trading What you need to know by the terms cryptocurrency trading investmen[for beginners]

[Babubu609 0]

Hello friends!! I am coming up with this topic due to high request from many members about this two terms cryptocurrency trading and investment. This forced me to come up with this topic to explain first about trading and investment.

Well I know there are some members that knows more better than me but here we all have different understanding and opinions as well. I am going to share my own understanding in brief explanation about what cryptocurrency trading is and what is investment.

 

        CRYPTOCURRENCY TRADING.           

 

This term trading is know as the exchange of digital currency of difference currency in other to increase/multiply your input. The multiplying of input here what I mean is your funds in other to buy from low price and sell at high. Trading of cryptocurrency in general definition is the act of buying at low an selling at high price to collect profits.

In trading we have different styles of making trade just like:

 

 

1. Scalping

2. Day Trading

3. Range Trading

4. Intra-Day Trading

5. Swing Trading

6. Position Trading

 

Now I will explain briefly of each style I listed below 🖕.

 Note: try to understand that each traders must be a risk talker. To be a good trader you need to practice a lot not necessary to be experts in all styles but be perfect in at least one of this styles. Now back to my explanation.👇

1. SCALPING TRADE:

 

This is the type of trading that can be referred as a minutes trade. Let's say just a way to make a quick money. This is just an act of buying and selling at small range of price like buying a coin a e.g litecoin at 50$ and sell at either 51-52$ respectively. This gives you a little Profit. Therefore your need to get that explanation. If you don't know about scalping I think this gonna help you understand what the term scalping was. To maintain high loss due to high volatility of the market you can use a stop loss may be at 49$ this will help you cancel the order immediately when the market was at point of reversing. But don't forget you must be a risk taker Because the market changes fast. 

 

 

2. DAY TRADING:

 

In the day trading this is another style of trading were you spend a complete day monitoring the market to get a bit higher price than in scalping. If you remember we said scalping is just a minutes trading when there is a little change of the price.

3. RANGE TRADING

 

The range traders this are big traders that are concerned with playing with the market. They accumulate a large amount of tokens before it was launch or distributed just like ico/IEO. This traders they buy at low prices and later sell at high price before the market dumps. The range traders are smart in term of risk management they fixed their stop loss. This traders do not care even though the keep trading at that range anytime because they know they will not loss. 

4. INTRA TRADING

 

The intra trading is also another style of trading were you can hold your tokens for a day or more than one day until profit and then you sell it at profit of your choice. Since the crypto market do not close there is possibility you will gain something from it but you don't loss in trading except if you wish that.

5. SWING TRADING

 

This is another style of trading cryptocurrency which is done for a day or weeks. This has to do with large range were you hodl a position to calculate what will be your local buttom. In swing trading take note you most be vigilant and focused without sleeping checking the markets movement, seeing how it flunctuates. It will be a very good idea if you give full sense you can analyze patterns and detect likely support and resistance levels, but note it can make a ton of sense to focus on swing trading. In swing trading you have to master the movements waves of the chart to maintain risk and high loss. From many successful swing traders who effectively swing trade by using long & short positions tend to do well and do very little work. Therefore you need to be careful and well focused at all points.

 

6. POSITION TRADING

 

The position trading this has to do with holding a trade for weeks, months and also year depending on what choice you planned to sell your tokens. This can be at long term trade and at short term trading. Just like buying ethereum (eth) at $180 from last year and sell it this year at $400. The position trading is likely to be like swing trading.

NOTE: If you want to trade try to be wise in selecting coins that has volume and have a good pairs. The exchangers also matters in term of trading the currency make sure the exchange is popular and legit so that you don't put your money in a scam exchange were you can't withdraw it back.

 

 

                       INVESTMENT.                       

 

Investment varies with trading but the only difference is that you have personal control of your tokens by storing it untill price rises to an extent you can sell it. In Investment it can be classified into:

 

1. Long term Investment

 

2 . Short term Investment.

