Here is the Crypto trading beginners guide.
The development of blockchain technology brought many changes to the way of business with internet media. Crypto trading has become a lucrative branch of business.
Before starting a business, knowing the ins and outs of the business is very necessary, how it works, how to start it, and other questions related to the start of the business.
There is no doubt that today the world of crypto has attracted many actors from individual investors to large companies. They are a high interest in the development of blockchain, crypto trading and all about crypto.
The growth of cryptocurrency market capital has led to a new style of trading in the financial world. Not only stock trading, CFD, forex, but also crypto trading has become a part of the world trading system.
If you are interested in starting your journey in crypto trading, here will study it in the Crypto trading beginners guide.
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Contents
Crypto trading market
Crypto trading beginners guide. We know that the use of blockchain technology has begun since 2009.
At that time there was the only bitcoin that became the first digital currency. While discovering bitcoin is an anonymous person named Satoshi Nakamoto.
Then after bitcoin whose value gradually rose. Another digital coin emerged which was also based on blockchain technology, namely Ethereum, Litecoin, Namecoin, and so on.
Even now there are thousands of digital coins that have entered the market, thus making the cryptocurrency market even greater capitalization.
Every day more than a billion-dollar transaction has occurred on the cryptocurrency market.
So it is not surprising that many forex traders who then also enter into cryptocurrency trading because it is very tempting. The way of trading is also similar to trading forex in general, which is buying or selling cryptocurrency one with another.
In crypto trading, you need an exchange, which as a bridge between buyers and sellers, same as the forex market, crypto trading is also in pairs. For example, you will sell Bitcoin to get Ethereum, the symbol is BTC/ETH, the exchanger will find a match with your order.
Exchangers will charge fees for your transactions according to each exchanger’s policy.
Or you can also use broker services that provide crypto account services, for example, TenkoFX is our sponsor, that also you can trade cryptocurrencies, you can buy BTC, LTC, ETH, XRP, BCH, etc …
Short-term and long-term trading styles crypto trading
Crypto trading beginners guide. Cryptocurrency trading can also be done by short term trading and long term trading. It depends on the trading habits of each trader because both have advantages and disadvantages.
Short-term trading is that you buy or sell a cryptocurrency pair and then close a position for only a few minutes or hours. Your target is not too large but can take advantage of rising and falling prices in the short-term swing.
Short term trading advantage
The main advantage of short-term trading is the possibility you get a fast, high gain. But the difference in risk when you trade crypto through an exchange. The risk is smaller but the potential gain is also small because there is no leverage system.
In contrast to margin trading through a broker (TenkoFX for example). The potential for higher profits but also high risk, some exchangers currently have also offered margin trading with leverage.
With short-term trading in a day, you can make several transactions to buy or sell crypto pairs. So the possibility of accumulation of profits is also high, but of course, this depends on your skill to analyze crypto pairs.
Interestingly, there are now thousands of cryptocurrencies, and you can choose which ones have the potential to provide future gains. This will certainly affect the trading volume which is an important measure in market capitalization.
Because with the increase in trading volume, the market will be liquid so that the velocity of money will be quick from hand to hand.
Short term trading disadvantages
Short-term trading can upset your emotions, this requires extra patience, and also the ability to analyze movements with high accuracy. And this is not easy in high volatility, making the vulnerability of price changes will occur so quickly, it may occur after you buy, instead, the price drops.
If you are impatient and unable to control your emotions, you will quickly panic and be reckless in trading. And also to get high profits, this requires a large transaction volume that can make traders less comfortable.
Long term trading advantages
Long term trading refers to buying a crypto asset and holding it for a long period of time, with the expectation that in the future the price or value of the asset is more valuable than it is today.
There is a term that is quite interesting in crypto trading that may not all be familiar with this term, Hold On for Dear Life or HODL. One advantage of long-term trading is that we are not too stressed in analyzing assets.
It’s mean after choosing an asset that is considered to have the highest potential to increase its value in the future we can do other things not necessarily in front of the monitor. For crypto trading with a long term trading style, you can start with a small amount of money, you can buy a crypto asset and leave it.
Long term trading disadvantages
Long term trading is far from trading pressure, but you will missing the good momentum that occurs in the short term.
For example, because there is important news related to assets that cause good price moves. And also you have to have high patience waiting for your assets in the future.
