Cryptocurrency Trading For Beginners

While most started to become curious about investing and start trading cryptocurrency, the existing crypto exchanges nowadays aren't that friendly to beginners. Even though they try to give investment advice to new crypto traders, it is not enough for them to learn how to invest and trade properly.

Money is not something that grows out of the tree. Most people are informed about how stocks work. There are stock investors everywhere. But the idea of stocks and how to trade cryptocurrency is very different from one another.

Social media platforms usually display personalized ads from crypto trader influencers who aren't much of help too, because all they care about is create and sell their "trading experience" to these beginners. Some traders notice these basic ads of hype traders and try to call them out but people would only defend them which is pretty annoying to deal with.

Needless to say, the demand for pages and accounts focused on teaching beginners is growing. Which is the reason why I wrote this article. I want to create a page that will be focused on teaching new cryptocurrency traders to start investing and start trading cryptocurrency the right way.

First and foremost, I am not someone who would ask you to put money on my savings accounts or tell you to give me payment for this. This is written and shared for free. I aim to generate audience insights and know more about what they want to learn about investing and trading.

Before you come at me, all the information I put here is a product of research. I have no affiliations with the companies and crypto exchangers mentioned.

As most people do, new crypto traders are asking questions about how the security of data that they store on exchangers. I personally suggest not to worry if you have read the Terms and Conditions and Privacy Policy terms of the exchanger you'd put your personal data to. Access is given to most traders that have blockchain accounts.

As a crypto trader, you have to know that your account should only be accessible to you. Do not give access to other people if you don't want to lose your money.

Now, let me first introduce to you the idea of cryptocurrency.

What is a cryptocurrency?

Cryptocurrency is a digital asset or digital currency. Though digital it has value per coin, the same as paper money, or "cash" as we call it.

Like cash, you can use crypto as a medium to trade with products and services globally which isn't limited to online sites. You can also use it to pay for your food at shops you go to, or people who drive your Uber.

Cryptocurrency, or Bitcoin the blockchain technology pioneer, was created, by Satoshi Nakamoto, to introduce a new way financial payment system to our society.

Now, will that help you started in crypto trading?

Well, nothing much, but at least now you have an idea what you'll put your money into.

Okay, before you start, you have to keep three things in your mind.

1. The Crypto market is volatile. ALWAYS know that market trend is not the same as stocks market.

2. You, only you, should have access to your funds. Don't give people access to your money.

3. Don't listen to moon boys. They're the worst financial advisor you'll listen to. Don't believe in speculations.

Since I have already established the important things you should ALWAYS remember, you can now start your journey.

STEPS ON HOW TO START CRYPTO TRADING

Step 1.) You have to choose a crypto exchanger or trading platform you want to use. I will list trading platforms below:

a. Binance

Binance is popular than most exchangers because it has an easier-to-understand interface than most. Just remember not to use Futures trading right away to avoid burning money.

b. Huobi

Huobi is the second leading trading platform that is quite popular for modern crypto traders.

c. Coins PRO

Coins PRO is an extension of a crypto wallet based in the Philippines. As of now, they have limited assets you can trade. It is ideal for someone who only knows how to buy and sell cryptos such as Bitcoin, XRP, Ethereum, and others.

c. ETORO

d. COINBASE

e. UPHOLD

Step 2.) Now that you have to set up your crypto trading account. You would have to ready your debit or credit cards. You can also link your saving accounts. This is needed to fund your crypto exchanger wallet/s.

Market research is needed to know which coins you are going to buy. Personally, I'd advise you to not buy securities, but who am I to say which coin you'll buy and not to buy. Am I right?

Step 3.) Buy your coin on the crypto exchanges you've chosen and start trading.

See? It's pretty easy to access and start investing in crypto.

Now, the important part comes in. You have to join the crypto communities on social media platforms. You can use Twitter, Facebook, Telegram, and Discord for this.

Keeping yourself updated on the latest crypto news and the market trend is very important. But, that's not the hardest part. It's understanding the slang of these traders.

This is why I listed down the common words you will soon hear and read from their posts and articles.

TRADING TERMS

HOLD

This just means Hold On for Dear Life if you are new to trading you might have read this on many socmed sites before and thinking why they keep on misspelling the word "hold". In the world of trading, HODL means to hold on to a certain asset that you have in your portfolio. You might read tweets or posts that say, "Just HODL your $XRP even if it crashes back to $0.44."

FUD

Fear, Uncertainty, and Doubt

Usually, FUD is what they call when a certain article, news, or event is spreading fear, uncertainty, and doubt to traders "hodling" a certain coin.

One of the best examples is what crypto traders and hodlers have been facing lately: The SEC Lawsuit vs. Ripple Labs that is gravely affecting the $XRP price.

FOMO

Fear of Missing Out

This usually happens when traders tend to run after a bull run in a certain coin. For example, Bitcoin price per coin surges by 150%

People with the feeling of FOMO will try to jump onto the train hoping that they will get profit and the price surge will continue, but since cryptocurrencies are volatile, a sudden sell-off (DUMP) was made that made them lose lots of money.

PUMP/DUMP

Pump and Dump are what they call sudden price breakouts in the chart for a certain coin/token.

They call a sudden price surge or upwards price action in the chart a Pump, while on the contrary, sudden plummeting or downwards price action in the chart is called a Dump.

WHALE

Whale(s) is the term usually used to call investors or traders with a large bag of a certain coin. Usually, this is what they say when someone owns a large sum of the total circulating supply of a certain coin.

ATH

All-Time High

This is the price line where a certain coin hit the highest price it got through before it went down back to create another trend.

BULLISH/BEARISH

If you're new to trading you might be asking what do these animals have to do with the chart analysis and the market. These two terms are usually used by chart analysts that do technical analysis of charts.

They say "I feel bullish" in a certain chart if they are expecting it to pump soon and says "This is bearish" when a chart is indicating that there's going to be a sell-off. In short, the bull market is where most coins take the price upwards and creates new ATH levels for different coins while the bear market does the opposite.

FIAT

This is your local currency generated issued in your respective country/countries.

For example:

Philippines issues Philippine Peso

USA issues US Dollars

United Kingdom issues Euro

Japan issues Japanese Yen

...and so on.

TF

Time Frame

This is an indicator that shows the cycle in a certain period of time.

Ex: 15 minutes, 30 minutes, 1 hour, 4 hours, 1Day

There you go, you now know the basics of crypto trading! You can also now understand the traders when they're talking about something that you used to struggle to comprehend.

If you think this article was really helpful, don't hesitate to share it with your friends and family.

Now, if you think that there's something you want to learn about trading, feel free to suggest and ask a topic in the comments below. I would love to hear from you!

Let's connect!