RJALPHA

Beginner's Guide to Crypto

From absolute zero to understanding the dashboard. Everything you need to know, nothing you don't.

rjalpha.app

Contents

1. Part 1, What Is Crypto and Why Does It Exist?
2. Part 2, How to Buy Crypto
3. Part 3, How to Store It Safely
4. Part 4, What Moves the Price
5. Part 5, Understanding the RJALPHA Dashboard
6. Glossary, Key Terms Explained

Part 1, What Is Crypto and Why Does It Exist?

The Short Version

Cryptocurrency is digital money that works without banks. Instead of a bank keeping a ledger of who owns what, a network of computers keeps that ledger, and everyone can see it. Nobody controls it. Nobody can change it. That's the entire point.

What Is Bitcoin?

Bitcoin was created in 2009 by someone (or a group) using the name Satoshi Nakamoto. The idea was simple: money that can't be printed, can't be censored, and can't be controlled by any government or institution.

There will only ever be 21 million Bitcoin. That number is coded into the software and cannot be changed. This is fundamentally different from traditional currencies like the pound or dollar, where central banks can print more whenever they decide to. That fixed supply is a core reason people see Bitcoin as a store of value.

What Is a Blockchain?

A blockchain is just a record book. Every transaction ever made is recorded in blocks, and each block is linked to the one before it, forming a chain. Once a block is added, it can't be altered without changing every block after it, which would require controlling more than half the computers on the network. In practice, this makes it tamper-proof.

You don't need to understand the technical details. What matters is the outcome: a system where ownership is provable, transactions are permanent, and no single entity is in charge.

Why Does It Have Value?

This is the question most beginners ask. The answer is the same reason anything has value: because people agree it does. But Bitcoin has specific properties that make that agreement rational:

• It's scarce. Only 21 million will ever exist.
• It's portable. You can send millions of pounds anywhere in the world in minutes.
• It's divisible. You don't need to buy a whole Bitcoin. You can buy £10 worth.
• It's verifiable. Anyone can check the supply and any transaction on the blockchain.
• It's censorship-resistant. No government can freeze your Bitcoin if you hold your own keys.

Gold has value for similar reasons: scarcity, durability, global recognition. Bitcoin is often called "digital gold" because it shares those properties but exists entirely in the digital world.

What About Other Cryptocurrencies?

Bitcoin was first, but thousands of other cryptocurrencies ("altcoins") now exist. Some of the major ones:

Ethereum (ETH) A programmable blockchain. While Bitcoin is primarily money, Ethereum lets developers build applications on top of it. Think of Bitcoin as digital gold and Ethereum as a digital operating system.

Solana (SOL) A faster, cheaper alternative to Ethereum. Processes thousands of transactions per second. Popular for applications where speed matters.

Stablecoins (USDT, USDC) Cryptocurrencies pegged to the US dollar. 1 USDT = $1. These are used as a safe harbour within crypto; when you want to step out of a position without converting back to pounds or dollars, you move into a stablecoin.

Not all cryptocurrencies are worth your attention. Most will go to zero. The ones that survive tend to have genuine utility, strong developer communities, and real demand. Our dashboard tracks the ones that matter.

Key Takeaways

• Crypto is digital money without banks or governments controlling it.
• Bitcoin is the original and most established, with a fixed supply of 21 million.
• You don't need to buy a whole coin. You can start with any amount.
• Stablecoins are your "cash" within crypto, pegged to the dollar.
• Most altcoins fail. Stick to the majors until you know what you're doing.

Part 2, How to Buy Crypto

Investing, Not Trading

Before we get into the how, it's worth being clear about the approach. RJALPHA is built for investors, not traders. The difference matters.

Trading means sitting in front of charts trying to catch short-term moves, buying and selling within hours or days. It requires significant skill, constant attention, and most people who try it lose money. It's stressful, time-consuming, and statistically the odds are against you.

Investing means taking a longer-term view. You buy with a horizon of months or years, guided by data and signals rather than gut feeling. It's safer, it doesn't require you to watch charts all day, and critically, you can earn while you learn. The dashboard does the heavy analysis; you make informed decisions based on what it tells you.

