Crypto Trading Review and Assessment 2

Question 1

A trader buys 1 BTC at $40,000 and sells at $48,000. What is the percentage gain?

Accepted Answer

20%

Answer

16%

Answer

8%

Answer

12%

Question 2

Which order type guarantees execution but NOT a specific price?

Accepted Answer

Market order

Answer

Limit order

Answer

Stop-limit order

Answer

Post-only order

Question 3

What does 'slippage' refer to in crypto trading?

Accepted Answer

The difference between expected and executed price

Answer

The exchange withdrawal fee

Answer

The time to confirm a block

Answer

The spread between two exchanges

Question 4

A 'maker' order on an exchange is one that:

Accepted Answer

Adds liquidity by resting on the order book

Answer

Removes liquidity instantly

Answer

Is always a market buy

Answer

Bypasses the order book entirely

Question 5

If a stablecoin is meant to track $1 but trades at $0.92, this is called:

Accepted Answer

Depegging

Answer

Rebasing

Answer

Halving

Answer

Staking

Question 6

What is the primary purpose of a stop-loss order?

Accepted Answer

Limit downside by selling at a preset price

Answer

Increase leverage automatically

Answer

Lock in a guaranteed profit

Answer

Avoid all trading fees

Question 7

Dollar-cost averaging (DCA) involves:

Accepted Answer

Investing fixed amounts at regular intervals

Answer

Buying only at the lowest price

Answer

Selling everything at market tops

Answer

Using maximum leverage each trade