No wonder that every day there are more and more people who want to make money on the crypto market. Different ways of making money from cryptocurrencies are used: mining, long-term investments, as well as trading. Trading (cryptocurrency trading) allows increasing profits in a short period of time.

Cryptoassets are high-risk instruments, and trading them without a plan often results in a loss of investment capital. Cryptocurrency trading requires a high level of knowledge. All basic concepts of “classic” trading (diversification, liquidity, technical indicators, etc.) are equally applicable to operations with digital assets. If you are new to exchange trading and want to become a crypto trader, you need to learn the key terms and principles and choose the right crypto exchange.

Trading = trading

In this article, we’ll break down how the cryptocurrency market works, which exchange and currency to choose to start, and note the advantages and disadvantages of crypto trading.

What is crypto trading

Cryptocurrency trading or crypto-trading is speculating on the price movements of digital currencies. Read: Best cryptocurrency exchanges in 2022. This type of trading involves exchanging one cryptocurrency for another, buying and selling coins, and exchanging fiat money for cryptocurrency. Crypto trading usually revolves around buying/selling assets rather than owning any of the real coins. You exchange one cryptocurrency for another in hopes of selling the asset at a better price.

The difference between trading and investing

There is a difference between trading cryptocurrencies ( trading ) and investing in them. It lies in the time period during which the trader or investor keeps the position on the exchange open . Get a free video course on trading Email * Watch course There are different approaches to describing the time limit after which trading transactions pass into the category of investment. According to the averaged variant all deals of more than a year duration are referred to investment deals, and all deals of shorter duration are referred to trading deals.

Trading, in its turn, is also divided into groups, depending on the duration of transactions: Intraday trading (intraday) – transactions are executed during the trading day;

Day trading – transactions may remain open for several days, as a rule, for up to a week or two; Mid-term trading – transactions may remain open for up to several months. This concept is similar to a currency exchange or stock market, but there are still some differences. Types of cryptocurrency trading Cryptocurrency trading is divided into several types, depending on the instruments used. The most widely represented on cryptocurrency exchanges are: the spot market, derivatives markets and markets of different types that support margin trading (leveraged trading).

The spot market is the most common market for cryptocurrencies. It is presented on all cryptocurrency exchanges and is available through the trading terminal. In this market, the cryptocurrency is instantly transferred in possession from seller to buyer, and the exchange acts as an intermediary regulating the transfer of the asset at an agreed price (the purchase or sale price). Trading derivatives can increase both profits and losses The derivatives markets are divided into several types .

Let us distinguish the most common ones and review the basic terms. Futures is a derivative (a derivative instrument from an underlying asset, which can be a currency, stock, commodity, etc.) that represents an agreement between a seller and a buyer to buy an underlying asset at a specified price at a specified time in the future. After the expiration of the contract (the time of expiration), the buyer is obliged to pay the seller the agreed amount.

Cryptocurrency futures market – in this market cryptocurrencies are not traded, but contracts for their future delivery to the buyer. By trading in cryptocurrency futures, the trader is actually betting on the rise or fall in the price of the underlying asset, the cryptocurrency, without receiving it after the expiration date of the futures. Cryptocurrency futures mostly have a formal expiration date of 1 trading day and are immediately extended to the next one. Because of this, they are often called perpetual or perpetual .

Option is another derivative, which is a contract that gives its buyer the right to buy or sell the underlying asset at a certain price in the future. Unlike the owner of a futures contract, the option holder is not required to buy or sell the asset when it expires. Option cryptocurrency market – similar to the classic option market. Just like in the futures market, the trader, without owning the asset, bets on the price change. If he expects growth he buys a call option, if he expects decline – a put option. The buyer is charged a premium for buying an option (this is the price of the right to sell or buy an option). If the desired price level is reached, the trader can sell the option and make a profit.
Beginner traders are not recommended to go straight to the margin trading