This is also why starting capital matters less than you might think. Even a small amount invested intelligently over time can grow meaningfully through compounding. That said, the more you have working for you, the easier it is to generate safe, consistent returns. The key is to start with what you can afford and build from there.

Step 1: Choose an Exchange

An exchange is where you buy and sell cryptocurrency. It's the equivalent of a stockbroker but for crypto. The major exchanges are:

Coinbase The most beginner-friendly. Simple interface, well-regulated, available in the UK and US. Higher fees but easiest to use.

Kraken Established, good reputation, reasonable fees. Slightly more complex interface than Coinbase but still manageable for beginners.

Binance The largest exchange by volume. Lower fees but more complex. Better suited once you're comfortable with the basics.

If you've never bought crypto before, start with Coinbase. You can always move to other exchanges later.

Step 2: Create an Account and Verify Your Identity

Every legitimate exchange requires identity verification (KYC, Know Your Customer). This is a legal requirement, not optional. You'll need:

• A valid passport or driving licence
• A selfie or photo for facial verification
• Proof of address (utility bill or bank statement)

Verification usually takes a few minutes to a few hours. Some exchanges let you start with small purchases before full verification is complete.

Step 3: Deposit Funds

Once verified, deposit money from your bank account. Most UK users can deposit via:

• Bank transfer (Faster Payments), free or very low fee, arrives within minutes
• Debit card, instant but higher fees (typically 1.5 to 3%)

Avoid credit card purchases. Most cards block crypto transactions, and those that don't charge cash advance fees and interest from day one.

Step 4: Place Your First Order

There are two main types of order:

Market order The simplest option. You buy at whatever the current price is. The exchange fills your order immediately at the best available price. For a beginner buying Bitcoin, this is all you need.

Limit order You set the price you want to pay. If Bitcoin is at £60,000 and you set a limit order at £58,000, your order only fills if the price drops to that level. More control but requires patience.

Start with market orders. Limit orders are useful but add complexity you don't need on your first purchase.

Step 5: Understanding Fees

Every exchange charges fees. The main ones:

• Trading fees, typically 0.1 to 1.5% per trade depending on the exchange and your volume
• Deposit fees, bank transfers are usually free, card payments cost more
• Withdrawal fees, charged when you move crypto off the exchange to your own wallet
• Spread, the difference between the buy and sell price. This is a hidden cost on "fee-free" platforms

Fees matter over time. If you're making regular purchases, a lower-fee exchange saves real money over months and years.

How Much Should I Start With?

There is no minimum. You can buy £10 of Bitcoin. The important thing is to start with an amount you're comfortable with. Crypto is volatile; prices can drop 30 to 50% in a matter of weeks. That's normal, not a crisis, and the dashboard is designed to help you navigate those periods. But you should never invest money you need for rent, bills, or emergencies.

A common approach is to set aside a fixed amount each week or month regardless of price. This is called dollar-cost averaging (DCA). You buy more when prices are low and less when they're high, which averages out your entry price over time. It's the simplest, lowest-stress way to build a position, and it's exactly the kind of approach our dashboard is built to support.

The important thing is to start. Even a small amount gives you skin in the game, which makes everything you learn on the dashboard real rather than theoretical. You'll learn faster with £50 invested than £0 watching from the sidelines.

Key Takeaways

• We advocate investing, not trading. Longer horizons, less stress, better odds.
• Use a regulated exchange. Coinbase for beginners, Kraken or Binance as you grow.
• You'll need to verify your identity. This is normal and required by law.
• Start with market orders. Keep it simple.
• Start with whatever you can afford. Even small amounts compound over time.
• DCA (regular small purchases) is the easiest way to build a position.

Part 3, How to Store It Safely

Exchange vs Wallet

When you buy crypto on an exchange, the exchange holds it for you. This is like keeping cash in a bank: convenient, but you're trusting the bank not to lose it. In crypto, this matters because exchanges can be hacked, freeze withdrawals, or in rare cases, collapse entirely (FTX in 2022 being the most notable example).

A wallet is software (or hardware) that lets you hold your own crypto. When you move crypto to your own wallet, you control it directly. Nobody can freeze it, nobody can take it, and nobody can lose it except you.

