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Intro To Crypto Trading Notes

Cryptocurrency trading involves buying and selling digital currencies for profit, utilizing methods such as spot trading and derivatives. Key concepts include exchanges, wallets, liquidity, and volatility, with various trading types like day trading and HODLing. Essential practices for traders include risk management, avoiding common mistakes, and understanding market psychology.

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84 views3 pages

Intro To Crypto Trading Notes

Cryptocurrency trading involves buying and selling digital currencies for profit, utilizing methods such as spot trading and derivatives. Key concepts include exchanges, wallets, liquidity, and volatility, with various trading types like day trading and HODLing. Essential practices for traders include risk management, avoiding common mistakes, and understanding market psychology.

Uploaded by

ilohugochukwu
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Intro to Crypto Trading – Class Notes

1. What is Cryptocurrency Trading?


 Cryptocurrency trading is the act of buying and selling digital currencies to make a
profit.
 Traders speculate on crypto price movements via:
 - Spot trading (buy/sell real crypto)
 - Derivatives (like futures, options)

2. Key Concepts and Terminology


 Exchange – Platform to buy/sell crypto (e.g., Binance, Coinbase)
 Wallet – Digital tool to store crypto (hot or cold wallet)
 Fiat – Traditional money (e.g., USD, EUR)
 Altcoin – Any coin other than Bitcoin
 Liquidity – Ease of buying/selling without affecting price
 Volatility – How much price fluctuates

3. Types of Trading
 Day Trading – Short-term trades within the same day
 Swing Trading – Trades held for days/weeks to capture trends
 Scalping – Quick trades with small profits
 HODLing – Long-term holding, not actively trading

4. Basic Tools and Platforms


 Exchanges: Binance, Kraken, Coinbase, KuCoin
 Charting tools: TradingView, CoinMarketCap
 Wallets: Trust Wallet, MetaMask, Ledger
 News sources: CoinDesk, CoinTelegraph, Crypto Twitter

5. How to Start Trading


 1. Choose an exchange (e.g., Binance)
 2. Create and verify an account
 3. Deposit funds (crypto or fiat)
 4. Choose a trading pair (e.g., BTC/USDT)
 5. Analyze using charts and news
 6. Place your order (Market or Limit Order)
 7. Manage your trade with Stop-Loss and Take-Profit
6. Technical Analysis Basics
 Candlestick Charts – Show price movement
 Support & Resistance – Key price levels
 Moving Averages (MA) – Show price trends
 RSI (Relative Strength Index) – Overbought/oversold conditions
 Volume – Strength of price movement

7. Risk Management
 Only trade what you can afford to lose
 Use stop-loss orders
 Don't overleverage
 Diversify your portfolio
 Avoid emotional trading

8. Common Mistakes to Avoid


 Trading without a plan
 FOMO (Fear Of Missing Out)
 Ignoring fees
 Overtrading
 Not learning from past trades

9. Security Tips
 Use 2FA on all accounts
 Never share your private keys
 Avoid clicking unknown links
 Withdraw profits to a cold wallet
 Beware of scams and pump & dump schemes

10. Crypto Market Psychology


 Greed – Market peak
 Fear – Market bottom
 Hope – Early recovery
 Euphoria – Bubble forming
 Understanding psychology helps avoid emotional mistakes

Checklist for First-Time Crypto Traders


 [ ] Created account on a reputable exchange
 [ ] Secured wallet and backup phrase
 [ ] Studied basic trading strategies
 [ ] Set personal risk tolerance
 [ ] Started with a small amount
 [ ] Kept learning continuously

Final Tips
 Always DYOR (Do Your Own Research)
 Crypto is volatile – stay updated
 Use demo or paper trading to practice
 Join communities (Telegram, Discord, Reddit)

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