In the past, starting out as a newbie in the crypto ecosystem was quite a daunting task. We had lots of people with little to no knowledge on cryptocurrencies trying to take advantage of newbies and defraud them. At some point people paid good money for courses containing information that was devoid of quality. This indeed was too high a price for ignorance.

However, to bridge that gap and further enlighten people on the nitty-gritty involved in the crypto space. Deevyn Trade Hub has tasked itself with providing quality and premium information on how to navigate the world of crypto. And to help achieve this goal, the brand collaborated with BAMBA Global to put together an extensive crash course to help guide users as they try to find their feet on this space. The goal of this course is to introduce the basics of cryptocurrency trading to it’s users.

This post intends to serve as a summary containing the most valuable excerpts from the sessions held. It will cover up for those who missed out on the live coverage and be a bonus for those who were privileged to join in live.

UNDERSTANDING THE BASICS OF CRYPTO TRADING

In very simple terms, Crypto trading is defined as the buying and selling of cryptocurrencies that are available in the crypto market. There are two aspects of trading cryptocurrencies

  1. Spot trading: is basically buying an asset and holding onto it for a period of time, in spot trading you only make a profit when the price of your assets goes higher than the price of the asset when you bought. It is considered by most people as a safer way of engaging cryptocurrencies especially when you buy assets that will eventually appreciate in price and only require time to do so. In this type of trading, the user owns whatever asset that was bought.
  2. Futures trading: has been termed by most crypto traders as a high-risk activity, it involves traders placing a bet on the future price of a particular asset. Which is an agreement to buy or sell cryptocurrencies at a predetermined price.

Now that we have an understanding of what trading cryptocurrencies entails, next, we move on to the basics of cryptocurrency trading that we must understand before engaging in the crypto market. The first which is candlesticks.

WHAT IS A CANDLESTICK?

It is the visual representations of the change in the price of an asset over a period of time. They are commonly formed by the opening price, high, low, and closing price. The lows and highs of a candlestick are identified in the same way, be it a bearish or bullish candle. However, the opening and closing prices are identified differently depending on if it’s bullish or bearish. The opening price of a bullish candle is below the closing price, while the opening price of a bearish candle is above the closing price.

The differences between a bullish and bearish candlestick are shown in the image below.

This is an example of a bullish candlestick, showing the position and price points of the Open, High, Low, and Close of the candle.

This is an example of a bearish candlestick, showing the position and price points of the Open, High, Low, and Close of the candle.

MARKET TRENDS – WHAT YOU NEED TO KNOW

Trends are the consistent direction of price currently happening in the market within a period of time. This repeats over and over again in the marketplace unless during moments of consolidation where a clear trend isn’t recognizable. This is very important as you must be able to recognize and understand exactly what the market is doing at the time. We have two types of trends in the marketplace, uptrend and downtrend.

  1. Uptrend: when the overall direction in the price movement of a financial asset is upward, it is said to be in an uptrend.
  2. Downtrend: Likewise, when the overall direction in the price movement of a financial asset is downward, it is said to be in a downtrend.

A BRIEF INSIGHT INTO MARKET STRUCTURE

The market structure of an asset is the current condition/flow of the market. It narrows down to the key levels of an asset, be it support or resistance, it also highlights key liquidity pools which can either be a swing high or a swing low as the case may be. The market structure tells you if the market is trending or not. To help you identify the structure per time, you mark out the structure points. In an up-trending market, you’ll have higher highs and higher lows, while in a down-trending market, you’ll find lower highs and lower lows.

PSYCHOLOGY/RISK MANAGEMENT THE KEY TO PROFITABILITY

A very important aspect of trading for an investor is trading psychology. This is the emotional component of his/her decision-making process, it is primarily influenced by greed and fear. It has led a lot of traders to huge losses and made some others suffer heavy setbacks that can affect their trading negatively. Anyone aspiring to come into this space must seek to learn how to manage their psychology and manage their risk properly.

JOURNALING A GUIDE TO MAKING BETTER DECISIONS AS A TRADER

The learning stage of trading never ends and this is where journaling becomes essential as it helps you keep track of your trading journey and track your progress and growth rate. It helps you avoid past mistakes and in general makes you become a better and more experienced trader.

Journaling in a brief explanation entails keeping record of trade ideas, trade set ups, losses and wins which will aid you in checkmating previous errors and improve your trading edge.

In conclusion, as stated at the start of this post this is somewhat a brief insight into the crash course held by Deevyn Trade Hub in collaboration with BAMBA Global, and as such might not be extensively detailed. But we believe that this will be a good head-start for anyone seeking to journey into this space, to gain access to more detailed information you can join our community where we give premium freebies regularly that will help guide you as you journey into the world of crypto trading and the financial markets as a whole.

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