Tricks of Trade – A Comprehensive Introduction to Cryptocurrency Trading

From being thought of as a trend similar to the dot-com bubble of the 90s and early 2000s, to being quite bullish about investment prospects, Cryptocurrencies’ unprecedented rise in popularity and widespread acceptance has had an unexpected effect on investors and their outlook. Today, Cryptocurrency trading has indeed gone mainstream, with even casual investors engaging in some form of crypto trade –  be it day trading, margin trading or trading in futures. 

For complete newbies, however, navigating this nascent market can be as daunting as it is exciting, given their unfamiliarity with how crypto trading works. Fear not! In this article, we will take you through all the intricacies of the lucrative world of cryptocurrency trading. 

Basics of Cryptocurrency Trading

Before you can begin trading in cryptocurrency, there are a few important concepts, many of which are unique to cryptocurrency trading, that you need to familiarise yourself with.

• Cryptocurrency Exchanges

For anyone new to crypto trade,  the first step you need to take in order to start your trading journey is choosing a cryptocurrency exchange. A cross between the traditional stock exchange and a currency exchange, cryptocurrency exchanges are trading platforms where you can buy, sell, and/or exchange cryptocurrency for fiat or other cryptocurrencies. 

While choosing a crypto exchange, please carry out thorough research to learn about its safety features, reputation and reliability, as well as the exchange rates offered.

CoinDCX is one of the world’s best crypto trading platforms and offers unparalleled security for your crypto trades. 

For those who are new to the crypto space, CoinDCX has launched an App just for you; CoinDCX. It has been dedicated to simplify the crypto investment process with the same unparalleled security features.

• Currency Pairs 

Another concept you need to know is what currency pairs are, and how they work in trading. To trade one currency for another – whether it is crypto to crypto, crypto to fiat, or fiat to crypto, there needs to be a market that links them. This is called a currency pair. Each currency pair has an indicated price and the pairing of a base currency and a quote currency. The price indicates what quantity of the quote currency is required to purchase one unit of the base currency. So, if an exchange lists the price for the BTC/USD as USD 5000, where BTC is the base currency and USD is the quote currency, it means you will need USD 5000 to buy one unit of BTC. 

At CoinDCX, you can choose from over 500 currency pairs to start trading. 

• Trading Orders

The next thing you need to familiarize yourself with is how orders are placed in crypto trading. Each crypto exchange maintains an order book, which is a list of buy and sell orders that have been placed. The order book has two sides – Ask, which is for sell orders, and Bid, for buy orders. 

There are two main types of orders that traders can place – a market order or a limit order. A market order is an order to buy or sell a cryptocurrency at the best average market price. Exchanges use their order books to match and fill market orders immediately. Traders can also place a limit order, which buys or sells cryptocurrency at a pre-specified price. 

All open orders are listed in the order book, until they are completely filled. Most exchanges also have a minimum order size for each cryptocurrency. 

• Margin Trading 

If you wish to trade in amounts larger than your current balance, or using leverage, a great way to do so is using Margin trading. Margin trading, essentially, uses funds from the exchange over and above those held in your account. So, for instance, you wish to buy 10 units of BTC at the price of USD 5,000 for BTC/USD, but your account only has USD 25,000, you can borrow the remaining USD 25,000 from the exchange at an interest. If the price rises, you can now make a greater profit than you would have with simply the funds from your own account.

With CoinDCX’s DCXmargin, you can get up to 6x leverage for trading in more than 250 crypto markets. 

• Crypto Wallets

To keep cryptocurrencies secure, traders also need a crypto wallet. Crypto wallets are  encrypted and uniques pieces of software or hardware that allow  traders to store and exchange their cryptocurrencies. Hardware wallets, or cold storage wallets, are much more secure and immune to viruses or malware, since unlike a software wallet, the private key is not exposed to the computer in this case. They are also more interactive and can hold multiple cryptocurrencies. 

CoinDCX’s cold storage wallet ensures complete security of your cryptocurrency funds. 

 

How to Start Trading 

Now, that you are familiar with all the above concepts, you are all set to begin your trading journey! As mentioned above, you will need to register yourself with a reliable cryptocurrency trading platform. Once you have registered an account, you will first need to deposit fiat currency to be able to buy cryptos. After you have money loaded in your account, you can choose an appropriate currency pair or market to trade fiat for cryptocurrency. You can also get your preferred crypto wallet from the exchange itself to store your cryptos. 

Do keep an eye out for the transaction fees that the exchange charges. CoinDCX, for instance, charges a transaction fee of 0.1%, which is half the industry average. When you place a buy or sell order, it is lodged in the order book of the exchange. If it is a market order, the exchange will match it with the average price and fulfil it immediately. 

You can now also start margin trading or trading in futures, based on the leverage that the exchange provides. Remember, while for many exchanges you would need a separate account for spot trading, margin trading, and futures trading, with CoinDCX you can manage it all with a single account! 

 

CoinDCX – The Best Crypto Trading Platform 

Whether you are an absolute beginner or a professional trader, CoinDCX is the ultimate platform for all your cryptocurrency trading needs. An all-inclusive cryptocurrency ecosystem, CoinDCX offers an unrivalled trading experience to build and grow your crypto portfolio. 

Linked with the world’s largest exchanges like Binance, Huobi, and HitBTC, CoinDCX gives unfailing liquidity for your crypto trades. Whether it is spot trading, margin trading, or trading in futures, you can do it all on our comprehensive trading platform. 

Tens of thousands of traders rely completely on CoinDCX and contribute to our daily trading volume of more than USD 10 million. With features such as cold storage wallet, withdrawal confirmations, 2-Factor authentication, and BitGO insurance, CoinDCX ensures complete fund safety. No wonder it is one of the most trustworthy and reliable exchanges in the world! 

 

A one-stop solution for all crypto trading needs, CoinDCX offers a bouquet of one-of-a-kind products, designed for all types of traders:

Here is a complete list of integrated CoinDCX products on offer:

• Margin – Trade across 250+ markets with 6X leverage
• CoinDCX Go – The simplest Bitcoin trading app.
• Insta – Fastest FIAT On Ramp Off Ramp with zero trading fee. Buy 40+ cryptocurrencies with INR in less than a minute 
• Trade – Trade limitlessly with massive liquidity on crypto and INR pairs/orderbooks
• Lend – Earn upto 20% annual interest through lending
• Stake – Stake and Earn passive income
• Futures – Maximize trading potential with leverage up to 20x.
• Convert– Easy real-time crypto price converter for cryptos as well as fiat currency.

Starting your journey as a first time user is easy and convenient. Simply visit the CoinDCX website, and sign up to register as a new user. Create your account by filling in some basic personal details and get started right away! 

If you have more questions, do check our FAQ section for detailed explanations. You can also send us an email at [email protected] and we will be happy to help.