• In the past few years, cryptocurrency has slowly started to gain momentum. It has started to attract investors and beginners who want to capitalize on digital assets. Unlike the traditional stock market, crypto trading takes place 24/7 on multiple trading platforms from anywhere in the world. Understanding the fundamentals of crypto trading is crucial to making efficient trades and achieving long-term investment goals. This blog provides the basics of purchasing and selling cryptocurrencies effectively.   

What is Cryptocurrency? 

• A cryptocurrency is a type of digital currency that mainly uses cryptography in order to secure transactions. These are created to work through a computer network without depending on a main authority institution such as the government or central bank to sustain and uphold it. Cryptocurrencies enable individuals to make payments to each other online.  

• Most of the cryptocurrencies are based on blockchain technology which is like a widely distributed ledger that maintains records or transactions across several computer networks. Each block has its own set of transactions that are verified by the network validators, which makes it impossible to put together transaction histories.  

Main Features of Cryptocurrencies 

Decentralized 

• Cryptocurrencies work on a decentralized network, which implies that they are not being controlled by a single entity. This decentralized structure enables them to exist and work without any control or government or any other central authority.  

Cryptography 

• Cryptocurrencies use encryption algorithms and techniques to get hold of transactions. Each blog has its own set of transactions that are verified by the network validators which makes it very difficult to know the transactional histories.  

Functionality 

• Cryptocurrencies can also buy products and services. They work as an online value transfer without any third party such as banks, providing low fees and instant global transactions.  

How Does Crypto Trading Work? 

• The process of crypto trading consists of purchasing and selling cryptocurrencies on special exchange platforms and focuses on making a profit. Traders purchase crypto at a specific value and then they try to sell it usually at a higher price. It is done by predicting price movement through contracts for a difference trading account. Another way is to purchase and sell crypto coins through an exchange.  

• Crypto trading is based on blockchain technology. This technology serves as a decentralized digital accounting book that records all the transactions. Each transaction is recorded in blocks, which are then linked together in order to build a chain. Once a block is added to the chain it cannot be changed, which eliminates the chances of data tampering.  

• After traders have purchased cryptocurrencies, they keep their assets in wallets. Each wallet has a public as well as private key, the public key is the address while the private key is used for transactions.  

Types of Crypto Exchange  

• Now there are generally two types of crypto exchange platforms. These are: 

Centralized 

• Centralized platforms are the vibrant hubs where traders purchase, trade, and sell their digital assets. The ownership of a centralized exchange is with a single entity that is responsible for all its operations. Users do not need to worry about technicalities in this exchange. They can deposit their currencies or fiat currency into their trading accounts and use that balance to place the orders on the order book of the exchange. Further, the exchange then matches purchase and sell orders from the different users, allowing them to exchange one type of cryptocurrency with the other or convert the fiat currency into crypto or vice versa.  

Decentralized 

• Decentralized exchanges are based on blockchain technology that enables traders to directly with other users for purchasing and selling cryptocurrencies. In this exchange, the only third party involved is entities that build, secure, and host the website. Trades commonly take place with the help of smart contracts, which automate the procedure of trading. Some of the decentralized exchange platforms also use automated market makers which refer to programs that offer liquidity via user funds and the prices on this type of platform are controlled by algorithms.  

Features to Look for in Crypto Exchange 

• When selecting a crypto exchange for crypto trading, you need to consider factors like security, fees, user experience, and reputation.  

Security 

• Crypto exchange platforms should implement tight security measures such as two-factor authorization, cold storage, encryption protocols, and even backup keys. Make sure that your selected exchange follows the regulatory standards.  

User interface 

• Opt for that has a well-designed user interface making the platform easy to work on. A good user interface updates the simple layouts on the platform and keeps its language easy to understand.  

Liquidity 

• High liquidity easily facilitates effective trading and stabilizes the prices. Select exchanges that have significant trading volumes to execute the trades effectively without any major price change.  

Supported cryptocurrencies 

• Ensure that your chosen crypto exchange platform supports the desire cryptocurrencies that you want to trade. A wide selection of tokens is better for advanced traders who want to expand their current trading portfolio.  

Different Types of Crypto Trading Strategies 

• Crypto trading strategies refer to techniques that are used to navigate the differences occurring in the cryptocurrency market. These strategies create a structured plan when a trader purchases or sells digital assets such as Bitcoin. Some of the common types of crypto trading strategies are: 

Day trading 

• It is a short-term strategy that consists of opening and closing positions in the day to gain profit from the small price movements. The aim of day traders is to make small but regular profits and they closely monitor the market. 

Range trading 

• In this strategy, there is a selected price range for a crypto address with high resistance and low support price values for a specific time period. Traders in this strategy gain profit by setting the correct price range for cryptocurrency over a certain period.  

Swing trading 

• This strategy consists of holding a crypto asset for multiple days or weeks in order to attain a medium price. Swing trading is based on the present mood of the market and specific technical indicators.  

Position trading 

• In this strategy, assets are held for several months and years, and traders focus on the long-term projects of a crypto project instead of short-term market fluctuations.  

What are the Current Market Trends of Crypto Trading  

• Several market trends will transform the crypto market for the year 2025: 

Growth in Market 

• In the year 2025, the cryptocurrency market is expected to attain major growth across IPOs, public market activity, and venture capital because of institutional development, investment in infrastructure as well as regulatory progress. Furthermore, Venture capital has also shifted its focus to foundational blockchain layers such as Layer 1 and Layer 2 solutions, to prioritize stability.   

Regulatory clarity  

• Main economies such as the USA, European Union, and United Aram Emirates are expected to offer more regulatory clarity regarding their crypto exchange market which will increase the participation of retail in the crypto market. Furthermore, the return of Donal Traum as a US president has created a more crypto-friendly atmosphere which will allow seasoned industrial figures to lead regulatory agencies and pass stablecoin legislation.  

Crypto payments 

• The crypto market will also see a rise in the use of payment methods, especially as several countries are trying to reduce their reliability on the dollar. Countries such as Russia and El Salvador are using Bitcoin along with other tokens for their international interactions, and several countries will follow their lead in 2025. Thailand is also considering starting a Bitcoin payment project in order to support tourists in using crypto.  

Managing risk in crypto trading 

• Managing risks is significant in crypto trading in order to secure capital, reduce potential losses, and attain long-term sustainability. Traders should spread their investment across various crypto assets which reduces the risk by eliminating the impact of poor performance by a single asset. Furthermore, understanding a risk/reward ratio for every trade on the basis of trading goals will also help to sustain a disciplined approach. Lastly, opt for a secure and well-known cryptocurrency exchange platform that has a strong track record, effective security protocols, and complies with regulations.  

Conclusion  

• Entering into crypto trading will provide individuals with multiple opportunities to expand their investment portfolio. However, crypto trading requires knowledge, consistency, persistence, and with the right tools you can succeed in the crypto market. Selecting the right trading platform such as Thaurus will make all the difference. Thaurus offers an easy and secure trading atmosphere with access to several crypto assets, advanced tools, and even provides real-time analysis which makes it perfect for beginners and even professional traders.  

• Contact us and our team will get back to you in 24 hours.