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A Guide to Crypto Trading : Buy, Sell and Trade Cryptocurrency

Article by

Nirav Bhagat

July 7, 2023

crypto trading guide

Crypto trading is an enticing opportunity for individuals to profit in the digital age. In this article, we will delve into the intricacies of cryptocurrency trading, providing valuable insights to navigate this dynamic market.

We will explore the concept of cryptocurrency trading, its distinctions from traditional markets, and the importance of secure deposit and storage practices. You'll learn about the trading process, fees, and essential steps to get started. Here, we will discuss short-term vs. long-term trading strategies and common mistakes to avoid.

Join us on Digitalroar Softlabs as we unravel the world of cryptocurrency trading, equipping you with the knowledge to make informed decisions and seize the potential rewards that await.

What is Cryptocurrency Trading?

Cryptocurrency trading differs from traditional stock and currency markets. While stocks represent ownership in companies and currency trading involves exchanging different currencies, cryptocurrencies are decentralized digital assets built on blockchain technology.

Cryptocurrency trading encompasses two primary methods: Contracts for Difference (CFD) and exchanges. CFD trading allows speculating on price movements without owning the underlying assets, while exchanges involve purchasing and owning cryptocurrencies directly.

A crucial aspect of cryptocurrency trading is the significance of secure deposit and storage practices. Cryptocurrencies are stored in digital wallets, which can be classified as hot (online) or cold (offline). It is essential to prioritize understanding different crypto wallet types and implementing robust security measures like two-factor authentication and private key management to protect digital assets from potential theft.

How Does Crypto Trading Work?

To maximize your earnings in cryptocurrency trading, it's crucial to grasp the inner workings of this dynamic market. While theory and experiences can provide valuable insights, understanding comes from hands-on practice. Let's delve into the essential aspects you need to know:

  • Familiarize Yourself with the Main Principles: Cryptocurrency trading shares similarities with traditional market trading but operates on a unique scale. Unlike fractional participation in stock exchanges, the crypto market operates 24/7, and its volatility is a defining characteristic.
  • Understand the Standard Process on Crypto Exchanges: Traders typically start by depositing their existing coins into an exchange account or utilizing a platform to purchase cryptocurrencies. They carefully monitor the prices of various assets available on the exchange, choose their desired trade, and place buy or sell orders. The exchange matches these orders with suitable buyers or sellers, facilitating the transaction. Keep in mind that exchanges charge fees for each trade, usually around 0.1%, because of the substantial daily trade volume, which surpasses $55 billion.
  • Embrace Financial Engineering for Informed Decision-Making: Successful traders recognize that mathematics alone is not sufficient in such a vast market. They leverage various programs and software tools to identify optimal assets and opportune moments for trading. Financial engineering, powered by innovative technologies, enables traders to analyze extensive statistics within shorter timeframes. This helps them make informed investments in promising fields or currencies.

How to Begin Trading Cryptocurrency

Whether you are an experienced stock market trader or venturing into the world of cryptocurrency trading for the first time, acquiring a solid foundation is paramount to your success. While technical analysis skills may give stock traders an advantage, grasping the fundamentals of cryptocurrency trading is a prerequisite for navigating this unique market.

Let's delve into the key terminologies that form the bedrock of cryptocurrency trading:

Spread: The disparity between the buying and selling prices of a particular asset, which is essential for assessing market liquidity and potential profit margins.

Lot: A designated quantity of cryptocurrency used to determine trade sizes, ranging from minute amounts like 0.01 BTC to substantial lots such as 10,000 DOGE, contingent upon the cryptocurrency in question.

Leverage: A mechanism enabling traders to control larger positions with a fraction of the total capital, amplifying potential gains and losses. However, it warrants caution and a thorough understanding of risk management strategies.

Margin: The initial collateral, expressed as a percentage, required to initiate leveraged trades. This serves as a safeguard for the exchange against potential losses.

Pip: A unit denoting the minimum price fluctuation of a cryptocurrency. The size of a pip varies across different cryptocurrencies, reflecting their market dynamics and price precision.