This does not happen in short term trading, because traders can get profit or loss in just a few minutes or hours.
What is the best one?
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Crypto trading beginners guide. After knowing the advantages and disadvantages of each trading style, then which is the best?
This depends on the condition of your ability in some ways, if you have good psychology, not easily emotional, short term trading promises faster profits.
Conversely, if you still don’t have strong psychology, then long term trading will be the best choice because it will lower the emotional pressure. But both require good market analysis skills and a little luck.
A few things to know about cryptocurrency trading
For those who are new to cryptocurrency trading, knowing the following points is very important in utilizing platform trading from your exchange or broker
You need to understand about order types
On platforms provided by the exchange, there are function type functions such as market orders and limit orders, and also you have to understand how to stop orders work.
Market orders are type orders at current market prices, whereas limit orders are pending type orders at a certain price. By knowing the basic types of orders, you can plan your trades for profit by adjusting your analysis.
Account security
Account security is very important, you must protect your account so that it does not get hacked. If you lose access to your wallet, if this happens you will lose all your cryptocurrency assets.
Write copy your seed/pin onto a device kept offline. If you use an exchanger, you should choose an exchanger that provides a high-security standard with 2fa.
The crypto market is very volatile.
At high volatility, it is possible to meet losses with dynamic price changes that occur. You better have an understanding of technical analysis both with indicators or with candle patterns. Invest according to your financial capacity and not all of them for crypto trading.
How to start cryptocurrency trading?
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Crypto trading beginners guide
After understanding a few important things before starting crypto trading, in the end, you want to start immediately.
Don’t be in a hurry, you need an exchange to enter the crypto market, you can register at one of the exchanges that you trust, Binance, or Coinbase is up to you.
Before deciding to buy bitcoin through an exchange, you can monitor the market through their platform and learn how changes in crypto assets occur. Learn first this will be better than in a hurry to start cryptocurrency trading.
Before choosing an exchange, there are some important things that deserve your consideration.
- The validity, Make sure the exchanger is available for your area
- Reputation, Find out if the exchanger gets good reviews from users.
- Exchange Rates, different exchangers also have different commission rates taken, exchangers who take low fees are preferred.
- Safety: safe exchangers usually require ID verification before using their services and using multiple-layer account security.
Open account Coinbase
Coinbase is a popular exchange among crypto players, you can start trading crypto from there.
Therefore the validity of exchangers in your area is important to be a concern, you need to check this.
Opening a Coinbase account the first stage you fill out the form requires data.
- First name.
- Last name.
- E-mail.
- Password.
After filling in the registration form and agreeing to the terms and conditions, and proving you are not a robot, the next step is to click create an account.
Next, you need to verify the telephone number for additional account security.
You need to write down your telephone number and you will receive code through a message that you must enter in the box provided to verify.
Add payment method
Before starting trading, you must complete the account by adding a payment method.
In the payment method option, there are two choices of bank transfer or credit/debit card.
The next step is to verify identity because Coinbase is a regulated company, they obey the KYC/AML rules.
Click upload ID, and you have several verification options with driver licenses, or passports or can with country ID.
Next, you are asked to upload an ID, you can use a webcam, mobile camera or file upload.
If the image that you upload is accepted, there will be a successful notification, but if the image is unclear you must repeat the upload again.
The next step is to complete the payment method.
In this example, we choose to use credit/debit cards.
You need to fill in the billing address for your credit/debit card
The final step is to complete your credit/debit card data, not to worry because the data you entered is encrypted.
After this process is complete, you have now completed an account verification, added a payment method, and finally, you can start buying bitcoin on Coinbase.
Buy Bitcoin at Coinbase
To buy Bitcoin you log in to your account, at the top of the dashboard click Buy/Sell.
Then you choose Bitcoin
Then scroll down to fill the flat currency, you can buy the amount you want to spend, for example, 150 euros.
The platform will automatically convert to the Bitcoin value that you will receive.
Then click buy bitcoin instantly, then you are faced with a payment method, confirm the payment card you have chosen and click confirm to complete the order.
Now that you have bitcoin on Coinbase, you can forward to open an account at Binance to start trading
Open account Binance
Besides Coinbase, there are still many exchanges that provide cryptocurrency trading services.
Binance is also one of the major exchanges, and even though hacking has taken place few years ago, but there are still many who believe in this exchange now.
Please read the Binance review for more information.
