1 k

Beginner’s Guide to Trading Cryptocurrencies

Investing in crypto without understanding how the network works is a recipe for disaster. One needs to understand what he is getting into and learn about the specifics to track usage and growth and ultimately profit off the market. Investing in crypto is more on the lines of venture capital than public equities/stocks.

Crypto fundamentals essentially boil down to major news, user growth, transactions per block (or block size), fees, confirmation time, and, most of all, security. Understanding fundamentals in crypto requires a deep understanding of the dynamics that create the network.

To help all beginners out there, we cumulated a list of pre-requisites and other necessary knowledge that a trader might need to begin their crypto journey.

How to Start Trading Cryptocurrencies


  • DYOR: The First Rule of trading cryptocurrencies or any asset for that matter is always to DO YOUR OWN RESEARCH (DYOR). Avoid falling over other people’s opinions and form the habit of making informed decisions on your own.
  • Laptop or PC: For starters, you would need a good PC. Mobile trading can be done, but using a PC allows greater flexibility.
  • Resources: Cumulate a set of platforms that help you make your informed opinions. Platforms can range from charting sites, information sites, news sites, blogs, etc.
  • Reading Whitepapers: It is a good practice to look at the project documents of any cryptocurrency that you might be interested in. Usually, all projects have a website, Reddit/Twitter handle, LinkedIn redirects, and whitepapers. Please read our guide on how to avoid getting scammed in the crypto world.

Moving to the Next Level


Charting represents an essential set of tools when working with financial markets that are nothing if not erratic. The constant ups and downs of the overall system result in the market’s reputation of being largely unpredictable. Any trader – whether they be a novice or an expert – will tell you this. The cryptocurrency market is no different in that regard.

A beginner trading enthusiast must make themselves familiar with viewing, analyzing, and predicting from charts. They are one of the most important and basic sources of trading out there.

Some of the Best Charting Platforms are:

For more Tradings resources, check here.

Choosing a Trusted Exchange

A cryptocurrency exchange is a platform that allows you to buy and sell cryptocurrencies. However, there are some distinct differences between some cryptocurrency exchanges that you will need to know. For investors looking to enter the cryptocurrency space, a centralized exchange is still the most common means of doing so. But the list doesn’t just end there. To gain complete knowledge of the ecosystem, one must know about the other options available as well. When selecting an exchange, it’s important to keep in mind the host of factors which will impact user experience, including which pairs are traded, how high the trading volume is, the security measures adopted by exchanges to protect their customers, and most importantly, the risk involved in trading with the particular platform.

Choosing the right cryptocurrency exchange can be a difficult task. Some of the best cryptocurrency exchanges include:

Storing Funds in a Secure Wallet

A cryptocurrency wallet is where you store encrypted passwords representing the ownership of coins, much like a Bank account, but fully owned and operated by the holder. Beginners are usually unaware of the distinction between wallets and end up storing all of their cryptocurrencies in a third-party exchange, thinking it is good enough. But in many cases, as history shows, scams and heists result in holders losing all of their funds just because they trusted the third party to hold their funds. Check out our top picks here.

Users are encouraged to know and understand the different types of wallets, i.e., Hot Wallets, Paper Wallets, Hard Wallets, etc. A Hard Wallet is considered the best way to store funds securely. A Hardware wallet is a physical, electronic device designed to protect an individual’s cryptocurrency funds by securing their private keys.

Some of the best hardware wallets include

To understand wallets in detail, click here.

Using Bots

Finally, when completing each level of the cryptocurrency journey – gaining knowledge, doing research, choosing the best trading platform, and making peace with the volatility, one can go ahead and dive into the world of Bots. Crypto Bots are automated software that allows users to customize their trading strategies, encode automated trading algorithms, and use sophisticated methods to make the most out of the market. It is not easy to make and successfully use a bot.

Shrimpy – One Stop Solution for Crypto Bots

Shrimpy is a crypto trading bot and automation platform built on exchange APIs or Application Program Interfaces. They allow investors to connect to multiple cryptocurrency exchanges through a single interface. This makes the experience of trading more automated, efficient, and profitable. The Shrimpy application allows anyone to invest like a professional by allocating a diverse portfolio, building custom market indexes, and rebalancing. It’s the perfect solution for personal crypto portfolio management.

Recent events have led to a continued increase in demand for legitimate trading bots. Shrimpy has aimed to fill that demand gap. Trading bots like Shrimpy have become increasingly popular among traders because they allow investors to control their cryptocurrency. Since trading bots can run continuously, they won’t stop trading even when you sleep. That way, you never miss out on an opportunity.

For the technically inclined, Shrimpy also offers services for developers. The Universal Crypto Trading APIs are the industry-leading APIs for developers to build their own trading bots, connect to different exchanges, and access real-time market data. The aggregated trade and order book WebSockets Shrimpy can be used to execute arbitrage strategies across every major exchange.