For now, you just need to understand that this option exists and why it matters. If you're starting out with a small amount on a regulated exchange, that's fine. When you're ready to move crypto to your own wallet, we'll have a step-by-step guide for that.

We'll publish a separate walkthrough on setting up and using wallets. Don't worry about this step until you're ready.

Types of Wallet

Hot wallets are apps on your phone or computer. They're connected to the internet, which makes them convenient but slightly less secure. Good for amounts you actively use. Popular options include MetaMask (Ethereum), Trust Wallet (multi-chain), and Phantom (Solana).

More on how to set up a hot wallet in our separate wallet guide.

Cold wallets (hardware wallets) are physical devices that store your crypto offline. They look like USB sticks. Because they're not connected to the internet, they're the most secure option for long-term storage. The two main options are Ledger and Trezor.

More on how to set up a hardware wallet in our separate wallet guide.

If you're holding more than you'd be comfortable losing, a hardware wallet is the right move. Think of it as a safe for your crypto.

Seed Phrases: The Most Important Thing in This Guide

When you create a wallet, you'll be given a seed phrase: 12 or 24 random words. This is the master key to your crypto. If your phone breaks, your laptop dies, or your hardware wallet is lost, you can recover everything with this phrase.

This also means anyone who has your seed phrase has your crypto. There are no exceptions and no recovery options if someone else gets it.

Rules for your seed phrase:

• Write it down on paper. Do not store it digitally, not in notes, not in photos, not in email, not in the cloud.
• Store it somewhere physically secure. A fireproof safe or safety deposit box.
• Never share it with anyone. No legitimate service will ever ask for it. If someone asks for your seed phrase, it is a scam. Full stop.
• Consider making a second copy stored in a different location.

When to Use Which

Situation	Recommendation	Why
Small amount, just starting out	Leave on exchange	Convenience outweighs risk for small sums
Medium amount, holding for months	Hot wallet (phone/desktop)	You control it, easy to access when needed
Large amount, long-term hold	Hardware wallet (Ledger/Trezor)	Maximum security for significant value

Common Scams to Watch For

• Fake websites. Always check the URL. Bookmark the real exchange site and only access it from that bookmark.
• Phishing emails. Exchanges will never ask you to "verify your wallet" via email link.
• Seed phrase requests. Nobody legitimate will ever ask for it.
• "Send me 1 BTC and I'll send back 2". This is always a scam. Always.
• Fake customer support. Scammers impersonate exchange support on social media. Real support never DMs you first.

Key Takeaways

• Starting out on an exchange is fine. Move to your own wallet when you're ready and comfortable.
• Hardware wallets (Ledger, Trezor) are the gold standard for security.
• Your seed phrase is everything. Write it down, store it safely, never share it.
• If someone asks for your seed phrase or promises free crypto, it's a scam.

Part 4, What Moves the Price

This is where most beginner guides stop. They tell you what crypto is and how to buy it, but not why it goes up or down. Understanding this is the difference between investing and gambling.

Some of the terms in this section may be new to you. Don't worry. We've included a Glossary at the end of this guide that explains all the key terms in plain English. If you hit a word you don't recognise, check there.

Supply and Demand: The Basics

At the simplest level, prices move because of supply and demand. More buyers than sellers means price goes up. More sellers than buyers means price goes down. But what drives those buyers and sellers is where it gets interesting.

Bitcoin's Halving Cycle

Every four years (approximately), the amount of new Bitcoin created per block is cut in half. This is called the halving. In 2009, miners received 50 BTC per block. After the 2024 halving, they receive 3.125 BTC per block.

This used to be a major catalyst for price movement. In the early cycles, cutting new supply in half had a dramatic effect because the market was small and supply-sensitive. These days, the halving has much less direct impact on price. The market is far larger, institutional capital dwarfs miner selling pressure, and the supply reduction is now a fraction of daily trading volume. It's still worth knowing about for context, but it's no longer the price driver it once was.

What matters more now is demand, and what drives demand is liquidity.

Our BTC Cycle chart tracks where we are in the multi-year cycle using on-chain data. It scores conditions from 0 to 100 across five zones: Deep Value, Accumulation, Fair Value, Expensive, and Danger. The cycle includes halving timing but weighs it alongside more impactful signals.

