Topic: Understanding the Basics of Trading in the Cryptocurrency Market (Read 456 times)

All of them are necessary actually. It's just that strategy is the main talk of the town. They think a good strategy can save them whilst a bad strategy is a sure way of losing money. No doubt, it's true but it would be better to not underestimate other small details because it can add up some percent to our winning rate.

To have lots of experience could mean that we will engage more in the activity. Struggles are normal at the start but we shouldn't focus on it because it will only motivate us to quit easily. It will be difficult if we solo. That is why there are communities that are built to help us and we can also help others if we are now a professional.

I also think developing a strategy is one of factors that affect the success of trading.  But to be able to make the development of strategy effective, we must be knowledgeable and updated with all the information revolving around the pair we are trading.  Knowing the latest news will enable us to design strategy that is in synced with the current events.  So I think developing a strategy is best paired with updated information and knowledge about the venture.

If we aim for a successful trading, then we should have our working strategies to make it possible, not just one but even two or three strategies can be good enough so that if one strategy becomes obsolete, you can use your other strategies that you have mastered already. Although different market condition requires different strategies, but it’s really a must that you have working strategies to rely on everytime you trade in the market.

Who here understands the market now?
I can write several reasons why the price in the market may fall and the same reasons for the price to rise.
The main strategy is that the price of bitcoin will rise in 2024, so if the price of bitcoin drops to 20 thousand again, then I need to buy.

Yes dear, you have rightly said that in order to gain expertise in any field, there are some basic things and basic principles that must be followed, and it is equally important t to understand them. When you choose a line of profession your own, it is important that you have the right information’s and perfect your studies accordingly, define your goals and targets then you are practically involved. Additionally, you do have knowledge about the analysis, about risk management, positions of market trends and how to evaluate your assets in right manner. It can be helpful to practice with virtual or paper trading accounts before risking real money

Among the list, this is the most I agree. Because before you will become profitable in trading, you need to develop your strategy. After you develop, you need to master and practice it.
But before you develop your strategy, for sure you will first have a lot of experience and that is difficult like using a lot of indicators or chart patterns, joining some community about trading that could help you to interact with some traders and discuss different strategies, it will help you to choose yours.

I would like to add some more to this. In trading, you need to have a good control over your emotions. This is a crucial thing. Because even after proper analysis of the market and opening a trade, you could still fall prey to your emotions. Once you take a decision based on your emotion, all of your analysis will be in vain. So you need to learn risk management if you really want to have a control over your emotion. Risk management will help you take the right decision, and it will help you to create a strong mindset. Diversify your portfolio and make more than one trades. Don't put all your assets in one trade because if the market act against you, you will lose all your assets in one go. Avoid FOMOs, because there isn't any perfect time to start in crypto. The moment you start, your journey begins. And if you get the proper knowledge and apply them in your trading strategy, you can make profits at any time. But it totally depends on your skills. Also, while we are talking about skills, it's important to keep learning. The crypto market is always evolving. So in order to keep up with that, we need to learn new thing and adept to them.

Overall, the OP is quite helpful for newbies. I thought I should also add some of my own knowledge that need to be learned.

Yes exactly this is the best thing to realize that which is a good time for you to put money into a selected coin and which coin will be suitable for you so these are the things which a person will realize after enhancing his experience in a selected field. I think getting knowledge is the best thing but knowledge without experience cannot make you wealthy so always tolerate everything what you face at a starting point.

Realizing even a little things matters a lot and sometimes awareness of these little things can become a cause of someone's failure so try to understand, get knowledge and enhance experience these will play a crucial role in the development of your success.

You left some straightforward meaning of this step that, other pre-hand information of the market which will help you to understand it, you also have to shed an eye on the economic sector of Countries which can highly affect the price of these tokens. Such as the USA etc. because if you would have known the current problem the USA is facing which are causing an incline in inflation then you should take them into account and move accordingly in the market.
You mentioned a good point here, i when started crypto, i was doing it by observing the candle and by following my guts. (yeah i know that wrong way) but i was new some what i did is never develop a strategy in fact i started to trade only in one currency such as the Gala, it was like i am started to understand its moves and how and which thing effects it. So i was like totally synchronized with it. And that's now how strategies are made. many people have shown their strategies in this thread. to get more idea of how important a strategy is.
Many newbies have the same issue like they are confused about which exchange they should use and which wallet they should use to hold their BTC for longer periods of time as they do not have technical assistance or knowledge so they blindly follow there nearby crypto manias and most of them are fraud and they will try to scam you.

i really admire your all factors and no wonder they are so necessary for a newbie to follow but still many fail to do so because they take these things lightly and do not want to make slow earnings by following these rules instead they want to take big risks.