Many exchanges on the spot and futures markets support margin trading in bitcoin and other cryptocurrencies . Margin trading – or leveraged trading. It is a type of trading (mostly available on futures or spot markets), when a trader can use several (10, 25, 100, etc) borrowed capital for 1 unit of his capital. Margin trading allows many times bigger profit in case of successful transaction, but also many times bigger loss in case of failure. Active trading in the cryptocurrency markets is often left to traders. As a rule, investors prefer other strategies: for example, to enter new projects at the initial stages of their development. IEOs and ICOs are suitable for this type of investment. ICO (Initial Coin
Offering – a method of attracting investment by selling a certain amount of cryptocurrency to the first investors of the project.

Investors buy coins with the expectation of their future growth. ICO can take place on any suitable platform and is not yet regulated by strict rules. Because of the lack of regulation, participation in ICOs involves a risk of being defrauded, so IEOs have recently become a more common option to invest in projects in their early stages. IEO (Initial Exchange Offering) is a variant of ICO, when the exchange, where the initial offering takes place, acts as a guarantor of the reliability of the project. IEOs are safer, and although participation in them does not guarantee the success of the project, investors can be sure that at least they will get their tokens. How does the cryptocurrency market work How does trading on the cryptocurrency market differ from traditional currency and stock markets?

Let’s look at the main differences:

High volatility . Coin prices can change very dramatically in a short period of time. Factors influencing the value of digital currency can be very different and often unpredictable (for example, the value of other cryptocurrencies is strongly influenced by changes in bitcoin prices); Low entry threshold
. A beginner crypto trader can make his first transaction with a small amount of money in the account; Cryptocurrency exchanges work 24 hours a day, 7 days a week without interruptions . You can trade at any time convenient for you. You can buy and sell different coins or tokens at specialized cryptocurrency exchanges or exchanges. In order to start trading digital financial assets, you need to choose a reliable, secure and popular exchange.

Cryptocurrency exchanges work on blockchain technology and are divided into two types: Centralized (CEX). These exchanges are managed and controlled by organizations . A commission is charged for exchange transactions, which covers the costs of service and interaction between buyer and seller; Decentralized (DEX). Coins are traded without the participation of intermediary organizations. DEX does not store information about users. The account is the wallet from/to which funds are transferred. The advent of blockchain technology and cryptocurrency has created more opportunities for decentralized markets to operate. This allows buyers and sellers to interact directly . Many users of decentralized virtual markets perceive the lack of regulatory oversight as an advantage or freedom from third-party intermediaries, and the absence of intermediaries can lead to lower transaction costs than in regulated markets. Blockchain seems complicated, but its basic concept is really quite simple.

Blockchain is a special type of database. It differs from a typical database in the way information is stored : blockchains store data in blocks which are then combined into a chain. As new data comes in, it is entered into a new block. Once a block is filled with information, it is linked to the previous block, which results in the data being chained together in chronological order (the data cannot be changed or deleted). Various types of information can be stored in a blockchain, but so far the most common use is transaction recording. Cryptocurrency and stock markets are similar, but the crypto market differs from the stock market in the following ways: Cryptocurrencies and cryptocurrency derivatives are traded in the crypto market, while the stock market trades stocks, bonds and various derivatives; Legislation regulating the crypto market is in the early stages of formation in many countries;
Crypto market operates 24/7 all year round, with no weekends or holidays; Crypto market is less predictable because of the specifics of the instruments traded and the ever-changing industry environment. To work on the crypto market, you need to know some of its specific rules and features. But by learning the basics of trading on your own or by taking a training course, you can learn how to trade cryptocurrency at a confident level. How to start trading cryptocurrency on the exchange from scratch A huge number of newbies try their hand at trading, but most of them never manage to realize their potential and earn the cherished million. And this majority has one thing in common: they have not mastered the basic concepts and skills necessary for successful cryptocurrency trading. Spending enough time to learn the basics can multiply your chances of success. Lack of knowledge and proper experience will inevitably lead a novice crypto trader to losses. What skills should a trader have?