Liquidity: The Real Driver

This is what most people miss. Bitcoin doesn't move in isolation. It moves with global liquidity, the total amount of money flowing through the financial system.

When central banks (the Fed, ECB, Bank of England, Bank of Japan) add money to the system through quantitative easing (QE), rate cuts, or bond purchases, that money eventually finds its way into risk assets. Stocks, property, and crypto all benefit. When they remove money through quantitative tightening (QT) or rate hikes, the opposite happens.

QE, QT, rate cuts, and other terms are explained in the Glossary.

The relationship is measurable. Our research shows that the Global Liquidity Index leads Bitcoin by approximately 7 days, and the Credit Liquidity Index leads by approximately 6 days. These aren't theories; they're statistical relationships derived from real data.

Our dashboard tracks this through the Global Liquidity Index (GLI) and Credit Liquidity Index (CLI). These aggregate dozens of macro indicators into single signals that tell you whether the liquidity environment is expanding or contracting, and by extension, whether conditions favour crypto or not.

The Liquidity Pipeline

Liquidity doesn't just appear and disappear. It flows through a pipeline. Understanding this at a high level helps you see why "liquidity is up" isn't always what it seems:

• Governments issue debt (bonds) to fund spending
• Banks and institutions buy that debt at auction
• Those bonds become collateral; they get reused in the banking system to support more lending
• Banks use that lending capacity to make loans to businesses and individuals
• Those loans increase the money supply, which eventually flows into assets including crypto

If this pipeline breaks at any stage (poor demand at auction, stress in the banking system, banks refusing to lend), liquidity stops flowing even if headline numbers look healthy. This is one of the most common reasons people get caught out: they see "liquidity is up" on social media and assume it's bullish, without realising the pipeline is blocked further down.

Terms like collateral, repo, and rehypothecation are explained in the Glossary.

Our Transmission Tracker monitors all five stages of this pipeline and identifies exactly where blockages occur. It's one of the more advanced charts, available at higher risk levels.

The Dollar, Gold, and Cross-Asset Flows

Bitcoin doesn't just compete with other cryptos for capital. It competes with gold, equities, and bonds. When the US dollar strengthens, it typically creates a headwind for Bitcoin because dollar-denominated assets become more expensive for the rest of the world. When the dollar weakens, capital flows into alternatives.

Gold has a particularly interesting relationship with Bitcoin. Our data shows gold tends to lead Bitcoin by approximately 60 days: when gold moves, Bitcoin follows with a lag. Both respond to the same forces (real interest rates, inflation expectations, dollar strength), but gold moves first because it's a larger, more liquid market with deeper institutional participation.

However, this relationship can break during periods of geopolitical stress (wars, trade wars, political tensions). During these events, investors pile into gold as a safety net, not as an investment. When capital is flowing into gold purely for protection, the normal lead-lag relationship with Bitcoin weakens or disappears because the money isn't following the usual macro logic. It's fear-driven, not investment-driven. The relationship tends to reassert itself once the acute stress passes.

Our Capital Allocation Tracker monitors BTC vs gold vs S&P 500 in real time, showing you where capital is flowing between these asset classes.

Market Sentiment: Fear and Greed

Crypto markets are driven by emotion more than traditional markets. Fear causes sharp selloffs. Greed drives parabolic rallies. Understanding where sentiment sits helps you avoid the most common mistake in investing: buying at the top because everyone is excited, and selling at the bottom because everyone is panicking.

There's an old saying in investing: smart money buys when the market is fearful and sells when the market is greedy. Most beginners do the opposite: they buy when prices are surging because it feels safe, and they sell when prices crash because it feels dangerous. The data consistently shows this is the worst approach. The best entry points historically come when sentiment is at its lowest.

This is one of the reasons we built the dashboard the way we did. The signals are designed to cut through emotion. When the HODL Index (our Risk Averse Strategy) says to sit on the sidelines, it doesn't matter how excited Twitter is. When the BTC Cycle says Deep Value, it doesn't matter how scared people are. Data over emotion.

