Cryptocurrency Trading for Newbies: Basic things newbies must know


Thanks so much @rmsadkri for inviting me to check out @leofinance community. I have gone through the community rules and read through different posts and I most say the posts are all educative, engaging and worth spending time on.

Today, I decided to begin my journey here by making this post as a guide to newbies who have heard of crypto currency but don't know what it entails.

For newbies, before going into crypto currency as either a trader or an investor, you need to know this truth, crypto currency investment can be rewarding, offer amazing opportunities if one can be patient and manage risk effectively. You need to know also that It comes with great risk and fear and indiscipline can lead to disastrous results.

I started my crypto currency journey without a financial assistant. Someone who will tell me all the opportunities that come with crypto and the risk aspect of it.

This landed me into learning in a hard way. You know the saying "experience is the best teacher" right? After I lost three quarters of my funds, I had to do my own personal research by buying online courses, paying for classes organized by experts in the field.

My strive to be better wasn't a waste as all my sacrifices for personal growth and development yielded massively. After gaining the knowledge I needed, I migrated from spotting to futures trading where I have to make either fundamental analysis or technical analysis before executing a trade. The learning process was a productive one I must say.


You need to know which kind of investor or trader you want to be when going into crypto currency. Therefore, we are going to mention two types of trading in crypto currency:

Spot trading involves the buying, selling, or holding of an asset or commodities with immediate execution, which can be held for either short term or long term.

Spot trading is in various markets, like foreign exchange market, stock market, and commodity markets. Spot trading is mostly for traders who are in for quick profits from price movements in the market, as well as those who need to quickly convert one currency or asset into another.

Future trading is different from spot trading. In futures, traders agree to buy or sell an asset at a speculated price. Futures contracts are traded in regulated exchanges.

Futures contracts that can be traded include currencies, commodities such as oil, gold , others include stocks, bonds. This type of trading comes with risk and thus requires patience and proper risk management.


Trading crypto currency is impossible without exchange. An exchange is a platform where people can buy, sell and trade other crypto currencies for other crypto currencies or fiat.

The exchange matches a buy, sell and facilitates the sending out of crypto currency to other users. Examples of exchanges include Binance, coinbase, etc.


Before investing in crypto currency as a newbie. They are things to put in mind:

Knowing that crypto currency is not like the physical financial systems is necessary. Also,they are not controlled by central authorities like in the traditional financial system. It is a decentralized system which provides investors with flexibility and free access to manage and monitor their investment without any central authority control.

Also, investing in crypto currency provides investors with high returns. The market is very volatile which means prices can rapidly fluctuate and when this happens, the investors' money increases.

In addition to the aforementioned, crypto currency provides investors with the opportunity to diversify their funds by investing in different tokens and commodities, thus creating room for an investor to have different portfolios.

Like we said earlier, investing in crypto currency is risky. The rapid fluctuation of price can either result in increase or decrease. When price decreases, depending on the volume of decrease results in investor's losing some funds in his or her portfolio.

Lastly, cryptocurrency does not have the same protection as a traditional financial system. It lacks regulations and this results in security risks as investors' wallets can be hacked which leads to loss of all the funds.

It is necessary for newbies to know that Investing in cryptocurrencies can be an amazing opportunity and could also be risky. It is always advisable for an investor to invest whatever he could afford to lose. Do thorough research before investing in any token, and consulting someone experienced in the financial market before making a decision. These will be like a great guide in making the right choice.

I AM @marynn,