How To Trade Cryptocurrency – The Ulitmate Guide

cryptocurrency-trading-guide-min

Anyone who’s remotely interested in learning about crypto has taken part in some kind of trading. As it becomes more and more mainstream attention, newer players wish to enter the industry and get their piece of the crypto pie. So, to help those people today enter this exciting market, we’ve created this”Cryptocurrency Trading Guide.”

 

In this guide, we’re going to take you through all the steps in order that you be a crypto-trader. We’ll be moving through the following segments:

 

  • Fiat into Crypto Trading.
  • Storing Cryptocurrencies.
  • Crypto into Crypto Trading.

 

Fiat into Crypto Trading

 

Thus, you have some money you would like to invest. How are you going to go about doing it? The portals that connect our planet to the crypto-worlds are called”exchanges.” There are a great deal of exchanges on the market, however, before you decide to purchase one, there are particular things you will need to keep an eye out for. Let us call this the”Exchange Checklist.”

 

Validity: Before you do anything, first be sure the exchange is available locally. Eg. Coinbase, one of the largest exchanges, isn’t available in India and Indonesia. So before you do anything please check this.

 

Reputation: Next thing you will need to check is the standing of the exchange. Are people happy with their services? Has it been hacked lately? How safe is it? Have people complained about it? Twitter and Reddit are great sources for assessing this.

 

Exchange Rates: Up next we have the exchange Prices. Various exchanges have their own exchange rates which might vary. Do your homework here and research three or four exchanges and their prices.

 

Security: Please always select exchanges which need some type of ID confirmation from you. Despite the fact that they may take some time, they are easily 100 times more secure and secure than anonymous trades. At the end of the day, it’s your hard earned money. You have to take that additional step to keep it stable.

 

You can do your research and select your market, but in this guide we’re going to go with the hottest crypto market out there Coinbase. So, let us start trading!

 

Signing Up and Account Creation

 

Signing up is a really simple procedure. The minute you land on Coinbase.com simply click on”Sign Up”. You may now see this display:

 

Because you’re creating your personal account, create an”Personal” account instead of your”Business” one.

 

It’s a simple matter of placing in your:

 

  • First Name.
  • Last Name.
  • Email.
  • Password.

 

After you only have to agree to their Terms and Conditions and demonstrate that you aren’t a robot (if you’re a robot and you’re reading this then”Hail Skynet!”) .

 

Ok, now you have an account setup.

 

Safety and Account Addition

Next up is safety and Account addition. In this section you will need to do the following:

 

Phone Verification: Phone confirmation is critical to provide your account a 2-step confirmation procedure. Firstly, you will need to enter your phone number.You will be given a text message with a confirmation code. Simply place in that code and you’re done.

Adding a Payment Method: Payments in Coinbase may be done via bank accounts, debit card, and wire transfer. So as to comprehend the advantages and disadvantages of these three methods you can just refer to the table:”Buy” and”Sell” refers to buying and selling Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. “Deposit” and”Withdraw” refers to depositing and withdrawing credit on your Coinbase account.The Coinbase help guide will show you just what you will need to do so as to control your payment methods.

Click here to read the aid guide.

 

Note: Coinbase does not support credit cards .

 

Identity Verification: Finally, you’ll have to confirm your identity. Since Coinbase is a regulated company, they will have to be compliant with KYC/AML regulations.Before you can use your debit card to buy anything, you’ll have to confirm your identity.It is a fairly straightforward procedure, you can click here to follow the directions .

How to Begin Trading

Alright! Let’s begin.

 

You’ve signed up and then put up your accounts. Just how are you going to begin trading now?

 

In Coinbase you can Purchase the following coins:

 

You can see the video here and follow whatever he does to buy your first bitcoin.

 

Guarding Your Cryptocurrency

 

So as to guard your cryptocurrency, you should have a pocket. The wallet saves your private key and public address which can help you store, send, and receive cryptocurrencies. Though this should be very clear to you, let us a do a quick run through of what private key and public address means:

 

Personal Key: The private key gives you the right to get and send your money.

 

Public Address: This is the address where everyone will send you money.

 

One key thing to keep in mind before we continue, the public address is the one which you will give others so as to send your money.