Volatility

Crypto can move 5 to 10% in a single day. For traditional investors, this feels alarming. For crypto, it's normal. The key is understanding whether that volatility is within a broader uptrend (a buying opportunity) or part of a structural breakdown (a warning sign). Context matters more than the move itself.

Our Market State chart classifies conditions into four quadrants: Calm Ranging, Calm Trending, Volatile Ranging, and Volatile Trending. This helps both you and the AI understand what kind of market we're in.

What This All Means for You

You don't need to track all of this yourself. That's why we built the dashboard. But understanding that these forces exist helps you interpret what the dashboard is telling you and why.

The point of this section isn't to make you a macro analyst. It's to give you enough understanding that you trust the signals rather than second-guessing them based on what someone said on Twitter.

Key Takeaways

• Prices move because of supply and demand, driven by liquidity, sentiment, and macro conditions.
• The halving used to be a major catalyst but has much less impact now. Liquidity is the real driver.
• Global liquidity is the single biggest factor. When money flows into the system, risk assets benefit.
• Gold leads Bitcoin by about 60 days, but this can break during geopolitical stress when gold acts as a safety net.
• Smart money buys when fearful, sells when greedy. The dashboard helps you do the same.
• The dashboard tracks all of this so you don't have to do it manually.

Part 5, Understanding the RJALPHA Dashboard

The dashboard has 20+ charts. You don't need to know all of them. When you sign up, you choose a risk level (1 to 5) and the AI will tell you which charts are the most important for your level and how to read them. Higher levels add more tools, but lower levels aren't missing anything; each level is a complete strategy on its own.

A Note on the AI Chat

The AI assistant on the dashboard can answer questions about any chart, explain signals, and give you context on current market conditions. When you ask it a question, let it know your risk level so it can give you the most relevant answer. The AI chat doesn't remember your level between sessions, so mentioning it when you start a conversation keeps the advice accurate and tailored to your strategy.

The Risk Levels

There are two categories of investor in this framework. Levels 1 to 3 are timing-based: the system tells you when to be in the market and when to step aside. Levels 4 to 5 are always invested; they never exit to cash and manage risk through asset rotation instead.

Level 1: Steady

BTC only. Spot. The Risk Averse Strategy (HODL Index) tells you when to buy and when to sit out. The BTC Cycle shows where we are in the multi-year cycle. Fair value models tell you whether current prices are cheap or expensive relative to liquidity. This level is for people who want exposure to Bitcoin without complexity. The AI will point you to these three charts as your primary signals.

Level 2: Rotation

Now you're rotating between major cryptos (BTC, ETH, SOL, BNB, XMR) based on which is performing best. The Asset Dominance system ranks them by risk-adjusted returns and tells you which to overweight. Still timing-based: the Risk Averse Strategy still gates when you're in and when you're out. The AI will highlight Asset Dominance as your key additional chart.

Level 3: Active

The full active toolkit. Risk Averse Strategy for timing, Asset Dominance for rotation, Leverage Risk Gauge for when it's safe to add leverage, and Alt League for altcoin selection. The AI will walk you through each of these and how they interact.

Level 4: Committed

Always invested. Never exits to cash. The aggression here isn't leverage; it's the commitment to staying in through drawdowns. Asset Dominance drives rotation, and the full macro pipeline informs how defensively or aggressively to allocate. Spot only, no leverage. The AI will focus on rotation signals and macro context.

Level 5: Full Spectrum

Always invested like Level 4, but with leverage (2x maximum) and Alt League back in the mix. Every chart, every diagnostic, every signal. The AI surfaces everything.

The Core Charts (What They Do)

Here's a plain-English explanation of the main charts. The AI will tell you which ones to focus on based on your risk level.

BTC Cycle Scores where Bitcoin sits in its multi-year cycle from 0 to 100 using five on-chain signals. Deep Value and Accumulation zones have historically been the best times to buy. Expensive and Danger zones have historically preceded major corrections. Think of it as a long-term compass.

Risk Averse Strategy (HODL Index) The name "HODL" comes from a famous misspelling of "hold" in an early Bitcoin forum post; it stuck and became crypto slang for holding your position through volatility. On our dashboard, it's now called the Risk Averse Strategy. It outputs a single number: what percentage of your intended position to hold right now (0 to 100%). It combines momentum, cycle risk, and a crash detector. The four states are EXIT (0%), ACCUMULATE (15 to 80%), REDUCE (30 to 70%), and HODL (100%). For timing-based levels (1 to 3), this is the primary action signal.

