Basic steps of trading (theory)
🔹 Step 1. Understanding the market
The price of cryptocurrency constantly changes due to:
news
supply and demand
actions of large players
Earnings are built on the principle:
buy low → sell high
🔹 Step 2. Types of orders (very important)
Market — buy/sell immediately at the current price
Limit — buy/sell at the price you specify
Stop-loss — automatic sale to limit losses
🔹 Step 3. Price analysis
There are two basic approaches:
📊 Technical analysis
📰 Fundamental analysis
project news
team
technologies
popularity
3️⃣ Main strategies
Long-term investing — buy and hold for months/years
Day trading — trades within the day
Scalping — many quick small trades
Swing trading — holding from several days to weeks
4️⃣ Risk management (mandatory!)
⚠️ This is the most important:
don't invest more than you are willing to lose
don't use it all at once
always set a stop-loss
don't give in to emotions (fear, greed)
5️⃣ Common mistakes of beginners
❌ trading 'on emotions'
❌ belief in 'guaranteed profit'
❌ lack of a plan
❌ trading without education
6️⃣ Important warning
Cryptocurrency — a high-risk market. You can lose money just as quickly as you can make it!