 

👉 LONG TERM INVESTMENT

 

This is the kind of investment you can do to buy a coins at low price and keep it for about 4,5... Years then you sell it. Imagine those investors that buy bitcoins since 2018 to 2019 at price 4500$ and hold it and it reaches 12000$ this year. This will give them about 4times of what they invest and hold.

 

👉 SHORT TERM INVESTMENT

 

Exactly from the word[short] means little. The short term Investment is also type of investment that is done for a short term or short period of time were you buy at low price and sell high when there is increase in price that you bought it.

 

That is all about Investment but try to know Investment is also a risk and dangerous when you fall at wrong projects. Some investors go into ICO and IEO but now this are also risky especially going into ICO many investors have failed with great loss at end of their Investment by slanders of that specific project and sometimes falling into scam ico's and ieo's..

In Investment I may suggest you use some common currencies that are popular of which I listed below 👇

                                                                           

 

 

1. BITCOIN (BTC):

 

Everyone know Bitcoin was one of the most common known currencies among all cryptocurrencies. Bitcoin is considered as an original digital cryptocurrency. It was created in 2009. It was created under the author pseudonym Satoshi Nakamoto. The Bitcoin runs on blockchain and runs to make peer to peer transaction. Transactions are visible to third parties and is well secured by algorithm. Users of Bitcoin have full access over their wallets to send and receive their currencies.

2. LITECOIN (LTC):

 

Litecoin was also a currency after Bitcoin which was launched in 2011. It is use to serve as payment to users that works and receive their payments through for digital currency.

Right here I will show Some few differences between these digital currencies Bitcoin and Litecoin:

Litecoin is feature to send transactions in fast times than bitcoin. Because it is cleared that, The coin limit for Bitcoin is 21 million and Litecoin is 84 million.

They operate on different algorithms, Litecoin’s being “scrypt” and Bitcoin’s is “SHA-256.” litecoin is a decentralized coin on blockchain.

3. ETHEREUM (ETH)

 

After litecoin we have ethereum which was Created in 2015, Ethereum is a type of cryptocurrency that is an open source built on blockchain technology. It has a good volume and have higher Dena d and supply than litecoin which rises the price of of ethereum to be 6times higher than litecoin.

 

4. RIPPLE (XRP)

 

Ripple was also built on blockchain and launched in 2012 that acts as both a cryptocurrency and a digital payment network for financial transactions. It is use globally for fast transactions and it has a very low fee and good investment.

 

5. BITCOIN CASH

 

Bitcoin Cash is also a digital cryptocurrency that was created to improve some certain features of Bitcoin. Bitcoin Cash was well advanced to Bitcoin were by there was increased in the size of blocks, which helps in allowing more transactions to be processed faster than Bitcoin. Bitcoincash was also used for fast transactions just like other currencies listed above.

 

6. Zcash (ZEC)

 

Zcash is also good for making Investment. There on the blockchain users can send and receive Zcash without disclosing the sender, receiver or the amount transacted. It was also a decentralized token.

8. STELLAR LUMEN (XLM)

 

Stellar lumen known in short XLM is another alternative currency that facilitates currency exchange. The Stellar currency allows users to send any currency they desire to third pary in a different currency. The stellar lumen was developed under the help of Jed McCaleb who was the founder the stellar was an open-source and was created in other network’s native currency in 2014.

 

This are some certain results I collected after some research and some experience I have about cryptocurrency therefore I am sure this will help many cryptocurrency users to know about this terms trading and Investment. Next time I will be coming up with another topic all about mining and Investment. You can stay tune for my next topic.

 

9. TRON (TRX):

The trx coin is now among the best coin used for investment. It has a circulation volume of about 72bilion dollars. It was the most active market now on the coinmarket cap.

 

 

Happy trading and Investment to everyone reading this article. Wishing you all success...🙏💓

 

Edited September 23, 2020 by Babubu609

[P A Ashif 2409]

Very nice explanation about the difference in the forms of trading. Small traders look for day trading and scalping. Actually small traders have very less investment so they keep on doing trades many times a day, so in the end they get a small profit. But in case of Holders they invest big and take big. They only ell trade when they have good profit.

