With over 420 million cryptocurrency users worldwide and trillions invested in the crypto market, now is definitely the time to learn the basics of crypto trading if you want to be more familiar with the world of cryptocurrency.

But with so many different crypto coins, crypto exchanges, and crypto trading strategies to juggle, it can seem daunting for a beginner to get started. In this article, we will break down the essentials of cryptocurrency trading in a way that's easy for newcomers to understand.

By the end, you will have the foundational knowledge to begin exploring this exciting new financial landscape with confidence. Let’s start by exploring crypto trading in simple terms!

What is crypto trading for beginners?

When first starting out, keep things simple. A wise beginner crypto trading strategy is to focus only on major cryptocurrencies rather than chasing small altcoins—think Bitcoin and Ethereum. Their relative stability compared to new projects makes risks easier to manage while learning.

Next, choose a highly rated exchange or crypto service provider like Cryptobunq and practice placing orders with fake money on their demo crypto trading platforms. This lets you experience the exchange interfaces without risking real funds.

Once comfortable, open a real account and slowly move small amounts of fiat currency onto the exchange to begin placing your first trades. Set a budget you can afford to lose and stick to conservative trading sizes until strategies are refined. Patience and risk management are key in the beginning.

How should a beginner invest in crypto?

As a new crypto trader, the easiest way to invest is with dollar cost averaging. This involves spreading out your crypto purchases in consistent amounts over time rather than going all-in. For example, you could allocate $50 each week to buy Bitcoin or Ethereum.

DCAing takes the emotion out of timing the market and benefits from long-term upside, minimizing downside. Another strategy for novices is to only trade against stablecoins, as it removes the double volatility of trading between cryptos.

To illustrate, when exchanging Bitcoin for EURK, your downside is capped at a 1:1 euro peg rather than facing losses on both sides of a trade.

Which strategy is best for crypto trading?

There is no best crypto trading strategy suitable for everyone, but these two options are well-suited to cautious beginners:

Trend following

With the trend following method, traders look for strong price trends up or down and ride the momentum. Entries are placed in the direction of the trend using indicators like moving averages. Exits are made at signs of trend exhaustion, like overextension or higher volume at resistance.

Swing trading

Swing traders target short-term moves between support and resistance levels, usually holding positions for a few hours to a few days. Positions are opened based on chart patterns, indicator divergences, or breakouts of defined levels. Risk is lowered by only trading established coins and exiting quickly on losses.

For true novices, sticking to a simple trend and following major coins using DCA entries until a feel for markets is gained might be better. Paper trading strategies are also wise until real-money risks are fully understood. However, you can find out the best method for yourself in time.

With time and experience, all traders develop their own unique styles tuned to their psychology. Now let's take a look at some tips for when to buy and sell crypto as a beginner trader:

What is the best time to trade cryptocurrency?

While it is impossible to state the best time to trade cryptocurrency, history shows some favorable periods for entry into crypto markets:

• Weekends are often times when prices stabilize or drop before continuing momentum. This provides opportunities for lower buy-ins.
• After sustained downtrends, as coins reach defined support levels on charts where buying support tends to appear, the weekly or monthly charts help identify these.
• When news is quiet with no major announcements pending, media hype often signals tops before pullbacks occur.
• For swing trades, breakouts of flat consolidation zones, rounded price bottoms, or flag/pennant patterns on smaller time frames.
• When popular technical indicators give oversold or overbought readings on lower time frames to signal a short-term trend, a reversal may be due.
• For Europeans, the London and Frankfurt sessions from 2–6 p.m. UTC offer high liquidity that can bring volatility for intraday moves.

Patience and discipline are key; wait for high-probability setups to form rather than chasing pumps. Understanding taking some losses is natural, but keeping them small is the sign of a good crypto trader.

How do I become a crypto trader?

While experience on exchanges and with chart patterns is ideal, there are proactive steps anyone can take now to start preparing for crypto trading:

• Educate yourself by following leaders in the space on social media and reading explained trading guides online.
• Sign up for a demo exchange account and paper trade strategies to gain experience in a risk-free environment.
• Learn technical analysis using free charting tools to identify patterns and levels.
• Understand order types like market, limit, and stop orders and how they function.
• Build capital gradually through regular savings that can be allocated to the market over time.
• Seek a mentor, either online or in local crypto communities, to review your understanding and strategies. You can follow CBQ blogs to learn more about the crypto and blockchain space.
• Determine a crypto trading plan before going live, outlining your style, risk management rules, and position sizing.

With dedication to learning and small steps, anyone can develop the skills for cryptocurrency trading success and become a crypto trader. The opportunities to profit in this growing market are abundant.

What is the easiest crypto to invest in?

For total beginners, the most accessible cryptocurrencies to start with are Bitcoin, Ethereum, and the stablecoin EURK. Bitcoin remains king as the crypto blue-chip, with a large crypto market cap allowing for adequate liquidity and stability relative to smaller altcoins.

EURK stablecoin provides transparency and security for those not ready to stomach crypto volatility with its 1:1 euro peg and reserves in Switzerland. EURK offers a simple way for cautious newcomers to dip their toes in crypto without price discovery risk as a euro stablecoin.

Ethereum is the second-largest crypto, providing a development platform for decentralized applications and NFTs. It tends to move in tandem with Bitcoin but offers more upside due to its use case growth. Exchanges allow easy ETH trades against fiat currencies or stablecoins.

These proven leaders lower barriers to participation in the digital asset economy for those just starting out. Their familiarity and access to major exchanges make learning crypto trading logistics more streamlined before venturing to smaller, riskier projects.

Cryptocurrency trading offers tremendous opportunity but requires proper preparation and risk management to succeed long-term.

By understanding the basics of crypto trading, using simplified strategies at first, and giving your education time to develop, any newcomer can experience this exciting market safely and make informed investment decisions.

Finding and becoming a partner with a secure crypto service provider is also a key step for secure crypto trading. Cryptobunq is an expert, one-stop-shop crypto service provider in this regard.

You can benefit from the crypto exchange API, crypto checkout and invoicing, batch crypto payments, custody and wallet, and more with CBQ.

If you would like to take your crypto and blockchain projects to the next level with a secure partner with expert solutions, CBQ is the right address for you. Whether you are a beginner or an experienced trader, you can benefit from our solutions. Contact us today and dive into the world of crypto with Cryptobunq!