Learn how to trade crypto

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Buy Crypto. Get Started. Crypto User Protection Guide: Best Practices to Safeguard Your Assets Learn to protect your cryptocurrency by choosing a reliable exchange and the right wallet, plus many more tips to secure your crypto. Learn how to hedge with crypto options and more with the only guide you'll ever need. Why not learn how to short crypto and maximize your profit from both ends of the market! Crypto Trading Fees: Comparing Crypto Fees Across Exchanges Find out more about the different crypto trading fees that exist and discover exactly which exchange is the best for your trading needs.

Crypto Referrals: Earn a Sustainable Passive Income with Bybit Crypto referrals are incentivized programs that encourage users to promote a specific exchange to their family, friends and acquaintances. Check out a review of the platform, consider signing up and change your approach to trading. Stock trading strategies are also commonly used for cryptocurrencies. A personal favorite trading strategy that many traders use is Elliott Wave Theory.

Elliott Wave Theory focuses on the psychology behind the market sentiment, so it works particularly well for speculative assets like cryptocurrencies. When you seek out a crypto trading strategy, you might try automated crypto trading with a platform like Coinrule. Trading bots enact a strategy that is intended to give you the best results given your investment goals.

Because automated trading can provide you with a conservative, neutral, or aggressive method, you can make money quickly, hold your coins or diversify your portfolio.

You might also consider actively trading cryptocurrency on some platforms while using automated trading with others. Cryptocurrency wallets come as software wallets or hardware wallets. Both are secure, but hardware wallets offer the best security, as they store your crypto on a physical device, offline. Ledger is a great hardware wallet brand many investors trust to store their crypto assets on.

It supports pretty much all the top cryptos and offers great priced wallets that are all you need to keep your coins safe. One of the best software wallets available to cryptocurrency traders is ZenGo. The mobile wallet uses secure 3-factor authentication to protect your digital assets, offering comparable security to other wallets on the market.

Plus, ZenGo lets you buy, sell and earn interest on digital assets directly from your wallet. In addition to top notch security, ZenGo eliminates the vulnerability of having a private key. There are a ton of options when it comes to cryptocurrency brokerages. For new investors, WeBull is a fantastic option for a few reasons. It offers both stock and crypto trading all on the same platform so you can dip your toe into crypto before diving deep.

It also has great paper trading functionality so you can test out trading cryptocurrency without risking a cent. Other crypto brokerages that are solid options for intermediate traders are eToro , WeBull and Uphold. Robinhood also supports certain cryptos but the platform only supports trading for 5 altcoins.

Although there are many different types of cryptocurrencies, they all have one thing in common: they operate on blockchain technology, making them decentralized.

Decentralization of financial operations through cryptocurrencies has several efficiencies over the traditional financial system, including:. The largest and first cryptocurrency of its kind is Bitcoin. For this reason, all other cryptocurrencies are collectively referred to as 'altcoins'.

Many cryptocurrency traders value their privacy, and a public IP address can expose one's location, as well as other pertinent information. Moreover, some countries will block the usage of their platforms based on a users' location, leaving traders without the tools they need.

A common solution that adds a level of privacy and security for crypto traders are VPNs. VPNs allow you to mask your IP address and set your location to a desired country. Far and long, ExpressVPN is the best VPN for traders, as it supports extremely high speeds and connects automatically upon receiving internet connection to avoid revealing your IP address.

There is no single best cryptocurrency, but there may be the best cryptocurrency for a certain use case. For example, Bitcoin is the best cryptocurrency to use as a store of value asset because it has the most widespread adoption and a finite supply of 21 million coins.

Most of the best cryptocurrency projects are in the top 50 market capitalization of cryptocurrency. Most small market cap cryptocurrencies have questionable use cases or have underdelivered on their promises. Small market cap cryptos are generally riskier than larger market cap coins like Bitcoin and Ethereum. However, high risk isn't necessarily a bad thing. Risk works both ways, meaning that each investment into small-cap altcoins carries the risk of significant failure and benefit of significant success.

This will give you an idea of how crypto works and what its intended use is. Metaverse cryptocurrencies have been a hot asset class leading the start of The shift to PoS, however, is not expected to reduce the transaction fees on the network which is one of the largest pain points for users. One solution for this to also look out for in is the continued development of layer 2 scaling solutions like Polygon.

Networks like Polygon aim to significantly reduce gas fees and transaction times on the Ethereum blockchain making it more accessible to users. Ethereum has seen large growth due to the development of DeFi and NFTs with other altcoins also seeing a significant increase in value over the past year.

