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

An $8,000 gain on a $40,000 entry equals 20%.

Question 2

Which order type guarantees execution but NOT a specific price?

Accepted Answer

Market order

Answer

A market order fills immediately at the best available price, with no price guarantee.

Question 3

What does 'slippage' refer to in crypto trading?

Accepted Answer

The difference between expected and executed price

Answer

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:

Accepted Answer

Adds liquidity by resting on the order book

Answer

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:

Accepted Answer

Depegging

Answer

A depeg occurs when a stablecoin loses its intended 1:1 value.

Crypto Trading Practice Test