1.5 k views

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 are important news, user growth, transactions per block (or block size), fees, confirmation time, and security. However, understanding the fundamentals of crypto requires a deep understanding of the dynamics that create the network.

To help all beginners, we cumulated a list of prerequisites 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 to DO YOUR OWN RESEARCH (DYOR). Avoid falling over other people’s opinions and form the habit of making informed decisions.
  • 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 form 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 you might be interested in. Usually, all projects have a website, Reddit/Twitter handle, LinkedIn redirects, and whitepapers. Also, 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 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.

Beginner trading enthusiasts must be familiar with viewing, analyzing, and predicting from charts. They are one of the most essential and fundamental trading sources 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. One must know about the other options available to gain complete knowledge of the ecosystem. When selecting an exchange, it’s essential to keep in mind the host of factors that 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 proper 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 wholly owned and operated by the holder. Unfortunately, beginners are usually unaware of the distinction between wallets and end up storing all 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 their funds because they trusted the third party to hold them. 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. On the other hand, 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, researching, choosing the best trading platform, and making peace with the volatility- one can dive into the Bots world. 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. However, it is not easy to make and successfully operate 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. In addition, 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 increased 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. In addition, 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 trading bots, connect to different exchanges, and access real-time market data. In addition, 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 various portfolios simultaneously. Social trading is one of the most lucrative features of the platform, where you can copy portfolios of other successful investors. A fantastic 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 with a strong knowledge of the trader’s market.

Bitcoin live price
price change

Don’t forget to cash in the profits!

Stay up to date with our latest articles

More posts

Drivechain: The Bitcoin Upgrade to End All Altcoins?

Bitcoin, the world’s first cryptocurrency, regularly faces criticism for having ‘outdated’ tech and a tendency to evolve slowly, relative to the rest of crypto. This leaves altcoin projects looking to build on Satoshi’s original invention room to differentiate and compete through added features, such as faster throughput, smart contracts, and tokenization.  However, a hotly-debated Bitcoin upgrade called “Drivechain” seeks to introduce these benefits to Bitcoin by opening up its development possibilities in one fell swoop. What is Drivechain, what are…

How the Address Poisoning Crypto Scam Could Affect You

“Address Poisoning” is a new cryptocurrency scam that deceives users into transferring funds to other wallets instead of the intended recipient. While it’s not the most aggressive cryptocurrency scam, Address Poisoning still tricks many into funding crypto fraudsters. Fortunately, it is easy to detect and avoid even by the least tech-savvy users. What is Address Poisoning? Crypto users should be familiar with the wallet’s transaction list, which contains all the “Send” and “Receive” transfers. This list provides details on the token…

Centralized vs. Decentralized Bitcoin and Crypto Mixers

Many people see cryptocurrencies as a way to keep transactions anonymous and private. However, recent reports suggest that most crypto transactions happen on centralized exchanges, leaving user data vulnerable to theft and fraud. The popularity of crypto mixers has been steadily growing as a way to combat this problem. A crypto mixer is an online service that helps mix funds from different crypto wallets and exchanges.  This strategy makes it difficult for anyone to trace the transaction back to the…

Play-to-Earn (P2E) Games – What Are They and How Do They Work?

When it comes to Play-to-Earn (P2E) games, there is a lot of confusion about their concept and how they work.  Behind the Huge Play-to-Earn Success: What's the Idea? Play-to-Earn games are a new way of playing games that have recently gained traction in the gaming world. The basic idea behind them is simple: you can play the game and make money. The concept works by allowing players to earn real money or cryptocurrency rewards for completing certain tasks within the…

Metaverse Games to Keep an Eye on in 2023

, The gaming industry has recently witnessed a surge in demand for metaverse games. These virtual worlds offer gamers an immersive experience and unique gameplay opportunities. With more developers investing in this burgeoning sector, 2023 looks set to be a momentous year for these innovative titles. This article will look at some of the most anticipated metaverse games of the year and briefly overview each title. How are Metaverse Games Different? Metaverse games are virtual worlds that exist as persistent…

What Are Front-Run Orders in Crypto?

Front-run orders are an issue that can have serious consequences for investors. This article will explore what they are, why they're a problem, and some methods to identify them. We'll see how to minimize the risk of being victims of front-run orders and how exchanges can reduce their occurrence. Let's dive into the world of front-run orders and learn how to make crypto trading safer. What Are Crypto Front-Run Orders? Front-run orders are when traders take advantage of an upcoming…

3 Ways DeFi Can Recover After Alameda and FTX Bankruptcy Shock

In early November, Alameda Research became insolvent. FTX tried to bail it out but faced a liquidity crisis that shortly led to its bankruptcy and marked the start of a cataclysmic meltdown in the cryptocurrency market. Here’s a brief aftermath of it in numbers: $223 billion was lost in the market cap for the entire crypto market in less than 5 hours. $15 billion was lost in total value locked (TVL) in DeFi protocols. $4,700 drop in value for Bitcoin in a…

SuperBots – A Case for Imminent Decentralization amid Recent CEX Failures

Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…

Smart Contract Security – Pitfalls and Solutions

Smart contracts are becoming increasingly prevalent as the world moves towards a more digital and automated future. Still, they are far from being the panacea of all technological ills. Smart contracts are self-executing contracts with a predetermined set of rules. They are stored on the blockchain and run by computers, which makes them tamper-proof and reliable. However, as with any new technology, smart contracts have associated risks. This article will explore some of the most common pitfalls and how to…

Looking for Crypto Marketing? Here are The Best Crypto Advertising Agencies in 2023

It is vital to have a strong marketing strategy if you wish to succeed in cryptocurrency. This is where crypto marketing agencies come in. You may successfully promote your project and reach your target audience through a crypto marketing agency.  This article will explore the top crypto marketing agencies in 2023. Moreover, we will look at their services and how to choose the right one for your project.  We will also discuss the benefits of using a crypto marketing agency.…