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Guide to Trade Coin for Beginners (Part 1)

Guide to Trade Coin for Beginners (Part 1)

Trade coin or Trading is a term that is too common in the cryptocurrency market. If you are a beginner, do not know what Trade coin is, read this article now.

What is Trade Coin?

Trade coin is a form of buying and selling coins on exchanges to make a profit, you buy when you think that coin will increase in the future and you sell when you think that coin will decrease in the future. Unlike “Hold coin” (long term investment from a few months to a few years), trading coin only takes place in a short time. Trade coin can happen during the day, for a few hours or even a few minutes. The people involved in this trade are called “Traders”.

Terms when Trade coin

  • Sharks, whales: Only one or a group of people holds a large number of coins enough to manipulate the market.
  • Pump: Pushes prices skyrocketing
  • Dump: The price is drastically reduced.
  • Hold: Hold a coin and not sell it even if the market is volatile.
  • Match: When a buy and sell order has the same price, the transaction will match.
  • Bull (buy-side): When a person believes the market will go up and conduct buying continuously, we call it bullish.
  • Bear: When a person believes the market will go down and conduct selling continuously, we call it a bearish.
  • Stop Loss: When you feel that the coin’s price will go down deep, you should sell to minimize the damage.
  • Stop-Limit: Place an order that automatically matches when buying and selling at a specified price. A stop is a price at which you would like the order to be executed, Limit is the best price you would like for that trade.
  • Take Profit: When you think the price has reached its highest peak and start selling it to make a profit.
  • Volume: Trading volume of that coin in one session, usually calculated for 24 hours.
  • Low: The lowest price during the session (usually 24 hours).
  • High: The highest price during the session (usually 24 hours).
  • Last price: The last bid or sale price.

  • Margin: A form of financial leverage. When you borrow money from an exchange to trade, you can buy more coins than you actually have.
  • Long: When a trader borrows floor money to buy coins continuously hoping for even higher prices. (Used in the margin, when the coin price is higher, you only have to pay the price when you borrow money).
  • Short: When a trader sells a coin hoping that the coin will go lower to buy it back. (Used in the margin, when the price drops, you still have a balance after paying the debt to the floor).
  • Support threshold: The price area where when the price falls there will be supported by the buyers to increase again.
  • Resistance: The price area when the price reaches it will be supported by the sellers to decrease.
  • FIAT (legal currency): A currency issued by the government, for example, USD, VND.
  • USDT (Tether): As a digital dollar, traders often use USDT when trading coins to “avoid storms”, that is when the market is volatile, the trader will sell the coin to USDT to protect the asset from falling. because USDT is worth ~ 1 USD.
  • Market Cap: The total capitalization of all coins currently on the cryptocurrency market combined.
  • Coin and Token: Coin and Token are inherently two different cryptocurrencies
  • BTC Dominance: The Bitcoin dominance index, i.e. the total capitalization of Bitcoin / total market cap of the entire market.

Trade coin ways

There are two main forms of trade coin that traders use the most:

Trade according to technical analysis: traders will rely on charts, graphs of price movements, and trading volume of coins to analyze supply and demand movements, and then determine when to buy and sell. out or stay the same.

Trade according to news: with this way of trading coin traders you will rely on market news to predict the price, thereby determining when to buy and sell to make a profit.

Reputable exchanges to Trade coin

Some large, reputable, safe floors and community use the island to trade coin:

  • Binance
  • Huobi
  • Bitfinex
  • OKEx
  • Bittrex
  • Poloniex
  • HitBTC
  • IDCM
  • CoinBene
  • BitMart
  • Kucoin

<To be continued…>

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