Opening an account at Binance is also simple. You need to type an email and password.
After opening a Binance account you can make a bitcoin deposit from the Coinbase you just bought.
The steps are as follows below.
- Log in to a Coinbase account and click accounts in the top screen then click send.
You will be asked to enter the address of the wallet where you will send bitcoin.
- Back to the Binance account and scroll the mouse at the top of the screen by clicking Funds, then selecting a deposit.
- Click select deposit coin and select Bitcoin.
- Then you will see the address of your bitcoin wallet, and then copy-paste in Coinbase
- Back to Coinbase account and enter how much bitcoin will be sent and paste the Bitcoin Binance wallet address, then confirm your order.
- You only wait for bitcoin to be sent to the Bitcoin Binance wallet, about 15 minutes you wait patiently.
Once you have Bitcoin at Binance you can go to the Binance market and make your first order.
Other exchanger options
Crypto trading beginners guide.
In addition to bitcoin trading on Binance, you can choose other exchangers which you think are the best and are available in your country, please choose the best exchanger.
Another option for crypto trading is to use a forex brokerage service that provides crypto account types.
For example, TenkoFX, FXOpen, even how to deposit at this kind of forex broker has more payment options, so to deposit will be easier.
The platform used is MetaTrader 4, so for forex traders, who choose crypto accounts at a broker, they are familiar with using this platform.
Best crypto trading platforms 2020
Searching for the Best crypto trading platforms.
Requires research and references from fellow traders who have used the platform.
As one way to find the best crypto trading platform is to read a review of a site that discusses this case.
At least this will provide information that we have not understood before.
And by using this information in the end we will be able to choose which platform is suitable for our style.
Well, this time we will try to review several crypto trading platforms in the hope that it will provide the best platform overview.
How to choose the best crypto trading platform?
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For beginners in crypto trading, there may still be some difficulties in getting started, and finding the best crypto trading platform.
The following are some points that should be considered when choosing a crypto trading platform.
- Easy user interface.
- Security of funds.
- Good past reputation.
- An easy method of withdrawing funds
An easy user interface to use will certainly speed up making buying or selling transactions.
And it would be better if the platform also supports technical indicators to assist in analyzing changes in crypto trading prices.
Security of funds is a top priority in choosing a crypto trading platform because if the platform is easy or vulnerable to hackers,
this will cause loss of money without us knowing it.
The reputation given by traders to the platform will also increase our confidence in choosing and determining the best platform to use.
Deposit and withdrawal methods that support the ease of making a profit withdrawal are also important to be a concern.
Because although we can make large profits when making a withdrawal we do not find a way to withdraw funds, we will be difficult to make it cash.
5 best crypto trading platform
The growth of cryptocurrency makes many crypto trading platform providers present to provide services to traders.
More than tens or even hundreds of crypto trading platform providers that exist in the crypto market.
But we will not review all platforms.
We will review only 5 trading platforms which we think are the most popular and become the leading exchangers at the moment.
Binance
Binance is ranked 3rd based on total liquidity on the Coinmarketcap with an amount of $ 57,202,672 with a 24-hour change of $ 1,288,502,071 USD at the time of writing.
This platform was launched in 2017 and has become a popular exchange with multiple language support.
The Binance platform supports the use of an easy user interface.
By displaying candlestick charts and several technical indicators, which is quite helpful in analyzing market trends.
Besides that, we can also use charts from Tradingview making this platform very interesting.
Moreover, if we buy BNB it will get a trading fee discount of up to 50% and this will be useful to day traders.
Binance also supports the Android platform which you can download on Google Play Store or via QR Code.
And what can make you fall in love with this android platform is that most positive reviews are given on this platform by users.
Some users provide information if entering a referral code will get 5 $ as trading capital.
But for the mobile platform, it seems that it does not yet support all the languages available on the web application.
If you are familiar with English, this is not a big deal.
For fund security, Binance supports 2FA or two-factor identification, which provides good security protection.
But in terms of withdrawing funds, it might be rather complicated because it needs to go through several stages.
For the sake of your account’s security, the process refers to the information on the support page here.
Pros
- Attractive web platform with original choices, Tradingview, and Depth market.
- Global access supports many languages.
- A mobile platform application was available.
- The trading fee is only 0.1% and there is a discount of up to 50% with certain conditions.
Cons
- Withdrawing money is quite complicated by requiring several steps that take a bit of time.
