Introduction to Cryptocurrency Trading

Are you ready to begin your journey into the art of trading crypto?

The world of crypto trading is massive in terms of what to learn and how to actually trade.

It’s a great example of the famous saying, “There are a million ways to skin a cat.”

Obviously, I’m not really a fan of that quote. Why so violent?

I prefer, “There are a million ways to skin exfoliate a cat.”

That’s much better. 

Anyways, it’s the same way with trading…there are a million ways to exfoliate a trader. 

Okay, more seriously, as a trader, there are a million different ways to manage risk and make a profit in the markets.

The goal of this course is to introduce readers who are brand new to the world of crypto with solid trading principles and show how to apply those principles to develop trading strategies and processes suitable to their own individual needs.

The hope is that these principles will help you learn and SURVIVE during this initial stage as a noob trader until you figure out what works best for you to become successful.

I’ll be sharing an example process for creating a crypto trading strategy that you can use as a tool to practice with, gain market experience, and as a guide to create your own process.

Even if you already have trading experience in other asset classes, I suggest you still give it a read.  It never hurts to revisit foundational skills, right?

Let’s begin!

What is trading?

What is trading? What does a trader do?

A trader looks to build wealth over time with financial assets by either buying assets to sell later at a higher price, and/or borrowing an asset to sell high, and then buying it back lower later for a profit.

As simple as that sounds, actively trading in the financial markets is arguably one of the hardest endeavors out there.

Market behavior is constantly changing as it’s not only driven by fundamental inputs like economic data, company metrics, or commodity supply/demand but also by surprise geopolitical events and shifting human emotions.

Basically, unless you have a crystal ball or know a fortune teller to tell you the future, there are no guarantees of a successful outcome regardless of the amount of work you put in.

And there’s definitely NO holy grail system or trading system that guarantees risk-free profits.

Let’s also not forget the fact that every individual brings in their own set of personal constraints, whether it’s a lack of time or energy to keep up with market dynamics, limited capital (i.e. you broke as a joke), or an inability to control emotions when taking on risk (you too “emo”).

All put together, it’s an incredibly daunting task to actively trade or invest in the financial markets, which is why the most common financial advice is that most people should stick to passive investing in a diversified portfolio. And many people have benefited financially from this strategy.

That said, there are those out there who have a strong interest or deep passion for the financial markets, and for crypto specifically. And for them, this journey into active crypto trading is definitely worth considering.

Taking a shot with money (“capital”)  you are willing to lose and developing the right skills to manage that capital could lead to outsized returns relative to passive investing.

Of course, there are never guarantees of success and there’s always a possibility you could LOSE a big chunk of your capital, especially in the crypto market.

But if taking that risk is okay with you, then let’s move on to the next lesson where I’ll discuss the core trading principles you should be familiar with as a new trader.