Test Your Knowledge
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1. What is one key difference between investing and trading in cryptocurrency?
A) Investing involves frequent buying and selling of assets.
B) Trading typically involves holding assets for a long period.
C) Investing is generally lower risk, focusing on long-term holding.
D) Trading focuses on fundamental analysis, while investing uses technical analysis.
2. Which type of analysis focuses on evaluating the intrinsic value of a cryptocurrency project, including factors like utility, team, and long-term goals?
A) Technical Analysis (TA)
B) Fundamental Analysis (FA)
C) Sentiment Analysis (SA)
D) Trend Analysis (TA)
3. What is a primary advantage of diversifying your crypto portfolio with altcoins rather than sticking solely with Bitcoin?
A) Diversifying across multiple assets can reduce the impact of one underperforming.
B) Altcoins generally offer lower risk than Bitcoin.
C) Altcoins are less volatile than Bitcoin.
D) Bitcoin's price movements are highly predictable compared to altcoins.