Crypto currency, or crypto, is a **digital or virtual money** that is protected by cryptography, making it nearly impossible to double-spend or counterfeit.
Most cryptocurrencies use **blockchain technology**, which is a decentralized ledger that is distributed among a huge number of computers.
Popular Cryptocurrencies:
– **Bitcoin (BTC)** – The most prevalent and most well-known cryptocurrency.
– **Ethereum (ETH)** – Famous for smart contracts and decentralized applications (DApps).
– **BNB**, **Solana (SOL)**, **Ripple (XRP)**, **Cardano (ADA)**, etc.
Crypto trading is the buying and selling of virtual currencies to profit from price movements.
1. **Spot Trading (Buy & Sell)**
– You purchase the actual cryptocurrency (e.g., purchase 1 BTC).
– Keep in a **wallet** or exchange account.
– Trading against other currencies (e.g., BTC/ETH) or fiat (e.g., BTC/USD).
2. **Crypto CFDs or Derivatives**
– Guess price movement without having the underlying instrument.
– Used in **short-term trades**, typically with leverage.
– Platforms: **eToro**, **Bybit**, **Binance Futures**, etc.
3. **Margin Trading**
– Take a larger position by borrowing.
– High reward, **high risk**—can lose more than original capital.
4. **Crypto ETFs and ETPs**
– For more traditional investors. These are regulated investment products that track crypto prices.
5. **Decentralized Exchanges (DEXs)**
– Purchase directly from your crypto wallet.
– No third-party control—examples are **Uniswap**, **PancakeSwap**.
Major Concepts in Cryptocurrency Trading
– **Volatility**: Prices move quickly—opportunities and dangers.
– **Wallets**: Hold crypto—can be **hot** (online) or **cold** (offline). – **Blockchain**: Shared record of every crypto transaction.
– **Gas Fees**: Transaction processing fees (mainly on Ethereum).
– **Altcoins**: All cryptocurrencies other than Bitcoin.
How to Get Started?
1. **Select a crypto exchange**: Binance, Coinbase, Kraken, etc.
2. **Confirm your identity** (KYC).
3. **Deposit** (crypto or fiat).
4. **Begin trading** on spot or futures markets.
5. **Use tools**: charts, indicators, and stop-loss/take-profit orders.