A complete explanation of how to trade and invest in cryptocurrency

 Trading cryptocurrencies is becoming increasingly popular among those people who want to make money from the crypto industry. This type of earning has its pros and cons. The main advantage of trading digital cryptocurrencies is the high income in a short period of time. If you are a professional in trading and even a professional is losing a lot in this market, so from the beginning of the topic your goal is not to read the topic Greed for quick gain without any prior experience or learning the basics of This topic.

What brings investors and traders to the cryptocurrency market is the ability to double your deposit 10 times in just one day with full control over your trading without the intervention of any third party according to your choice of the appropriate platform. But the disadvantages of trading in cryptocurrencies is the size of the large risks and you can lose all your investments despite your experience in the field, add that you will need to learn and read about the field of crypto industry a lot with practice across trading platforms as well as the need for a large amount of knowledge and a large investment Take time to understand the technologies behind encryption and how they work. If you have the time, take a cup of coffee and gain full knowledge of how to trade cryptocurrencies safely through this theoretically explained and detailed topic of cryptocurrency trading.

How to learn to trade cryptocurrencies

Many people who are passionate about the cryptocurrency market, seeing huge profits from trading in the crypto market, forget all the drawbacks and risks of trading and are constantly looking for information on how to start making money by trading cryptocurrencies. On the Internet, many professional traders publish various materials on how to learn to trade cryptocurrencies via various programs and applications such as Metatrader, how to conduct correct and successful trading across platforms or exchanges for trading and exchanging cryptocurrencies, and continuous analysis of specific situations and market movements.

However, it can be difficult for many to understand this area immediately, because trading requires a lot of initial knowledge and the ability to analyze information.

What is the best place or platform for an enthusiastic beginner to enter the cryptocurrency market in order to become a successful future trader and trade in cryptocurrencies? With what amount of money can you start with this type of trading? What tools are needed to get started?

All these questions will be answered through this topic, which provides the full knowledge that will be for any beginner.

Now you must be asking, How much would you start trading cryptocurrencies with?

One of the advantages of trading in cryptocurrencies is that you do not need to make large investments to start making money in this field. For starters, roughly $ 100-200 is enough to buy some cryptocurrency (for example, you can buy Bitcoin or BTC, ETH or Ethereum, BNB, Ripple or XRP, Litecoin or LTC, and tokens. ) Through any exchange that enables you to buy cryptocurrencies using the means available to you against the dollar, USD or EURO, or by purchasing those currencies from people in your city in exchange for cash and transferring them to the platform that we suggest you to start with and which they find its link at the end of this topic, And start trading independently, and do not forget that you learn, how the result was a profit or loss.

It is best for beginners to start training and learning with a very small investment, not exceeding dollar units, because in the beginning there is a very big chance of losing all your financial resources. After all, a novice trader does not yet have the experience and practice to strike the most profitable trades. Accordingly, some errors when buying or selling cryptocurrencies and the subsequent loss of invested capital are a possible consequence of events.

Therefore, it is practically beneficial to understand how to trade cryptocurrencies and gain invaluable experience using small amounts invested from funds deposited on the platform, which in case of failure will not be scary. Try different online trading strategies, practice using stop loss orders, cross market buy orders, etc. And after acquiring certain skills and a little experience, you can start investing larger sums and making more profitable deals, through the many trading and investment options offered by the platform.

Do not worry if you are distracted between trading and investing, we apologize!

Quick explanation of what trading is, and what is investing.

What is trading?

Trading is a basic economic concept that involves buying and selling assets. Those assets can be goods and services, where the buyer pays for what he got to the seller. In other cases, the transaction may involve the exchange of goods and services between the trading parties.

In the context of financial markets, the assets that are traded are called financial instruments. These could be stocks, bonds, currency pairs in the forex market, precious metals, gold, silver, futures, CFDs, margin products, leverage, cryptocurrencies and many more. If these terms are new to you, don't worry - we'll explain them all in this article.

The term trading is commonly used to refer to short-term trading, where traders enter and exit the buying and selling activities of what was mentioned in the previous paragraph over relatively short periods of time. However, this is a slightly misleading assumption. In fact, trading may refer to a wide range of different strategies, such as day trading, swing trading, trend trading, and many more. But do not worry. We'll cover each in more detail later.