- Has been hacked in the past, causing users to lose money.
Bitfinex
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Bitfinex is also a popular exchange platform when talking about crypto trading, this platform is one of the top lists.
If you look at the ranking of liquidity in CoinMarketCap, this exchange ranks second after HitBTTC, while Binance is in 3rd position.
With total liquidity of $ 60,699,904 and volume at 24 hours $ 100,344,454 at the time of writing.
The trading platform used is also very interesting because it uses a chart by Tradingview with an adjustable interface.
- You can set the preferences to create a sidebar on the left or right.
- Manage navigation tickers and save preferences.
- Organize and arrange the Order Book column.
- A Theme that can be adjusted for dark and light, set browser notifications.
Bitfinex security also utilizes 2FA or two-factor authentication, and Universal 2nd Factor (U2F)
Thus the security level of Bitfinex is better than Binance, with support for advanced verification to your account, if you log in using a different IP you will get a notification via email.
While for withdrawals you need verification if you want to withdraw via fiat currency.
But if you make withdrawals via cryptocurrency, verification steps are not needed.
Some points that need attention when verifying are:
- Minimum of 21 years old.
- information on telephone numbers, e-mail addresses, and residential addresses.
- Legal identity cards from government, ID cards, passports, driver licenses.
- Bank statement.
- Proof of residential address, for example, electricity bills of not less than 3 months.
If you have problems with the verification process you can try contacting [email protected]
The data required is to follow the anti-money laundering rules.
Flat money deposits will be charged a fee of 0.100% with a minimum fee of 60 $, check the detail here
Pros
- Exchanges with high liquidity.
- Easy to use trading platform.
- High level of security.
Cons
- Minimum withdrawal of 20 $, quite high for a beginner.
- Requires verification to use a flat currency that takes a bit of time.
Kraken
The crypto trading platform from the Kraken is quite unique.
Different from the appearance of Binance and Bitfinex.
On the left side of the candlestick box and tool indicator, the middlebox of the crypto group and its price changes, while the right box is for buying or selling crypto transactions.
There is no chart selection from Tradingview, as it is owned by Binance and Bitfinex, but optional indicators are available as analytical tools.
If you use the default settings, the graph will be too narrow and uncomfortable for analyzing prices and movements.
You need to adjust the width by clicking the bounding button between the boxes.
Kraken is ranked 5th in total liquidity on Coinmarketcap with $ 24,763,161 and a 24-hour volume of $ 106,312,726 at the time of writing.
In terms of security, the promised contract is a top priority, using 2FA (Google Authenticator and Yubikey), and when making a withdrawal requires confirmation of an email.
Kraken sites have used SSL to protect when browsing.
The fees charged by the Kraken are also unique and different from those used by Binance and Bitfinex, they use calculations based on past 30-day activity.
You even get the opportunity to 0% fee if you have more than $ 1,000,000 + during the activity
Detail fees are also different between trading, Stablecoin, dark pool and margin trading.
Visit fee schedule to get more detail information.
For deposit options, you can use flat currency USD, Euro, CAD, but the choice is by wire transfer.
It will be easier if you have Bitcoin or other coins like Ethereum.
The deposit process will be faster than wire transfers with a fiat currency that takes about 5 working days.
You can trade without verification but it would be better if by verification to be able to shift up the withdrawal limit.
Documents for verification are also the same as what is needed in other exchangers, this is basically to prevent anti-money laundering.
Pros
- Simple and easy platform to use.
- Allows trading with a 0% fee with certain requirements.
- 24/7 day live support allows contact anytime.
- High liquidity allows easy transactions.
Cons
- The trading platform is less attractive.
- No option for language.
HitBTC
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HitBTC was first launched in 2013, including one of the exchangers as a longtime player, and ranked first in Coinmarketcap based on the amount of liquidity.
With a total of $ 73,639,350 with a 24-hour volume of $ 554,990,686 at the time of writing.
The trading platform used is also simple but very attractive, with a dark background, it displays a clear graph, open high low close and the volume appears on the chart.
There is no choice of indicator on the original platform.
Only the ema indicator appears as default but you can switch to the chart view of Tradingview, so you can use several indicators.
Below the graph is a chatbox, which can be used for interaction with other users.
For security HitBTC also uses 2FA two authentification from google.
To make deposits using fiat money, they have no way to connect with the system, but on their platform, there are instruments for flat money.