It's very important to choose an exchange for trading, because not all exchanges has the same security. I didn't use any platform other than Binance when I trade because there's so much volume in there and this is the most trusted exchange for most traders. Consider this, you are so profitable in trading but you chose the wrong exchange that result of losing all your funds. That's why choosing an exchange matters a lot.

In my opinion, if you have an open position in trading, it's not good to always look at it as long as you set the the TP and SL. Looking always in your position may affect your emotion that's what I have experienced in trading. If you lose a trade or even win a trade always put it in your journal so that you can study and learn something important that you can apply in your next trade.

Trading is a battle of emotions, so if you can’t control the different emotions towards trading, then you will never be successful in this industry. So it’s really the top concern that before you decide to trade, have your emotions stable first, or if you can’t avoid them, at least you have to control them. Otherwise, trading will only fall as a waste of time and money since you can’t even have the very basic in trading.

You’re right on point. All those mentioned by OP are all significant, but experience will always be on top of it. No matter how well you understand all those basics in trading, that will be useless if you still don’t have the required knowledge and skills in trading. But with experience, you will learn a lot of things that will expose yourself on the reality of trading. And that will be your best key to win over the market’s volatility, and makes your trades become successful and profitable.

When investing in crypto, that should be the main thing that every investor should be doing. Knowing how much money they have already invested in crypto will help them determine if they are moving in the direction of profits or losses.

That's another crucial aspect. Not only by staying informed about what is happening in the crypto market, but you should also follow up on the altcoins you invested in on their social media platforms, to know what's their latest moves and plans for their project.

Consistency
Versatility
Emotion Control
Discipline

Here are the few of the key things or behavior on which a certain person should have on the time that they would really be dealing up with this crypto space or market on which dealing with volatile and unpredictable
prices is the main on which you would be able to encounter out. Its just really that right t hat you should really know about the basics because diving into something without having proper preparation and stuffs
could really be resulting into loss of money or would really be caught up yourself into big trouble. We know that there's no such thing about being that perfect trader
but at least making yourself that be sustainable.

Learning could be gained with real dealing or experience which it would really be acquired along the way because there are things which cant really be taught or be read up via theories.

Tracking can be in almost any thing that we do. The common one is for spending in our home, so that we will know if where all the money go and it helps us to save because we can cut some items in the list which are not really that important. We can apply the same thing in our crypto activities.

There is even some who do this in gambling but it's not really advisable because it only makes us chase our loss and gambling should only be taken less seriously. Consistency is important if we are only getting started but once we already eliminate the unnecessary expense and improve the flow of our money, it's fine to not continue recording our activity anymore.

I absolutely agree with what you mentioned OP. Unfortunately, I have seen a multitude of beginners who don’t give a value about knowledge, they end up randomly trading , making wrong decisions and spend more than they earn. Trading isn’t an easy field to earn large money in a brief period, you should gain knowledge and understand the basics of this area before beginning. The internet is actually filled of useful courses and information. Use it intelligently. Also, there is plenty of ways to acquire a good knowledge of trading like, reading books, watching tuto videos to understand to way to analyze chart.

No good knowledge without applying it firsthand. Crypto trading is more than paper and pen or summarizing several key points.
If one doesn't get the right information on how to begin and at such begins, it becomes a problem to keep up. That's how the mistakes are made.
A mentor is always adviced at an initial stage. One who would show the way because they know the way.

There are also strategies that one may need to know inorder to trade right. You wouldn't just want to throw in money you would need for urgent demands in the house. You wouldn't also want to just log in and start trading. The time, the market statistics and current information on trend is one vital point to note.

