Understanding Trading Fees

When buying or selling cryptocurrencies on an exchange, a small fee is charged to facilitate the trade. This trading fee, usually a percentage of the trade value, is an essential revenue stream for exchanges.

Let's break it down with an example. Suppose you want to buy 1 Bitcoin (BTC) on an exchange with a 0.5% trading fee. If the current price of BTC is $10,000, you'll need to pay $10,000 for the BTC plus $50 for the fee (0.5% of $10,000), totaling $10,050.

Trading fees are crucial because they:

- Enable exchanges to operate and maintain their platforms
- Cover costs such as security, customer support, and infrastructure
- Encourage responsible trading practices
- Help prevent market manipulation and abuse

By understanding trading fees, you can make informed decisions and avoid unexpected costs. Remember, trading fees are a small price to pay for the convenience and security of trading on a reputable exchange!

👑 @TheCryptoCrown 🪫

Crypto speak: Flipping

The term “flipping” is buying assets at low prices and selling them quickly for a profit.

Flipping has been very popular in the NFT space, where people buy tokens in the early stages of a project and sell them as soon as they see a favorable price increase.

This investor behavior, by the way, was one of the critical factors in the decline of the NFT market over the last year; most users saw NFTs solely as a tool for quick earnings, not as an investment in art.

👑 @TheCryptoCrown 🪫

🫡 It has been 15 years since Satoshi Nakamoto's legendary post on the BitcoinTalk forum

“If you don't believe me or don't understand, I don't have time to convince you, sorry.”

At that time, bitcoin could be bought for 6 cents!

👑 @TheCryptoCrown 🪫

Crypto Speak: Circulating supply

The term may look complicated, but it’s actually simple. It’s the number of coins that have already been issued and are available for trading on the market.

This does not include coins blocked or held by founders, only those in circulation among regular users.

“Circulating supply” is one of the most important factors in analyzing any crypto project.

👑 @TheCryptoCrown 🪫

Crypto Speak: Addy

An “addy” in the context of cryptocurrencies is an abbreviation for “address.”

It refers to the address of a wallet on the blockchain used to send and receive cryptocurrencies, such as Bitcoin, Ether, and others.

In general, your wallet address can be abbreviated as addy.

👑 @TheCryptoCrown 🪫