Start trading crypto: from theory to practice

What You Need to Know Before Your First Trade

Cryptocurrencies have captured the attention of millions of people around the world. However, beginners are often intimidated by the specialized terminology, numerous strategies, and constant price fluctuations. This article will provide you with everything you need to understand crypto trading and take your first steps confidently.

Basics of crypto trading in two minutes

Crypto trading is straightforward: you buy digital assets when their price seems attractive to you and sell when there is an opportunity to make a profit. The main difference from traditional markets is that the crypto market never sleeps — it operates 24/7/365. This gives you more freedom, but at the same time increases volatility.

Today there are thousands of tokens on the market, but the leaders are known to all. Bitcoin (BTC) — the pioneer, currently trading at around $88.67K. Ethereum (ETH) — the second largest network where thousands of applications are launched, its price is around $2.99K. Both assets are fundamental for understanding the crypto market.

What crypto trading strategies suit you personally?

Before opening the first position, you need to choose an approach. Every trader is unique, so copying others' strategies is a path to disappointment. It's better to find your own style and refine it over time.

For those in a hurry: scalping and day trading

Scalping is the act of catching micro-movements in price. A trader enters and exits a position within minutes or even seconds, trying to make a small profit from each trade. It looks profitable, but requires sharp attention, quick decision-making, and strong nerves. It is definitely not for beginners.

Day trading is trading within a single day. Positions are opened in the morning and closed by the evening. It is suitable for more experienced traders who are willing to spend hours monitoring charts and performing analysis. The stress from this approach is significant, so newcomers are advised to start with something less intense.

For the patient: swing trading and hodling

Swing trading is a moderate pace. Positions are held for days or weeks, catching the waves of the trend. There is less stress, and it requires less time than day trading, making it a good choice for those who are just starting. Basic knowledge of technical analysis is sufficient here.

Hodling ( from the English “hold” — to hold ) — is the minimum activity. Bought an asset, put it in a wallet, and wait. Trader-hodlers believe in the long-term growth of the crypto market and calmly ride out short-term declines. This is the least stressful strategy, but it requires iron calmness and faith in the project. Bitcoin holders who started long ago often became wealthy thanks to this approach.

Practical Steps: From Registration to First Trade

Step 1. Select a platform

Looking for a cryptocurrency exchange you can trust with your money. Criteria:

• Good reputation and proven history
• Strict safety standards
• Normal technical support
• User-friendly interface

Centralized exchanges (CEX) are the easiest option for beginners. Later, when you gain experience, you can switch to decentralized platforms (DEX), where you have full control over your funds.

Step 2. Register and complete verification

The process is standard: email, password, terms of use. Then, mandatory identity verification (KYC). You will be asked to provide identification and proof of residence. It's boring, but necessary for compliance with regulations and the security of the platform.

Step 3. Top up your account ###

There are several ways to bring money to the exchange:

• Bank transfer ( is the most reliable, but slow )
• Payment systems ( are faster, there may be fees )
• Bank card ( is the fastest way, but usually with a premium on the fee )

If you already have cryptocurrency, send it to the exchange account. The main rule: always check the destination address before sending. Sending tokens to the wrong address means losing them forever. Bitcoin goes to a Bitcoin address, Ethereum to an Ethereum address, and so on. There are no exceptions.

Step 4. Understand the trading pairs

Crypto is traded in pairs. For example, BTC/USDT means the exchange between Bitcoin and the stablecoin Tether ( pegged to the dollar). If Bitcoin costs $88.67K, then this amount will be required for you to buy 1 BTC. Want less? Buy 0.5 BTC for half the amount. Minimum amounts usually start with small volumes.

ETH/BTC is a pair between two cryptocurrencies. At the time of writing, 1 Ethereum is trading for approximately 0.02285 Bitcoin.

The order book displays the current buy (bids) and sell (asks). Bids are arranged from high price to low, while asks are arranged from low to high. This helps to understand the supply and demand in the market.

Step 5. Choose the order type and make your first trade.

Market order is the simplest. You say “I will buy now at the best available price” and receive the cryptocurrency immediately. If Bitcoin is trading with the best asking price at $100.1K, you will buy exactly at that price. Fast, but without control over the exact price.