If you're interested in inviting a friend to join the world of Bitcoin, It’s important to make sure they have a basic understanding of what it is and how it works. You can provide them with articles, videos, or other resources that explain the concept of Bitcoin in an easy-to-understand way. Remember, Bitcoin is a new and innovative technology that can be exciting and rewarding, but it's also important to be cautious and responsible. Make sure to educate your friend about the risks and potential pitfalls of using Bitcoin, and encourage them to use it wisely. Encourage them to continue learning because Bitcoin is a complex technology, and there is always more to learn. Do your investment in the market regularly but, before taking any opportunity or decision, must take into account that you are well aware about the step taken.

Well, getting emotions involved is a huge distraction when it comes to trading. If you find it hard to manage your emotions while trading, then you will never be a reliable and successful trader in the end. That is the reason why a lot of traders never sustained trading for long because they fail to control their emotions especially when the market is suddenly experiencing a crash or a correction that makes the trades difficult to succeed.

If you think you do things beyond your control, then it’s a sign that you will never be good enough in trading. Always know that emotions can be the best enemy in trading, so if you trade with uncontrolled emotions, expect that you will never be successful on your trades. However, trading can be learned as well as emotional management. If you can do that, that will pave way to good decision making as trading requires right decisions especially when there is sudden change of its market condition.

I completely agree with you. Having knowledge and staying informed is important, but it's only valuable when you put that knowledge into practice and learn from your mistakes. Experience is a crucial part of trading, and the lessons learned from past mistakes can help you make better decisions in the future.

Yes, I completely agree with you. Keeping track of your trading and investing activities is crucial to assessing your progress and making improvements. By doing so, you can identify areas that need improvement, make necessary adjustments to your strategy, and achieve your goals more effectively.

You know if you want to assess your trading and investing status every now and then, it’s best to keep track all the activities so that you can manage to change and improve of what needs to be changed and improved. And it’s also one way to move forward straight to your goal. That’s why goals should always be transparent and achievable so that if you’re patient and persistent enough, you will hit that goal in the end.

Twitter, Telegram, and Discord, will certainly update all of these social media if they are active in developing the projects that are being carried out.
But if there is no update or it is very rare then it needs to be questioned. this includes Fundamental knowledge by checking everything related to social media and current issues.

Being an experienced trader, you have to know a lot of things besides doing technical analysis.
A good psychological foundation will also make traders aware of various kinds of news on the market, FOMO, NEWS will come alternately.

Maybe the only thing I can say is that understand the market, if it's a newbie entering here or entering the crypto space, they won't get it right away or understand it overnight. You need to spend time and time here to really understand.

      Apparently, the step by step of what to do first to understand this crypto trading, the newbie must know where to start, because the actual experience makes it different vs. know only in theory with no experience yet in the actual trade of crypto.

Stay Informed is a beautiful thing, but knowledge without learning is not worth anything. You must build your personal experience and learn from your past mistakes. These mistakes are what you will build your future ideas on, and then they determine the amount of your profit.
Trading is related to your experiences and what you learn more than a strategy or plan that you follow, it is the result of intellectual practice, mathematical analysis and a clear plan that you follow and understand the damages resulting from it.

Experience will indeed give you such techniques and strategies that are not found in the books.
But if you are just starting, use small amount of money to test something so you won't get screwed big time.
Though it is good to have knowledge about TAs, it is important that you understand that those knowledge won't be your savior in your most trading activities.
Also, when it comes to specific coins, the best way to understand their developments is to subscribe their social media channels because that where you will get hints on what they are doing with their project.
Most projects are not publishing their updates via their website or threads in this forum, they are more on social media channels now.

Experience is very important and not just theory. if you only rely on theory but very minimal practice, it will not provide any experience.

I myself even experienced many mistakes but thanks to it all I started to learn so that I would not be trapped again in the same mistakes.
and besides that, psychology will also be better trained. beginners' psychology is still very vulnerable to being too panicky and unstable.

The best strategies are created from good trading knowledge as well. Technical analysis and fundamentals are the main foundation.
If you have not mastered these two foundations, you will not create a strategy that is suitable for yourself.

Easy to say all those things, hard to execute it. Just understanding the market won't help you become a good trader. You need to trade and that's how you gain your experiences. You will make mistakes, but you should learn from the mistakes instead of giving up. Yeah, strategies can help like you said, but there are no "golden" strategy that will help you make guaranteed profits. But yes, it can help you control your losses. As for choosing the right exchange, there are no "perfect" exchanges. All of them are vulnerable to hacks and you should never store your coins there.

