Trading means buying something and then selling it at a higher price to make a profit. In the crypto market, trading means that you buy digital currencies like Bitcoin, Ethereum, or Dogecoin on an exchange and sell them at the right time.
Types of Trading:
1. Scalping:
Very short-term trading, where profits are taken in seconds or minutes.
2. Intraday Trading:
Trades are closed within the same day, i.e., before the end of the day.
3. Swing Trading:
Profits are made by holding positions for a few days or weeks.
4. Long Term Trading / Investing:
Cryptocurrency is held for months or years, similar to investing in a stock.
Important Things Every Trader Should Know:
Market Understanding: Learn to read graphs, charts, and patterns.
Risk Management: Never invest a large portion of your total capital in one trade.
Trading Plan: Do not trade without a plan.
Learn to Tolerate Losses: Not every trade yields a profit; have patience and a willingness to learn.
Entry and Exit at the Right Time: Use indicators like RSI, MACD, EMA.