Here are the main skills: to understand technical and fundamental analysis in order to decipher price behavior; to be able to use stock charts and technical indicators; to understand how orders work, how to look for entry and exit points; to be able to open and close transactions, to monitor trading history, etc. To master your skills, you can attend specialized seminars. You can also find yourself a coach – a practical trainer who will guide you, criticize your technique, and give you advices. To practice without the risk of losing real money, try trading on demo accounts, and open a small deposit at first. Here’s a little step-by-step instruction: Choose an exchange. You can follow this rating; Sign up; Deposit to your account; Choose a trading pair or several; Perform technical and fundamental analysis; Determine the best entry and exit points.
OKX Crypto Trading (OKEX) is one of the leading crypto exchanges in the world, offering services and products for both new and experienced traders. On the example of this exchange, let’s analyze buying and selling cryptocurrencies (opening and closing transactions): Log in or register at OKX (OKEX). Enter your email address and create a password for your account on the registration page, or use your phone number instead; Log in and register with OKX (OKEX) Configure your account. You can access your settings by hovering over the profile icon and clicking Preferences ; Preferences menu Confirm your identity. While OKX (OKEX) does not require users to verify their accounts to deposit and trade cryptocurrency, withdrawal limits remain in effect until the KYC process is completed. To start the process, you can click Verify in the submenu on the settings screen or in the drop-down list after navigating to the profile icon; Verify on OKX (OKEX) Once your account is created, you can start trading. You have two ways to proceed: you buy cryptocurrency on OKX (OKEX) or you deposit your existing assets into your OKX (OKEX) account. To trade on OKX (OKEX) you need to specify your trading account as the target of the transfer when you credit the funds; Selecting a trading account on OKX To transfer funds to your balance, go to Assets → Deposit . In the dropdown list select the currency and specify the network → Continue . In the next window, the exchange will generate the address to which you need to transfer the cryptocurrency. Copy it; Go to the topup window Go to your cryptocurrency wallet and paste the copied address into the field for cryptocurrency transfer → in the wallet confirm the transfer → check that the funds are credited to your account; In the upper menu bar go to Trade → Basic Trading ;
Go to the trading terminal On the screen that opens on the left you can choose from a variety of market pairs available for trading; Select a trading pair Once you have selected a trading pair, you can execute a trade (in this example we chose the pair BTC / USDT). To make a buy trade, you just need to enter the amount of BTC in the Amount (BTC) field on the right side of the price information; By default, the order type is set to Limit (the order will execute at the price you selected or better). Experienced traders can change the order type to suit their needs; The Price (USDT) field also automatically displays the last trading price and it can be changed. If you set your desired price lower than the market price, your order will join others in the order book until it is executed; the order book, which is on the right side, represents market liquidity for both buyers and sellers. In the upper part of the order book are collected limit sell orders from all market participants (marked in red) and in the lower part limit buy orders (marked in green); the order book is constantly changing Once you have chosen the price you want, enter it into the Price (USDT) field and then enter the amount you want to buy into the Amount field. You will then be shown the total amount of USDT coins in the Total(USDT) field, and you can click Buy BTC to buy BTC, provided you have enough money in your trading account (USDT); Sell and Buy order fields Posted orders remain open until they are filled or cancelled by you. You can view them in the Open orders tab on the same page; Open orders tab on the bottom bar of the page Once your order is executed, you will successfully trade on OKX (OKEX). The best exchanges to start

Before choosing a cryptocurrency exchange for trading, analyze all the factors and features of the platforms: functionality, commissions, technical support work. It is recommended to stick to reputable and popular exchanges.

How to properly trade cryptocurrency on the exchange: basics for beginners

Proper trading on a cryptocurrency exchange should provide a trader or investor with profits. There are a huge number of strategies that allow to successfully trade cryptocurrency, and it is impossible to consider all their variety in one article. However, there are also fundamental concepts that beginner traders and investors can learn to understand more complex trading concepts and approaches. These are a good place to start.

