Beginers guide to crypto trading

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First of all: you need to know this is not a fun business, you will feel bad quiet often and it will stress the s**t out of you... and you will not get rich overnight.

Now, if you are willing to accept the aforementioned conditions, you may be fit for crypto-trading. Cool down, take a deep breath and read through. This is your first exercise: anxiety is your worst enemy in this business.

You may want to take a look around the internet for information about blockchains... because I'm not going there.

Wallet

You should know by now that balances for cryptos are stored in a public ledger. A wallet is a unique number identifying an account and the accompanying keys. The wallet has an address that identifies it, something like:
0x12345678789097543327789234122323
tS213k6Hoo0s1U7hr6SD9

That number is the one you get to see in the blockchain explorer, and thus check the balance and transactions.

BUT!!! In order to effectively transfer funds you need these very special numbers: the private keys. THESE are what only you "know" and are, essentially, unbreakable... son don't loose them! Always back up your keys, even before transferring funds to that wallet.* And store them safely. You may even get the option to print them in some way: DO IT!

Exchanges

So the first thing you need is at least one exchange account. Exchanges are platforms that allow you to buy and sell cryptocurrencies, but usually, not directly use your credit card for buying them. The usual thing is: you buy Bitcoin, Ethereum or whatever, transfer some to an exchange and then trade.

Warning: the balance held in an exchange is stored in a wallet for which you do not own the private keys. This means if something happens to the exchange, your funds may be stuck there forever... yes... lost

Orders

We are now effectively entering trading space. To get to buy and sell cryptos you need to place buy and sell orders (doh!)
As an example, we will suppose we are buying a crypto called CRPT. There are peoples asking for it, and others bidding for it:
Asking: 1.02USD
Bidding: 0.98USD

There are several types of orders which may or may not be available depending on the exchange, except for the very basic:

  • Limit: if selling, sell only at his price or higher. If buying buy at this price or lower. You could ask 1.05 if you suppose it will go up a little bit and you could bid 0.50 if you guess it'll go down a lot.
  • Market: buy at the highest ask or sell at the lower bid. This gets executed immediately. buy at 1.02 and sell at 0.98 NOW!!!
  • Stop: if you bought supposing it will sell at 2.0USD but you also understand if it goes down 0.95 your plan won't work, you set to sell if it goes under 0.94 for example. BEWARE: this is a market order.
  • Stop-limit: a Stop order, but instead of market, you set the price you are willing to sell.
  • Trailing-stop**: just like a Stop, but you set a "distance" to the price. As the prices goes up, the trailing stop is set at most, at the current price less the distance: you set a trailing stop at 0.10USD... a stop will be set at 0.92. As soon as the prices raises above 1.02 lets say to 1.07, the stop will raise to 0.97USD.
  • Fill-or-kill: well... pretty clear... not easy to use in cryptos, because the markets is really fast!

Now, be careful with Stops and Trailing-stops

Buying and selling strategy

This is the key thing: when to buy and when to sell.

First of all: DON'T TRADE BY YOUR GUTS. This is a terrible strategy that ends up with huge losses.
Second: BE PATIENT. You need to see the big picture as this market moves really fast and by considerable percentage. If you panic you'll lose all.

From here, I will rely you to other pages: the first one is haejin@haejin 's: an expert analyst and investor. Watch the tutorials FIRST and only the, after have some fun time, think about trading. I've been there... you can always start the next day and you'll always loose some opportunity, either because you saw ti late or because you took other opportunity earlier. Don't think about what you didn't get but what your actually profited from.
Also consider haejin@haejin thinks about sort of mid to long term investments. His advise may get you earnings within a day now and then, but usually it takes weeks or even months.

SECOND: don't go by a single analyst. This is a complex "science" and it is about probability, so at least a second opinion is very useful. haejin@haejin is the star analyst on Steemit, but you also want to check others like, at least, srezz@srezz and ew-and-patterns@ew-and-patterns

Finally the usual:

WARNING! trading is a very risky thing! Don't take this as an investment advise: it is likely to be wrong and you will probably lose money if you take this seriously. If you do lose money, don't blame me or anybody else commenting, because in the end is your choice.

Beginers guide to crypto trading | Ecency