BTC Fair Value Shows what Bitcoin should be worth based on current system liquidity. When price is below the model, BTC is cheap relative to liquidity conditions. When it's above, it's expensive. The ±1 standard deviation bands give you a range.

Asset Dominance Ranks the major cryptos by who has the best risk-adjusted returns right now. It tells you which asset to overweight in your portfolio. Includes a filter to prevent excessive switching between assets.

What Is Leverage?

Leverage means borrowing money to increase the size of your position. If you have £1,000 and use 2x leverage, you're controlling £2,000 worth of crypto. If the price goes up 10%, you make 20% (double the gain). But if it goes down 10%, you lose 20% (double the loss). At higher leverage, a relatively small move against you can wipe out your entire position. This is called liquidation.

This is why leverage is restricted on our platform. It's only available at Levels 3 and 5, it's capped at 2x maximum, and it requires the Leverage Risk Gauge to confirm conditions are safe before any leveraged position. If you're a beginner, you don't need to think about leverage at all. Levels 1 and 2 are spot only.

Leverage Risk Gauge Tells you whether it's safe to use leverage. This is separate from Asset Dominance: just because an asset is dominant doesn't mean it's safe to leverage. The gauge catches short-term risks that would be fine for a spot holder but could liquidate a leveraged position. Three signals: RISK_ON (safe), NEUTRAL (reduced size only), RISK_OFF (no leverage).

Alt League A ranking system for altcoins. Altcoins are smaller, more volatile cryptocurrencies outside the top majors. Alt League scores tokens across 10+ factors including returns, momentum, volume, and entry criteria. Every evening, it highlights the best entries and tells you which coins are the safest to be in. These are still higher-risk positions; altcoins are highly volatile by nature. But Alt League helps you pick the best opportunities within that space and avoid the worst.

Global Liquidity Index (GLI) and Credit Liquidity Index (CLI) The two main liquidity measures. GLI aggregates 15 macro indicators with a 7-day lead on BTC. CLI focuses on credit markets with a 6-day lead. Together they tell you whether the liquidity environment is expanding or contracting, the single biggest driver of crypto prices.

How the AI Uses These Charts

The AI on the dashboard reads all of these signals in real time. When you ask it a question, it responds within the context of your risk level. Remember to tell the AI your risk level when you start a conversation so it knows which charts and signals are relevant to you.

If you're Level 1 and ask "should I buy?", the AI checks the Risk Averse Strategy, BTC Cycle, and fair value. If you're Level 5 and ask the same question, it checks the entire pipeline from macro regime to transmission diagnostics to leverage gauges to alt rankings.

The AI won't hide charts from you, but it will tell you which are the most important for your level. You're free to explore any chart on the dashboard; the AI just makes sure you know which ones matter most for your strategy.

Getting Started

If you've made it through this guide, you know more than most people entering the crypto space. Here's what to do next:

• Sign up at rjalpha.app and choose your risk level. If you're new, Level 1 is the right starting point.
• Buy your first crypto on a regulated exchange (see Part 2).
• Open the AI chat and tell it your risk level. Ask it what the current signals are saying.
• Don't panic during drawdowns. Crypto is volatile. The dashboard exists to help you navigate that volatility with data rather than emotion.
• Graduate when you're ready. As you learn, you can move up levels to access more tools. There's no rush.

Glossary: Key Terms Explained

This section explains the financial and crypto terms used throughout this guide. Refer back to it whenever you hit a word you don't recognise.

Altcoin Any cryptocurrency other than Bitcoin. Ethereum, Solana, and thousands of smaller tokens are all altcoins. Generally more volatile and higher risk than Bitcoin.

Auction (Treasury) When a government needs to borrow money, it sells bonds at auction. Banks and institutions bid to buy them. How well these auctions go affects liquidity conditions across the entire financial system.

Blockchain A digital ledger that records every transaction in a cryptocurrency. Each "block" of transactions is linked to the previous one, creating a chain. It's maintained by a network of computers, not a single company or bank.