Based on the way he constructed his statement. It's clearly a typographical error on his side since he mention about having access to you private key which a non-custodial wallet main feature is. I believe all of us know how non custodial and custodial wallet works.


Nope, he means that what if your asset is already deposited on exchange while the fee updates happened. On the case of Binance, Binance change fees from 0.0005BTC to 0.001BTC without giving an opportunity to all users to withdraw since they disable withdrawal that time. You don't have time to compared the fees. This is the reason why he mention exchange has fully control to your coins once you depouon it.

You’re both right with the answer of non-custodial wallet to hold your coins at all time.

In trading, we feels somehow in making a direct decision in some situations whereby our emotions works in contrary to our decision, we remain being indecisive and don't know which step to actually take, this kind of contemplation makes us later fall into where we never expected, such that we blame ourselves for taking such action in the first place, this is common when we are left with two options to take one from it, and as it had been said, a little mistake in trading may ruine the entire plan for that trade to be successful.

i think there may be a misunderstanding here. It is actually better to store your assets on a non-custodial wallet where you have control over your private keys. This way, you have complete control over your assets and can access them at any time. On the other hand, if you store your assets on a custodial wallet, you are entrusting a third party to hold your assets and manage your private keys. This can be risky as the custodian may not have adequate security measures in place or may be vulnerable to hacks or other security breaches.

In terms of withdrawal fees, it is important to consider the fees charged by exchanges before trading or depositing funds. Some exchanges charge high fees for withdrawals or deposits, which can eat into your profits or reduce the amount of funds you have available to trade. Therefore, it is important to research and compare the fees charged by different exchanges before choosing where to trade.

The fuck going on in binance with a down dam fee of 0.001BTC withdrawal fees is the exact reason why,  traders are warned not to leave their assets on a centralized exchange like Binance because they automatically assume the right I over your coins and dictate for you what you are open to face, and if not now that binance open back Bitcoin withdrawal if not Bitcoin was previously disabled from an asset that can be withdrawn from bin ace amid the recent market development.


It is better to have your asset stored on a custodial wallet so you have access to the private keys so that you can recover the wallet at any time.

I agree with all of what you've said.

But it'll be all ruined in just one mistake, and that is when your emotions didn't agree on what you want to do. For me, emotional management is the first thing a trader should master first before proceeding in the world of trading, because it's hard to make a decision when your emotions are taking over always, that would surely mess up every single trade you're going to make.

That's what I mean and everyone should consider security in trading and keeping their assets in a safe place. The point is that a centralized exchange is not a safe depository for assets for the long term, but we still need it to trade, let alone talk to day traders who are actively trading.

Finally it is up to the individual how the pattern he wants to implement, whether sending profits every week or having some other pattern which is much more secure, most importantly we must remember that any centralized exchange is not safe to store assets, even though they have complete security features.

Nothing justifies that and if you can understand what I'm trying to convey, it is impossible for an active day trader to move and deposit money into noncustodial wallets and to centralized exchanges in trading every time they want to trade as this requires transfer fees. You will find it difficult if after trading you move assets to a wallet without custody and when you want to trade send them to the exchange, just imagine if you were a trader who is active every day and how you get around transaction fees.

That's why I say you have to have a pattern of trading on a centralized exchange, for example when you reach $10,000 you will send your profit to a non-custodial wallet and the rest is left to trade as usual, but still monitor the exchange regularly at least if something happens you can be notified regarding the stock exchange.

I would also recommend ignoring posts like these that don't even teach you basics of trading, and confuse you with bad language that seems to be translated by machine.

"whilst to buy and promote"?

OP doesn't even know what he's talking about and then he's trying to teach "basics"??

Traders should notice things mentioned by @OP before starting trading. The most important thing is that they have to learn how to trade properly and analyze the market because the crypto market is always changing and requires sufficient skill to analyze where the market is moving.

By learning to use strategies, traders can adapt to market movements so that they know what to do based on market conditions. And by choosing a trusted exchange, they can get the opportunity to earn profits. For numbers 4 and 5, follow the previous numbers to develop further your ability to analyze the market well.