 

DO NOT and we repeat don’t give out your personal key. The private key is for you and you alone. If you give your personal key to strangers, then they will get access to your money.

 

Let’s hope we’ve made that sufficiently clear.

 

  • Public Address Give out to everyone
  • Personal Key If you give it out to everyone then you are screwed
  • Alright, let’s proceed.

 

All crypto pockets fall into the following two categories:

 

  • Hot Storage.
  • Cold Storage.
  • Hot Storage Vs Cold Storage
  • Before we go deep into them, let us use an analogy to help understand the difference between the two. The hot wallet is similar to the wallet you carry around in your pocket. It offers you easy access to your cash however, it’s pretty vulnerable.

 

The cold storage, on the other hand, is similar to your savings accounts. Highly impractical for daily use but it’s very safe once you compare the two.

 

Hot Storage

A wallet that’s connected to the world wide web is termed as”hot storage” The following are examples of sexy wallets:

  •  
  • Exchange wallets.
  • Desktop and mobile wallets.
  • Multi-Signature pockets

 

Before we get deep into every one of those wallets, let us go through the advantages and disadvantages of hot wallets.

 

  • Experts of Sexy Wallets
  • provides you fast, easy, and immediate access to your funds.
  • Becomes easy support in various devices.
  • Really user-friendly and perfect for beginners.
  • Disadvantages of Sexy Wallets
  • Vulnerable to hacks and cybercrime.
  • Unless the keys have been carefully backed up, if the unit is damaged then the wallet will be damaged also.
  • The device where your hot wallet is stored like your laptop, phone etc. is vulnerable to physical robbery also.
  • So, now that you’ve got a general idea about what a sexy wallet is, let’s go through some of the more popular kinds of hot wallets.

 

Hot Wallet: Exchange Wallets

 

This is the simplest wallet you will ever create. In actuality, if you’ve been following our directions and have generated your Coinbase account then guess what? You’ve created your exchange wallet already!

 

The advantages are obvious. It’s already connected to your accounts and gives you quick and effortless access for trading. But this also means that you’re vulnerable to attacks. Bear in mind, exchanges are a constant target for hackers. We would suggest that you don’t maintain a significant chunk of your cryptos in trade pockets, keep as much as you need for trading.

 

Hot Wallet: Desktop and Mobile Wallets

 

Desktop and mobile pockets have grown in popularity. Desktop pockets provide more security than exchange wallets. Setting them up is quite simple also. All that you will need to do is to download the client on your laptop/desktop and you’re done! MultiBit provides an fantastic desktop wallet to store Bitcoins.

 

This video will demonstrate how you can make your own Multibit wallet.

 

However, there’s an issue with desktop wallets. They’re not the most flexible of choices. After all, you can not access your desktop pockets out of any other desktop aside from the one which you have downloaded it in.

 

This is the reason why, for more users that need flexibility, mobile wallets are a fairly convenient option. Setting up is as easy as downloading an app in your phone. MyCelium is a fairly popular portable wallet for both Android and iOS.

 

This video will explain how you can establish a Mycelium wallet in your phone.

 

The issue with these two wallets are that since they’re stored in a system that is connected to the world wide web, they’re vulnerable to viruses and hacks.

 

Hot Wallet: Multisignature Wallets

Have you ever seen one of these old school safes that require a number of keys to open? Or what about these treasure chests that needs 3 or 4 people to place in their secrets and unlock at exactly the exact same time?

 

That gives you an idea of how Multisignature pockets or multisig pockets work. The majority of the ICOs use multi-sig pockets to accumulate and save their funds. So, why would one wish to use multi-sig wallets?

 

To protect from corruption: We have all heard stories of ICOs getting millions of dollars in their audience sale. What is to stop these programmers from taking the money and run away? Human greed is strong after all. In situations such as these, it’s much more prudent to take funds in a multi-sig wallet where all the money and power will not rest on one human being.

 

More Safety and Assurance: Since the funds are in a multisig pocket, they will automatically be secure since they’re no longer determined by the whims of one individual. In addition, if I’m sending my money to a multisig wallet address, I will feel confident that my funds aren’t being mishandled.

