Okay, if you are like me, new to crypto I would like to give you a quick heads-up on the terms you need to know.
There are some terms that are very common in the trading world that we hear and read everyday.
Among them are TP, SL, Spot, and Futures. Let's look at exactly what they mean:
▪️Spot:
Spot is the simplest form of trading where you buy and own a coin, and then you sell that coin in exchange of another coin like USDT or USDC.
Let's say you bought $100 worth of $ESP . And then you sell all of it for $USDT .
You now have $100 USDT.
▪️TP:
TP means Take Profit. And it happens when you want to sell a coin you own.
You input how much coin you want to sell. That's your 'entry'. Let's say $15 ESP.
Then you input your TP to be $20. What your TP does is that it automatically sells your coin if its value rises to $20, thereby giving you a $5 profit off your $15.
And that brings us to the next term, SL.
▪️SL:
It means to 'Stop Loss'.
So let's say your $15 ESP never rose to your TP price instead it went crashing. What you use to ensure minimal loss in your trade is stop loss.
So while the TP is $20, the SL could be $14.
So instead of you placing a trade today night with your $15 worth of ESP, only to wake up to $10. Your SL stops your loss automatically removes you from the trade and saves your money at $14.
▪️Futures:
Now this is a bit advanced.
Futures is more like betting. So you are not buying any coin on a futures trade. You just predict whether that coin will go up or go down. The terms we use for that is 'long'(to go up) and 'short'(to go down).
For example, let's say 1 $SUI is $5. And you really think the price of SUI will rise to like $10, you go long.
On the other hand, if you think it's price will crash to $1, you go short.
If you go long thinking that SUI will rise to $10 but instead crashed to $1, you will lose money. And that's where it starts getting dangerous.
If you are new to crypto like me. Just learn how to do Spot. And learn it well, before moving into advanced types of trading that could make you cry blood. 😂
There are some terms that are very common in the trading world that we hear and read everyday.
Among them are TP, SL, Spot, and Futures. Let's look at exactly what they mean:
▪️Spot:
Spot is the simplest form of trading where you buy and own a coin, and then you sell that coin in exchange of another coin like USDT or USDC.
Let's say you bought $100 worth of $ESP . And then you sell all of it for $USDT .
You now have $100 USDT.
▪️TP:
TP means Take Profit. And it happens when you want to sell a coin you own.
You input how much coin you want to sell. That's your 'entry'. Let's say $15 ESP.
Then you input your TP to be $20. What your TP does is that it automatically sells your coin if its value rises to $20, thereby giving you a $5 profit off your $15.
And that brings us to the next term, SL.
▪️SL:
It means to 'Stop Loss'.
So let's say your $15 ESP never rose to your TP price instead it went crashing. What you use to ensure minimal loss in your trade is stop loss.
So while the TP is $20, the SL could be $14.
So instead of you placing a trade today night with your $15 worth of ESP, only to wake up to $10. Your SL stops your loss automatically removes you from the trade and saves your money at $14.
▪️Futures:
Now this is a bit advanced.
Futures is more like betting. So you are not buying any coin on a futures trade. You just predict whether that coin will go up or go down. The terms we use for that is 'long'(to go up) and 'short'(to go down).
For example, let's say 1 $SUI is $5. And you really think the price of SUI will rise to like $10, you go long.
On the other hand, if you think it's price will crash to $1, you go short.
If you go long thinking that SUI will rise to $10 but instead crashed to $1, you will lose money. And that's where it starts getting dangerous.
If you are new to crypto like me. Just learn how to do Spot. And learn it well, before moving into advanced types of trading that could make you cry blood. 😂