Keeping your investments on tract makes you become aware how far your investments have gone so far, or are they really in prosper or just taking a slight development ever since you start investing. Because if you see your investments have become less valuable over time, then maybe it’s time for you to take turns and try out new coins to invest or simply diversify your investments so that if one investment fails, at least there are still potential for your other investments to succeed and prosper.

I actually agree with all the points you've mentioned. But for point number 1. Essential to know the basics of the market and stay updated on the latest news and trends. This helps you make informed decisions and avoid potential pitfalls.

I have some point to add. First, only invest money that you can afford to lose, as the market can be volatile and there are no guarantees. For second poit is join online forums, social media groups, or mentioned crypto news to learn from experienced traders and investors. This can help you gain valuable insights and improve your trading skills. Remember that successful trading often requires patience and discipline. Don't let emotions drive your decisions, and avoid chasing quick profits or making impulsive trades.

that's basic knowledge for everyone that gonna start their career in trading and even investing but i'd say knowing how to adapt quite fast, making fast analysation and also could know what to do when the market is getting out of their way is most essential.
as far as I know many that tried out trading as a beginner only ended up failing and then done with their career instead become investors because it just feels a lot easier to make profit out of it, you just need to wait no need to care about market movements.
so, one should also know that career in trading that requires massive skill and analysation might not be for everyone.

     Everything you said is correct and I agree with it. It is really necessary for anyone to have knowledge about trading so as not to be like others who just jump into it without their experience and knowledge.

     That's all you mentioned, if they know and study well, it's not unlikely that they can do it right to get a profit in day trading here in crypto trading, to be honest. So good work friend on this matter.

This point is very advisory to newbies because they believe after opening account with either binance or other exchange then the next step is to hit the ground running by making different orders for profit sake and most times regret it. So to study the market is very well is important to run away from future challenges. Being prepared for the trade is far important than going in for the profit.

If you want to be a trader and you haven't understood the market that you can make predictions on if the market will rise or fall, you shouldn't start using live account yet because you don't know anything about trading. You have to go back and learn again because if you start trading you'll lose all your capital and might discourage you from continuing trading.

As a trader, understanding the market is the most important thing you should learn before you start trading, also you should choose a good exchange that'll be okay for your trading strategy. If you use a good exchange then keeping track of your investment won't be any problem.

This discussion is more fitting for "Economics board", not "Trading" because I have noticed from reading that this discussion is more about buying cryptocurrency and keeping them safe, not trading as we know. I feel that the OP is still confusing people who buy bitcoins or another cryptocurrency to keep as traders, they are not traders rather investors.


OP even mentions it here, clearly shows OP is still confused.

It has always been said that experience is the best teacher, there's no how you can have a sound trading experience without reflecting in your trading lifestyle, going for trading does not only ends with your investment in bitcoin, you have to understand why, when and how to invest.


In trading, there are different trading techniques and strategies you can learn and choose the one that best serve your interest, the way you conduct your trade determines the kind of result you get and don't let people decieve you that one trading patterns is more profitable than the other.


Exchanges are the best platform to conduct your trading but you have to be honest with your thorough search before choosing anyone, they have to be of an international standards, reputable and have track records of tremendous success in the past.

The trading strategy must contain numbers 3, 4, and 5, as the development of the strategy includes reducing fees, which also testifies to choosing the correct stock exchange and how to improve performance. The following points will not be valid.
In general, trading is a broad science and just limiting it to points will not be correct, even if the points are correct. The most important rule is to continue learning and private research. Ask and ask and do not let shyness prevent you from asking. This question and experiences are what make you a successful trader.

In addition, knowing the basics of cryptocurrency from choosing the right wallet, minimizing network fees and how to protect the security of private keys.

You are in reality right, leaving your property on a centralized alternate for a long time may be risky because of the capacity for hack issues. It's always an excellent practice to maintain your belongings in a noncustodial pockets that you control the private keys for, as this gives you extra manage over your assets and decreases the danger of dropping them due to a hack.

Keeping strong cash is a great strategy for decreasing volatility and minimizing the chance of dropping value for your property. Withdrawing small amounts from exchanges on your noncustodial pockets is also a terrific practice, because it lets in you to have more control over your belongings and decreases the threat of losing them if the trade is hacked.

Overall, it is essential to have in mind of the dangers associated with centralized exchanges and to take steps to limit the ones dangers by using keeping your belongings in a noncustodial pockets and simplest preserving a small amount of belongings on exchanges that you accept as true with.

