Cryptocurrency trading might be most akin to forex trading. Traders purchase cryptocurrency with U.S. dollars with either a buy-and-hold strategy or to trade the volatility on a daily or weekly basis.
How Can I Buy And Sell Cryptocurrencies?
You can use an exchange to buy and sell cryptocurrency. In the United States, Coinbase and Gemini are popular exchanges, while in Europe BitStamp remains one of the oldest exchanges globally. Binance in recent years has emerged as a Malta-based trading option.
You’ll need to create an exchange account at an exchange of your choice and purchase the coins, which you can then store either on the exchange or on a hard wallet. You will run into KYC and AML processes on the most established exchanges. There may be limits on how much you deposit.
What Is The Spread in Cryptocurrency Trading?
The spread in cryptocurrency trading refers to the price difference between buy and sell prices. When you open a position on a cryptocurrency market, there are two prices. This is true for most financial markets.
For long positions, you trade at the buy price, which is slightly above the market price. If you want to open a short position, you trade for the sell price, which is often a bit below the market price.
What is leverage in cryptocurrency trading?
You can gain exposure through leverage to a cryptocurrency without having to put up the full value of your trade upfront. You put up a small deposit called margin, and your profit or loss is calculated based on the full size of the trade.
What is margin in cryptocurrency trading?
Margin describes the initial deposit you pay to open and maintain such a leveraged position. As you trade cryptocurrencies based on margin, your margin requirements change depending on the broker and how large the trade size is.
Margin is expressed as a percentage of the full position. A Bitcoin trade that requires 15% of the total value of the position to be paid for it to be opened entails you depositing not $5000, but $750.
Are Cryptocurrencies Volatile?
Cryptocurrencies are among the most volatile investments. Cryptocurrencies have many of the same indicators as traditional markets, such as stock day trading.
How Can I Pick a Cryptocurrency Exchange?
There are dozens of cryptocurrency exchanges and not all are equal. You’ll first need to confirm if an exchange is available where you live. For instance, in the United States, Coinbase is one of the best known exchanges. It is not available in certain countries, to be sure.
You’ll want to next evaluate the exchange’s reputation. How long has the exchange been in business? What is its relationship with regulators? Does it provide a formidable service? What hacks have there been against the exchange? To find out what the people think about think about the service check Reddit, Twitter and elsewhere.
You’ll also need to determine if the exchange rates are reasonable. Different exchanges offer different exchange rates.
The most reputable exchanges require ID verification, which provides a certain level of security for you.
How Do I Keep Track of the Cryptocurrency market?
When it comes to crypto trading, you can join a group and begin copying somebody’s trades via copy trader activity. With no prior knowledge, you can, in the course of several hours, learn enough to at least stand a chance in the market.
In order to begin trading succesfully, you’ll want to prune your social media feeds, including Twitter, Facebook, LinkedIn, and others. Do this to ensure you get correct information.
To find people whose opinion about the markets you respect, investigate well-known traders, and who they follow.
You can customize the information you receive on all of your social media platforms, like Reddit, Twitter, Facebook, and LinkedIn. Here are some good accounts to follow across social media:
Alessio Rastani – Cryptocurrency analyst, stock market and FX chartist and trader at Leading Trader.
Balaji Srinivasan – An angel investor and entrepreneur. Formerly the CTO of Coinbase and General Partner at Andreessen Horowitz.
Big Cheds – Crypto trader who tweets about the crypto prices and markets.
Bitcoin Agile – Breaking news for Bitcoin and blockchain.
Blockdata Tech – Tracking the growth of blockchain technology through data.
Blockforce Capital – An asset management firm that offers innovative financial products.
Bobby Ong – Co-Founder and COO of CoinGecko
Box Mining – Crypto influencer and content creator.
Brave New Coin – Institutional Grade Crypto Market Data.
CoinDesk – The leading news site.
Cointelegraph Markets – Bitcoin price breaking news and cryptocurrency market analysis.
Cointelligence – Cointelligence provides data, education, and useful tools for the crypto and blockchain industry.
crypt0snews – Cryptocurrency News, Sentiments, & Opinions.
Crypto Blood – Quant and Algo Trading Information.
Crypto Birb Nest – Certified Technical Analyst CMT I focused on Bitcoin & Legacy Markets.
Crypto Bobby – Founder of Proof of Talent.
Crypto Dave – Crypto Miner, Investor, Trader, Advisor, Fundamental Expert.
Crypto Don Alt – Teacher and investor in cryptocurrency trading.
Crypto Godfatha – CEO @ Block Journal.
Crypto Messiah – Tweets about cryptocurrency trading.
Crypto Michael – Full Time Trader from Amsterdam Stock Exchange.
Crypto Orangutang – Author of Cryptocurrency: A Trader’s Handbook.
Crypto Rand – Trading and investing analysis.
Crypto0rca – Occasional trading analysis.
CryptoSlate – A crypto news and date site.
Decrypt Media – Latest news about Bitcoin, Ethereum, cryptocurrency and the advent of the decentralized web.