 

So, how does this work? Let us take BitGo’s example.

 

  • BitGo problems 3 personal keys. One for your company, one for the consumer, and the third is a backup.
  • Any trade would require 2/3 of those keys.
  • So, even if a hacker gets their hands on one of these keys, they won’t be able to do anything without one more crucial.

 

Cold Storage

 

While hot wallets offer you great advantage, the simple fact remains they are extremely unsafe. That’s why, it’s more prudent to save most your money in a cold pocket. A cold wallet is totally cut off from the world wide web, which automatically keeps it secure from viruses and hackers.

 

Examples of cold storage pockets include:

 

  • Hardware wallet.
  • Paper pocket.
  • Before you learn how to install all the above, let us understand the advantages and disadvantages of cold wallets.

 

Pros

 

  • 100% protected from viruses and hackers.
  • An excellent place to store and HODL your coins for a long time period.
  • Cons
  •  
  • Unbelievably impractical for daily transactions.
  • Not beginner friendly.
  • It’s still vulnerable to human carelessness.
  • Alright, so that’s taken care of, let us know how to install cold wallets.

 

Cold Storage: Hardware Wallets

 

Hardware wallets are physical devices where you can save your cryptocurrency.

 

The most common kind of hardware pockets is the USB style that has been championed by the French company Ledger. The reason hardware pockets have become so popular is they provide you with the security and storage capabilities of a chilly wallet when making transactions stupidly easy and straightforward. Basically, it works around and negates the largest disadvantage of chilly wallets.

 

Experts of Hardware Wallets

 

as it’s a chilly wallet that your private key will be safe and protected. The keys are stored in the secure area of a microcontroller and can’t be transferred from the device

 

They’re designed to be slick and can be carried around easily.

 

Transactions are incredibly straightforward. All that you must do is to plug in the wallet and then follow the directions given to make your trades. The UI interface of these pockets is extremely user-friendly.

 

Extremely secure and safe. As of writing, there have been no cases of a hardware pocket hack hack.

 

Has the capacity to store multiple addresses for you to send over your funds.

The pocket is pincode protected, so even if it falls on wrong hands, they won’t have the ability to get your funds. Entering the wrong pin code 3 times will close down the wallet. In case of a shutdown, you may still recover your funds by following the restoration details.

 

Disadvantages of Hardware Wallets

 

Like all products, these pockets might also have design defects. Lately, a design defect was found in Ledger that made it potentially vulnerable. Ledger has addressed the problem since that time.

 

It’s a real physical object, meaning it can be stolen from it or you can get damaged.

 

They aren’t the most versatile when it comes to storing cryptocurrencies. Trezor stores 10 types of coins while Ledger stores around 23.

 

Finally, you’ll need to trust that the company that’s creating your hardware wallet is ethical and won’t try and mess with the design of your pocket. It asks for hope in an environment that needs to be trustless.

 

So, now that the pros and cons are addressed, let us see how can set one up! Undeniably the two most popular hardware pockets on earth are Trezor and Ledger Nano S.

 

Trezor

 

Trezor is a company based in Prague, who has made one of the easiest and simplest to use Hardware pockets ever. It is actually stupidly easy to use and the design is so sleek and light you could carry it everywhere with you. It’s compatible with windows, mac, and Linux and using It’s a simple matter of plugging it into your laptop and connecting it with one of the following interfaces:

 

  • My Trezor.
  • Multibit.
  • Electrum.

 

(Also keep count of how many times he says”real” and”really”. It may be a pretty fun drinking game!)

 

Ledger Nano S

 

Up next we have Ledger Nano S!

 

Ledger, is a Paris-based company and they’ve given the crypto-community one of those easiest-to-use, sleek, and hot hardware pockets. They save all of your data within a smartcard that keeps it safe from hackers. Using It’s a simple matter of plugging it into your laptop and connecting it to one of the following interfaces:

 

The Ledger Wallet, which you may download from chrome extension.

 

  • Mycelium
  • Electrum.
  • Green Address.
  • Greenbits.
  • CoinKite
  • Copay
  • MyEtherWallet
  • Setting it up is fairly straightforward.

