Understanding Market Basics

This section covers essential terms and concepts that help you navigate the crypto market with more confidence.

Key Market Concepts

Market Cap and Liquidity

Market cap indicates the total value of a token (price x supply), while liquidity shows the ease of buying and selling. A higher liquidity-to-market-cap ratio suggests a more stable token with less price manipulation risk.

Order Types

Understand the difference between a market order (buys/sells immediately at the current price) and a limit order (buys/sells only when a specified price is met). Limit orders give you more control but may take longer to execute. You can set limit orders using the Bitfoot Limit Buy (ETH, SOL) feature.

Support and Resistance

These are price levels where a token often “bounces” up (support) or encounters difficulty rising further (resistance). Identifying these levels can help you set entry and exit points.

Volume and Trends

High trading volume suggests strong interest in a token and can signal price stability. Trends (e.g., bull vs. bear markets) impact prices significantly; understanding them helps you trade in the direction of the market.