DeFiPulse – Tweets about the DeFi industry.
Delta Crypto Portfolio Tracker – Cryptocurrency portfolio, price, markets tracking app.
Dogecoin – Dogecoin is an open source peer-to-peer cryptocurrency
J0E007 – Bitcoin and crypto influencer account
Jacob Canfield – A tech entrepreneur and full-time Bitcoin and stock trader
Jason Deane – Analyst at Quantum Economics.
Jason Fernandes – Crypto analysis.
Johannes Rude Jensen – PM at eToroX Labs and research at UCPH.
John Bollinger – Technical Analyst and inventor of Bollinger Bands.
Kate Haun – General partner, A16z.
Keefe Borden – Analyst at Quantum Economics
Krown Crypto Cave – Crypto Influencer
Lou Kerner – Crypto evangelist focused on building stablecoins.
Mati Greenspan – Founder of Quantum Economics
Mike Harris – Head of Capital Markets & Business Development at Citadel Securities
Modern Consensus – Digital currency news site covering technology, people, and culture of the cryptocurrency world.
Modern Invest – An investor offering advice to people new to the world of investing who look for information on how to build their wealth.
Nate Whitehill – CEO of Cryptoslate, crypto news and date site.
Nicholas Merten – Founder & CEO of Digifox Finance and creatorof DataDash, a YouTube channel for cryptocurrencies.
ObiWanKenoBit – Tweets crypto news and price predictions.
Obvious Capital – Cryptocurrency portfolio management company with a quant approach for high net worth individuals and institutions.
On Yavin– – Founder and CEO of Cointelligence
Perpetual Bull – Bitcoin and crypto tweets account
Peter Brandt – Futures/fx career trader since 1975. Author and publisher of the Factor Report
Quantum Mechanics – Quantum Economics was founded in November 2019 to provide market analysis content, strategic advisory services, and money management.
Richard Byworth – CEO at Diginex. VC and early stage investor, Blockchain, Edtech, and MJ. Deal structuring, Convertibles, PE, and VC.
Salsa Tekila – Full-time paper trader.
Ryan Selkis – Founder of Messari Crypto
Samantha LaDuc – Macro-to-Micro Analyst+Active Trader Forecast+Chase – Mostly Options
Satoshi Nakameowdough – Tweets about fintech, defi, and crypto.
Six Letter Man – Investor at Galaxy Digital
Skew – Professional data analytics and trade execution services for cryptocurrency markets. Not financial advice.
Tavi Costa – Crescent Capital portfolio manager
The Block Crypto – The first and final word in digital assets
The Crypto Dog – trading and investing tweets.
The Crypto Lark – Bitcoin and crypto influencer.
The Crypto Monk – Investment and trading information. Co-founder of YellowBlock, a blockchain educational hub providing news and market updates.
The Crypto Zombie – Crypto and blockchain content creator.
The Wolf of All Streets – Crypto trader content.
Thinking USD – Crypto margin trader.
Thomas Silkjaer– CEO and founder of XRPlorer, exploring big data, and occasionally posting interesting findings.
Todd Butterfield – Owner of Wyckoff Stock Market Institute.
Token Addict – Tweets on DeFi, blockchain and crypto topics.
Tokenmetrics Inc – A data-driven investment research platform for crypto that leverages analytics and machine learning to become a better investor.
Tom Kuhn – Market Analyst at Quantum Economics.
Trader Cobb – Education on cryptocurrency and market updates.
Ty Blackard – Co-Founder of FomoHunt
VentureCoinist – Trader, host of Coinist Podcast and VentureCoinist TV.
YellowBlock – Co-founder of YellowBlock, a blockchain educational hub providing news and market updates.
Crypto Common Sense – A group about trading led by the humble James Hadley.
Crypto Traders Pro – Run by long time crypto investor and stock trader. Studying the market using technical indicators and fundamentals analysis.
CC Investing Community – A group to discuss updates, news, upcoming projects and speculate on the future.
Crypto Trading Signals – A group for trading signals purely based on Technical Analysis along with some sort of Fundamental Analysis
The last group in the above section deals with trading signals.
Many groups and channels on Telegram deal with crypto signals, which are theoretically groups of experienced and skilled traders that broadcast their trades so you can copy them.
This type of copy-trader activity is also available on eToro, where there social trading functionality allows you to copy the trades of your favorite traders. Mati Greenspan is a well-known trader there who many people follow.
Signal traders theoretically do the analysis for you and signals tell you what crypto you should buy.
A buy signal tells you the price point at which you should make your purchase, and a sell signal tells you the price point at which you should sell.
A Stop Loss signal will instruct you where to exit a trade if the asset moves against the position.
Here are some of the channels and communities with trading information.
3Commas – Tools for crypto traders.
AlphaTradeZone – Analysis, news, education and signals on Crypto.
Binance Research – The latest research by Binance.
Bitassist – Providing intra-day crypto trading signals curated on performance, accuracy & quality.
Bob’s Crypto Trades – Signals from Binance, ByBit, and BitMEX.