Now, let's uncover the intricacies of commencing your cryptocurrency trading journey:

  • Register an account on a reputable cryptocurrency exchange and complete the verification process, adhering to the platform's compliance and security measures.
  • If your trading strategy involves fiat currency, establish a secure payment channel to facilitate seamless deposits and withdrawals. Adherence to Know Your Customer (KYC) protocols and Anti-Money Laundering (AML) regulations may be necessary for enhanced security and regulatory compliance.
  • Deposit funds into your trading account, either by transferring fiat currency or utilizing your existing cryptocurrency holdings stored in a compatible wallet.

As you grasp the foundational aspects, it's crucial to deliberate the diverse approaches to cryptocurrency trading. Let's explore two prominent strategies: short-term trading and long-term trading.

Short-term trading entails the swift buying and selling of assets within relatively brief timeframes, capitalizing on short-lived market trends. Noteworthy considerations encompass:


  • Exploiting the market's volatility to capture quick profits.
  • Availability of liquidity for popular cryptocurrencies, ensuring seamless trade execution.


  • High volatility necessitates comprehensive technical analysis and risk assessment to mitigate potential losses.
  • Emotional fortitude is imperative, as short-term trading entails coping with market fluctuations and potential setbacks.

Conversely, long-term trading embodies a patient approach, characterized by holding assets over extended periods, anticipating substantial price appreciation. Key points to bear in mind include:


  • Simplified trading approach with diminished reliance on intricate technical analysis.
  • Opportunity for gradual accumulation and significant returns over time.


  • Potential forgone short-term gains due to prolonged asset holding.
  • Limited exposure to real-time market developments that may impact prices.

Striking a balance between short-term and long-term trading can offer a diversified trading strategy, catering to varying market conditions and personal preferences.

Avoiding Common Crypto Mistakes: Expert Strategies for Optimal Results

In the dynamic realm of cryptocurrency, steering clear of common pitfalls is essential for achieving success. Let's delve into five prevalent mistakes and explore intelligent strategies to transcend them.

  • Discerning Value Beyond Price: Refrain from fixating solely on low prices when investing in cryptocurrencies. Assess the underlying fundamentals, blockchain development team, and market dynamics to make astute investment choices that align with long-term viability and growth potential.
  • Embrace Portfolio Diversification: Resist the temptation to go "all-in" on a single cryptocurrency or trade. Instead, diversify your investments across a range of cryptocurrencies, mitigating risks and capitalizing on diverse market opportunities. Prudent allocation and rebalancing are key to optimizing returns.
  • Embody Realistic Expectations: Understand that cryptocurrency trading is not a quick fix for financial gains. It demands diligent research, comprehensive market analysis, and continuous learning. Cultivate a realistic mindset, acknowledging both the potential rewards and inherent risks of this dynamic landscape.
  • Safeguard Your Keyphrase: Your keyphrase is the ultimate key to accessing your cryptocurrency holdings. Guard it diligently by keeping it securely stored in a physical location known only to you. Losing or compromising your keyphrase can result in irreversible loss, emphasizing the need for stringent security measures.
  • Stay Ahead of Scams: Arm yourself with knowledge and vigilance to thwart crypto scams. Be wary of unrealistic promises, such as "get-rich-quick" schemes. Opt for reputable wallets and platforms, conduct thorough due diligence, and exercise caution when engaging with unfamiliar cryptocurrencies or investment opportunities.

By adopting these expert strategies, you'll empower yourself to navigate the intricate realm of cryptocurrency trading with finesse. 


In conclusion, cryptocurrency trading on platforms like Digitalroar presents exciting opportunities in the digital economy. Understanding the significance of crypto wallets, exchanges, blockchain development, and technology is crucial for navigating this dynamic market successfully. Prioritize knowledge and security when engaging in cryptocurrency trading. Select reputable exchanges that cater to your specific requirements and implement robust security measures for your crypto wallets. Avoid common mistakes by assessing the underlying fundamentals beyond the price and maintaining realistic expectations. Continuous learning and effective risk management are paramount to achieving positive outcomes in this rapidly evolving landscape.

Stay abreast of blockchain advancements and emerging technologies to gain a competitive edge. Blockchain technology holds transformative potential across industries, and staying informed about its applications can enhance your trading strategy. Embrace the world of cryptocurrency trading on Digitalroar Softlabs with confidence, equipped with the knowledge and a strategic mindset. May your journey be rewarding as you navigate the market and seize the potential rewards that await, all while ensuring the content remains original and plagiarism-free.

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