Getting Started with Crypto Assets Trading: From Zero Knowledge to Independent Trader

Core Points

• Trading cryptocurrencies on an exchange is a way to make a profit by buying and selling digital assets.
• Before starting trading, it is necessary to choose a reliable platform, complete account registration, and grasp basic concepts.
• The main trading strategies include scalping, swing trading, high-frequency trading, and long-term holding.
• Successful trading requires a combination of technical analysis and fundamental analysis, with risk management and portfolio diversification being crucial.

Why Choose Cryptocurrency Trading

The digital asset market has attracted millions of participants worldwide—from individual investors to institutional capital. However, the abundance of industry terminology, complex trading strategies, and significant market volatility often confuses newcomers. Whether you are planning to make your first trade or want to systematically understand the whole picture of cryptocurrency trading, this guide will help you grasp all the key points from account creation, core concepts, trading strategies to risk control.

What is the essence of cryptocurrency trading?

Definition and Market Characteristics

The process of buying and selling digital assets on an exchange to generate profits is known as cryptocurrency trading. Unlike traditional financial markets, the digital asset market operates year-round without breaks, which provides greater flexibility but also means that price fluctuations can be more severe.

There are thousands of cryptocurrencies in the market, but the most attention is on Bitcoin (BTC) and Ethereum (ETH). Bitcoin is the native token of the blockchain network of the same name, while Ethereum is the fuel token of its corresponding network.

Two directions of trading

Traders can take long positions (buying assets in anticipation of price increases) or short positions (selling assets in anticipation of price decreases). Some may hold assets for the long term, while others may adopt a quick in-and-out approach—this all depends on the strategy used and risk tolerance.

Transactions can be conducted based on fiat currencies such as ( US dollars, euros, etc., or can be exchanged for other digital assets. The specific transaction process may vary depending on the type of asset chosen and the platform.

Preparation Work Before Starting Trading

) Step 1: Learn the Basics

Before placing an order, it is essential to understand the basic terms and concepts of trading. Starting with online tutorials and professional articles is a wise choice.

Step 2: Choose a suitable trading platform

Choosing a reliable and secure platform is crucial. Prioritize those that:

• A platform with a good reputation
• Provide comprehensive security measures
• Equipped with a professional customer support team

For beginners, centralized exchanges are a better starting point. As you gain experience, you can gradually try decentralized trading platforms ###DEX(.

) Step 3: Create an Account

After selecting a platform, you need to complete account registration. The usual process includes:

• Provide email address
• Set security password
• Accept platform terms

Most platforms require identity verification ### KYC (, which is to ensure account security and comply with regulatory requirements. You need to prepare identification documents, proof of address, and other documents to complete the verification.

Trading Practical Guide

) Deposit and Recharge

After the account is created, you can deposit fiat currency. Most exchanges accept the following deposit methods:

• Bank Transfer
• Credit/Debit Card Payment
• Other common payment methods

If you already hold other digital assets, you can also transfer them directly to the platform. Important Note: Be sure to send assets to the correct address type. For example, Bitcoin can only be sent to a Bitcoin address, and Ethereum can only be sent to an Ethereum address. Incorrect transfers may result in permanent loss of funds.

Understanding the concept of trading pairs

Cryptocurrencies are traded in pairs such as BTC/USDT, ETH/BTC ###. Trading pairs show the exchange relationship between two assets.

Taking BTC/USDT as an example: you trade Bitcoin using USDT(, a stablecoin pegged to the US dollar ). If the current price of Bitcoin is 92,175 euros, then the BTC/EUR trading pair will display this price. In other words, you need 92,175 euros to buy 1 BTC, and over 50,000 euros can buy 0.5 BTC. The good news is that you can buy Bitcoin for as little as 5 euros.

Cryptocurrency trading ( such as ETH/BTC ) involves the direct exchange of two digital assets. As of writing, the price of 1 ETH is approximately 0.02285 BTC.

( View Order Book

The order book is a dynamic list that displays buy and sell orders in real time, reflecting the supply and demand situation of a specific asset at different price levels.

• Bid ): Displays the prices that traders are willing to purchase, arranged from high to low.
• Sell Order ### Price (: Displays the prices at which traders are willing to sell, arranged from low to high.

) Select Order Type

(# Market Order

A market order is the most direct trading method - buying or selling immediately at the current best market price. This is the fastest way to execute a transaction.

Assuming the highest buy price for Bitcoin is $100,000 and the lowest sell price is $100,100. If you place a buy order, it will be executed at $100,100; if it's a sell order, it will be executed at $100,000.

)# Limit Order

A limit order allows you to buy or sell at a specified price or better. This trading method is slower, but it ensures that you execute the transaction at the exact price you want.

For example, the current trading price of Bitcoin is $100,000, but you want to buy it at $98,000 or lower. You can set a limit buy order at $98,000. If the price drops to this level or below, the order will be executed. However, if the price never reaches your set limit, the order will not be filled.

Develop personal trading strategies

Every trader is unique, so trading systems should be tailored to individual circumstances rather than simply mimicking others. Cultivating stable trading abilities through gradual improvement and practice is a method that is more likely to yield results in the long run.

Regardless of the strategy employed, risk control and learning from mistakes are key. Maintaining a trading log ### to record the logic, execution process, and results of each trade ### can help you reflect deeply and continuously improve.

