Crypto trading experience from basic to advanced - A detailed guide for beginners

Cryptocurrency trading has become a popular investment choice with attractive profit potential. However, to succeed in this field, you need to understand the strategies, tools, and knowledge required. This article will introduce effective coin trading methods, from basic concepts to advanced techniques often used by professional traders.

What is coin trading and why is it attractive to investors?

Coin trading is the act of buying and selling cryptocurrencies on the market to capitalize on price fluctuations and earn profits in a short period. Unlike long-term holding strategies (hold), coin trading focuses on capturing price swings within the day or over a few days.

Real-world example: You buy 1 ETH (Ethereum) at $2,500 in the morning, and by the afternoon, the price rises to $2,600. You sell and make a profit of $100 from one trade. This is a form of day trading (trading within the day) — a common type of coin trading.

Differentiating coin trading and holding

These two strategies have fundamental differences:

• Coin trading: Occurs over a short period, requires active market monitoring, and exploits frequent price volatility
• Holding coin: Is a long-term buy-and-hold strategy, where investors trust in the cryptocurrency and are willing to wait for significant profits

A trader with a flexible risk appetite, who prefers frequent trading, will choose coin trading. Conversely, long-term investors with strong confidence in a specific project will opt for holding and ignore temporary price fluctuations.

To trade coins effectively, you need to acquire knowledge about: the overall market outlook, basic analysis, technical analysis, and market news updates. These factors will help you make more accurate decisions.

5 popular coin trading strategies often used by traders

The difference between a professional trader and a beginner lies in their strategies. A good coin trading strategy can create a significant gap between someone earning stable profits and someone only winning a few times by luck. Here are 5 common strategies:

1. High-Frequency Trading (HFT)(

This method exploits price changes at the second-by-second level. Traders place dozens of orders every second using automated trading software )trading bots(. These bots are programmed with predefined rules to execute trades continuously and maximize profits.

) 2. Scalping###

Scalping is a strategy to earn small profits from many trades, which are then accumulated into larger gains. Traders place numerous orders within very short time frames (seconds or minutes), repeating throughout the day to accumulate profits.

( 3. Range Trading)

This strategy assumes that cryptocurrency prices tend to fluctuate within a certain range. When the price breaks out of this range, it may signal an abnormal change. For example, if the price drops below a support level, it could be an appropriate time to sell.

4. Technical Analysis-Based Trading(

This method requires traders to observe price charts, understand market movements, and determine optimal buy or sell points. You need to learn how to read candlestick patterns, use technical indicators )support/resistance, trend lines, Fibonacci…### to make decisions.

( 5. News-Driven Trading)

This approach predicts how market players will react to important news, rather than relying solely on price trends. Investors follow news sources from press, social media ###Twitter(, and official project announcements to grasp market sentiment and the actions of large traders.

Step-by-step guide for effective coin trading for beginners

) Step 1: Choose a suitable exchange

Select a reputable, long-standing exchange with features aligned with your goals:

• If you trade frequently or scalping: Choose an exchange with support tools ###trading bots, technical analysis(, low trading fees to maximize profits
• If you trade a few times a week: Opt for an exchange with a user-friendly interface and strong security

) Step 2: Define your strategy and select coins to trade

Depending on your chosen strategy, the suitable coin types will vary. For example:

• Scalpers might choose Bitcoin ###BTC( or Ethereum )ETH( due to their high volatility and liquidity
• Trend traders may select Solana or other altcoins with stable upward trends

You should analyze price models, trend charts, liquidity, and compare with similar tokens before deciding.

) Step 3: Determine the optimal timing to place orders

After selecting coins, find the best timing to trade. Apply:

• Japanese candlestick patterns ###Candlestick(
• Technical indicators )support/resistance, trend lines(
• Fibonacci levels to identify ideal buy/sell prices

) Step 4: Store coins securely

• If trading continuously: Keep coins in the exchange’s trading wallet for convenience
• After trading session ends: Transfer coins to a secure storage wallet ###hardware wallet like Ledger or reputable software wallets(

Real-world example: Applying Scalping strategy to trade Bitcoin

To clarify, let’s go through the steps of applying the scalping strategy:

Step 1: Choose a highly volatile coin

Select Bitcoin or altcoins with high volatility and good liquidity — essential requirements for scalping.

Step 2: Select trading platform and analysis tools

On your exchange, open the Technical Indicators section and activate the Money Flow Index )MFI( on a 5-minute timeframe. MFI measures the inflow/outflow of money into the coin.

Step 3: Wait for signals from the MFI indicator

When MFI reaches 100, it indicates that large traders )“whales”( are entering the market. This strong capital flow leaves traces that can be tracked via MFI.

Important note: Technical indicators are not 100% accurate. Therefore, ignore the first two times MFI hits 100 and only act on the third occurrence. Observe whether Bitcoin’s price remains within a stable range between the two MFI 100 hits. If the price drops after the second MFI 100, it could be a signal that the market will decline that day.

Step 4: Place a buy order

When MFI = 100 on the third time and the next candle is an upward (green) candle, place a buy order.

Step 5: Manage risk

• Set a Stop Loss below the lowest point of the day to limit losses
• Set a Take Profit about 60 minutes after opening the trade to lock in profits

Essential coin trading terms to know

To trade effectively, investors need to understand common terms:

• Whale: Individuals or groups holding large amounts of coins
• Pump: Rapid increase in coin price
• Dump: Sudden sharp decrease in coin price
• Match: Order matching — when buy and sell orders are connected
• Hold: Keep coins without selling for a long time
• Bull: Buyer, market trending upward
• Bear: Seller, market trending downward
• Stop Loss: An order to protect the account by limiting losses at a certain level
• Take Profit: The point at which a trader decides to sell to realize gains
• Low / High: Lowest / highest price during a trading session
• Margin: Leverage — borrowing from the exchange to trade larger volumes
• Long: Expecting the price to rise
• Short: Expecting the price to fall
• Resistance / Support: Price levels that the market often struggles to break through )resistance( or reasonable buy-in levels )support(
• Fiat: Government-issued legal tender
• Market Capitalization: Total value of all coins in the market

Tips from experienced traders

Cryptocurrency trading offers high profit potential but also involves high risks. To succeed long-term:

1. Start small: Do not invest all your capital in one trade
2. Risk management: Always use Stop Loss to protect your account
3. Continuous learning: Practice with demo accounts before real trading to test your strategies
4. Control emotions: Avoid impulsive decisions based on feelings
5. Monitor the market: Keep updated with news, market developments, and macroeconomic changes

Before trading with real money, create a demo account on your exchange to practice the strategies learned. This will help you build confidence and verify the most suitable methods for yourself without risking real funds.

Coin trading is not a quick path to wealth, but with knowledge, discipline, and proper strategies, you can build a stable income stream from cryptocurrency trading.