Crypto trading involves buying and selling cryptocurrencies in order to earn money on changes in their value. Unlike regular stock markets that operate on a schedule and are limited by business hours, a cryptocurrency exchange operates continuously seven days a week, offering participants virtually endless trading opportunities.
A distinctive feature of this segment is strong price fluctuations, which simultaneously create attractive chances to earn and high risks of losing capital. To minimize possible threats, experienced crypto trading participants recommend the following precautions:
- storing funds in hardware wallets («cold»), which protect money from hacking and theft;
- checking the reputation of exchanges before registration, studying user reviews and the reliability of the platform;
- competent management of funds: diversification of investments and refusal to place the entire amount in one asset;
- constant monitoring of news and events that affect cryptocurrency rates.
Cryptocurrency trading is conducted mainly on specialized platforms such as Binance, Coinbase or Kraken. Such platforms offer a wide range of tools: in addition to standard operations of exchanging one cryptocurrency for another (for example, BTC for ETH), traders have the opportunity to use derivatives — futures and options, allowing them to make additional profits using leverage.
The main principle of activity in the field of crypto trading
The main types of assets used in cryptocurrency trading:
- classic cryptocurrencies (Bitcoin, Ethereum), which are the most widespread and in demand;
- alternative cryptocurrencies (altcoins) — relatively new projects that offer unique technical solutions, such as accelerated transaction processing or innovative contracts;
- stablecoins — stable digital assets backed by traditional money (USDT, USDC); serve as protection against the volatility of major cryptocurrencies;
- project tokens — special units that give the right to own a share or participate in a digital product or platform;
- futures and options are financial instruments that allow you to earn on changes in the value of the underlying asset, even without owning the asset itself.
The choice of a suitable instrument is determined by the level of competence of the trader, the goals set, and the degree of acceptable risk.