Working with cryptocurrency charts in crypto trading

Working with charts is a basic skill that both traders and investors need. The chart displays the price scale vertically, and the time scale horizontally. The price and time bars can be expanded by zooming in and out of the chart. Besides, the resolution of the time scale can be changed by switching the timeframes displayed on it.) You can also use different visual elements on the chart, draw and add indicators to it to make trading decisions. The BTC/USDT price chart The timeframe is the resolution of the chart.

By switching the timeframe, you can see how the price changes over a period of time. For example, the 1-minute timeframe shows the price change for 1 minute, and is denoted by m1. The price movement on the chart can be shown in different ways: by bars, Japanese candlesticks, hollow candlesticks, broken line, line and area filled, as well as by various exotic instruments like Heikin-Ashi candlesticks etc. In this article we will consider only the most commonly used Japanese candlesticks. A Japanese candlestick chart is a method of displaying symbol prices on a chart, when within a certain timeframe we show the open price (open – O), the close price (close – C), the lowest (low – L) and the highest (high – H) prices of the symbol. Japanese candlesticks simultaneously displays all four prices for the selected time frame, after the candlestick is formed. Consider the structure of the candlestick in more detail. The candlestick necessarily has a body of a certain color (depending on whether the candlestick is rising or falling in the chart), and may have outward spurs, called wicks (reflecting the maximum and minimum prices that the instrument has managed to reach during the formation of a candle). The position of the candlestick prices and the stages of its formation, all the candlestick prices can be seen when you put the cursor over it – they will be displayed in the upper left corner of the chart.

For example, the trader has chosen the timeframe of m15 and the Japanese candlesticks as the method of displaying the prices. This means that each candlestick will show the price change within 15 minutes. Open (O) price – shown at number 3 in the figure. Shows the price at the first second of the candlestick formation.

The Open price will also influence the final color of the candlestick after its formation. If the close price of the Сlose is higher than the Open price, the body of the candlestick will be green (you can choose the color). This color indicates that the candlestick is growing. If the Close price is lower than the Open price, the body of the candle will be red (you can choose the color). A growing candlestick indicates that the price of the instrument is going up, and a falling candlestick indicates that the price is going down. Price Close (C). Shows the price at the last second of candlestick formation; Price High (H). Shows the maximum price that was reached by the instrument during the selected time period. It is formed as a wick only if the Close price will be lower than the maximum High price by the end of the candle’s formation time; Low price (L) – it is shown in the figure under number 4. Shows the minimum price that was reached by the instrument during the selected time interval. It is formed in the form of a wick when the closing price of the Сlose will be higher than the minimum price Low by the end of the time of candle formation. Types of orders when trading on the cryptocurrency exchange Orders to sell or buy on the exchange are given by special instructions, called orders . Orders allow you to set the conditions for opening and closing a transaction (price levels for triggering orders) and the volume of an instrument to be purchased. The main orders in the market are: Market orders (Sell Market, Buy Market) – no trigger price is set in these orders . An order to buy or sell will be given at the price, which the instrument reaches at the moment of sending the order. I.e. the tool will be bought or sold at the current price on the market. Market orders do not go to the Quotes Depth (read more about the Depth below). Stop orders (Buy Stop, Sell Stop) – this type of orders is used as auxiliary for Market orders. Stop orders exist to set a certain price level for Market orders, upon reaching of which an order to buy or sell an instrument at the current price level will be executed. I.e. Actually Stop orders are pending Market orders. Stop orders do not fall into the Quotes window. Limit orders (Sell Limit, Buy Limit) are a pending type of orders. Limit orders allow setting the price level at which a trader would like to buy or sell an instrument. Buy Limit orders are placed below the current price level and Sell Limit orders are placed above the current price level. Limit orders get to the market depth and form the market depth (about the market depth see below). In addition to orders for execution of transactions, there are also two common “technical” orders:

Stop Loss and Take Profit : Stop Loss (“stop loss”) – as the name implies, this is a Stop type order, i.e. it sends a Market order to the market when a certain price is reached . Such order is used to limit the losses if the instrument price starts to go in the opposite direction to the one that was expected by the trader. Stop Loss works as Buy Stop when it is set out to close the position to sell and as Sell Stop when it is set out to close the position to buy. Take Profit is one more type of Stop order. Its purpose is to send a Sell Stop or Buy Stop order to the market when it reaches a certain price, which the trader believes to be sufficient, and to fix the profit earned by the moment this price is reached. Take Profit for sell transactions will be triggered as Buy Stop order, for buy transactions – as Sell Stop order. The book of orders on OKX looks like this: The top list (usually highlighted in red) contains Sell Limit orders (also known as Ask orders). The lower list contains Buy Limit orders (also known as Bid). This is where Buy Limit orders fall; The difference between the lowest price from the red field (at the bottom of the red list) and the highest price from the green field (at the top of the green list) is called the spread. It is believed that the smaller the spread (the difference between the best seller’s price and the best buyer’s price), the more liquid the instrument is at the moment.

Some traders divide orders in the glass into two categories: Aggressive – orders that, when placed in the glass, are closed instantly, because there are opposite deals to them; Passive – orders that are not processed immediately after being placed in the glass due to lack of counter offers. Using data of the cup it is possible to conduct a basic analysis of the instrument. The principle of analysis is as follows: the accumulation of Sell Limit orders (orders with big volumes) at the prices higher than the lowest price from the red list (the current price Asc), can talk about the fact that in the near future the market may fall; accumulation of Buy Limit orders (orders with big volumes) at prices below the highest price of the green list (the current Bid price) can talk about the fact that in the near future the market will go upward. Keep in mind that the analysis of the market movement is carried out as a whole: one indicator may not be enough to determine the correct direction of the movement. Understanding how orders work is an important part of the basics of cryptocurrency trading, especially if you are starting from scratch. In the process of learning, you can learn how to conduct a comprehensive analysis of any instruments on your own and develop your own strategy for working in the market. Resistance and Support Levels Another important part of cryptocurrency trading is knowing how to identify support and resistance levels. There are quite a few approaches to defining levels in trading. In this article we will consider the most basic approach – determination of levels from the price chart. At the bid chart level support and resistance levels are formed by piles of orders near certain prices. Such piles that exist for some time, form levels on the symbol chart, which can be visually detected. There are two types of levels: Support levels are price levels that prevent the price from falling below (in buying transactions) or rising above (in selling transactions) a certain value. Resistance levels are levels that prevent prices from going up (in buy trades) or down (in sell trades). Resistance levels can become support levels after they are broken through, and vice versa. Support and resistance levels help traders in cryptocurrency trading. Using them, one can make a decision to enter a trade, as well as place Stop Loss and Take Profit orders. Trading volume is another important indicator that a trader can evaluate to improve his trading strategy – trading volume . In order to see the trades volume at the current moment the Volume indicator can be used (as a rule it is enabled by default in most terminals). Locating the Volume indicator on the chart To enable the indicator you must: Find Indicator icon in the terminal ; Indicator menu location in OKX In the opened window type Volume in the search line and select Volume indicator from the list.