What is an investment?

Investing is the allocation of resources such as capital, time, effort, and knowledge with the expectation of making a profit. This could include using the money to fund and start a business or buying land with the goal of reselling it later at a higher price. In financial markets, this usually involves investing in financial instruments with the hope of selling them later at a higher price.

The expectation of return is the basis of the investment concept. This is also known as (Return of Investment - RoI). Unlike trading, investing usually takes a long-term approach to wealth accumulation. The goal of the investor is to build wealth over a long period of time (years, or even decades). There are a lot of ways to do this, but investors usually use the fundamentals to find potentially good investment opportunities.

Due to the long-term nature of their approach, investors are not usually interested in short-term price fluctuations. As such, they will usually remain relatively negative, without worrying too much about short-term losses.

What is the difference between trading and investing?

Both traders and investors seek to profit in the financial markets. However, their methods of achieving this goal are completely different.

Generally, investors seek a return over a longer period of time - think years or even decades. Since investors have a greater time horizon, their target returns for each investment tend to be greater as well.

On the other hand, traders try to take advantage of market volatility. They enter and exit positions more frequently, and they may seek lower returns with each trade (since they often enter multiple trades).

Which is better? Which one is more suitable for you? This decision is yours. You can start educating yourself about the markets, then learn by doing. Over time, you will be able to decide which best suits your financial goals, personality, and business profile.

Any cryptocurrency is better for trading

If your goal is to make money by trading cryptocurrencies, and not by long-term investing, then the main indicator when choosing a trading pair should be liquidity. In other words, it is trading volume within 24 hours. The higher the trading volume, the greater the liquidity, the greater the number of participants and the amount of capital involved in the trading. The chances of the big players or whales dropping the market are greatly reduced.

The high liquidity of the trading pair also means that you will have fewer chances to "become an investor", that is, to stay with this currency in your hands in the event of a market downturn. Therefore, it is very important for a novice trader to trade the high volume pair. Later, when you get real market experience and understanding, you can independently decide which cryptocurrency is better to trade and on which platform.

Essential advice for those starting from scratch: Choose a promising cryptocurrency that is likely to grow towards the main currency (Bitcoin or Ether). In this case, even if its price drops temporarily, you may not close the position, but wait, because the promising coin will definitely show growth in the future.

An investor or trader must follow the news of cryptocurrencies

The main reversers and changers of the cryptocurrency price at the moment are news, events, and what is said in the media about the digital economy. One positive news can instantly stimulate the growth and appreciation of any digital currency, which could double its price many times over in a good time. At the same time, some negative news, which could be requested by major investors or other influential figures, could lead to a market crash and trigger a deep correction for many long months.

And this is what happened with the cryptocurrency market after PayPal decided to adopt cryptocurrencies on its platform in the United States.

And also we do not forget what happened at the beginning of 2018. After the continuous release of negative news, the cryptocurrency market suffered from a global downturn, which reduced the capitalization of the crypto economy several times in a short period of time. All this can be clearly seen on the cryptocurrency market capitalization charts via the following graph:

The general conclusion can be drawn as follows. Any successful trader should be aware of the latest news from the world of cryptocurrencies and be able to analyze them in order to predict the future decline or growth of the entire cryptocurrency market. It can be said that this is the basis of the basics.

It is necessary to study many sources of information that broadcast the latest news and events in the crypto-economic world after each new incident. In this case, you have the opportunity to conclude many successful deals, and play on a decrease or increase in the rate of cryptocurrencies.

It is best to use a social network like Twitter to track the news. The main sources of various news from the cryptocurrency world are often published by the developers and founders of any of the blockchain companies out there. With Twitter, you can quickly discover and analyze any news and gain time to use the information profitably.

However, there are some nuances. Since Twitter is a foreign social network, all news is published in a foreign language. If you speak English, this gives you a great advantage and all the methods of a successful trader will be open to you, or you can follow news of cryptocurrencies in English through our accounts. We always provide the latest news in our site, but even so you should read the news in English.

As a trader you must learn to safeguard your digital assets, how?

Do not click on any link in an email that comes from a dubious or unknown destination

This is a very important step that all novice traders should follow. Make sure to hide your personal accounts and diversify and separate the mail that you use on the trading platforms, which you will only use to register with cryptocurrency exchanges and secure cryptocurrency wallets. Do not use that e-mail anywhere else.

