What Is Cryptocurrency Trading: A Beginner’s Guide To Success (2022)

Cryptocurrency trading is the process of speculating on cryptocurrency price movements within the cryptocurrency market. Cryptocurrency traders buy and sell popular digital assets in an attempt to generate profits from short-term price swings.
beginners guide to crypto trading

Table of Contents

What is Crypto Trading

Cryptocurrency trading is the process of speculating on cryptocurrency price movements within the cryptocurrency market. Cryptocurrency traders buy and sell popular digital assets in an attempt to generate profits from short-term price swings. Trading activity in the crypto market has exploded in recent years as new investors have flocked to the space in search of high profits.

However, crypto trading is a complex and risky activity that is not suitable for everyone. This beginner’s guide will introduce you to the basics of crypto trading, including key terminology, exchange types, and strategies that are commonly used by traders. By the end of this guide, you should have a good understanding of how crypto trading works and what factors you need to consider before placing a trade.

How Crypto Trading Works

Crypto trading takes place on dedicated exchanges that allow users to buy and sell

using fiat currencies or other cryptocurrencies. These exchanges act as a middleman between buyers and sellers, facilitating each transaction in return for a small fee. Crypto exchanges come in two main varieties: centralized and decentralized. Centralized exchanges are operated by a single company, while decentralized exchanges are run on peer-to-peer (P2P) networks. 

Most beginner traders start with centralized exchanges because they are easier to use than decentralized exchanges. However, centralized exchanges are also more vulnerable to hacks and other security threats. As such, many experienced traders prefer to use decentralized exchanges, which offer greater security but can be more difficult to use. 

When trading cryptocurrencies, you will need to select a base currency and a quote currency. The base currency is the asset that you are buying or selling, while the quote currency is used to price the transaction. For example, if you wanted to buy Bitcoin (BTC) using U.S. dollars (USD), BTC would be the base currency and USD would be the quote currency. The price quoted would be the number of USD needed to purchase one BTC. 

Basics of cryptocurrency trading

Bitcoin is calculated by a market that doesn’t sleep. Bitcoin offers unique risk due to its nature, and volatility. Therefore, a crypto-asset market novice must understand crypto markets and gain the most value from participating.

To trade in a cryptocurrency, you need:

An exchange account. This will be where you buy and sell.

A wallet to store your cryptocurrency. Most exchanges offer wallets, but it’s also possible to get them independently.

How to trade cryptocurrency for beginners?

There are several different options for trading cryptocurrency currencies. To begin trading cryptocurrency, one must first be familiar with it. It is also important to recognize and understand the risks which can occur depending upon the jurisdiction and the appropriate decision must then be made.

The first step is to find a reputable exchange that lists the currency pairs you want to trade. Once you have chosen an exchange, open an account and deposit funds.

The second step is to find a good place to store your cryptocurrency so it is not stolen or lost. A paper wallet or hardware wallet is generally recommended for storage.

Cryptocurrency Wallets

To start trading cryptocurrencies, you will need a digital wallet to store your coins. A cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency like Bitcoin. Some wallets are built for a specific cryptocurrency, but others may be used with multiple cryptocurrencies.

You can buy, sell, or trade cryptocurrencies on a cryptocurrency exchange, or you may store them in a cryptocurrency wallet. Some wallets are intended for a specific currency, while others can be used with many different currencies.

When choosing a wallet, you should consider its security features, ease of use, and supported currencies. You should also verify that the wallet is compatible with the exchanges you

Check out our top recommendations for crypto wallets

Crypto Trading Strategies 

There are two main types of crypto trading strategies: technical analysis and fundamental analysis. Technical analysis is a data-driven approach that relies on chart patterns and market indicators to identify trading opportunities. Fundamental analysis focuses on news events and other external factors that can impact asset prices. 

Some traders use a combination of both technical and fundamental analysis when making trading decisions, while others prefer to stick to one approach or the other. It is also common for traders to develop their unique trading style that blends elements of both technical and fundamental analysis. 

Reading The Markets

The “market” could appear as a complex system that only an expert could grasp, but the fact is that everything depends on what people buy or sell. How can one trade crypto? When you learn to do this, however, it becomes easier. The total volume of active purchase and sales orders represents one snapshot of the market at that point. Reading markets is a long process of finding pattern patterns over time that traders may choose. Overall the markets are divided into bullish and bearish. A bullish market happens when price movements appear steady and increasing.

