Lesson 4 — Crypto Market Language
Understand the key terms of crypto markets, including spot, futures, stablecoins, networks, wallets, gas fees, and funding rates.
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Login to Track ProgressCrypto trading requires a different vocabulary from traditional markets. Students need to understand spot markets, futures, perpetual contracts, funding rates, wallets, stablecoins, blockchain networks, gas fees, tokens, coins, exchanges, and on-chain transfers. These are not optional concepts; they affect both trading and operational safety.
Unlike many traditional markets, crypto combines price speculation with infrastructure responsibility. A user may buy an asset on an exchange, withdraw it to a wallet, select a blockchain network, pay a gas fee, and interact with a protocol. Every step carries potential risk if the user does not understand the language.
This lesson prepares students to operate in crypto more safely. It explains the difference between market activity and blockchain activity. It also introduces why wrong-network transfers, unsupported tokens, and poor wallet security can create serious problems. The goal is practical understanding, not hype.
1. Explain the difference between a coin, token, and stablecoin.
2. Compare spot trading and perpetual futures.
3. Write a safety checklist for sending USDT.
- 1. What is spot trading?
- 2. What is a perpetual futures contract?
- 3. What is a funding rate?
- 4. Why is blockchain network selection important?
- 5. What is the difference between exchange balance and wallet balance