Complete Guide to Cryptocurrency Trading for Beginners - (2024)

Cryptocurrency trading involves the buying and selling of cryptocurrency on the exchange or through contracts for difference (CFD).The latter lets you engage in crypto trade without having to own any coins. When you trade on the exchange, you buy crypto coins directly in your name.The cryptocurrency market is decentralised, digital, and has a currency network.The main operations in the market occur through peer-to-peer checks instead of operations via a central server.When you engage in cryptocurrency trading, all transactions get added through the process of mining.This is the last crypto trading guide you’ll ever need, it includes all the basics of basics of cryptocurrency trading. Read on!

Understand the basics of cryptocurrency

Cryptocurrency doesn’t depend on banks for transactional verifications. Moreover, it is not a form of physical money. Cryptocurrency is a digital entry to the online database describing specific transactions. When transferring cryptocurrency funds, a public ledger records these transactions. Cryptocurrency gets stored in digital wallets. Cryptocurrency is called so because it makes use of encryption for verifying transactions.

Among the very first cryptocurrency coins is Bitcoin. It is one of the best cryptocurrencies used currently. There is a huge interest in cryptocurrencies because there is a possibility to trade in the same for profit.

According to reports from Statista, for the cryptocurrency market, the user numbers will expectedly amount to about 994.30 million users by the year 2027. The question you might be asking here is why there is so much interest in crypto trading?

When you trade in crypto, you are trading via a leveraged product. This signifies that you could simply open up a position for a very small part of the entire value of the trade. Leverage products when the market moves up, can magnify profits, but it can also cause immense losses when the market falls.

• Verify the number of crypto coins you can trade
• Ensure that there is ample liquidity in the exchange
• Ensure there is ample security involved in trading via the exchange
• Check the regulatory authorities involved in the exchange
• Check up on the insurance policy of the exchange

The key to making the best trade decisions in cryptocurrency trading is observing how the market works. Once you understand the various strategies, you can get an idea of which suits your targets best.

You can trade virtual crypto via games on apps such as TradingLeagues. The games let you practise the ways of the trade and also ensures that you understand how crypto trading works in the real world.The top games on the app are listed below-

Target Leagues– Compete with players for a prize pool that is pre-mentioned, by trading with coins such as Ethereum and Bitcoin. The right prediction will let you win big!

Selection Leagues– This needs a basic entry fee and offers a winning amount when you make profits by picking the right crypto coins on the portfolio you create virtually.

Battle Leagues– In Battle Leagues, the goal is to choose the winning crypto. Battle Leagues lets you practice choosing the right crypto. For example, in Battle Leagues, you may have to predict whether Bitcoin or Ethereum delivers more returns after 1 hour.

Classic Leagues– These games are linked to the preset prize pool as you get to compete among players for trading with crypto coins such as Bitcoin and Ethereum.

Find your crypto trading opportunity

Once you find the right crypto trading platform and set up an account; look for the right coins to buy. Crypto trading is a short-term game while crypto investing requires months and even years of holding coins. The crypto market is decentralized and more volatile. There also exists security-related risks. Some coins might be riskier to trade in than others.

Manage your risks well

Here are the top ways you can manage your risks while trading in crypto.

• Make sure you are abreast of the market trends.
• To help mitigate the risk of losses, you can go on to set a specific stop-loss point.
• When there is a trigger, this stop-loss automatically closes the position you hold to cap your risk.
• When the market is in favour, you can also seal the profits by setting a limit level.
• The trade can automatically close to secure positive returns when the market touches a price you have set.

Monitor and close your position

If you are trying to understand how to analyse and close your position in crypto trading, read below-

• Opening trades mandatory requirement for trades on an exchange
• Closing trades mandatory for getting profits or lowering losses.
• Positions help you engage in trading effectively but have nothing to do with investing over the long term or even holding coins

Stay updated with the market

Keep track of what goes on in the crypto trading world. This helps you fine tune your trading decisions while letting you learn about how the niche operates. The top channels to tap for staying updated with the market are-

• News and media stories
• Twitter threads
• Leading websites that cover crypto trading and related stories
• Analytical tools and charts
• Blogs and communities in the domain
• On-trade metrics

Conclusion

Once you decide to go ahead and trade in crypto, you get exposed to several new elements. Learn the nitty-gritty of such trade and engage in virtual apps that help you understand crypto trading in detail.

Stay ahead of the curve by practising virtual trading on TradingLeagues. Several games that allow you to practise trading while you master crypto strategies are available on the app. Gain valuable industry knowledge and absorb quick insights by engaging in the games on TradingLeagues, the . By registering early, you’ll be a part of an exclusive group that gains priority access to the application from 1st October 2023. Register now!