Fundamental analysis

What are crypto assets that have the potential for trading? Fundamental analyses are a study of industry technology and/or asset types that form the basis of market analysis. Generally, the trading portfolio for cryptocurrency is composed of Bitcoins or other cryptocurrency derivatives. Can we identify assets that can benefit from solid foundations, or are simply exaggerated technology and not just speculation? When analyzing the foundations of an asset it should consider several factors:

Technical analysis

Technical Analytical methods, or TAs, are used to analyze past market data such as price and volume to determine prices. There are several TA indicators that can help you understand how the market is performing. These include things like the stock price, inflation rate, and interest rates. vary in complexity, and traders can analyze them by a range of different methods.

Cryptocurrency Markets

Cryptocurrency markets are open 24/7 and allow traders to buy and sell digital coins and assets at any time. Those crypto trading platforms are a financial instrument, enabling one to open a trading account and start trading throughout the whole world which is blockchain technology.

The prices of cryptocurrencies are constantly changing, making the cryptocurrency market volatile and difficult to predict. unlike the traditional financial markets that show the fiat currency (US dollars, Euros, Oil, Gold,Silver, Stocks, and Bonds) Crypto markets offer a much wider range of assets that can be traded and used to sell digital currencies.

Trading CFDs With A Broker

Cryptocurrency trading with broker companies operate services that specialize in trading important global asset classes including forex, commodity stocks, indices, and crypto. Cryptocurrency trading is performed by a broker via CFDs. It uses an existing trading network and trading platform and requires no digital account. The CFD market allows CFDs to utilize leverage to reduce initial capital expenditure while gaining full visibility of trades. CFD trading through a broker is typically cheaper than buying assets in person.

Trading Cryptocurrencies With Exchanges Platforms

The first step towards becoming possessed of cryptocurrency is the purchase and payment by using e-commerce platforms. Once you hold the property, the profits are limited unless the value rises in comparison to your purchase price or when the asset is sold. And since the digital currency markets are decentralized and there’s no authority to regulate them there are more opportunities for theft.

Cryptocurrency Trading Platforms to Consider are Prime XBT, for example,

which is a Bitcoin-based trading platform offering advanced tools and features for both beginner and experienced traders. The platform also offers a demo account so that you can test out the features and get a feel for how the platform works before committing to real money trading.

Exness is another popular cryptocurrency trading platform that offers a demo account, as well as a variety of advanced features and tools. The platform also has low fees and is available in a variety of languages, making it accessible to traders from all over the world.

Cryptocurrency Trading

Broker VS Exchange – What are the differences?

A cryptocurrency broker is a firm that buys and sells assets on behalf of its clients, whereas a cryptocurrency exchange is a marketplace where buyers and sellers trade directly with each other.

Brokers are typically regulated by financial authorities, whereas exchanges are not. This means that when you use a broker to buy or sell cryptocurrencies, you may have certain protections that you would not have when dealing with an exchange. For example, your broker may be required to hold your money in a segregated account and may be held liable if it misappropriates your funds.

Cryptocurrency exchanges typically charge lower fees than brokers, but they may also offer a less user-friendly experience. Furthermore, exchanges are more likely to be hacked than brokers, and you may not have the same level of customer service.

It is important to research a broker or exchange thoroughly before trading cryptocurrencies. Make sure to check reviews and look for any red flags (such as complaints about fraud or issues with withdrawals).

Advanced Strategies:

The Martingale system is a popular betting strategy used in trading. The system essentially involves increasing your investment after a loss so that you eventually make a profit. For example, if you invest $1 and lose, you would then invest $2. If you lose again, you would invest $4, and so on. While this strategy can be successful, it is also very risky and can lead to large losses if a streak of bad luck occurs.

The Fibonacci retracement tool is another popular trading strategy that can be used in cryptocurrency trading. The Fibonacci retracement tool is based on the Fibonacci sequence, which is a series of numbers where each number is the sum of the previous two. The Fibonacci retracement tool can be used to find support and resistance levels, as well as to predict future price movements.

