Crypto Trading For Beginner Traders PDF
Crypto Trading For Beginner Traders PDF
Crypto Trading For Beginner Traders PDF
Leverage Trading
After you’ve got a bit of experience, you can
try your hand at leveraged trading. This lets
you earn up to 100x more than you usually
would, meaning a trade that would’ve only
netted you $5, could earn you $500. Keep in
mind - risks increase because leverage also
amplifies your losses.
Profit In Both Directions
You might think a coin has to rise in value to
make money, well this isn’t the case. Regard-
less of a coin’s performance, you can con-
tinue earning by opening up a short position
This enables you to profit from both rising
and falling prices. You’re moments away from
learning how to do it!
I DONT HAVE TIME TO
WATCH CHARTS ALL DAY
With copy trading, you're letting someone else do the hard hours for you.
#1 CHOOSE A TRADER
Check their performance, assets, risk score, and more. Check out our dynamic
list with TOP traders HERE
#2 SET AN AMOUNT
Choose a total amount for the copy — the proportions are calculated automat-
ically
#3 CLICK COPY
Click the “Copy” button to start automatically copying the trader’s positions.
TRY copytrading
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you
understand how CFDs work, and whether you can afford to take the high risk of losing your money.
what are cryptoassets
Although the word cryptocurrency is often thrown around as a blanket state-
ment to describe any token operating on the Blockchain, in reality, there are
several subdivisions. Understanding the differences between these crypto-as-
sets can help you take your trading to the next level, it opens you up to the
deeper world of crypto, allowing you to earn interest on your investments, play
Blockchain games, and send transactions for pennies.
Have a look at the graphic below, after reading it you’ll understand the different
types of crypto and how you can use them to your advantage.
what is the blockchain
On the surface Blockchain technology seems impossible to understand, with
step back and look at Blockchain technology in simple terms, it becomes far
easier to grasp.
Bitcoin volatility
the uncertainty surrounding Bitcoin's future. As a new technology, Bitcoin is yet
to prove itself, the problems it aims to solve are big and there’s not a whole lot
Because nobody can predict the future of BItcoin, investors get easily
swayed. a negative news story releases and people think Bitcoin is dead, a bil-
lionaire tweets his support and the price shoots sky-high.
volatility can be scary, when used correctly it allows you to take your trading
game to the next level.
Is the volatility of Bitcoin good or bad for trading?
While it’s true Bitcoin is becoming more and more accepted as a form of cur-
use case as a store of value (although as you can see from the graphic above,
the price is only increasing) but for traders, a bit of volatility can be the perfect
storm.
Picture for a second two traders - one trades cryptocurrency and the other
Forex. The person trading cryptocurrency is subject to extreme volatility but
because of this doesn't need to have much capital and doesn’t need to use
leverage. On the other hand, because prices only change by a fraction of a pen-
ny, the person trading Forex needs to use far greater leverage or requires a huge
amount of capital. While neither person is wrong, the person trading cryptocur-
rency has the potential to see a far greater return on investment.
Rome wasn’t built in a day, so why would a new global standard currency? Only
time will tell where Bitcoin ends up but the longer it’s actively used and the
Until that happens we recommend you take advantage of this volatility and use
it to accumulate wealth.
how to read crypto charts
Identifying trends, whether they are moving up, down or across and also
knowing when they are about to reverse is really key to your Crypto trading.
No matter what asset you are trading, you need to know how to follow charts.
#1 BAR CHART
A bar chart helps you to identify the prevailing trend and to time the entry and
exit of your trades.
#2 LINE CHART
A line chart is the simplest and most basic type of stock chart used to analyze
crypto market. A line chart shows the direction of the cryptocurrency closing
price. This quickly gives the crypto-chart reader a view of the price trend.
#2 CANDLESTICK CHART
Candlestick charts are used by traders to determine possible price movement
based on past patterns. Candlesticks are useful when trading as they show
four price points (open, close, high, and low) throughout the period of time the
what is a bull or bear market
A bull market describes the con- A bear market describes the con-
stant rising of a crypto market. stant falling of a crypto market.
When you open a BUY POSITION, When you open a SELL POSITION,
you are said to be BULLISH. you are said to be BEARISH.
If you take a look at the image below, we can see it highlights the differences
between a bearish and bullish candle and shows you how to successfully inter-
pret candlestick movements.
*eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Please
note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of
retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand
how CFDs work, and whether you can afford to take the high risk of losing your money.
-
land, Spain, Sweden, USA. Elsewhere it starts from $200.
*** Plus500 offers only CFD on Forex. 72% of retail investor accounts lose money when trading CFDs with this pro-
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(#250/14)
What moves crypto market?
There’s a lot of volatility in the cryptocurrency market, however, it’s rarely
without reason. Once you begin to understand what causes these wild swings,
you’re well on your way to becoming an expert trader! To help you better un-
derstand some of the contributing factors, we’ve broken the main ones below.
-
something were to drive up demand, the price will shortly follow. It can be hard
to notice an uptick in demand, but you can make it far easier by following me-
dia coverage.