Among the several dozen features, some include connecting multiple exchanges to one platform, rebalancing portfolios, indexing cryptocurrencies, and managing multiple portfolios at once. Social trading is one of the most lucrative features of the platform, where you can copy portfolios of other successful investors. An amazing team of world-class developers creates Shrimpy. With a decade of experience across software, web design, and development, the teams aren’t just digital experts but marketers also with a strong knowledge of how the traders market is.

Bitcoin live price
price change

Don’traders t forget to cash in the profits!

Stay up to date with our latest articles

More posts

What Is an Iceberg Order in Crypto?

Iceberg orders allow traders to buy or sell a large quantity of cryptocurrency without tipping off the market. By splitting their orders into smaller chunks, traders can execute their trades without causing undue price movement.  This guide will explain what iceberg orders are and how to use them in your trading strategy. What Is an Iceberg Order in Crypto Trading? An iceberg order lets traders buy or sell a large number of assets without revealing their intentions to the market.…

Ultimate Beginner Guide to Bitcoin Improvement Proposals (BIPs)

Bitcoin Improvement Proposals (BIPs) are essential tools in the crypto community. They allow the Bitcoin community to propose and vote on changes to the Bitcoin Core software.  BIPs can also work for other wallets/services and have a process for development and implementation. This guide will explore what BIPs are, how they work, and some of their benefits and risks. What are Bitcoin Improvement Proposals (BIPs)? Bitcoin Improvement Proposals (BIPs) are proposals for changes to the Bitcoin protocol. Anyone can submit…

A Beginner’s Guide to Identifying and Avoiding a Crypto Bull Trap

Cryptocurrencies are a relatively new and exciting investment opportunity but are also highly volatile. Prices can swing rapidly, and it is easy to get caught up in the excitement of trading. However, the hype may arise without understanding the risks involved. This guide provides basic information on identifying and avoiding a crypto bull trap to safely invest in this exciting market. How to Identify a Crypto Bull Trap Crypto investors are always on the lookout for signs of a bull…

Why Do Some Crypto Projects Issue More than One Token?

In recent years, the popularity of cryptocurrency has exploded. As a result, more and more people are looking to invest in crypto projects. However, not all projects are equal, and it can be challenging to determine which ones are worth investing in. This guide aims to help investors make informed decisions about which crypto projects to invest in. It will explain multi-token models and why they have become so popular among crypto projects.  The guide will also outline the benefits…

Are Hardware Wallets Safer than Online Ones?

An online wallet is a software program that stores cryptographic keys. This technology allows users to make digital payments and secure their online presence. Over the last years, many users have started to trust hardware solutions to store their coins. In this guide, we will explore the pros and cons of using these two wallets. In particular, we will focus on a matter that is vital for crypto enthusiasts: the security of their funds. What Is an Online Crypto Wallet?…

Tips for Trading in a Volatile Crypto Market

Cryptocurrencies are a new and exciting investment opportunity but can also be highly volatile. This guide aims to teach you how to trade in a volatile crypto market to increase your success probability.  We will cover everything from identifying a volatile crypto market to managing risk when trading volatility. So whether you are a seasoned trader or just starting, this guide has something for you. Why Is the Crypto Market so Volatile? The crypto market is volatile because it is…

How to Spot a Crypto Project with Great Tokenomics?

In the cryptocurrency world, there are a lot of projects with amazing tokenomics. However, it can be challenging to determine which projects are worth investing in.  This guide will help you spot a project with great tokenomics. In this way, you can make a great decision about where to invest your money.  Before analyzing the technical components of tokenomics, there are other red flags you should be able to spot. Our guide will begin with this premise and then move…

A Guide to the Signs that a Crypto Project is About to Fail

Cryptocurrencies are digital assets and a payment system invented by Satoshi Nakamoto. They use cryptography to secure their transactions and control new units' creation. Cryptocurrencies are decentralized, not subject to government or financial institution control. Bitcoin, the first cryptocurrency, appeared in 2009. With the rise in popularity of cryptocurrencies, there has also been an increase in crypto projects that end up failing.  This guide will explore the signs that a crypto project will fail. By understanding these signs, you can…

How to Spot a Pump and Dump Scheme in the Crypto World

Cryptocurrencies have taken the world by storm, with their values skyrocketing over the past years. This has led to a huge rush of investors ignoring how to recognize a pump and dump operation. As a result, many people have lost money by investing in fraudulent schemes. This guide will teach you how to identify a pump and dump scheme and protect yourself from becoming a victim. We will also provide tips for spotting legitimate cryptocurrency investments and advise you on…

Understanding the Difference Between Solo Staking and Pool Staking

Solo staking and pool staking are two of the most popular methods of mining cryptocurrency. But what are they, and which is suitable for you?  This post compares solo and pool staking so you can choose the optimal strategy. What is Solo Staking? Solo staking is when users stake their coins by themselves to receive block rewards. By having a staking wallet online, you may receive incentives.  The main advantage of solo staking is that users get to keep all…