Crypto Trading Cheat Sheet 2026

The 30 highest-yield Crypto Trading facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is 'dollar-cost averaging' (DCA) as a trading strategy? → Investing fixed amounts at regular intervals regardless of price
2. What type of options does Binance primarily offer on its main options platform? → European-style options
3. What is 'overtrading' and why is it harmful? → Excessive trading that racks up fees and poor decisions
4. What is the main risk of providing liquidity to a newly launched token pool? → Rug pull where developers drain liquidity
5. What is 'impermanent loss' for a liquidity provider? → Value lost versus simply holding when pool prices diverge
6. What is the safest way to verify you are visiting your real exchange website? → Manually type or bookmark the official URL and check the address
7. What generally happens to an option's time value as expiration approaches? → It decays toward zero
8. A trader opens a 10x leveraged long. If the asset falls 10%, what roughly happens to their position? → It is liquidated near total margin loss
9. A 'golden cross' occurs when: → A short-term MA crosses above a long-term MA
10. What is the breakeven point for a long call at expiration? → Strike price plus premium
11. What risk does writing a naked call expose a trader to? → Theoretically unlimited loss
12. How does Binance often discount margin interest or fees? → By paying with BNB or holding VIP tier
13. What is the purpose of the 'Mark Price' on Binance Futures? → To calculate unrealized PnL and prevent unfair liquidations
14. What is the primary risk of using very high leverage like 100x on Binance Futures? → A tiny adverse price move can cause full liquidation
15. In the United States, the IRS classifies cryptocurrency as which type of property for tax purposes? → Property
16. What is a market order in crypto? → An order to buy or sell immediately at the best available current price
17. What is the primary advantage of using a crypto portfolio tracker like CoinTracker or Koinly? → They aggregate transaction history across exchanges and wallets to calculate tax liability
18. A 'doji' candlestick typically signals: → Market indecision
19. What does diversification help manage in a crypto portfolio? → Concentration risk from a single asset crashing
20. What is a 'covered call' strategy? → Selling a call while holding the underlying asset
21. What is the purpose of a stop-loss order? → Automatically close a position to cap losses
22. A crypto trader receives tokens through a hard fork. According to IRS guidance, when is this income taxable? → At the time the tokens are received and the taxpayer has dominion and control
23. What does 'TVL' (Total Value Locked) measure in a DeFi protocol? → Total assets deposited in the protocol's contracts
24. What is 'time value' in an option's premium? → The portion of premium beyond intrinsic value
25. What is a 'dusting attack'? → Sending tiny amounts of crypto to wallets to track and de-anonymize their owners
26. What does a stop-loss order help a trader manage? → Downside risk by automatically selling at a preset price
27. If the funding rate is negative, which side benefits? → Long positions receive payment from shorts
28. A trader receives an email urging them to 'verify their wallet' via a link to avoid account suspension. What attack is this most likely? → A phishing attack
29. What distinguishes Binance Margin from Binance Futures? → Margin trades real spot assets with borrowing; futures trade contracts
30. What is 'open interest' in crypto futures markets? → The total number of outstanding futures contracts that have not been settled