Basic terms that novice investors should know

About general investments

1. Asset (Assets)→ What is valuable, such as stocks, crypto, gold
2. Portfolio (Portfolio)→ Consolidation of the assets we invest
3. Diversification (Diversification)→ Invest in multiple ways to reduce risk
4. Risk (Risks)→ The likelihood of a decrease in value or loss
5. Liquidity (Liquidity)→ How fast is the ability to switch to cash?

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About Cryptocurrencies

1. Blockchain→ Technology Behind Crypto Decentralized Storage
2. Bitcoin (BTC)→ The first crypto used to store value
3. Ethereum (ETH)→ Blockchains that can create Smart Contracts
4. Stablecoin→ Cryptos whose value is tied to currencies such as USDT, USDC

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About Digital Tokens

1. Utility Token→ Use in systems such as BNB, spend fees
2. Security/Investment Token→ Replaces stocks or investments
3. NFT (Non-Fungible Token)→ Specific tokens such as art, music, collectibles

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About trading

1. Exchange (Trading Market)→ Web/Crypto Trading Platforms such as Maxbit, Binance
2. Wallet (Digital Wallet)→ Crypto storage available in both hot wallet and cold wallet
3. Private Key/Seed Phrase→ Secret code to access the wallet. Do not tell anyone this code.
4. Fiat (Fiat)→ Regular currency, such as Baht, Dollar

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Investment strategy

1. HODL→ Derived from the word HoldsMeans bought and held for a long time.
2. DCA (Dollar Cost Averaging)→ Invest every period, i.e. every month equally.
3. Pomp & Dump→ Swing prices up and then selling
4. ATH (All-Time High)→ Highest Price of All Time
5. Bear Market→ Bearish market
6. Bull Market→ Bullish market

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About the yield

1. ROI (Return on Investment)→ Return on investment
2. APY (Annual Percentage Yield)→ Annual return including accrued interest
3. Gas Fee→ Transaction fees on the blockchain

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