This post is the complete beginner’s guide to Crypto Trading and the 5 top crypto trading platforms to get started.
Crypto trading or Cryptocurrency trading is the exchange of cryptocurrencies for either another crypto or for fiat money with the aim of making a profit.
It is a way of getting more coins by taking advantage of the fluctuation in the price of cryptos.
No doubt, many persons have made millions through trading cryptos but many others have lost a lot too.
In this post, you will learn what crypto trading is all about and the exchanges that provide this service.
Good to go?
Let’s go then.
Summary of Post
Just so the facts in this post are clearly understood, I will be discussing it under the following subheadings:
- What is Crypto Trading?
- Crypto Trading Styles
- Platforms for Crypto Trading
- Pros and Cons of Crypto Trading
- Conclusion
Access the details of any of the subheadings by clicking on it.
Enjoy!
What is Crypto Trading?
Just to refresh your memory, Bitcoin was the first cryptocurrency ever to be created. It was released in 2009 by the unknown Satoshi Nakamoto.
Years later, the idea of crypto trading came about with the emergence of other altcoins such as Ethereum, Litecoin, Dash, Zcash, Monero, and many others.
Also read; 7 Top facts you need to know about Cryptocurrency
The idea of Crypto Trading is really simple; just like the real-world Stock Exchange.
You buy one crypto with another or with fiat money hoping that the value of the crypto you bought will increase. You will then re-sell it to make a profit.
It is a very good way to acquire coins without being involved with mining sites.
Many persons have made a whole lot of money through this means while some others earn a living by trading cryptocurrency.
Experienced traders use different tools to help them pick the right coins to trade at a particular time. For example, software that helps investors analyze previous pricing trends, etc.
To start up crypto trading, you need 2 basic tools:
- A charting tool (e.g Coinigy and Tradingview) which is used to monitor the market, make analysis and predictions.
- An exchange where the trading will take place
Based on duration, crypto trading can be:
- Long term
- Short term
Long Term Crypto Trading
Long-term crypto trading is when the traders are in business for a long period(say one year) and can make a high-profit margin on a single trade.
It does not require you to analyze the market at all times and you do not need a large capital to start up; you can buy little and let it grow over time.
But you can miss out on the opportunity to make a short-term gain or speculations about a drop in the price of your coin leading to losses.
For example; in January 2017 1 BTC sold for $1,000, by December 2017 1 BTC sold for $20,000. So if you bought $100 worth of Bitcoin in January 2017 and sold it in December 2017, you would have made $2,000. That is a long-term trade.
Short Term Crypto Trading
Short-term trading occurs when traders stay for a short period in the market.
They make a small profit on a single trade and have the advantage of making multiple trades per day.
But then, you have to spend a good chunk of your time monitoring how the market is moving.
While trading, crypto traders have different styles they use.
Read about the different styles in the next section.
Crypto Trading Styles
To achieve success in crypto trading, you will have to find out the trading style that works for you and stick to it.
The 5 different crypto trading styles are:
Hodl Trading Style
Yes…HODL! Notice the ‘D’ before ‘L’?
It’s a typo that is now common in the crypto world. Someone even said it means: Hold On for Dear Life. 😂
The true origin of the term “HODL” came from a bitcoin forum in 2013 when someone typed “I AM HODLING”; a typo mistake instead of “I AM HOLDING”. The term, however, has come to be accepted as correct in the crypto community.
In this trading style, the trader acquires crypto, holds on to it for quite a long time, and only makes sales when the price has gone up. It is more like making an investment.
Scalping Trading Style
Traders that adopt this style are the most active. This is because they have to stay online to monitor the market and take advantage of the slightest turn in the market.
Swing Trading Style
Here, time is taken to study the market enough to know that even when there is a drop in the market, there could be a rise around the corner.
The trader then makes an opening and sits back to watch the movement of the market.
This style requires patience and calculation.
Position Trading Style
A trader that uses this style carries out thorough research about the coin(s) of interest before making the decision to invest.
Day Trading Style
Trading here is done at most hours of the day when the market is most active.
Traders invest long hours in trading which is ideal for persons that have decided to trade cryptos to earn a living.
Day trading differs from scalp trading in that it takes a longer time.
Below is a Summary Table of the trading styles:
But……Where does this crypto trading take place?
Keep reading to find out.
Platforms for Crypto Trading
Crypto trading is carried out on an exchange. This is so the Makers and Takers can be matched.
Makers are the ones who set the price and Takers are the ones who come to just buy at the already set price.
A Maker can be a Seller or a Buyer. This is because a Maker can decide to either set a price at which to sell(here, the Maker is a Seller) and sells to someone at that price or can decide to set a price at which to buy(acting as a Buyer here) and buys at that price.
For example, let’s say I have Ethereum that I want to sell (either for fiat currency or for another crypto).
I won’t just get to the physical market to trade it (remember they are virtual currencies so you don’t even have them at hand).
Instead, I will have to log on to an exchange where I will find a taker for my Ethereum.
So some exchanges mainly provide makers and takers a platform to carry out their trade (more like a virtual market) and charge their users a percentage in fees.
Such exchanges include:
Here is a Table Summary:
I will be giving the full details of each below.
1. Binance
Binance is the first on my list of top crypto trading platforms.
It is the world’s biggest exchange in terms of liquidity and it is user-friendly.
Changpeng Zhao founded Binance in July 2017.
Here, you can trade over 400 cryptocurrencies including BTC, ETH, BNB, ADA, DAI, DOT, UNI, AAVE, and USDT.
Additionally, it supports 60+ local currencies including NGN, PAB, USD, BRL, CAD, CHF, CLP, CNY, COP, CZK, DKK, ZAR, PYG, RON, RUB, etc.
