#TradingTypes101

Educate Yourself FirstLearn the basics of blockchain, cryptocurrencies, and how markets work. Understand terms like wallets, private keys, exchanges, and order books.Research major coins (e.g., Bitcoin, Ethereum) and their use cases. Avoid jumping into obscure altcoins without understanding their fundamentals.Use reliable resources like CoinDesk, CoinMarketCap, or Binance Academy for learning.Start Small and Use Disposable IncomeOnly invest what you can afford to lose. Crypto markets are volatile, and losses can be significant.Begin with a small amount to practice trading without emotional stress.Choose a Reputable ExchangeUse trusted platforms like Coinbase, Binance, Kraken, or Bitstamp. Check for security features like two-factor authentication (2FA) and cold storage.Avoid lesser-known exchanges with poor track records to minimize risks of hacks or scams.Secure Your AssetsStore your crypto in a secure wallet. Hardware wallets (e.g., Ledger, Trezor) are safer for long-term storage than keeping funds on exchanges.Never share your private keys or seed phrases. Enable 2FA on all accounts.Be cautious of phishing scams and fake apps/websites.Develop a Trading StrategyDecide if you’re day trading, swing trading, or holding long-term (HODLing). Each requires different time commitments and risk tolerance.Use technical analysis basics (e.g., support/resistance levels, moving averages) but don’t rely solely on charts—combine with fundamental analysis (project updates, market news).Set clear entry and exit points to avoid emotional decisions.Manage RiskUse stop-loss orders to limit potential losses.Diversify your portfolio—don’t put all your money into one coin.Follow the 1% rule: don’t risk more than 1% of your capital on a single trade.Stay Informed but Avoid HypeFollow crypto news on platforms like X or reputable sites, but be skeptical of “pump and dump” schemes or influencers shilling coins.Verify information from multiple sources before acting. Market sentiment can be manipulated.Understand Taxes and RegulationsCrypto trading is taxable in many countries. Track your trades and report gains/losses to comply with local laws.Use tools like CoinTracker or Koinly to simplify tax reporting.Control EmotionsAvoid FOMO (fear of missing out) and panic selling during dips. Stick to your strategy.Take breaks to avoid burnout from constant market watching.Practice with a Demo AccountMany exchanges offer paper trading accounts to practice without risking real money. Use these to test strategies and build confidence.