 

You may see this video here to learn how to do it.

 

Cold Storage: Paper Wallets

It might be argued that paper pockets are, hands down, the safest way to store your cryptocurrency. The concept of a paper wallet is extremely simple. You establish a wallet offline when following some simple instructions and you then just print out the public and private keys in a bit of paper. The keys are also printed in the kind of a QR code that you can scan so as to access your funds.

 

So, the questions which you need to ask today is, do you require a paper wallet?

 

The brief answer….depends.

 

Are you planning to use your funds in a fairly regular way? Then no. Paper wallets are going to be a pain if used like that. It’s better for you to receive a hardware wallet afterward.

 

However, if you’re planning to only store your funds for quite a very long time afterward, without a shadow of a doubt, paper wallet is the best way to go.

 

There are two paper wallet websites that we would like you to check out:

 

Walletgenerator:

 

If you would like to generate a paper wallet, then Walletgenerator will provide you the simplest interface to work on and they give you the option of creating multiple paper pockets and support 197 distinct currencies. Some of the major ones they support are (in alphabetical order):

 

If you wish to understand how to make your own paper wallet out of Walletgenerator then see this video right here.

 

When you have made your wallet here, you will get something like this:

 

You may print this page and keep it in a safe. Please make certain your printer isn’t connected to the wi-fi when you do this to ensure added security.

 

MyEtherWallet:

 

If you desire a paper wallet that supports Ethereum and Ethereum-based tokens, then MyEtherWallet is the best choice out there.

 

When You’re done creating the MyEtherWallet you will Find the following:

 

Like before, you can print this and store in a protected and, once more, ensure that your printer isn’t connected to the wi-fi.

 

Restoring a cold storage pocket

 

When you wish to bring your cryptocurrency back from cold storage, you want to import the private key into a proper online wallet. Any wallet that supports importing private keys will operate. The approach is easy and intuitive for many wallets. The steps we’ve given below correspond to using the Bitcoin Unlimited wallet.

 

  • Open the client and click on “Help”.
  • Select the Debug Window and click the Console tab.
  • Type from the area”importprivkey” replace with your private key and the remove quotation marks.
  • Hit enter.

 

This will import all the information from the paper wallet to your online desktop client.

 

But do bear in mind that doing this will indicate that your funds are immediately exposed to the risks of a popular wallet.

 

Crypto into Crypto Trading

 

Finally, we come to meat and potatoes of crypto-trading. Let’s recap what we have learned up to now.

 

We understand how to produce a Coinbase profile and trade Fiat money for some pick cryptocurrencies.

 

We also know how to take advantage of hot and cold storage pockets to protect our money.

 

Now, let us go deeper into trading and determine where all we could actually use our crypto to trade and purchase different cryptos.

 

For that, first, we’ll need to make an account in another exchange, a market that permits crypto-to-crypto trading. Vast majority of the exchanges will only enable you to purchase using Bitcoin.

 

Since Binance is the very best crypto-exchange on the planet, we’ll use it as a reference. However, if you think that you’ll be comfortable using another exchange then don’t hesitate to do so.

 

Note: Please do your research about the safety and trustworthiness of the trades before you create your account. BlockGeeks won’t be held responsible for any inconvenience that you go through.

 

So, let’s begin with creating your account!

 

  • Signing Up
  • Primarily, go to binance.com and click on register.

 

You simply have to input your Email and create a password. Up next, you’ll be made to show that you’re human by solving a jigsaw puzzle. And no, it’s nothing complicated, everything that you must do is to drag your slider towards the right.

 

After that, you’ll be sent an email. Just on the click in it to be redirected to Binance. Now, you’ll need to go through the security Risk Notice.

 

When you have gone through everything You’ll eventually be redirected to your dashboard next:

 

NOTE: We recommend that you enable Google 2FA too.

 

How to Trade on Binance

 

Binance provides a very straightforward and user friendly interface. You can use the following guides for an in-depth understanding of how trading in Binance functions:

 

Notice: Binance has its own local tokens called BNB aka Binance Coin. BNB Enables You to cover the following at discounted prices:

 

Trading commissions aka the charges which you need to pay for trading on the stage.