Why leaving your asset on a centralized exchange for a long time? That is not right because of hack issue. As a trader, I noticed that I keep stable coin most of the time. If you have stable coin, you can withdraw as low as $0 to $0.3 on many exchanges. If you want to trade, you open a position. After you close the position opened, you can move your money back to a noncustodial wallet.

In trading cryptocurrencies, personal strategy development is crucial.In order to be able to trade successfully and reduce risk, each trader must establish their own trading strategy. Someone can learn the ideal times to enter and exit the market by using methods.You can only make a good profit from trading when you have sound strategies.

To ensure that our funds are properly safeguarded, we must take this into account.In order to select the best exchange in terms of security, fees, and ease of access, we must exercise careful observation.However, the optimum use of an exchange should be for trading only; avoid leaving a large sum of money there and always transfer to your own personal wallet because exchange are not worth much reliable.

I completely agree with you. Keeping a trading magazine is an important part of being a a success trader. By recording all your trades and reading your performance, you could pick out patterns for your trading conduct and improve your method. Additionally, the use of software program or platforms to music your investments/trades assist you to stay prepared and provide precious insights into your buying and selling performance. Consistency is prime, as keeping correct records over time can also help you examine your progress and make informed selections about your future trades.

I recognize your issue about the safety of belongings on centralized exchanges and the want to switch earnings regularly. It is proper that centralized exchanges may be susceptible to security breaches and hacks, that may bring about the lack of property. However, it's also vital to note that many centralized exchanges put in force security features together with multi-component authentication, encryption, and cold storage to guard person finances.

Regarding transferring income, it is as much as person traders to decide whilst and how regularly to transfer their income to their wallets. Some buyers prefer to transfer income daily or weekly, at the same time as others might also pick to leave income at the alternate and use them for further buying and selling. It is essential to weigh the dangers and advantages of leaving profits at the exchange versus transferring them to a steady wallet.

For daily traders the five points that you convey are representative enough, but maybe consistent and ready with all the risks posed are conditions that need attention, especially for beginners who are just getting into the world of trading.

This point is most important to pay attention to because it involves the centralization of exchanges which do not have a safety factor in protecting the assets we have, especially for day traders who place large capital on certain exchanges in trading. Because there are no guarantees when we trade on an exchange, our assets are left there for a long time.

But you need to transfer some percentage of profit each time you go through a trader, because it is also not possible every day after we trade then transfer assets to the wallet and when trading again transfer them back to the exchange.

I am very agree with this and I want this to become a lesson for every trader, especially the new ones because it enables you to keep track of your gains and losses, assess your trading approach, and pinpoint areas for development.
There are a lot of software now to use how to track your investments/trades, like sheets or any platform free or paid. Be consistent with your record-keeping.

The cryptocurrency marketplace is one of the fastest-developing markets within the international, with increasingly people making an investment in digital currencies like Bitcoin, Ethereum, and others. As the market maintains to develop, it's far crucial to apprehend the basics of trading within the cryptocurrency market. Here are some things to keep in mind:

1. Understand the Market: Before you begin buying and selling in the cryptocurrency market, it's far essential to have a primary information of how the marketplace works. You must studies and preserve up to date with the modern day information and developments in the market. This will help you're making informed selections about whilst to buy and promote.

2. Develop a Strategy: Once you apprehend the market, it's far important to develop a buying and selling method. You need to determine on the kinds of cryptocurrencies you want to spend money on and whilst to buy and sell them. You need to additionally decide on your danger tolerance level, as buying and selling inside the cryptocurrency market can be risky.

3. Choose the Right Exchange: There are many cryptocurrency exchanges obtainable, so it's far vital to pick out the proper one on your wishes. Consider factors like expenses, security, and the sorts of cryptocurrencies presented when selecting an change.

4. Keep Track of Your Investments: It is crucial to preserve track of your investments inside the cryptocurrency market. You can use a spreadsheet or a cryptocurrency monitoring app to keep tune of your trades and investments.

5. Stay Informed: Finally, it's far important to stay informed approximately the modern information and tendencies in the cryptocurrency market. This will assist you're making informed decisions approximately whilst to buy and promote, and could assist you live in advance of the curve.