Also, Binance supports over 300 payment methods like Bank transfer, WeChat, Alipay, SEPA, Perfect Money, Western Union, etc.
Plus, transaction fees on Binance are affordable. It depends on the services you opt for.
The available services include Buy crypto, Spot/Margin/Futures trading, Derivatives, Staking, Lending, Wallet, P2P trading, and more.
How to trade on Binance
- First, you have to open an account. You can do that using my referal link.
- Next you fund your account from the wallet option on your profile.
- Now, you’re ready to trade. Go to ‘Trade’ from the top menu and select ‘Classic’
- Then you select your preferred trading pair and place an order.
*This video will walk you through to start trading on Binance. Check it out 👇
2. Quidax
Quidax is a Nigerian-based exchange founded in 2018 by Buchi Okoro.
It offers several services including P2P exchange, Instant Buy/Sell, Order Book, Wallet, and Quidax Vault.
Cryptocurrencies supported on the platform are BTC, ETH, XRP, LTC, DASH, WKD, MATIC, FIL, USDT, TRX, QDX, the network’s token, and more
Some of the supported trading pairs are BTC/NGN, ETH/NGN, XRP/NGN, ETH/BTC, XRP/BTC, and LTC/BTC.
And you can make payments via bank transfers and other cryptocurrencies.
The platform charges low fees and the customer support system is good to go.
How to trade on Quidax
- First, you have to open an account. You can do that using my referral link.
- Next, you fund your account from the wallet option on the top menu.
- Then, you go to “Order Book” from the top menu as well.
- Select your preferred trading pair and start trading.
*You can watch this video for more clarity 👇
3. Luno
The Luno app is very easy to use and makers can buy and sell cryptos at zero transaction fees. Cool!
BTC, BCH, ETH, LTC, XRP, USDC, NGN, EUR, MYR, ZMW, IDR, and ZAR are the currencies supported on the platform.
Luno supports more than 40 countries including Nigeria, South Africa, Malaysia, Zambia, Europe, etc.
The payment options are dependent on your country.
For those in Nigeria, you can fund your account using a payment voucher.
How to trade on Luno
- First, you have to open an account. You can do that using my referral link.
- Next, you fund your account from the wallet option on the top menu.
- Then, you go to “Exchange” from the home page.
- Select your preferred trading pair and start trading.
*This explainer video will walk you through the platform.
4. Bitstamp
Bitstamp is a popular cryptocurrency trading platform where you can buy /sell over 50 coins.
It was founded by Nejc Kodrič and Damijan Merlak in 2011.
Some of the supported cryptocurrencies include BTC, ETH, BCH, XRP, LTC, LINK, OMG, XLM, USDC, PAX, etc.
In addition to trading, you can also hold your funds on the platfom and earn passively.
Furthermore, you can buy cryptocurrencies directly credit/debit cards.
How To Trade on Bitstamp
- First, you have to register. Visit Bitstamp.net and click on ‘get started’ on the homepage.
- Complete the fields and verify your account
- Then go to your dashboard, click on ‘deposit’ to fund your Bitstamp wallet.
- Next, you click on ‘buy/sell’.
- Now, choose a trading pair and place an order.
*Learn more about Bitstamp here.
5. CEX.IO
CEX.IO was established in 2013 as a cloud mining company but suspended its mining activities in January 2015.
Over the years, it has come to become a multi-functional cryptocurrency exchange that is trusted by many users.
It serves over 90% of countries around the globe including 31 states of the USA.
The supported cryptocurrencies are:
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin Cash
- Ripple
- Dash
- Bitcoin Gold
- Monero
Supported fiat currencies include:
- USD
- EUR
- GBP
- RUB
A list of its fees can be seen on the Fees page.
Trading follows the same pattern as explained for Binance.
You can read the CEX.IO review or watch this ecxplainer video to learn more.
Other trading platforms you may want to check out are:
Having known the exchanges where you can trade, let’s go learn the benefits and drawbacks of crypto trading.
Scroll down
Pros and Cons of Crypto Trading
With regard to crypto trading, there is a definite increase in interest and trading activity.
But as with anything, it has its gains and flaws.
Pros
Some of the gains of crypto trading include:
- Convenience
- Low transaction costs
- High profitability (if you know what you are doing)
Cons
- Government regulations
- Loss of funds/coins (if you don’t know what you are doing)
Well, despite the pros and cons, the crypto trading world is vast enough for all who will want to engage in its activities.
As long as you are following the golden rule of not trading more than you can afford to lose, there is no harm in giving it a try.
Conclusion
So, here is the last section of this post!
Having read through the post, I know you surely have some thing(s) to say.
Have you used any of the exchanges? Share your experience with me.
Or are you yet to try out crypto trading?
Do you have any questions?
And did I leave out any exchange?
Drop your replies in the comment section below; I will be looking forward to seeing them.
Don’t forget to share the post with friends; you might be helping someone to make an informed decision.
Click on the social media buttons right away.
For a more advanced trading tutorial and strategy read; Crypto Trading Tutorial: How to win Every Trade.
You can also sign up for our CTMastery course on crypto trading.
Visit ctmastery.com to enroll or join us on Telegram for more details.
I used master card to purchase crypto in BINANCE but response was : to protect your account, your purchase cannot be processed. What should I do? Please help me. Thanks
Use bank Transfer
Thanks alots. Visa classic and Visa naira which is best ? Please also enlighten me on trading with pairs in BINANCE and primexbt.
What debit card in Nigeria can I use to purchase crypto in BINANCE ?
Master and Visa Card