Crypto: buying coins versus betting on them

See how owning a coin differs from trading a leveraged contract on it, and why a signal needs real evidence before you trust it.

Module 9 of 26, in the stage "How markets work". 6 lessons.

Lessons

1. Owning a coin versus a perpetual contractCompare owning a coin with holding a perpetual contract: margin, liquidation and price gaps. 18 min.
2. Funding fees and blockchain dataRead funding, MVRV and SOPR as measurements that have definitions and delays. 18 min.
3. Why a crypto signal is not proofBuild a careful evidence check that is allowed to say “we don’t know.” 18 min.
4. How a crypto transaction actually worksDescribe addresses, keys, network fees and confirmations, and why a sent transaction cannot be pulled back. 14 min.
5. Working out your liquidation price before you openEstimate how far price can move against a leveraged crypto position before it is liquidated. 16 min.
6. The full cost of a leveraged crypto trade, and the ‘free yield’ trapAdd up fees and funding on one trade, and see why funding carry is harder than the headline rate suggests. 16 min.

Concepts covered

• Funding rate
• Leverage
• Trading costs

Keep going

• Previous module: Currencies, interest, and things that move together
• Next module: Crypto safety
• All 26 modules and 157 lessons
• Open the first lesson in the course

General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.