 

  • Withdrawal fees.
  • Commission lists.

 

Using BNB, you’ll find a 50% reduction in the first year that will gradually decrease over time.

 

Aside from Binance it is also possible to check in the following exchanges. However, do your research before you enroll in them:

 

The Technicals

 

Easily the most intimidating part of trading is all of the charts and lines that you’re likely to see in all of the trades. Most often, people do not even bother reading their charts, but they straightaway purchase or sell their crypto, going by the advice of their peers. Thus, in this segment, we’re going to experience some popular charts.

 

The Japanese Candlestick Charts

 

Definitely the most popular chart on the market. If you have even seen an exchange’s site, then There’s a chance that you have seen these before:

 

The chart above is the daily candlestick chart for BTC/USDT in Binance. What we’re going to do today is to help you make sense out of those pretty patterns.

 

The first thing you’ll see is the green and red candlesticks lying one after another. Each candle shows you the price movement of the asset during a particular time interval.

 

Each candle includes a body and a few shadows which are sticking out of it. The body shows you the difference between the opening and closing cost. The shadows reveal you how high or how low have these opening and closing costs have gone respectively. At a green candle, the top shadow is the close price while the lower shadow at the open price and vice-versa for red candlesticks.

 

The attractiveness of the candlesticks is that it clearly shows you exactly where the market turned and makes it possible to identify various patterns that might help you predict how the market will act.

 

There are numerous patterns and indicators from the candlestick chart and you can see this remarkable video by Trading 212 to help understand these patterns.

 

Relative Strength Index

 

Relative Strength Index or RSI measures the strength and rate of a market’s price movement by comparing the current cost of a cryptocurrency to its previous performance. It works by comparing the size of recent gains to recent declines to ascertain whether or not a crypto has been overbought or oversold.

 

The formula looks like this:

 

RSI = 100 — (100/(1-RS))

 

From the equation above, RS is the ratio between the average of those times the coin was up to the average of those times the coin was down.

 

Now, thankfully you do not have to bother about calculating anything, since the exchange will do it for you.

 

So, let us have a look into how the RSI chart looks like. We’ll check the BTC/USDT graph from binance.

 

We’ll choose”RSI” in the Indicators menu.

 

If you do so, the blue graph will appear beneath the candlestick chart.

 

Bear in mind, we’re assessing the daily RSI.

 

Ok, so there are a couple of things to bear in mind once we are assessing the RSI graph.

 

The RSI ranges from 0 to 100

 

When the RSI for a specific coin tactics 70 or even crosses 70, then it’s thought of as”overbought” aka the crypto in question is becoming overvalued, so it might go down.

 

On the other hand, if RSI approaches 30, then the crypto is undervalued and will most likely go up in value shortly.

 

While RSI is a fairly handy indicator, the reality is that it isn’t resistant to false purchase and false sell signal that could be created by a huge rally or a substantial drop in the purchase price of the crypto. This is the reason RSI should be a tool that you use together with other indicators to forecast the future cost of a coin.

 

So, let us look into our RSI chart, especially in this section:

 

Around 14th November, the RSI of BTC/USDT went below 30, in the undersold location. But because the market was down, the RSI eventually went up on November end, rallied around 30 for a bit before eventually going up around 17th December.

 

Together with RSI, you also need to explore moving average and Bollinger bands. You can learn more here.

 

(BONUS) Helpful tool: CoinMarketCap

 

Coinmarketcap.com is a really beneficial tool for traders who wish to gain insight into the health of various cryptocurrencies. The site ranks all of the cryptocurrencies by marketcap that’s a good sign of its worth.

 

The chart in the rightmost column also provides you a excellent indicator of how that coin has been doing over time.

 

Conclusion

 

So that has been the cryptocurrency trading manual. In this guide you discovered:

 

The best way to change your FIAT into crypto through a market like CoinBase.

The best way to store your own crypto using Hot and Cold Storage wallets.

How to purchase different cryptos using BTC/ETH through Binance.

Technical graphs, notably Candlesticks and RSI.

 

We hope that this manual will be more than sufficient to get you started on your trip. We sincerely hope that you could obtain immense value from it.

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