This book will take you from beginner to advanced in the world of cryptocurrency trading. The concepts of using technical analysis, fundamentals, and risk management are covered in depth. The most important part of trading is knowing what you own, why you own it, and when to get out.
Crypto Currency Trading 101: Step-by-step: A guide to the fundamentals of cryptocurrency trading.
Cryptocurrency Trading 101: Step-by-step: A guide to the fundamentals of cryptocurrency trading.
Cryptocurrencies are arguably the most exciting asset class right now. The volatile nature and potential profits are attracting investors from all over the world to this new form of trading. There is a lot of money to be made, but there is also a lot to learn. This article will serve as a step-by-step guide for trading cryptocurrencies with tips and advice on how to avoid losses and maximize profits.
The Cryptocurrency Market
Before we get started, it is important to understand that the cryptocurrency market is unlike any other financial market in the world today. In fact, it is more similar to Forex than anything else, however, bigger and more volatile (in both directions). The cryptocurrency market never sleeps which means that even if you trade 24/7, there will still be opportunities for you to profit from your trades. Fiat pairs generally only experience high volatility during specific times of the week or month depending on economic events. In addition, most fiat pairs have low volatility due to their liquidity and popularity amongst investors.
Trying to stay on top of the latest cryptocurrency news?
With so many outlooks and opinions across the web, it can be difficult to know who to trust and where to look.
This article compiles some of the best sources for cryptocurrency traders – from big-picture news outlets to dedicated technical analysis blogs and from YouTube channels to full-blown education platforms.
We’ve aimed for a range of sources – including big names, specialist channels and independent voices. We hope you’ll find it helpful in your own trading journey. (And for more advanced traders: we haven’t included too many technical tools here, but you might want to check out our list of handy cryptocurrency apps.)
The world of cryptocurrency trading is full of pitfalls, and there are a huge number of considerations to take into account. Following the steps laid out in this guide will put you in the best position to profit from crypto trading.
It’s important to remember that you’re still investing in an asset class with high volatility and risk. And even though crypto assets do have some advantages over traditional assets (like stock or currencies), these advantages don’t come without downsides. These include but are not limited to:
● Crypto assets are unregulated, which means they lack investor protection.
● Cryptocurrency exchanges can be hacked at any time, resulting in huge losses for investors.
● Crypto assets are not backed by anything tangible, so their intrinsic value is usually zero (this is why many people call them worthless).
● Cryptocurrencies have a very short lifespan and tend to die out quickly. The majority of them have no use case other than speculation, so they lose their value once speculation stops.
In no time, you will start to pick up on some of the more advanced terms and concepts and you’ll be a professional too.
But, before we get into the details, I want to make sure that you have an understanding of basic cryptocurrency trading terminology/lingo.
To help you better understand cryptocurrency trading, let’s take a look at some of the most common cryptocurrency trading terms:
Orderbook – This is where all of the buy and sell orders are listed.
Ask Price – The ask price is what the market is willing to sell for.
Bid Price – The bid price is what people are willing to pay for it.
Spread – This is simply the difference between the bid price and ask price.
At its core, cryptocurrency is a medium of exchange that makes use of cryptography to secure the currency and control its creation. Cryptocurrency is also decentralised, which means it is not owned by any one central authority like a bank or government.
Cryptocurrency is traded on exchanges just like traditional securities such as stocks, bonds and currencies. The Bitcoin price, for example, is determined by supply and demand on cryptocurrency exchanges around the world. When demand for Bitcoin increases, the price goes up and traders make profits by selling at a higher price than they bought at.
Trading Bitcoin can be profitable if you manage to get a good rate at the time of buying or selling the cryptocurrency. Cryptocurrencies have been volatile ever since Bitcoin came into existence in 2009. While there are no guaranteed returns when trading Bitcoin, your trades can be profitable if you do your market research and remain patient. This guide will teach you how to trade Bitcoin so that you can begin taking advantage of this popular financial instrument.
The boom in cryptocurrency trading has led to a surge in the number of cryptocurrency brokers. If you are wondering how to find the best cryptocurrency broker, then read on.
In this guide, we will highlight the five most important things that any prospective crypto trader should be looking for in their broker:
Regulation and safety