Ethereum continues to gain a lot of interest due to the variety of financial applications being built on its blockchain and the potential for developers to bring blockchain projects to life. It's likely a good idea to learn how cryptocurrency works before you dive deep into learning how to trade crypto. Cryptocurrencies are digital assets that are powered on the blockchain. Blockchain technology stores a ledger of every transaction of the cryptocurrency on every node powering the blockchain.

If one of these miners tries to enter false transactions, it will be nullified by the correct ledger. As opposed to putting trust in central authorities to punish bad actors, Bitcoin creates incentives to make tampering unprofitable for malicious users. This means that Bitcoin operates probabilistically through trustless enforcement rather than through a trusted authority -- eliminating counter party risk, risk of corruption and inefficiencies associated with middlemen.

However, this process is economically infeasible and would require an extremely choreographed hack with billions, if not trillions, of dollars worth of computer hardware.

To transact with a cryptocurrency, you need to have a set of public and private keys. These keys are like passwords generated by your cryptocurrency wallet. Your private key is used to approve transactions being sent from your wallet �� only you have access to your private keys.

Investors are attracted to cryptocurrency due to its high volatility. For more conservative investors, earning interest on US dollars is a far more attractive option. PennyWorks is a great choice for doing so, perfect for investors new to the blockchain space. Trading penny stocks or trading options can be equally, if not more, risky than trading cryptocurrency.

Before trading cryptocurrency, you should be aware that you risk losing your money to the market. If you really believe in the future of cryptocurrency, holding your crypto assets for the long term may be more beneficial than trying to time the markets. The first cryptocurrency was Bitcoin, which was created by an anonymous figure named Satoshi Nakamoto in Cryptocurrency is a digital asset class of its own. Some cryptocurrencies can be used as money, but others are used for identity, governance, data storage and much more.

Bitcoins can be split up to its 8th decimal place. My Account. Benzinga Plus. Log In. Our Services. News Earnings. Insider Trades. Markets Pre-Market. After Hours. Binary Options. CME Group. Global Economics. Penny Stocks. Digital Securities. Ratings Analyst Color. Price Target. Ideas Trade Ideas. Covey Trade Ideas. Long Ideas. Short Ideas. From The Press. Jim Cramer. Best Penny Stocks. Best Swing Trade Stocks. Best Blue Chip Stocks. Best High-Volume Penny Stocks. Best Stocks to Day Trade.

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They also offer many cryptocurrencies not available elsewhere, without the need of a virtual wallet. See all cryptocurrency brokers. Congratulations, you are now a cryptocurrency trader! Remember, you can run through the purchase or sale of cryptocurrencies on a broker demo account.

Unfortunately, you cannot practise on an exchange. For this reason, brokers offering forex and CFDs are generally an easier introduction for beginners, than the alternative of buying real currency via an exchange.

Some brokers specialise in crypto trades, others less so. Others offer specific products. IQ Option for example, deliver traditional crypto trading via Forex or CFDs � but also offer cryptocurrency multipliers. These offer increased leverage and therefore risk and reward.

Innovative products like these might be the difference when opening an account cryptocurrency day trading. Day traders need to be constantly tuned in, as reacting just a few seconds late to big news events could make the difference between profit and loss.

The cryptocurrency trading platform you sign up for will be where you spend a considerable amount of time each day, so look for one that suits your trading style and needs. Always check reviews to make sure the cryptocurrency exchange is secure. So whilst secure and complex credentials are half the battle, the other half will be fought by the trading software. Each brand offers different commission rates and fee structures. As a day trader making a high volume of trades, just a marginal difference in rates can seriously cut into profits.

There are three main fees to compare:. Do the maths, read reviews and trial the company and software first. Coinbase is widely regarded as one of the most trusted exchanges, but trading cryptocurrency on Bittrex is also a sensible choice.

IO, Coinmama , Kraken and Bitstamp are other popular options. Before you choose a broker and trial different platforms, there are a few straightforward things to get your head around first. Understanding and accepting these three things will give you the best chance of succeeding when you step into the crypto trading arena. If you want to own the actual cryptocurrency, rather than speculate on the price, you need to store it in a crypto wallet.

There are a huge range of wallet providers, but there are also risks using lesser known wallet providers or exchanges. We recommend a service called Binance. Below is an example of a straightforward cryptocurrency strategy. The straightforward strategy of crypto swing trading simply requires vigilance.

A correction is simply when candles or price bars overlap. You should see lots of overlap. This tells you there is a substantial chance the price is going to continue into the trend. You should then sell when the first candle moved below the contracting range of the previous several candles, and you could place a stop at the most recent minor swing high.

Even with the right broker, software, capital and strategy, there are a number of general tips that can help increase your profit margin and minimise losses.

Below are some useful cryptocurrency tips to bear in mind. Short-term cryptocurrencies are extremely sensitive to relevant news. When news such as government regulations or the hacking of a cryptocurrency firm comes through, prices tend to plummet.

