part One
Terms such as collateral, liquidity, breakout structure, governance, etc., which every trader should know.
Today I will explain all these terms, so read the entire post carefully. Don't forget to comment and like the second part.
Collateral: Assets pledged by the borrower to secure the loan. In cryptocurrencies, these are often digital assets such as Bitcoin or Ethereum. For example, on platforms like Eve, users can deposit ether as collateral to borrow stablecoins.
Liquidity: The ease with which an asset can be converted into cash without affecting its market price. For example, Uniswap, a decentralized exchange, provides liquidity pools where users can exchange tokens efficiently thanks to high liquidity.
Structure Break: A term used in technical analysis to indicate a significant change in market direction. For example, if Bitcoin is constantly trading above a resistance level, a break of this structure may signal the beginning of an uptrend.
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