It's all about unscrupulous people, scammers and hackers, of whom there are many in the era of cryptocurrency. Each of them will try to steal your cryptocurrency quickly and professionally, via accounts on cryptocurrency exchanges, digital wallets, etc. That is why they have enough tools to steal even the most cunning person. This is done mainly through various spam, which often reaches our e-mail, which is misleading and makes you click on the links that arrive in the mail, and clicking on the link in the mail is the most dangerous thing you can do, for this even if it is The mail appears to have arrived from a trusted location. Do not click directly on the links.

For example, you will receive an alleged message from the developers of some cryptocurrency, which accidentally ended up in your portfolio. The message will necessarily contain some malware files, which will be hidden as a new type of e-wallet to store this digital currency or something similar. The developers pointed out the fact that the file is safe and reliable. And also the fact that it should be installed without fail, as this is an updated version of the old wallet.

After successfully opening this file, the crooks get full access to your computer. And there is nothing you can do. They quickly steal all passwords, passphrases and logins. And then they go to e-wallets and exchangers and clean them completely. Your path to becoming a professional trader will end with thwarted theft, not a loss from learning or a lack of knowledge of the field.

Do not click any unsecured link through your searches

As another scenario, the following might happen. You will receive a congratulatory message on receiving a prize on the platform you are trading on. You will go to the site using the link provided in the message and enter your username and password as in the platform on which you trade on. But you did not find any prize or anything, and you thought it was normal.

But when you go to the private trading platform on which you trade currencies, you may find your account empty and that everything you own has been transferred to external wallets. How did this happen, you might ask? very easy! This bogus email is not linked to the original exchange that uses it, but to a bogus phishing site designed with the same login interface to the parent platform called phishing sites. Phishing sites are copies of some original sites with variable domains.

The differences in the field of fake resource are usually so subtle that they are hard to notice. For example, instead of the Binance exchange, which has the official website binance.com, it can be written as binance.co.com or blnance.com (here instead of “i” it would limit “l”).

These sites are created to steal passwords and logins that you yourself provide to fraudsters. Now that getting caught on a typical phishing site is very easy.

That is why, in order to protect yourself to the fullest extent from fraudsters, you need to use a separate email account that you will not use on unverified third-party resources. Use the new account only to register with cryptocurrency exchanges and e-wallets. In this case, only the information that the developers of the cryptocurrency wallet will send and from the owners of the cryptocurrency exchange and trading platforms will access it.

The best platform for trading and investing cryptocurrencies

In conclusion, it is worth saying a few words about cryptocurrency exchange platforms and exchanges while recommending the best for you as a beginner or professional. Because trading platforms are the main workplace for any trader. There you can conduct speculative transactions by placing orders to buy and sell cryptocurrencies, manually or automatically.

Therefore, you need to choose the best cryptocurrency exchanges to start trading. Choose cryptocurrency exchanges that offer regular payments to users, do not delay transactions, provide good account security, have enough cryptocurrencies in the trading list and many trading pairs.

At the moment, beginners should not pay attention to the unknown exchanges even though each cryptocurrency trading platform has its own advantages. Unpopular cryptocurrency exchanges always have a high chance of bankruptcy. If this happens, no one will return your deposit.

Your main task is to learn the basics of trading, understand and feel how to trade digital currencies and gain appropriate experience. Do not wait for big profits immediately from the first day of trading, but rather learn to trade professionally, even if learning and gaining knowledge is long. By choosing reliable exchanges that have already gained popularity in the cryptocurrency market (for example, Binance, Huobi or KuCoin, you can get the minimum required cryptocurrency trading experience without the risk of running into any scams. For this reason, at the initial stage, You should give your preferences to the most popular and largest cryptocurrency exchange platforms, and even if you become a professional you will not find better than the aforementioned platforms.

Security feature in cryptocurrency trading platforms

A few words about the security of your stock account. Everything here must be done, as is the case with the electronic crypto wallets that you choose to store cryptocurrencies in the long run and you will not find better than hardware wallets

To keep your account safe from any threat, define a complex password and write it down on a piece of paper or notebook. Do not store the symbols on electronic media. Because anyone who has access to your computer or phone may access all of your accounts registered on the device. Also connect two-factor authentication via SMS or Google Authentificator. This will greatly increase the protection of your account from fraudsters, but you must preserve your number or your phone to use it when you are asked to enter the required number.