Botje11 – Trading signals and analysis
Coin Signals – A group of expert traders and analysts for BTC-based pairs.
Cointelegraph – News and analyses.
CoinTrendz – Crypto Market Data Insights, Market Activity, News, Events & more!
Crypto Alerts – Major crypto alerts.
Crypto Charters – Ttraders posting their charts.
Crypto Coins – News and Analysis and signals.
Cryptohopper – The Telegram group for the Cryptohopper trading platform.
CryptoYoda – Crypto Enthusiast, Technical Analyst, Writer.
Delta Exchange – The group Delta Exchange, a Crypto Derivatives Exchange with over 30 Altcoin Futures and other products. Great for keeping pulse of the market.
Fat Pig Signals – Signals for a variety of crypto assets.
Filb Filb Trading Journal – A public record of trades.
ICO Analytic – Focused on new coins and analysis.
Margin Whales – Trading signals for XBT and ETH contracts.
My Cryptopedia – Trading signals for Binance Futures and BitMex Bybit
One Minute Letter – Produced by Cointelegraph, the most important crypto news of the day in one post.
Rekt Plebs – A collection of messages by people who lost a lot of money by trading crypto. Might make you feel better.
Richard’s Calls – Mostly Bitcoin price predictions and analysis.
TA By The Boot – Technical analysis from legendary Bitmex trader TheBoot.
The Crypto Room – Trading strategies, news and technical analysis in crypto!
Trading Crypto Coach – Signals
Universal Crypto Signals – Signals and BTC analysis.
Whale Alert – Blockchain tracker and analytics
Whale Tank – Signal provider for long-term portfolios with short term gains.
Whale’s Guide – Signals
Yo Crypto Signals – Signals
CryptoRand – Public Discussion and Public Charts on trading and markets.
r/CryptoCurrency – the official Discord server for the largest crypto group on Reddit.
Cracking Crypto – Crypto signals, breaking news, latest price movements, etc.
Elite Crypto Signals – Crypto signals
Crypto Currency Trading And Wealth Building – Crypto Strategies, Tools, Opportunities and News
Trading And Investing In Crypto – Dedicated to trading cryptocurrencies, Ethereum, Ethereum Classic, Bitcoin, Bitcoin Cash, Ripple, Dash, Litecoin, Monero, NEO and other altcoins.
Crypto Markets – FOREX community for cryptocurrencies.
Bitcoin – The original Crypto subreddit
Beyond social platforms, data aggregators serve as an important tool in your information gathering efforts to make informed trading decisions. Here is a list of such sites:
Messari – Bitcoin & crypto data, tools.
CoinGecko – Prices and data for the top 100 Coins by Market Capitalization.
BraveNewCoin – Prices, crypto news, and data.
With All This Info At Your Fingertip, What Are You Looking For?
The useful information you’re after on these platforms includes different types of analysis, deep dives on news, and technical aspects.
Use social media as a listening tool with which you monitor digital conversations to understand what people are saying about a particular asset.
By following social media, you can see what people think are overvalued or undervalued at any given moment.
If people are bearish on a crypto asset, reduce your exposure. If they are bullish, increase your exposure.
Beware of bot accounts on Twitter and all social media. Indeed, be cautious of nefarious groups who use social media to manipulate people and assets.
Tools and charts must be used differently when trading short-term versus long-term. When it comes to a company in which you’d like to invest, long-term analysis is appropriate.
You’ll want to develop a thesis about why that company has room to grow.
Look at breaking news, and how it will impact the market, when making short-term trades.
When making short-term trading decisions based on the news, you’ll want to first see how markets react and then make your move.
Crypto, however, doesn’t generally react to world news as much as traditional markets.
Traditional markets have regular news events. The U.S. jobs report often has an impact on markets. As soon as the results are published, everybody’s trading immediately.
Alternatively, momentum of a crypto asset is a powerful indicator. You can tell when something is moving and the direction in which it is going.
Gauge the direction and speed of a market by analyzing charts or social media sentiment, especially for high risk cryptocurrencies on a short term basis.
Google Trends, which shows market fundamentals and how people are thinking about an asset, is a powerful analysis tool. The more people searching for the asset, the more solid its fundamental.
Cryptocurrencies, as networks, are powered by the people that contribute to the network.
Study candlestick charts, in which candlesticks represent one hour, for perspective on performance over the preceding 24 hours of a specific coin. Coin360.io has clear week, day, and hour charts.
Candlesticks show sentiment by visually representing the size of price moves with different colors. Traders use the candlesticks to make trading decisions based on regularly occurring patterns that help forecast the short-term direction of the price.
If things are in the green over the last hour, two hours, and three hours, the asset will likely continue that trend. At some point, that trend will slow down, and then it will start to reverse. As the momentum slows, things will start to turn red. Finally, sentiment on social media will change.
In certain cases, a particular network in which you invest might experience challenges. During Bitcoin’s price increase in 2017 to $20,000, the network became transaction.
When analyzing the Bitcoin network, factor in the activity of miners, nodes, hodlers, and exchanges, as well as the Fear & Greed Index.