Take, for example, Dogecoin, a small project that was essentially a joke,
but somehow ended up making investors millions! You might be asking your-
self “how’s that even possible? Well, when Elon Musk tweeted about Dogecoin,
showing he believed in it, investors could only come to one logical conclusion
- if the richest man in the world thinks it’s a good investment, I should probably
invest too.
Following this, there was a huge increase in demand for Dogecoin, causing
the price to rise, generating further publicity, resulting in a snowball effect.
#2 Bad Press
Because cryptocurrency is still in its infancy, any bad press can have a cat-
astrophic effect on price. Unfortunately, once negative news has been released
it’s usually too late to take action, instead, we recommend taking a
“buy the rumor, sell the news” approach.
By doing this, you can capitalize on both negative and positive news, alow-
ing you to make money no matter the condition of the market!
With this knowledge in hand, you could’ve strategically sold your positions
to stabilize.
#3 Integration
As a relatively new technology, many people are looking at cryptocurrency-
with wide eyes, wondering what it will end up amounting to. This depends mas-
sively on something called institutional adoption, which involves large compa-
nies like Amazon integrating crypto technology into their platforms.
In a similar way to Musk and Dogecoin, this shows that a large company,
with deep pockets, believes in cryptocurrency, often causing an upward trend
in price.
In July earlier this year (2021), there was a rumor circulating about Amazon
starting to accept crypto payments, as you could imagine, this sent social
media into a frenzy. As this story began to do the rounds, it caused wild spec-
ulation about the future of Bitcoin and cryptocurrency in general, with many
believing other companies, were soon to follow.
potential to put wealth back in the hands of the people. As such, any issues
with regulations or security can send shockwaves throughout the entire indus-
try - at the end of the day, nobody wants to see their hard-earned investment
disappear due to something like a security issue.
Not a bad day for the hacker I’m sure, but for Ethereum it was devastating,
many began to lose trust in the network and almost 50% was whipped off the
price instantly.
Crypto Trading strategies
Do you want to trade like a pro? Then you’re going to need to learn about a
-
#1 Day Trading
Do you want to make a full-time living from cryptocurrency? Then day-
trading might be the strategy for you! You can use this method to make huge
it once it’s risen or fallen by a small amount, a quick turnover time massively
reduces risk. Seems simple right?
Well, as you might have guessed without a large pile of cash to invest, you
wouldn’t make much money if Bitcoin, for example, rose by a couple of hun-
dred dollars. Here’s where leverage comes in handy, it allows you to magnify
from tiny increases and decreases in price. However, it’s crucial to only trade
#2 Trend Trading
Trend trading takes advantage of swings in the market, by watching the
charts you can identify upward or downward trends. You should note, it’s al-
most impossible to buy right at the bottom or to sell at the peak, this is be-
cause before a movement in price begins, there is nothing for you to base your
trade on.
not for our readers! We’ll clue you into this expert strategy for identifying
trends in the market. Just have a look at the top gainers and losers and try
#3 Hedging Strategy
As the saying goes, with risk comes reward. But understandably, not every-
one is comfortable risking large sums of money, this is where a strategy like
spread them out, this negates a lot of the risk involved with trading.
This approach does require a bit more work than the other strategies we’ve
mentioned because you need to analyze how likely it would be for the price to
rise and fall and set up trades accordingly.
For example, if you think a trade has a high chance of going your way, bet
more on the positive outcome and reduce your position on the negative. If you
think it’s likely your trade will go south, do the opposite.
#4 HODL Strategy
Probably the simplest strategy we’ve spoken about, and oftentimes the-
coin to rise. While this might seem like a no-brainer, there is a bit more to it
than just buying a cryptocurrency and praying.
Firstly, you should always try and buy during a dip, this ensures you won’t
get caught out and end up having to wait months for a coin to rise back up in
value. Secondly, this method isn’t a get-rich-quick scheme, you need to have
faith in the long-term potential of the project; make sure it has solid technology
and a good team behind it.
HOW elon musk moves crypto
Elon Musk has been a big proponent of cryptocurrency for a while now.
While the huge amount of publicity he generates for crypto is excellent and
for investors. Earlier this year in May, after a month of praising cryptocurrency
Musk released a tweet stating Tesla would no longer be accepting Bitcoin, this
sent shockwaves through the crypto space.
The price of Bitcoin crashed sending the market into a frenzy, investors
rushed to sell their crypto before prices fell anymore. This created a snowball
effect, people were selling, driving prices down, which in turn, resulted in even
more people selling. Ultimately, Musk tweeted that Tesla would begin ac-
cepting Bitcoin again and prices started to stabilize. Although it’s easy to get
caught up in the news, oftentimes it pays to stick to your guns instead of get-
ting caught up in the opinions of others.
Cycle of Crypto Trader Emotions
In cryptocurrency, managing your emotions well can be the difference be-
tween making thousands and losing everything. Every trader goes through a
cycle of emotions, when everything is green and the market is in your favour
you’ll become elated and euphoric, when it begins to drop anxiety and fear start
to take hold, culminating and intensifying as the price continues to fall until you
Where along this cycle would you sell? You might be thinking “just as anx-
iety and fear take hold”, after all, this would shield you from any large losses. In
reality, that’s already far too late, it’s better to sell at peak happiness, right when
your investments are hitting all-time highs.
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