Limit order is a more flexible option. You set the desired price and wait for the market to reach it. If Bitcoin is trading at $100K but you want to buy at a lower price, set an order at $98K. If the price falls to that level, the trade will occur. If not, the order will remain in the queue. Slower, but you control the price.

Analysis Tools: How to Make Data-Driven Decisions

Technical Analysis: Reading Charts Like Maps

Technical analysis (TA) is the ability to look at a price chart and predict where it will go next. The main tool is the candlestick chart.

Candle represents four points for the selected period ( hour, day, week ):

• Opening (O) — price at the beginning of the period
• Closing © — price at the end of the period
• Maximum (H) — the highest price for the period
• Minimum (L) — the lowest price for the period

Together they provide a complete picture of the movement for the day. If the candle is green, the price has risen; if red, it has fallen.

Support — a level where the price typically bounces upwards ( of the market, where demand exceeds supply ).

Resistance — a level where the price usually reverses downwards (market ceiling, where supply exceeds demand).

Technical indicators help identify patterns:

• Trend lines indicate the direction of movement
• Moving averages - the average price over a period
• Bollinger Bands - volatility and extremes
• Ichimoku Clouds - support, resistance, and trend at the same time
• Fibonacci levels are likely price reversal points.

Fundamental Analysis: Understanding What Lies Behind the Price

Fundamental analysis (FA) is the study of the “inner workings” of a project. What does this cryptocurrency do? Why is it needed? Can it capture the market?

When analyzing a crypto project, look at:

• Technology: is it innovative? Does it solve real problems?
• Team: do the developers have experience? Are they committed to the project?
• Application: where to use the token? Is there practical demand?
• Tokenomics: how many tokens are in circulation? How are they distributed? Is there inflation?
• Implementation: Is the number of users growing? Are new partnerships being formed?

You can see even more on the blockchain:

• The number of active addresses (users)
• Transaction volume (activity)
• Data on ownership ( concentration or distribution )

Risk Management: How Not to Lose Everything

The volatility of the crypto market can bring profit or ruin. Here’s how to protect yourself.

1. Only invest what you are prepared to lose

This is rule number one. Never take a loan for trading, do not invest your entire salary, do not play “all or nothing.” Determine an amount that won't bankrupt you in case of a total loss, and start with that.

2. Use stop-loss and take-profit

Stop-loss is an automatic order to sell if the price drops by a certain percentage. If you bought Bitcoin at $88K, set a stop-loss at $85K. When the price falls there, the order will be triggered and you will limit your loss. You will not lose more.

Take profit is an order to sell when you have made the desired profit. If you want to earn 10%, set the take profit at 10% above the entry price. It will trigger automatically and you will secure your profit.

3. Have an exit plan before entering

Don't enter a position blindly. Decide in advance:

• At what price are you entering?
• Where is the stop-loss located?
• Where is the take profit located?
• What percentage of your portfolio are you risking?

Plan your trades and then trade according to your plan. Don't listen to emotions.

4. Diversify your portfolio

Do not put all your money into one asset. Distribute investments among several projects, constantly rebalance your portfolio, and do not let one position dominate. If one asset falls, others may save you.

5. Consider hedging for experienced

As you gain experience, you can use derivative instruments for protection. For example, if you hold Bitcoin and are concerned about a decline, you can buy a put option. If the price falls, the option will protect you. If it doesn't fall, you will only lose the premium on the option but will gain from the increase in the underlying position.

Keep a trading journal and learn from your mistakes

Professional traders keep a journal of every trade:

• When they entered and exited
• What logic was used to make the decision
• What result did you get?
• What would you do differently

In a month, you will see your mistakes and be able to correct them. This is a powerful development tool.

Final Advice

The cryptocurrency market is unpredictable and volatile. However, continuous learning, discipline, and risk management give you a real chance of success. Keep an eye on news in the crypto community, improve your technical analysis, and test strategies on small volumes. And remember: in the long run, those who control risk and hold positions longer usually win.

Start small, grow gradually, and one day you will realize that trading crypto has become a clear and familiar task for you.