How to trade and what its functions are.
Trading in the financial world, especially in cryptocurrencies, involves buying and selling assets with the aim of making profits. This process can be carried out in the short, medium, or long term, depending on the trader's style. The main functions of trading revolve around speculation, risk management, and making informed decisions based on technical or fundamental analysis.
To start trading, you first need to register on an exchange platform (such as Binance, Bybit, or Coinbase), verify your identity, and deposit funds. Once ready, you can choose the type of market: spot (direct purchase of the asset) or futures (contracts that bet on the future price of the asset). There are also specific orders like limit, market, or stop-loss, which allow you to automate decisions to maximize profits or minimize losses.
Among the most important functions of trading are:
Technical Analysis: Study of charts and price patterns to anticipate future movements.
Fundamental Analysis: Evaluation of news, project updates, or macroeconomic factors.
Risk Management: Define how much capital you are willing to risk in each trade.
Trading Psychology: Emotional control in the face of losses or gains, key to making rational decisions.
There are several trading styles: scalping (quick trades), day trading (within the same day), swing trading (days or weeks), and holding (long-term).
In summary, trading requires practice, discipline, and continuous education. It is not about guessing, but about applying well-founded strategies. The key is to know the market, manage risk, and continually learn from each trade. With time and experience, trading can become a powerful tool for investment and financial growth.