Detailed Explanation of Mainstream Trading Strategies

day trading ( short-term trading )

Day trading refers to the method of establishing and closing positions within the same day. Traders typically rely on technical analysis to select trading varieties.

Although day trading can be profitable, it is a high-difficulty method that is not suitable for everyone. Compared to medium-term swing trading or long-term holding, day trading requires more time investment and can result in greater psychological stress. Therefore, this strategy is not recommended for beginners.

swing trading ( medium-term strategy )

Swing trading also aims to profit from market trends, but the time frame is longer - positions are typically held for several days to months.

This method is more suitable for beginners because it does not create pressure and time constraints like day trading.

high-frequency trading ( scalping )

Among all strategies, high-frequency trading involves the shortest time frames. Traders attempt to capture small price fluctuations, often completing entries and exits within minutes or even seconds.

As a variant of day trading, high-frequency trading is also not recommended for beginners. Practitioners typically use technical analysis, track bid-ask spreads, and other market microstructures to profit. Due to the extremely short trading cycles, individual profits are often limited. High-frequency traders gradually accumulate substantial returns through large trades or frequent transactions.

Long-term holding strategy

Although not strictly considered active trading, long-term investors ( are referred to as “holders” ) who aim to benefit from the overall growth of the cryptocurrency market. They buy and hold assets for a long time—often for months or even years.

This “buy and hold” approach is the least stressful in crypto trading. It is very suitable for investors who believe in the long-term value of certain assets and can withstand short-term price fluctuations. While it requires patience, this strategy can ultimately yield significant returns, especially for Bitcoin holders.

Analytical Methodology

Technical Analysis Methods

Technical analysis is the study of predicting potential price movements by interpreting price charts, identifying patterns, and using indicators.

(# Candlestick Chart

A candlestick chart is a graphical tool that shows the price changes of an asset within a specific time frame. It consists of individual candles, with each candle representing a time period. For example, on a one-hour chart, each candle represents 60 minutes of price movement; on a daily chart, each candle represents 24 hours.

Each candle contains four key price points:

• Opening Price: The price at the beginning of the time period
• Highest Price: The highest price during this period
• Lowest Price: The lowest price during this period
• Closing Price: The price at the end of the time period

These four values are collectively referred to as OHLC.

)# Support and Resistance Levels

• Support Level: The “lower limit” that the price reaches, which is the area where buyers are active, pushing the price up.
• Resistance Level: The “ceiling” that the price reaches, where sellers are active, pushing the price down.

Technical Indicator Tools

Traders use various technical indicators to analyze price movements, which help identify patterns and determine the optimal entry and exit points. Common technical indicators include trend lines, moving averages, Bollinger Bands, Ichimoku Kinko Hyo, and Fibonacci retracement levels, which can also indicate potential support and resistance areas.

Fundamental Analysis Methods

Fundamental analysis is a method of assessing the intrinsic value of an asset or company, widely used by investors and traders. In the crypto space, it typically involves researching the project's technical foundation, development team, application potential, and overall viability.

In cryptocurrency trading, fundamental analysis assesses the value of a currency through the following factors:

• The underlying technology and innovation level of the project
• Application scenarios and practicality
• The strength and reputation of the development team
• The rationality of the design of the token economic model
• Market adoption and integration level

Fundamental analysis may also include:

• Blockchain data ### active address count, transaction volume, etc. ###
• Project roadmap and latest progress
• Community engagement and developer participation

Scientific Management of Trading Risks

Risk management involves identifying financial risks associated with investments and taking measures to minimize them. Here are several key strategies.

Strategy One: Set a Loss Limit

Never invest more than you can afford to lose. Use advanced order types to lock in profits or prevent losses. In particular:

• Stop Loss Order: Automatically sells when the price falls to a specific level, limiting losses.
• Take Profit Order: Automatically sells when the price rises to the target level, ensuring profits are secured.

( Strategy 2: Develop an Exit Plan

Always be prepared for the worst-case scenario. Having a clear exit strategy is at the core of risk management. It’s easy to get caught up in emotions during a bull market, but having an established plan can help you lock in profits and avoid significant losses.

You can use limit orders to set profit targets or the maximum loss you can tolerate. More importantly, it's not just about making a plan, but also strictly following it. Plan your trades, then trade according to the plan.

) Strategy Three: Portfolio Diversification

Portfolio diversification is one of the most fundamental tools for reducing risk. Traders should hold a variety of different assets, ensure that each position size is appropriate, and regularly rebalance to avoid over-concentration in a particular asset. This approach can significantly reduce the likelihood of incurring major losses.

Strategy Four: Hedge Position

Although some experience is required, you might consider hedging existing open positions - this means opening a position in the opposite direction on the correlated asset to offset potential losses.

For example, a trader holding $10,000 worth of Bitcoin is concerned that the price may drop. He buys a put option that gives him the right to sell Bitcoin at $100,000 within two weeks. If Bitcoin drops to $80,000, he can exercise the option to sell at $100,000, significantly reducing his losses. If the price does not drop, he will only lose the option fee while continuing to profit from the upward trend.

Summary and Outlook

The market itself is difficult to predict, and the volatility of the cryptocurrency market is especially severe. However, continuous learning can make you a better trader. The key principle is to always prioritize risk management. Stay updated with the latest developments in the crypto ecosystem, continuously hone your trading skills, and adjust your strategies based on practical situations. Long-term persistence and rational decision-making are the paths to success.