The Ultimate Strategies To Be Known Before Starting Crypto Trading

Crypto trading for beginners

When it comes to the world of cryptocurrency and trading, there are a lot of people who are unaware of the many benefits that come with investing in cryptocurrencies. Moreover, not everyone has access to a reliable crypto trading platform.

This is where crypto trading comes in; it’s how you can begin profiting from your investments by trading them instead of simply keeping them locked away in a digital wallet. However, before you start trading cryptocurrencies, there are some specific strategies and tactics that you should consider first.

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Crypto trading isn’t as complicated as it seems and these tips will help you get started with confidence. If you’re new to the world of cryptocurrencies or just looking for some new strategies, then this guide is for you!

What Is Crypto Trading?

Cryptocurrencies are a relatively new asset class, meaning you can’t go to your local broker and trade them. Instead, you’ll need to find a cryptocurrency trading broker or exchange that will let you trade cryptocurrencies.

The number of brokers and exchanges that let you trade cryptocurrencies is growing every day, but there are a few things to keep in mind before you start trading.

First, trading cryptocurrencies is similar to trading stocks. You’ll buy and sell assets like stocks, but instead of trading on a physical asset like an actual share of a company, you trade on an abstract digital asset like Ethereum.

When you buy stocks, you own a small piece of a business. When you buy Ethereum or any other cryptocurrency, you own a small piece of a digital “token” that represents a future asset.

Cryptocurrencies are like stocks in a few ways. One way they differ is that there are many more cryptocurrencies out there than there are stocks. Secondly, the only way to own cryptocurrency is to first own a digital wallet that holds the tokens.

You can’t cash out a paper wallet like you can with stocks. You can also’t hold it in a bank account like a stock. You can only hold it in a digital wallet like a Robin Hood type of thing.

Learn The Lingo

If you want to start making money as a crypto trader, you need to learn the lingo. Cryptocurrencies are a relatively new asset class and there are a number of terms you should familiarize yourself with.

  • Baskets – The amount of assets you can hold in your crypto trading account.
  • Balances – The current amount of assets in your crypto trading account.
  • Exchanges – Where you trade cryptocurrency assets. These can be brokers or exchanges.
  • Trading Margin – The amount of assets you have to have available in your trading account at all times.
  • Trading Volume – The amount of assets that have been traded over a certain period of time.
  • Trading Volume Ranking – The order in which trading volume has occurred.
  • Order Book – A visualization of all the orders that have been placed on the exchange. You can use this to see if you’re being filled or if you have any orders on the books.
  • Order Book Ranking – The order in which orders are ranked on the exchange. You can use this to see if you’re in the right spot and if there’s any room to move in that direction.

Research Exchanges

The first thing you should do when thinking about starting to trade cryptocurrencies is to research a few exchanges. If you’re only going to start with one, make it an exchange that allows you to trade a wide range of different coins.

Whatever exchange you choose, make sure you do your research. Find out what coins are available, what fees are charged, and what the trading volume is.

A lot of exchanges only offer a small range of coins, so it’s important that you find one that offers a decent range. Once you’ve chosen an exchange, you need to do some additional research to make sure you choose the right one.

First, find out what the exchange allows you to trade on. If you’re only going to start with one, it should be an exchange that offers a good range of coins.

Next, find out what fees are charged on the exchange. Exchanges that charge high fees are a bad idea and you shouldn’t use them. Every exchange is different, so you need to find one that charges fees that are reasonable and are within your budget.

Last, find out what trading volume the exchange has had in the past. Exchanges with low trading volumes usually allow anyone to trade without any experience or access restrictions. This isn’t worth your time and you should stay away from them.

Bottom Line

There’s a lot of hype surrounding cryptocurrencies and everyone wants to get in on the action. The problem is that it can be a bit overwhelming and there’s not a lot of information out there to help you get started.

The good news is that you don’t have to do it alone and there are plenty of websites and forums that can help you get started. All you need to do is find an exchange that offers a good range of coins, research the exchange, and get trading.