A Beginner’s Guide to Advanced Crypto Trading

Trading of Crypto
Jan 4, 2024 Reading time : 5 min

Are you looking to get into crypto trading? Are you a beginner, or do you already have some experience? Whatever your situation, there’s no need for fear. With the proper knowledge and tools at your disposal, it’s easy to make smart decisions when investing in cryptocurrencies. This guide will help beginners learn and know about crypto how to trade cryptocurrency like an expert. But before we get started, let’s answer one question: what is cryptocurrency trading?

Crypto Derivatives

Not every trader is interested in trading cryptocurrencies directly. Some people want to trade derivatives of the actual coins, like options or futures. Derivatives are not necessarily risky, but they can be complicated and require more skill than just buying and selling coins directly. Crypto options are one type of derivative that can be highly profitable for those who know how to use them properly.

Crypto Options

To understand the risks involved in trading crypto options, you first need to know what they are. An option is a type of contract that gives its owner the right (but not obligation) to buy or sell an underlying asset at an agreed price on or before a predetermined date. The owner pays a premium for this right, which can be considered insurance against adverse price movements. This helps traders avoid losses if the market moves against them while also providing leverage and potentially increasing their profits if it moves in their favor.

If you don’t have time to become an expert trader and make all your own decisions about when and what to trade, there are automated bots out there that can do all this for you — however, these come with their own set of risks.

Crypto options work similar to regular options, but there are some key differences:

  • Crypto exchanges don’t offer many options contracts, so liquidity may be limited (or non-existent). In some cases, there might only be enough liquidity for one contract on either side;
  • There aren’t many exchanges offering crypto options yet, so only those willing to try something new should do so now;


It’s essential to understand the risks involved in trading options. In the case of short-term options, you can lose a significant amount of money if there is a sharp move against your position before expiration. If you were long an option with a strike price of $50 and below, you would be forced to buy shares at that price whether the market price was above or below that level. The same principle applies to opening positions—if you opened an option with a strike price above current market prices and it fell below your strike price at some point before expiration, then your position would be profitable but could result in more losses than anticipated (i.e., buying shares at $55 instead of $50).

There are also times when investing in longer-term options may not be as lucrative as one might think due to inflationary pressures and other factors that affect stock prices over time; this is why many traders prefer day trading cryptocurrencies instead of holding onto them for long periods because they offer faster returns on investment than traditional investments like stocks do (although both forms can potentially provide similar results).

What are Crypto Futures?

Futures are a type of contract between two parties to buy or sell an asset at a predetermined price. Futures are used to hedge against price changes in the underlying asset. They’re traded on an exchange, like stocks, and can be bought using margin accounts.

The main advantage of futures is that they allow you to profit from price fluctuations without actually owning the cryptocurrency itself. If you think Bitcoin will rise from $10,000 USD1 to USD 12,000 over the next 12 months, buying 100 Bitcoin will cost you around $100K (assuming no brokerage fees). Instead of paying so much upfront for your investment, what if there were a way to bet on Bitcoin’s future success without putting down tens of thousands of dollars? Enter crypto futures!

You Don’t Need to Become an Expert Trader to Make a Profit

You don’t need to become an expert trader to make a profit. Many people think that trading is only for the pros, but you can learn from your own mistakes, other people’s mistakes, and your success. The market is big, with plenty of room for everyone at the table.

You don’t need to be a genius at anything to start crypto trading – all it takes is a little motivation and dedication!

So, if you’re a beginner looking to trade in the crypto market, it’s time to start! There are many ways you can make money from trading, and no matter your experience level, there’s always room for improvement. Trading on its own is fun and exciting—it can also be stressful at times—but it’s all about having fun with it and learning along the way.

Olivia Smith
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Olivia Smith

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