really have experience in buying and selling what I mean is security, I tell you, it just like you prepare to learn how to swim in the deep end of a pool when you start trading crypto, so understanding of buy and sell is important before you venture into one.

The popular token that most of us are familiar with are Bitcoin, Ether, Steem, EOS, SBD and for those on bitshares, dex and whaleshares are familiar with WLS & BTS. Let's have a look at some key indicators that you need to understand before we go into trading itself.

In crypto, we have what we called Assets and we have types of them which I will mention few

1. Altcoin
   Altcoin according to how I do explain it, is the opposite of bitcoin meaning every token apart from bitcoin are altcoin which is an alternative coin.

2. Fiat
   Fiat is the government issued currencies like Naira, U.S dollar, Euro and many other, but again I learned that some country trying to launch there own cryptocurrency.

3. Bitcoin
   Bitcoin is the first cryptocurrency launched in 2008 by Satoshi Nakamoto and this is the coin that paved the way for the larger cryptocurrency ecosystem. By market cap, Bitcoin is still the largest cryptocurrency.

4. Stable Coin
   These are coins that intended to maintain a stable price and value in the market which is in contrast to the other extremely volatile cryptocurrencies. Example of this is Tether. Also, USDT designed to always be worth $1

5. Bitcoin Cash
   This is a fork from bitcoin network in August 2017. This was done in other to focus on more exclusively on the use case of a cheap, fast, convenient form of widely accepted digital cash.

6. Ethereum
   This is the second largest cryptocurrency by a market cap which was proposed in 2013. The intention was to function as a kind of global, decentralized computer with what they called Turing complete programming language and a layer of smart contracts. The layer of smart contracts created for developers which will allow them to create everything from decentralized applications to tokens powering ICOs.

7. Tron
   This is a new coin invading the world of crypto space and its more like targeting Ethereum and EOS developers. The team focus on 10000TPS as against 25TPS for ethereum and also with zero fee on transaction until ethereum that required some gas for transaction fee, the project comes with developer rewards of 1 billions dollar unlike nothing on ethereum ecosystem and so many other new things coming up as the team continues on there development.

With this basic knowledge let's enter some concepts we need to know;

• Exchange

When you hear the exchange, is a marketplace where buy and sell of assets are taking place by people. Like in Lagos Nigeria, Computer Village is a place where people can buy and cell phones, computers
As far as cryptocurrency exchange is concerned there are many of them set up today and the number is increasing all the time. There is a number of cryptocurrency exchanges set up today and the exchanges keep increasing. Some of the major exchanges include:

• Bittrex

• Binance

• Bitfinex

• Kraken

• Rudex

• Gemini

• ETC
  Majorly all exchanges are not created equal and they all let you buy and sell different cryptocurrencies, also let you set different prices for their listed cryptocurrencies and they have different volumes of trades happening on their platform which changes how easy it is to buy and sell cryptocurrency efficiently.

• Bid Price
  For every given asset, the bid price is the maximum price that someone somewhere is willing to pay for that asset. you as an individual can think of this as the demand side of supply and demand.

• Ask Price
  For every given asset, ask price is the minimum price for which someone somewhere is willing to sell that asset. You as an individual can think of this as the demand side of supply and demand

• Bid-Ask Spread
  This is the difference between Bid price and Ask price for a given asset. The spread is the profit in which market makers earn by buying and selling the asset on behalf of investors. The theory behind this is that the more liquidity of an asset goes up, the more the spread decreases correspondingly.

• Volatility
  This is the size of changes in the value of an asset over time. If the volatility is high this simply means the investment is at high risk. Due to the fact that Bitcoin has volatility is high many are skeptical about the capacity of the coin to act as a store of value and this volatility is what gives trades the opportunity to profit through daily trading.

FOMO
This is an acronym from the word Fear Of Missing Out and its reference to timeless and irrational behavior. in cryptocurrency when you are worried about missing out on a great opportunity and you quickly jump into an investment, this is what is referred to FOMO in cryptocurrency space.

FUD
This is the opposite of FOMO. FUD is uncertainty, doubt or fear. When you start to worry about a particular sector or investment or business that it might collapse we call it FUD.

Let me stop here... we continue in next series.