It is important to remember that there is no guaranteed way to make money through cryptocurrency trading. However, by using some or all of the strategies mentioned above, you can increase your chances of success.

Crypto Trading Bots

Some bots can automate your work with the crypto trading platform. The programmers behind these bots have them with certain price fluctuations by the trader and use various market indicators to spot changes. Trades would be executed automatically once this was recognized because they were pre-programmed by the trader according to his or her desires. Crypto trading bots give you ample amount of opportunities of setting certain needed parameters which would enable the bot to carry out trades for you. These are what knowledgeable traders use to perform their trades without pushing any buttons.

check out our Crypto Arbitrage article:

What is Crypto Arbitrage trading?


Market Sentiment

It is essential to understand the crowd or community’s view of the market. If there is a lot of positive sentiment, a lot of buzz, and hype behind a coin, it might be a good time to buy. On the other hand, if there is too much bearishness, it might be a good time to sell. Cryptocurrency prices can be very volatile. Having said that, please remember that while the crypto world is exciting and holds tons of opportunities, it is dangerous and holds significant risks. There are many stories around the internet about people who lost their money rapidly, even overnight, a bank account can get deleted and you lose all your money.

Risks Of Trading Cryptocurrency

Cryptocurrencies are a high-risk investment. The prices of the coins are volatile and can fluctuate widely in a short period. Crypto trading is also risky because there is no central authority to protect investors from fraud or theft. If you feel the open platform is a bit too difficult, be sure to advise a financial adviser to help direct you towards your goals. If you’re thinking about investing in cryptocurrency, be sure to understand the risks and know your trading strategy before you invest.

Pros and Cons of Cryptocurrency Trading

PROS of Crypto trading

  1. 24/7 Markets: You can trade cryptos 24/7 since the market is always open.
  2. Higher Liquidity: The cryptocurrency market is more liquid than the stock market.
  3. Lower Fees: Cryptocurrency exchanges have lower fees than traditional brokers.
  4. You can big long or short: You can take a long (buy) or short (sell) position on cryptocurrencies.
  5. Your own cryptocurrency asset
  6. High trading volume
  7. Trading cryptocurrency for real money is possible

Cons of crypto trading

  1. High Volatility: The prices of digital currencies ar
  2. e volatile and can fluctuate widely in a short period
  3. A market that could be quite scammy
  4. No central authority to protect investors from fraud or theft.

Is cryptocurrency trading still profitable?

Can you actually get rich trading crypto? Analyzing historical price charts shows that cryptocurrency trading may prove extremely profitable especially if it is available 24/7. When examining cryptocurrencies, it is essential to look for liquidity and spreads, which affect important factors like spreads and entry points.

Keys To Success

1. Pick the right broker/exchange- Choosing a broker is one of the most crucial steps in starting to trade cryptocurrencies. Not all brokers are created equal and each offers different benefits and drawbacks. Be sure to do your research and find a reputable broker that meets your needs.

Alternatively, you can choose a cryptocurrency exchange and use their crypto trading platforms.

2. Create a trading plan – A trading plan or a strategy, such as underlying the cryptocurrency, understanding the transaction costs, and market price, and remembering to be actively trading are key parts of the crypto trade.

3. Manage your risk – One of the most important aspects of trading is managing your risk. Be sure to set stop-loss orders and take-profit orders to minimize your losses and maximize your profits.

4. Have patience – Cryptocurrencies can be very volatile, so it is important to have patience when trading. Don’t get caught up in the moment and make rash decisions.

5. Have fun! – Trading should be something that you enjoy doing. If it isn’t, then you probably won’t be successful at it because you just won’t stick to it for the long run. Find a way to make trading fun for you and just keep calm and trade crypto!


Cryptocurrency trading is a complex and risky activity that is not suitable for everyone. This guide has introduced you to the basics of crypto trading, including key terminology, exchange types, and common strategies that are used by traders.

Before placing a trade, you need to consider factors such as your risk tolerance, time horizon, and desired return on investment. You should also make sure that you understand how the exchange works and what fees you will be charged for each trade.

Cryptocurrency trading is a complex and risky activity that is not suitable for everyone. Crypto Rush Club would like to remind you to have a proper and set crypto trading strategy before you rush in.

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