Cryptotrading - cryptocurrency trading

Crypto trading is the process of selling digital assets on specialized trading platforms (cryptocurrency exchanges) for profit. The principle of cryptocurrency trading comes down to the fact that first you need to buy coins, and then sell them at a higher value. In essence, a crypto trader does the same thing as his colleagues in the stock or currency markets.

What skills does a crypto trader need?

Any financial activity is possible only with the appropriate knowledge and skills. Here are the main aspects that should be studied by a person who wants to engage in trading on the cryptocurrency market:

• Crypto industry basics. One should have an idea of what cryptocurrencies are, how they work, the principles of cryptography, what is blockchain, mining, and staking. Understanding the basic mechanisms serves as a basis for analyzing the market and successful trading;
• Technical analysis. This is one of the most important tools in the hands of any trader. It is necessary for making forecasts of cryptocurrency price changes based on market statistics and historical charts;
• Crypto exchanges interface. It is necessary to understand how trading occurs on a particular exchange and what tools are available for this. It is best to study the functionality of the largest centralized crypto exchanges to understand which one is more convenient and easier to trade on in a particular case;
• Risk management. In order to effectively manage risks, you should know how to diversify your crypto portfolio, set limits on losses, use hedging tools, and so on. This way a crypto trader can protect himself from losses in case of unpredictable market behavior;
• Infofield. News, new project launches, regulatory changes have a great impact on the crypto market. It is important to always be aware of the current situation in the crypto industry, which is helped by subscription and regular monitoring of various thematic resources;
• Laws. In some jurisdictions, cryptocurrencies themselves are prohibited in principle, in others - trading operations with them, in somewhere else - certain exchanges and resources. It is necessary to be aware of the legislative regulation of crypto trading in the country where the trader plans to carry out his professional activities.

Now you can find many offers to teach how to trade cryptocurrencies from scratch absolutely free of charge. Many automated tools that facilitate the work of a crypto trader have also appeared. Is it really possible to succeed in this business without paying a penny? Yes and no - you need to understand what kind of training is worthless, and what kind can be useful.