Understanding Market Basics
Last updated
Last updated
This section covers essential terms and concepts that help you navigate the crypto market with more confidence.
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.
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 (, ) feature.
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.
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.