Crypto Trading Review and Assessment 2 — Questions and Answers
Question 1: A trader buys 1 BTC at $40,000 and sells at $48,000. What is the percentage gain?
- 20% (Correct answer)
- 16%
- 8%
- 12%
Correct answer: 20%
An $8,000 gain on a $40,000 entry equals 20%.
Question 2: Which order type guarantees execution but NOT a specific price?
- Market order (Correct answer)
- Limit order
- Stop-limit order
- Post-only order
Correct answer: Market order
A market order fills immediately at the best available price, with no price guarantee.
Question 3: What does 'slippage' refer to in crypto trading?
- The difference between expected and executed price (Correct answer)
- The exchange withdrawal fee
- The time to confirm a block
- The spread between two exchanges
Correct answer: The difference between expected and executed price
Slippage is the gap between the price you expected and the price you actually got.
Question 4: A 'maker' order on an exchange is one that:
- Adds liquidity by resting on the order book (Correct answer)
- Removes liquidity instantly
- Is always a market buy
- Bypasses the order book entirely
Correct answer: Adds liquidity by resting on the order book
Maker orders sit on the book and provide liquidity, often earning lower fees.
Question 5: If a stablecoin is meant to track $1 but trades at $0.92, this is called:
- Depegging (Correct answer)
- Rebasing
- Halving
- Staking
Correct answer: Depegging
A depeg occurs when a stablecoin loses its intended 1:1 value.
Question 6: What is the primary purpose of a stop-loss order?
- Limit downside by selling at a preset price (Correct answer)
- Increase leverage automatically
- Lock in a guaranteed profit
- Avoid all trading fees
Correct answer: Limit downside by selling at a preset price
A stop-loss triggers a sale once price falls to a set level, capping losses.
Question 7: Dollar-cost averaging (DCA) involves:
- Investing fixed amounts at regular intervals (Correct answer)
- Buying only at the lowest price
- Selling everything at market tops
- Using maximum leverage each trade
Correct answer: Investing fixed amounts at regular intervals
DCA spreads purchases over time to reduce the impact of volatility.
Crypto Trading Review and Assessment 2
A trader buys 1 BTC at $40,000 and sells at $48,000.
What is the percentage gain?