List of indicators

The Volume indicator consists of columns of different color. The height of a column shows the volume (the volume of the asset in the traded orders per time unit, which is determined by the set timeframe), and the color shows which orders (buy or sell) were traded more. The indicator can be used as follows: If a trader sees that the height of the current column is higher than several previous ones and it is colored red, it means that there are more sell orders on the current instrument at the moment – hence, its price may go down ; If a trader sees that the height of the current column is higher than several previous ones and it is colored green, it means that there are more buy orders on the current instrument at the moment – hence, its price may go up . Trading volume data in crypto trading should be used only in conjunction with other analysis tools. Trading History An additional tool for analyzing price movements can be the trading history . Trading history is available in many trading terminals. In OKX the Bid History window looks like this: The Bid History window. You should distinguish the Trading History of the trader (the list of completed deals of the trader) and the Bid History for the Dock (the list of deals, passed in the Dock, of all Traders). The current section deals with the latter. To activate the trading history window on OKX, on the right side of the open terminal click Trade History . In the Trade History window all deals, passed on the market for a certain asset, are listed in a list. The list shows the price, volume and time of the deals. Analyzing the trading history, you can see what kind of deals prevailed some time ago and what was their volume. Linking this data with other indicators, you can understand in which direction the market is moving: If sell deals prevail (red), then the price of the asset is falling; If buy deals prevail (green), then the price of the asset is rising. Use trading history data in crypto trading in conjunction with other analysis tools.

Market Depth Market depth is formed from Limit orders , which fall into the cup. Due to the fact that the depth of market in the market depth can be not very convenient to track, a special tool was developed for the trading terminal. To activate this window on the chart, switch to the Depth tab in the upper right corner of the chart. Horizontally, the Depth window shows the current prices of limit orders, vertically, it sums the volumes of all orders at different prices. The trader can see the volume at a certain price by pointing the mouse pointer to the desired location. The red area shows sell orders and the green area shows buy orders. At the intersection of the red and green areas are the best buy and sell prices and the volume of orders for them. The market depth allows the trader to analyze the accumulation of orders at certain prices and, depending on that, to suggest where the instrument price may go. The principles of market depth analysis are the same as in the analysis of orders in the pile (see Types of Orders in Cryptocurrency Trading). In cryptocurrency trading, it is not recommended to use market depth in isolation from other tools for analyzing the asset.

Technical and Fundamental Analysis in Cryptocurrency Trading Cryptocurrency trading, like other types of trading, uses two opposing but complementary approaches for analyzing and predicting price movements: Technical Analysis – uses the price of the asset and trading volumes as the basis for predicting price movements. Its main instruments are: price chart, volume chart, order book and indicators.

Fundamental Analysis uses economic data and news about the asset as a basis for predicting price movements. Its main instruments are industry, economic, political and project news as well as economic data. Technical analysis is more often used for short-term transactions, fundamental – for analyzing price movements over long periods. However, combining the data obtained from the technical and fundamental analyses, it is possible to determine the price movement direction on any timeframe and for any deal duration. To succeed in trading you will need to study both types of analysis in depth. The basic instruction for the technical analysis of the asset was described step by step in the sections above. What is Long and Short in trading Long in crypto trading is any deal to buy an asset. Short is any deal to sell an asset. When the trader needs to sell the asset, he chooses a deal of direction Sell (Short), when to buy – Buy (Long) .

The names came from the slang of classic traders. It was thought that in case of a buy deal the price of the asset grows slowly, as a rule, and it takes a long time to keep the deal open. When the price of the asset decreases, it does so quickly, and the transactions are short-lived. There is some confusion between the terms Short and Sell. They both mean a sell deal. The difference between these concepts was formed in the classic stock market. When a trader sold his own shares, such a transaction was called Sell, and when he had to borrow shares from the exchange, such a transaction was called Short. Rules of safe cryptocurrency trading Cryptocurrency trading requires you to make assumptions about market movements in the future. And you will need training and subsequent market analysis to use techniques to reduce risk when trading. No one can predict these movements with 100% certainty, though. Unlike stocks, the value of cryptocurrency is not as dependent on unpredictable economic and political issues in the world that affect the markets. Cryptocurrency moves according to supply and demand .