[Moaz 7239]

It is a wonderful explanation and is understandable to all members, whether new or old, that your topic contains important information about trading and investing in cryptocurrencies, which any crypto user must be aware of in order to succeed in trading or investing in cryptocurrencies and reap good profits.  I advise all members to read this topic and understand it well as it is rich in information related to crypto

[Maaz sultan 265]

That is very true if you chose a wrong coin then you may get a high lose and if you invest on a good coin that's value is low on the crypto market then there is a chance to go higher the price of that coin .

But always invest on top coins if you are a new trader .

[Ridam 7455]

@Babubu609  Indeed the post contains all information about the basics of trading and new people out here must read it as a guide. For new people I think Scalping and day trading are way too risky as the market could go into the negative direction. For smaller targets they can go for it but I do suggest ot trade in bigger time frame as the risk decreases significantly if we choose good projects. 

[Dorjoy12 8962]

I had many misunderstood About trading and investment but after read your whole topic i get clear everything.. So i think all the noob and senior too read this topic once to clear their knowledge MORE.. The difference of btc and altcoin you have mentioned to us also important.. Lets talk about investment that every Investor who invest for long term i see they get profits hugely...maybe its mean crypto currency price increase day by day..  Finally all Credit goes to @Babubu609 for give us this awesome explaintion of trade,invest and etc..                                

[George10 9932]

This is great mate your topic is so helpful and contains valuable information on the terms investments and trading of which many did not understand the different and your topic will help them to have clear understanding also I have found so much helpful on the types of trading I didn't know much about them thanks.

[el-Muhammady 718]

This is a very helpful topic that will give guide to everyone who want to know top coins for investment and trading better especially the newbies who are just into the world of Cryptocurrency. We have to make sure we choose this type of of coins to avoid losing funds to scam projects because nowadays new project end up being scam so be careful and select wisely friends.

[Zeshan Khalid 2577]

It is a quite good information and easily understandable for the beginners. It is going to help a lot throughout this forum. Basically a general information is necessary on the forum like this

[Mella 3680]

16 hours ago, Babubu609 said:

1. Scalping

2. Day Trading

3. Range Trading

4. Intra-Day Trading

5. Swing Trading

6. Position Trading

Very worthy article I am very impressed by all this work you managed. I will stay with the trading because some I did not know as the range trading and intra day trading and I will look to learn some more about these. What I am doing is scalping when the price is at a test of big resistence and I buy close to 10k at big support to sell again at resistance where I am scalping again. This works but if we escape above or bellow I am plan to make a different trade. I am not doing short trade but I maybe find an exchange that accepts shorting and short if we start going down bellow 9000.

[Babubu609 0]

8 hours ago, Mella said:

What I am doing is scalping when the price is at a test of big resistence and I buy close to 10k at big support to sell again at resistance where I am scalping again.

Just same style that is use in trading I prefer scalp trading because it is less risky and easy to be profitable this worst part is easy to fail if you don't have full guide on how to use it.

 

15 hours ago, Dorjoy12 said:

hugely...maybe its mean crypto currency price increase day by day

That's right you need to practice it well to avoid lose. I recommend scalping trade it is easy to earn from it. All the way I will share some articles on how to trade and study the chart.

[Guru2050 8284]

On 9/23/2020 at 5:58 PM, Babubu609 said:

Happy trading and Investment to everyone reading this article. Wishing you all success...🙏💓

 

This informative and so educative Post @Babubu609this post had captured and clarify most important aspects ranging from trading, investment making, not excluding top best coins to accumulate or trade. It's left for Beginners, growing members and others to carefully go through and understand to start trading for making a reliable income in Crypto world.

This comprehensive information is an ample opportunity for all of us to diversify our earnings source in Crypto world to achieve our  desires.

[Babubu609 0]

12 hours ago, Guru2050 said:

This comprehensive information is an ample opportunity for all of us to diversify our earnings source in Crypto world to achieve our  desires.

