A beginner’s guide to crypto trading

Crypto trading is easier than it looks: anyone can sign up anonymously, there’s no need for a broker, and the fees are low. But preparation is essential. Jumping straight in would be like taking your first driving lesson in a Lamborghini.

Do your homework by learning about the market structure and all its relevant terms (futures, derivatives, perpetual swaps). This knowledge will put you ahead of gambling amateurs.

TradingView is considered the go-to platform to visualize market data. A free account will let you do basic research and analysis. This is an easy way to look at various indicators and strategies.

Crypto trading can be done part-time (e.g. betting on the broad direction of Bitcoin) or full-time (e.g. quick “scalping” transactions), but it’s a volatile 24-hour market – and that can take a toll on people. Ask yourself: “How much of my time/income am I willing to invest?”

You can trade with “virtual” cash, but that’s like playing poker with Monopoly money. It desensitizes you from the process and won’t equip you to handle draw-downs or losses.

“Spot trading” (buying or selling with your own money) is safer for beginners. Leveraging, on the other hand, is a tool to avoid using all of your own Bitcoin. Many treat this as a way to trade more money than they can afford, but that’s an easy way to be liquidated.

Start with one cryptocurrency exchange (e.g. Bitmex, Deribit, FTX, CME) and get to know it intimately, from the customer support to its withdrawal system. But just dip a toe in at first: you should be consistently profitable before investing more of your capital.

There’s no miracle indicator or trading suite that guarantees success. You can study the market mechanics and test different strategies, but keeping things simple is the key to finding your edge. Start by buying low on red days and selling high on green days.

Don’t think in terms of “streaks” and don’t get caught up in the profit and loss of every trade. Focus instead on how your risk is being managed. Remember to switch off when you step away from the screen, as constantly thinking about the market is dangerous.

Bottom line: Crypto trading still has a reputation as the Wild West of the finance world. But as long as you do your homework and ease in gradually (keeping your capital separate from living expenses), you can easily get ahead of the hopefuls who don’t know what they’re doing.