Here are some important factors to consider when trading cryptocurrency. Consider potential risks when trading If you don’t have enough experience, choose a quiet market and don’t use leverage . This is a strategy where the volatility in the market subsides, prices change little and the activity of other traders decreases. This will allow you to make more informed decisions and not rely on your emotions. Beware of unfamiliar and obscure coins. Choose cryptocurrencies that are in the top 10 of coingecko.com to start with. Startup capital for cryptocurrency trading Many novice crypto traders make a common mistake :
Put all their savings into trading without thinking about the risk. This is a step that will lead you to losses. Determine a starting capital for yourself and open transactions on free funds, which you do not regret to lose. Start practicing on small trades, gradually increasing your budget. And you definitely don’t need to borrow money or take out a loan to trade on the exchange. – Cryptonisation.com. Diversification and cryptocurrency trading Such a principle of risk management as diversification helps to reduce investment risks and ensure the achievement of financial goals without putting your funds in unnecessary danger. Portfolio diversification refers to investing in different assets or asset classes to reduce risk in case one or more investments fail. The main purpose of diversification is to reduce the impact of negative events on your deposit, without putting all your eggs in one basket. Divide your capital into several parts. Also, don’t concentrate your coins on one crypto exchange. Each has its own advantages and disadvantages, which can be mitigated through a diversification strategy.

Choosing Cryptocurrencies for Trading Only a few cryptocurrencies, such as Bitcoin and Etherium, have reached massive levels of popularity. However, even well-established currencies can fall victim to extreme price volatility . It can be difficult to predict how the prices of new coins will fluctuate because there is little historical information to analyze. Supporting a new, recent currency can be extremely lucrative, but equally there is the possibility that you will make a costly mistake if you don’t know what you are doing . Hype coins often grow much better than more useful and tech-savvy ones: it’s an opportunity to make money, but also higher risks if there’s nothing behind the hype. Choose liquid cryptocurrencies with a large market capitalization (this is the total value of all coins) and also present on different exchanges. Since their value depends on supply and demand, the number of participants on different exchanges forms the price of the asset, and it can vary significantly. This will allow you to flip cryptocurrency from one exchange to another and sell at a profit.

Choosing the right trading strategy Cryptoassets are high risk investments and trading them without a plan can often lead to loss of capital. It can be a dangerous game for beginners or those who don’t follow a sound strategy and trade intuitively or out of excitement. You should choose a trading strategy according to your goals, abilities, trading style and circumstances. Refer to the detailed guide on trading strategies to determine the one that’s right for you. Active traders may use one or more of the strategies. However, before deciding to participate in them, you should research and consider the risks and costs involved. Advantages and disadvantages of cryptocurrency trading High volatility of the cryptocurrency market, which provides a high rate of return on transactions; Opportunity to start with small amounts; Wide range of trading pairs; Variety of exchanges that operate around the clock; Cryptocurrency trading is little dependent on global politics and economy. High risk; It is impossible to trade successfully from scratch without additional knowledge, skills and experience; Crypto trader must constantly analyze and monitor the market; Some coins are delisted from exchanges and become difficult to sell.

FAQ
What affects cryptocurrency market?

In a nutshell, everything: any event in the classic market, regulation, news and tweets by Ilon Musk. What is a lot in crypto trading? A lot is a fixed number of units of a financial instrument traded on an exchange. Cryptocurrencies are often traded in lots, used to standardize the size of transactions. Because cryptocurrencies are highly volatile, lots tend to be very small: most are just one unit of the underlying cryptocurrency. However, some cryptocurrencies are traded in larger lots. How and where do I learn crypto trading? Attend training seminars, watch thematic videos, read profile websites. And apply the acquired knowledge in practice.

How to start trading cryptocurrency?

Choose a suitable and reliable exchange, deposit your account (in fiat or other cryptocurrency) and open your first deal. Conclusion Cryptocurrency trading is a great opportunity to earn extra money and improve your understanding of the market, but you should not forget about the risks. Keep in mind that the difference between a successful investor and an unsuccessful one usually comes down to the level of market analysis, chart reading and the ability to follow your investment strategy.

Crypto trading is a time-consuming process that requires improved knowledge, experience and time. You can always try to open a deal with small amounts, earn (or lose) your deposit and see if this type of investment suits you or not.