Analyse historical price charts to identify telling patterns. History has a habit of repeating itself, so if you can hone in on a pattern you may be able to predict future price movements, giving you the edge you need to turn an intraday profit. For more details on identifying and using patterns, see here.

This is one of the most important cryptocurrency tips. By looking at the number of wallets vs the number of active wallets and the current trading volume, you can attempt to give a specific currency a current value. It requires you to have a firm knowledge of both cryptocurrencies in the trading pair and their markets. Consequently, many novice traders opt to trade cryptocurrency against a more familiar government-issued fiat currency � such as the US dollar or euro. This brings us to the second type of cryptocurrency trading pair.

As we mentioned above, a fiat-to-crypto currency is made up of a fiat currency and a digital currency. Most commonly, cryptocurrencies are traded against US dollars, as it is the benchmark currency of the world.

However, depending on the online trading platform, you might also be able to trade digital currencies against other fiat currencies such as British pounds, euros, Japanese yen, Australian dollars, and others. Here is an example of a fiat-to-cryptocurrency trade. Almost all cryptocurrencies available in the market today can be traded against other fiat currencies. An additional point to note is that fiat-to-cryptocurrency pairs are often traded via CFDs Contract for Differences.

In simple terms, when using CFDs, you will not own the asset directly. Instead, you will be trading a financial instrument that tracks the real-world price of the crypto-asset. The main advantage of trading CFDs is gaining access to zero commissions and tight spreads. Furthermore, you will also have the option to apply leverage to your trades, as well as short-sell with ease. When you learn how to trade crypto for the first time, you must consider what your financial goals are. Let us consider what each option entails and what financial instuments are available to facilitate this.

The most popular way to engage in short-term cryptocurrency trading is through CFDs. As we noted before, CFDs allow you to trade cryptocurrencies without taking ownership of the underlying asset. In other words, you do not have to concern yourself with storing your cryptocurrency in a digital wallet or the safety of your digital funds.

A CFD will merely mirror the price of the cryptocurrency and gives you the opportunity to profit from both falling and the rising markets. For instance, when you believe that the price of a cryptocurrency is about to go up, you can take a long position and place a buy order.

Once the price goes up, you will create a sell order to cash out � making a profit in turn. On the contrary, if you think that the value of a cryptocurrency will drop � you can go short by initially placing a sell order.

If your speculation is correct, you will place buy order to cash out and thus, turn a profit. Let us demonstrate how a crypto CFD works in practice with an example:. Rarely do short-term CFD traders keep their positions open for more than a few days or weeks.

This is because leveraged CFD products also come attached with overnight financing fees. Meaning � for every night you keep your crypto CFD position open, you will have to pay a fee to your broker.

How much you are liable to pay is dependant on your chosen platform and how much you staked on the trade. When it comes to long-term strategies, you will be investing in cryptocurrencies rather than trading them. In simple terms, this means you will be buying cryptocurrencies and holding them for months or years � until the time is right to sell the coins for a profit. If you would rather go for a long-term strategy, it is best that you buy your cryptocurrency from a trusted online broker.

With over 17 million clients, eToro has built a long-running reputation in the online trading scene. The brokerage also comes integrated with a trading platform and a crypto wallet � so that you can manage all of your investments right from the online dashboard. As you can guess, a buy and hold strategy is more to the liking of those who do not want to concern themselves with short-term market volatility. It saves you from having to do research and technical analysis in order to find the right trading opportunities.

For this reason, novice traders often choose to trade cryptocurrency using a long-term strategy. Cryptocurrency traders often deal with extreme volatility and leverage.

As such, it is crucial to have control over your trades. This is only possible by placing the right set of trading orders. For those unaware, trading orders allow you to communicate with your broker. In simple terms, a trading order conveys to your broker how you want to enter the market, how much you want to stake, and how you want to exit the trade.

In this section of our Learn How to Trade Crypto Guide, we walk you through the most useful orders you will need to have a firm grasp of. We will begin with the most fundamental of order types � buy and sell orders. These orders are necessary for all types of trading � regardless of the asset. In its most basic form, if you expect the price of a cryptocurrency is about to rise, you will enter the market with a buy order and exit it with a sell order. On the contrary, if you believe the price of a digital asset is headed for a downward trend � you will enter with a sell order and exit the trade with a buy order.

As you can see, you will need to use both buy and sell orders for every trade. You will open a position with one order, and you will close the trade with the opposite order. In the fast-moving cryptocurrency market, the price of a digital coin fluctuates every second.

For this reason, it is critical that you have an entry strategy for all your trading orders. The two most common entry order used in crypto trading are market orders and limit orders. These orders are used to specify to the broker what entry price you want to take on the trade.

