How to Trade Cryptocurrencies

(for novice traders)
If you are familiar with cryptocurrencies either through faucet sites or through crypto forums, and you have decided to become a crypto trader, you have come to the right place for a post that will guide you to become a professional crypto trader. You need to know that the crypto market is the most volatile, high volatility market, but if you have the skills and experience you will get profits every day. This post will try to explain about various strategies, and explanation of how to develop a systematic trading approach.

Crypto Trading Basics
Actually crypto trading relies on speculation on future crypto price movements, for example, when you trade Ethereum, you will predict whether the price of Ether will go up or down in the market. so that every time your trading activity, both buying and selling, will always make a profit.
Simple Example of Crypto Trading You will be trading Cardano (ADA) vs USD (you can also use stablecoins like USDT, USDC etc). and will certainly be the crypto pair denoted ADA/USD on any crypto trading platform or exchange. Currently the price of ADA/USD is $1.46, and you buy 100 ADA for $146. A few minutes/hour later the price of ADA goes up to $1.60 so the price increase is 9.58%, Your capital is $146 and will make a profit of $13.99 so your capital increases to $159.99 (should be $160 due to rounding). so trading crypto time is very short, unlike investing. So in crypto trading you can take advantage when the price goes up or down the most important thing you can predict the market price correctly.

Crypto Trading Pairs
In the crypto world, crypto pairs traded are cryptocurrencies that can be exchanged for each other. For simplicity, we categorize them into two, namely Crypto-cross trading pairs and crypto-fiat money trading pairs. 

Cross Crypto Trading Pairs.
Crypto-cross pairs are pairs between different cryptos and we trade with each other. If you look at the trading pair BTC/LTC - means Bitcoin (BTC) as the Base cryptocurrency while Litecoin (LTC) is the Quote cryptocurrency. Procedure BTC/LTC trades are priced at 320 LTC, meaning to earn 1 BTC it takes 320 LTC. In practice trading using cross crypto pairs (between crypto) will be a bit more complicated especially for novice traders. As a crypto trader you have to calculate/analyze whether the exchange rate of this cross-crypto pair will go up or down, therefore more crypto traders use fiat money pairs both USD and local money. 

Fiat Money-to-Cryptocurrency Pair or Vice Versa

Fiat money to crypto pairs apply fiat money pairs (USD, Euro, YEN or local money) to Cryptocurrencies such as (BTC/USD). Currently the Bitcoin price is $50k. Almost all crypto exchanges provide USD pairs, but if not available you can use stablecoins. Fiat-to-cryptocurrency pairs or vice versa are often traded via CFDs (Contracts for Difference). So when trading crypto you don't need to own crypto directly. The main advantage of trading CFDs is getting access to zero commissions and tight spreads. Apart from that, you will also have the option to apply leverage to your trades, as well as sell short easily.

Crypto CFDs
The most popular way to get involved in short-term cryptocurrency trading is through CFDs. As we noted earlier, CFDs allow you to trade cryptocurrencies without taking ownership of the underlying asset. In other words, you don't have to worry about yourself keeping your cryptocurrency in a digital wallet or the security of your digital funds. CFDs will only reflect the price of the cryptocurrency and give you the opportunity to profit from both falling and rising markets. For example, when you believe that the price of a cryptocurrency will soon go up, you can take a long position and place a buy order. Once the price goes up, you will create a sell order to cash out - making a profit in turn. On the other hand, if you think that the value of the cryptocurrency will go down - you can go short by first placing a sell order. If your speculation is correct, you will place a buy order to cash out and thus, make a profit.