Bond A loan to a government or company. When you buy a bond, you're lending money in exchange for interest payments and the return of your money at a set date. Government bonds (like US Treasuries) are considered among the safest investments.

Collateral An asset pledged as security for a loan. In the financial system, government bonds are commonly used as collateral. Banks and institutions use them to borrow money from each other.

DCA (Dollar-Cost Averaging) Investing a fixed amount at regular intervals regardless of price. Instead of trying to time the market with one big purchase, you spread your buying over weeks or months. This averages out your entry price.

Exchange A platform where you buy and sell cryptocurrency. Examples: Coinbase, Kraken, Binance. Think of it as a stockbroker for crypto.

Fed (Federal Reserve) The central bank of the United States. Its decisions on interest rates and money supply affect global financial markets, including crypto. When the Fed adds money to the system, it tends to benefit risk assets like Bitcoin.

HODL Originally a misspelling of "hold" in a 2013 Bitcoin forum post during a price crash. It became crypto slang for holding your position through volatility rather than panic-selling. On our dashboard, the HODL Index is now called the Risk Averse Strategy.

KYC (Know Your Customer) Identity verification required by regulated exchanges. You'll need to provide ID and proof of address. This is a legal requirement to prevent fraud and money laundering.

Leverage Borrowing money to increase the size of your trading position. 2x leverage means you control double your actual capital. Amplifies both gains and losses. If the position moves against you enough, you can lose everything (liquidation). Only available at Levels 3 and 5 on our platform, capped at 2x maximum.

Liquidation When a leveraged position loses enough value that it's automatically closed by the exchange. The exchange sells your position to recover the money you borrowed. This means you lose your invested capital.

Liquidity The total amount of money flowing through the financial system. More liquidity generally means more money available to invest in assets like crypto. Less liquidity means tighter conditions. The single biggest driver of crypto prices over time.

Market Cap The total value of a cryptocurrency. Calculated as price multiplied by the number of coins in circulation. Bitcoin has the largest market cap in crypto.

QE (Quantitative Easing) When a central bank creates new money and uses it to buy bonds from banks. This injects liquidity into the financial system. Generally positive for risk assets including crypto.

QT (Quantitative Tightening) The opposite of QE. The central bank reduces its bond holdings, removing liquidity from the system. Generally negative for risk assets.

Rate Cut / Rate Hike When a central bank lowers (cut) or raises (hike) its base interest rate. Rate cuts make borrowing cheaper, encouraging spending and investment. Rate hikes make borrowing more expensive, slowing the economy. Rate cuts tend to benefit crypto; rate hikes tend to hurt it.

Real Yields Interest rates adjusted for inflation. If a bond pays 4% but inflation is 3%, the real yield is 1%. When real yields are high, investors can earn decent returns from safe assets like bonds, which reduces demand for riskier assets like crypto. When real yields are low or negative, investors look elsewhere for returns.

Rehypothecation When collateral (like government bonds) is reused multiple times in the financial system. Bank A pledges a bond to borrow from Bank B, Bank B uses the same bond to borrow from Bank C, and so on. This multiplies the lending capacity in the system.

Repo Market Short for "repurchase agreement." A market where banks lend to each other overnight using bonds as collateral. It's the plumbing of the financial system. When repo markets are stressed, it can tighten credit conditions across the entire economy.

Seed Phrase A set of 12 or 24 random words generated when you create a crypto wallet. This is the master key to your funds. Anyone with your seed phrase can access your crypto. Never share it, never store it digitally.

Spot Buying and holding the actual asset (as opposed to using leverage or derivatives). A "spot" position in Bitcoin means you own actual Bitcoin. Spot positions can't be liquidated; you can hold through any drawdown.

Stablecoin A cryptocurrency pegged to a traditional currency (usually the US dollar). 1 USDT = $1. Used as a "cash" position within crypto; when you want to step out of a volatile position without leaving the crypto ecosystem.

Wallet Software or hardware that stores your cryptocurrency. Hot wallets are apps connected to the internet. Cold wallets (hardware wallets) are physical devices that store crypto offline for maximum security.

Welcome to RJALPHA.