How To Get Started In Cryptocurrency Trading: What You Need To Know

How To Get Started In Cryptocurrency Trading: What You Need To Know

Cryptocurrency trading can be a bumpy ride. While there are many benefits to trading crypto, such as access to markets that don’t frequently see traditional capital, it can also be a challenging experience for new traders. Understanding the basics of trading in cryptocurrency can open up an exciting world of possibilities. However, with so many coins, exchanges, and marketplaces to navigate, finding your first trade can be daunting. Let’s look at some key points you should know before diving into any trades.

What is cryptocurrency?

Simply put, cryptocurrency is digital cash. It’s decentralized, meaning no bank or government controls it. You can use it to send money to anyone, take part in financial transactions, or invest in its future. Many people are turning to cryptocurrencies because they want to keep their money safer than in traditional banks, which have been targeted by hackers in recent years.

How to trade cryptocurrency

Trading platforms like Robinhood, yuan pay group and Robinhood Pro let you buy and sell cryptocurrencies like Bitcoin, Ethereum, and more. You can also trade a variety of other assets like stocks, ETFs, and options. You can access your account from your computer or mobile device. Once you’ve signed up for an account, you can start trading cryptocurrencies. Some trading platforms let you buy and sell single tokens or baskets of tokens. If you’re new to trading cryptocurrencies, it can be helpful to start by learning how to trade them like stocks. When you first open your account, you can follow a stock trading strategy to get used to the process. You can also trade cryptocurrencies with a strategy built around technical analysis, or by following market momentum. Technical Analysis involves studying charts and patterns to predict future price movements. Market momentum is the speed at which the market is moving at the current moment in time. Both types of analysis can be helpful when you’re first starting to trade cryptocurrencies.

Borrow and lend using a cryptocurrency exchange

Some exchanges let you borrow and lend coins, or short sell a coin’s future to profit from its current price. Short selling is when you borrow a coin and promise to return it at a certain price later. You can trade the coin to profit from the difference between the current price and your agreed-upon price. For example, if you borrow a coin at $100 and expect to return it at $110, you profit $10 per short sale. Some exchanges let you short sell a wide range of coins. While it can be risky, it can also be a great way to find profitable trading opportunities.

Set stop loss orders and take profit orders

When you buy a coin, you’ll often want to set stop loss orders to limit your losses if the price of the coin drops significantly. Similarly, when you first buy a coin, you can set a stop price to help you take profit if the price reaches a certain level. It’s important to set stop loss orders conservatively. If the price drops too low, you could miss the opportunity to sell the coin at a profit. On the other hand, if the price rises too much, you could end up with a large loss. Start with small stop loss orders and increase them as you gain more experience. A final important trading tip is to keep your trading activity to a reasonable amount of time per day. If you put in too many hours, you could burn out and lose enthusiasm for trading.

Use real-time price tracking tools

If you’re trading more than a few coins, it can be helpful to track price movements with a price tracking tool. They can help you stay on top of market movements and quickly find trading opportunities. Some popular price tracking tools include, which tracks all major coins, and, which tracks coins like Bitcoin, Ethereum, and other emerging cryptocurrencies. You can also use these tools to follow the price of individual tokens in your portfolio.

Bottom line

With cryptocurrency trading, you can find opportunities to make large amounts of money quickly. However, you have to be careful about your strategy, know how to protect your investment, and have a long-term trading strategy in place. Trading cryptocurrency can be a rewarding experience for those willing to learn.