To make a deposit you can buy bitcoin through their partner Changelly exchanger by using a master card or credit card.
While for withdrawals, HitBTC also does not use fiat currency, so you have to make withdrawals in coins supported by their platform, this seems rather complicated for beginners.
But by following step by step, it will become an easy habit.
For withdrawal fees, it depends on market conditions, and they adjust automatically, and not based on the amount of withdrawal.
For trading fees, they hold a tier fee where the greater the volume of BTC trading, the smaller the fee that must be paid, check here for detail.
HitBTC does not require verification, but by following verification procedures, this will get a trading opportunity with a low tier fee of 0.07%, different from unverified, which will be charged between 0.1% and 0.2%
Pros
- Easy to use trading platform
- High liquidity.
- Easy registration process
- A large selection of trading assets is available.
Cons
- There is no flat currency deposit option.
- complicated deposit and withdrawal methods.
- There has been a disruption in the withdrawal process.
Coinbase pro
Coinbase Pro is a crypto trading platform that provides crypto lover services to trade cryptocurrencies with a variety of instrument options.
The Coinbase Pro trading platform is ranked 8th in the Coinmarketcap, with the liquidity of $ 16,546,748 and the 24-hour volume of $ 130,537,726. in time writing.
Coinbase offers two types of platform Coinbase pro and Coinbase prime, where the difference is Coinbase pro for individual traders and Coinbase prime for institutional traders.
To start trading with the Coinbase Pro platform, this requires account verification, this requires several documents in the requirements.
The crypto trading platform used is also simple but still easy to use in navigating existing features.
There is no chart display from Tradingview on their platform, there are only two indicators for EMA 12 and EMA 26, but this has become the basis of technical analysis.
Navigation to make transactions at the left and middleboxes is a chart that can be adjusted whether to use candlestick or looking at the depth of the market, the candlestick chart usually easy to understand.
While the box on the right is the trading history.
In terms of security, Coinbase supports 2FA two factor authentication from Google, but also by using the SMS login code.
It would be better if you use a password with a combination of symbols and numbers and letters.
To register Coinbase you also need to verify your account to start trading, you can use a credit card or bank transfer for the deposit method.
Coinbase pro platform supports many countries, you can see a list of countries and also the types of instruments traded on this platform, check here.
Pros
- Flat currency pairs with crypto in certain regions are available.
- Easy to use trading platform.
- Support many countries.
- Android and iOS applications are available.
Cons
- Only a few indicator options on the platform.
- Currently only supports BTC, ETH, LTC, and BCH.
- It does not provide margin trading.
Crypto trading broker
Besides using the crypto trading platform from the exchanger. We can also use the MetaTrader 4 platform from a broker that provides crypto accounts.
The growth of the crypto market also forced forex brokers to innovate services and penetrate into the world of crypto trading. If you have experience in forex trading, not necessarily to confuse about having to choose an exchanger.
Because you can use a crypto account at a forex broker that provides this service. TenkoFX is one of them that provides access to crypto trading services.
And with leverage 1; 3 provides an opportunity to get profits from crypto trading. Indeed the assets are not as much as in the exchanger, but if you focus on one instrument, this is enough to grow your capital.
FAQ
1. How do I learn crypto trading?
Many sources of information for learning crypto trading, but the best teacher is experience.
To start you need an exchange where you will buy and sell crypto assets.
2. How much money do you need to start trading Cryptocurrency?
Most exchangers give a minimum of $ 10 to start trading, but that is too small for a profit to be worthy.
100 $ is also still considered small to start trading crypto, ideally 1000 $ is enough for serious trading.
3. How do beginners trade Bitcoins?
Open an account at an exchange or broker, verify the account, deposit the account and start trading.
4. Is crypto trading legal?
Globally there are no official regulations for crypto trading.
But this trade is through exchangers and there are many investors entering the industry, although they do not yet have legal status, but are accepted by many circles.
5. Is crypto trader safe?
Although not yet legal, crypto trading is safe, easy deposit and many payment options.
Conclusion
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Crypto trading is alternative trading besides stocks and forex.
For forex traders who have experience in forex trading, it will be the same as crypto trading, the method of analysis and trading.
But this is also risky because dynamic market changes will make a person experience a loss when the position against the trend.
Are you ready to start trading?
Open an account or try Demo account.
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