A market order will instruct the broker to complete the order immediately. It means that the broker will have to execute the order at the next best price. This type of order is widely used to take swift action when you see a profitable trading opportunity open up.

That said, it is important to note that a market order might not be executed at the last traded price. As the cryptocurrency market is extremely volatile, the price at which the order is executed might be different from the price at which the order is placed. As you can see, the variation will be minor and will not significantly affect your ability to make profits. This difference is common with market orders as crypto prices are always fluctuating. If you want to enter the trade at a specific price, that is where a limit order comes in.

A limit order allows you to buy and sell cryptocurrencies at a certain price. Let us see how a limit order would work with our previous example of Cardano. If not, the order will remain pending until you cancel it yourself. Along with an entry strategy, you also need a strong strategy to close your crypto trades. A stop-loss order is one of the most useful orders while trading cryptocurrency.

It allows you to mitigate the potential losses by limiting the risk. In other words, you can decide at what price you want to exit a trade � in case the crypto market goes against your long-term crypto prediction.

Using stop-loss orders is one way to automate your trades, so you do not have to manually keep tabs on the market throughout the duration of your open position. Now that you know how to enter the market and how to limit your losses, the only thing left to define is how you control your profits. Crucially, it is important that you enter a cryptocurrency trade with an idea of how much you want to make. A take profit order is used to illustrate to your broker what your profit target is.

This will allow the broker to automatically close the trade in profit once it has reached the specified level.

As you can see, you can place stop-loss and take-profit orders on either side of your entry price. Risk management is a crucial component when you learn how to trade crypto. As with any other market, it is impossible to stay away from risk in its entirety. After all, in order to make money, you need to risk money. That said, it is indeed possible to make calculated moves and limit the extent of your losses.

Alongside, you should also consider what stake you can afford to invest into each crypto trade. These involve preventive measures that you set in place in order to protect your interests and your trading capital. Here we discuss several risk management strategies to bear in mind when you learn how to trade crypto for the first time.

A bankroll management system is an underlying concept of trading any asset. In simple terms, it defines the amount of stake you are willing to risk on one trade.

Traders usually define their bankroll management in terms of percentages. Alongside the market, your trading capital will also fluctuate. Consequently, you will have to recalculate your bankroll management relative to your trading successes or failures.

Another way to control your cryptocurrency trades is to adopt a strategy based on the risk-reward ratio. Put simply, you are considering the amount of profit you want to target and how much you can risk you are willing to take to achieve this target. In addition to the previous metric, you can also use the scheme described in the crypto trading bot blog � if the resulting ratio is greater than 1.

If the ratio is less than 1. As you can see, the concept is simple, making this a strategy suited for both beginners and seasoned professionals. You can employ these risk-reward strategies using the take-profit and stop-loss orders that we mentioned above. For those new to the trading industry � leveraging enables you to trade with more capital than you have. You will stake what you can afford and essentially take the rest out as a loan from your broker.

As you can guess, leveraging allows you to magnify your profits exponentially. That said, note that it can also amplify your losses. How much leverage you can access will depend on several factors. One thing to note is that trading with leverage is considered risky in many parts of the world � and is thus highly regulated. In contrast, some countries in the world have no cap over leverage limits. You will not be surprised to see leverage offered as high as on some platforms.

However, as we mentioned earlier, when you apply such huge leverage limits � you are also inviting unwarranted risk. Let us show you with an example of how leverage can affect a trade:.

As is evident, leverage is an easy way to boost your profits. At the same time, remember that if the price of NEO had dropped, your losses would have also been amplified.

As you have come this far, you should now have a basic grasp of what cryptocurrency trading entails, the types of orders to use, and how to manage the risks. In order to get the best possible start in crypto trading, you also need to rely on cold-hard data.

Traders use a number of methods to understand the factors that influence the price of crypto. In this section, we discuss how you can analyze crypto prices to make rational trading decisions. Fundamental analysis examines the economic and financial aspects that contribute to the volatility of cryptocurrency. This type of analysis is essential in order to keep yourself updated with new developments in the world of digital assets.

As a relatively new asset, cryptocurrency networks work a little differently than traditional assets. For instance, when you analyze the crypto markets, you have to consider blockchain advancement and security risks.

Such factors are not applicable to conventional securities such as stocks and commodities. Here is a list of what you need to look out for a when researching the crypto trading scene:. As you explore further, you will come across more factors that you think are relevant to cryptocurrency prices.

Of course, it might sound like a daunting list to monitor. Thanks to the internet, now you can subscribe to services that deliver real-time news and updates relevant to cryptocurrencies. This way, you are not required to invest all your time researching the market.