Yes I am motivated to create this topic for beginners guide about this terms trading and Investment and very soon I will come up with more topics on how to trade and Investment.

[duncun007 3577]

very informative post indeed, day trading is what i have been doing for the past almost 4 years now, A lot of people might argue that holding is better but for me day trading with caution to the market fear/greed will make you better money than just hodl.

[williamjones 57]

It's a fantastic description and it is easy to understand to any or all people, regardless of whether brand new or even aged, that the subject consists of information regarding buying and selling as well as purchasing cryptocurrencies, that any kind of crypto person should be aware associated with to be able to flourish in buying and selling or even purchasing cryptocurrencies as well as enjoy great earnings. We recommend just about all people to see this particular subject as well as realize this nicely since it is actually full of info associated with crypto.

[Syedbesharat 5423]

This was mind freshing  thread, where I habe read about it many times but the content was totally related to the topic. Their was no ambiguous words was added and I habe enjoyed reading again. 

After facing heavy loss on forex during cov-19 I am now a days totally moved to crypto because my assets in crypto doesn't fall fast like forex trading. My many friends face the same fate. Now I am depending on crypto for earning. 

[sarahmoses202020 251]

You have beautifully explained the concept of investment and trading. I use to consider trading as part of crypto investment since you have to use your money to trade. I also love how you explained all the different types of trading because most people are not acquainted with those.

[Calvinpriva 17296]

On 9/23/2020 at 7:58 PM, Babubu609 said:

In trading we have different styles of making trade just like:

 

 

1. Scalping

2. Day Trading

3. Range Trading

4. Intra-Day Trading

5. Swing Trading

6. Position Trading

Good explanation my brother @Babubu609 you have explain about trading and investing in a very good and simple way so that any member can learn something. I'm a trader as well but am trading arbitrage and P2P which are good trading methods, risk-free and profitable.

[Babubu609 0]

14 hours ago, Calvinpriva said:

I'm a trader as well but am trading arbitrage and P2P which are good trading methods, risk-free and profitable

Well that is true trading Is less risk and less failure. I also prefer scalping trade and also arbitrage because they are easy earnings and zero loss if you are experts.

[Digital 387]

Before one should involve into trading he should learn trading in depth thanks to @Babubu609 for this well documented and informative article no doubt trading is not as easy as we think there are alot of things to learn in trading in order to be successful.

[malik6314193 5449]

@Babubu609You have described trading briefly. I know about trading but not so much as  you describe in this topic. But you didn't tell about margin trading which is new type (for me) of trading. I didn't even try this because of lack of knowledge about margin. I found it like a forex trading.I want to know about this. 

[iloveyobit 6599]

Thank you for the long and detailed topic, I am sure that it will help and simplify a lot for new traders especially, if anyone does not understand any term in the topic, he can ask any questions

[Babubu609 0]

20 hours ago, malik6314193 said:

you didn't tell about margin trading which is new type (for me) of trading. I didn't even try this because of lack of knowledge about margin. I found it like a forex trading.I want to know about this. 

@malik6314193 unfortunately I couldn't include the margin trade to my topic due to how long the post will be for readers it will took much time. All the way I will give time to write more about the margins trade within the week.

 

@Digital trading is easy but only to those who have the knowledge and can play the risk.

 

@eliottalderosn nice idea is good to be smart in minimizing your loss. I like playing margin trade but I always make sure I will be profited in it. Before investing my funds by starting with small amount.

Edited September 30, 2020 by Babubu609

[Guru2050 8284]

On 9/26/2020 at 10:21 AM, Babubu609 said:

 and very soon I will come up with more topics on how to trade and Investment.

That's the most needed information now for everyone to excel to next level of using Crypto world to earn a reliable income @Babubu609 we look to see the topic as usual, your topics are of benefits to all. Keep doing the good job.

 

[Mike1515 2977]

This is such a comprehensive and proper written Post and I do appreciate it with rating it a 5, the truth is , though we may find it difficult to understand what trading crypto currency is , the truth is we still need to educate those who dont and your article puts it perfectly .