Becoming a successful trader is a challenging task, which requires a lot of knowledge and a lot of practice. Here you need to possess both deductive skills, self-control, patience and speed in making a decision. Without these more technical psychological skills, it is simply unrealistic to engage in effective cryptocurrency trading.

However, all paths are now open to beginners. After all, all the initial steps for trading have been described in this topic, and now you can start trying to trade cryptocurrencies with a small sum of money to gain experience in trading. It is your own experience in cryptocurrency trading that will show how ready you are for this type of profit and whether it suits you.

It is worth remembering again. Starting to trade large quantities right away is a very bad idea. You can lose everything on the first day of trading. Remember, the cryptocurrency market is unpredictable and highly volatile. It is impossible to predict with 100% accuracy what will happen in the market even within a few minutes.

That is why it is worth learning the basics of trading, understanding how to trade cryptocurrencies, continuing to study the material related to it every day and getting involved in trading more and more every day. After a while, you can gradually increase the invested amount, so that the profit from each transaction increases at the end.

Let's get into the theoretical technology regarding trading cryptocurrencies

What is Fundamental Analysis (FA)?

Fundamental analysis is a method for evaluating, evaluating, financial assets. The fundamental analyst studies both economic and financial factors to determine whether an asset is worth a fair. These can include macroeconomic conditions such as the state of the broader economy or industry or business conditions associated with the asset (if there is one). It is often tracked with both leading and lagging macroeconomic indicators.

Once the fundamental analysis is complete, the analysts aim to determine whether the asset is undervalued or overvalued. Investors can use this conclusion when making their investment decisions.

In the case of cryptocurrencies, fundamental analysis may also include an emerging field of data science concerned with generic Blockchain data called on-chain metrics. These metrics can include network segmentation rate, first owners, number of addresses, transaction analysis, and much more. Using the abundance of data available on public blockchains, analysts can create complex technical indicators that measure specific aspects of the overall health of the network.

While fundamental analysis is widely used in the stock market or forex, it is less suitable for cryptocurrencies in their current state. This asset class is so new that there is simply no unified and comprehensive framework for determining market valuations. Moreover, a large portion of the market is driven by speculation and narratives circulating through the media. As such, the fundamentals usually have minimal effects on the price of the cryptocurrency. However, more accurate ways of thinking about valuing crypto assets can be developed once the market has matured.

What is TA - Technical Analysis?

Technical analysts work in a different style. The basic idea behind technical analysis is that historical price action may indicate how the market is likely to behave in the future.

Technical analysts do not attempt to know the intrinsic value of an asset. Instead, they look at historical trading activity and try to identify opportunities accordingly. This can include analyzing price action, volume, chart patterns, use of technical indicators, and many other charting tools. The aim of this analysis is to assess the strength or weakness of a particular market.

However, technical analysis is not just a tool to predict the probabilities of future price movements. It can also be a useful risk management framework. Since technical analysis provides a template for analyzing the market structure, it makes managing trades more specific and measurable. In this context, measuring risk is the first step to managing it. This is the reason why some technical analysts may not be considered strictly traders. They may only use technical analysis as a framework for managing risks.

The practice of technical analysis can be applied to any financial market and is widely used among cryptocurrency traders. But does technical analysis work? Well, as mentioned earlier, the cryptocurrency market valuation is largely driven by speculation. This makes them an ideal playground for tech analysts, where they can thrive by only considering technical factors

So that we do not enter you into many details, and since you are reading this article, you aspire to be a successful digital currency trader, and aspire to invest in cryptocurrencies for a certain period, or you do not know anything about trading from the ground up, this topic tells you that it is okay You start from knowing nothing in this field, just enter and register on one of the recommended platforms, and start with only 10 USD. And make it the first step to achieving the number you want from trading in cryptocurrencies after a while.

Review this topic every time if you missed anything, and wait for the next article or update for this topic, God willing, regarding an explanation of trading in digital cryptocurrencies to understand more and delve deeper into the field.