A Beginner’s Guide to Trading Crypto (2025)

There are thousands of cryptocurrencies in existence, so it can be overwhelming to know where to begin if you want to take advantage of their volatility and get involved in trading. But crypto trading shouldn’t be considered an easy way to get rich quickly – you need to know your stuff so we’re here to give you a quick overview of the basics to consider before you start.

DYOR - Do your own research

The number 1 rule of all crypto trading is to do your research. Each cryptocurrency has its features and use cases (some don’t even technically have a real use case!), so you should always consider why you believe the price of that crypto will rise in the future. Have a read of their whitepaper and understand the project and the Founders goals, or have a read of what other investors have to say about the token before you invest!

Only invest what you can afford to lose

Ultimately, all crypto trading is a risk since there are no guarantees in life. And although the volatile nature of crypto means that you could win big, it can also lose people a lot of money too. So don’t invest all your life savings, particularly if you’re new.

Diversify your portfolio

Following on from our last point, it’s important to consider that if your trade does fail, this doesn’t destroy your entire portfolio. That’s why you should purchase and trade multiple different assets rather than putting all your eggs in 1 basket with 1 token. Taking it a step further, why not try the barbell strategy – where you invest 80% of your assets in low-risk investments or 20% in higher risk. This method is thought to allow your gains and losses to balance out whilst ensuring that you profit overall.

Understand the order book

By understanding an order book, you’ll understand how crypto trades are structured. In any trade, there is a winner and a loser, and you’ll want to buy low and sell high.

When there are more buy orders for an asset than sell orders, the price generally increases since there’s more demand for the crypto. In contrast, when more people sell than buy, the price decreases. On many exchange interfaces such as Wirex’s, you can see whether there are more sales or purchases overall in the market by a red or green colour on the graph. This can help you gauge whether it might be the right time to buy or sell.

Undertake technical and fundamental analysis

Technical and fundamental analysis are the two main trading analysis methods used to help understand crypto behaviour. Fundamental analysis looks at the current economic and financial factors that might influence the price of the token, such as news events like the government announcing a hike in inflation rates. Alternatively, technical analysis looks at the entire price history of the token.

HODL through the dips

HODL is a key term on the growing list of crypto-related slang. It originated in 2013 when a tipsy forum member made a thread entitled I AM HODLING (a misspelling of holding) to declare his decision to hold Bitcoin no matter what. Since then, HODL has stuck around and is now used as an acronym for Hold On for Dear Life - centred on the belief that cryptocurrencies are the future and shouldn't be sold during market dips. There are hundreds of stories out there of people who bought Bitcoin early on and sold it when the price reached a few dollars, not imagining it could get anywhere near the price it is today – proof that if you HODL, you might earn even more than anticipated!

Consider market cap, not just price

It’s important to think about the market cap compared to the price since the price of one share isn't a very good indicator of a company's overall value, size or profitability. A market cap in crypto is the number of available coins circulating (which may increase over time if the tokens are still being mined), multiplied by the current price, usually in dollars. Therefore, a company could have a low price per share because there are a lot available and still have a high market cap, or a high price per share and a low market cap.

The market cap indicates how much traditional currency is invested in each, meaning that we rank cryptocurrencies by market cap, not by price per coin.

Learn different trading strategies

There are many different trading methods out there beyond just buying and selling crypto when you see fit. This includes day trading, margin trading and swing trading, to name a few, and it’s important to understand what works for you and the benefits of each before you use it as your strategy. Our Head of Trading will be discussing the different trading strategies in the next few, so keep your eyes peeled on our blog!

Trading on Wirex

Why not employ all these tips for trading on Wirex? We offer an exchange with 150+ traditional and cryptocurrencies that you can instantly buy, hold, exchange or sell in line with your trading strategy. Alternatively, you can predict the future price of crypto by loaning a portion of your assets with our trading product, Wirex Multiply, with the potential for high returns and high risk.

A Beginner’s Guide to Trading Crypto (2025)

FAQs

Can you make $100 a day with crypto? ›

It is possible to make $100 per day, but there is no guarantee or specific technique you can use to ensure it happens. Cryptocurrency trading, lending, staking, and investing all come with significant risks because it is such a volatile and unpredictable asset.

Which crypto trading strategy is best for beginners? ›

To start, let's focus on two key strategies that are considered a good starting point for beginners and should make up the majority of your portfolio - HODL and Dollar Cost Averaging (DCA). They are straightforward to implement and are considered relatively low risk.

How do I start crypto trading for beginners? ›

If you're ready to venture into crypto trading, there are six steps to follow.
  1. Step 1: Open a Crypto Exchange Account. ...
  2. Step 2: Fund Your Account. ...
  3. Step 3: Choose a Cryptocurrency to Trade. ...
  4. Step 4: Pick a Strategy. ...
  5. Step 5: Start Trading. ...
  6. Step 6: Store Your Coins.
Mar 21, 2024

What should a beginner learn in crypto? ›

For beginners wondering how to start, follow these five steps:
  • Choose what cryptocurrency to invest in.
  • Choose a reputable cryptocurrency exchange.
  • Explore storage and digital wallet options.
  • Decide how much to invest.
  • Stay informed and manage your investments wisely.
May 1, 2024

Which crypto is best for daily earning? ›

Best Cryptos For Day Trading
  • Bitcoin.
  • Ethereum.
  • Binance Coin.
  • Ripple (XRP)
  • Solana.

Can you make $1000 a month with crypto? ›

Crypto has created life-changing wealth for many people. But passive income from crypto is possible even on a smaller scale. With the right strategies, you can realistically earn an extra $1,000 per month in passive crypto income.

What is the most profitable crypto strategy? ›

Top 10 Crypto Trading Strategy Of 2024
  1. Range Trading. Range trading is a strategy employed in financial markets where traders capitalize on the price oscillation of an asset within a defined range. ...
  2. High-Frequency Trading. ...
  3. HODL Trading. ...
  4. Arbitrage Trading. ...
  5. Dollar-cost Averaging. ...
  6. Scalping. ...
  7. Swing Trading. ...
  8. News-based Trading.

What is the best crypto to invest in as a beginner? ›

Binance Coin has emerged as one of the most prominent cryptocurrencies in the digital market. It is a compelling choice to invest in out of the best cryptocurrency stocks for beginners due to its association with Binance exchange.

How much should I put into crypto as a beginner? ›

Most financial experts recommend limiting crypto exposure to less than 5% of your total portfolio. Crypto is considered a high-risk asset class. Limiting allocation helps manage overall volatility and risk. Those new to crypto investing may start with 1% to 2% as an introduction.

How to learn crypto trading from scratch? ›

A Beginner's Guide to Trading Crypto
  1. DYOR - Do your own research. ...
  2. Only invest what you can afford to lose. ...
  3. Diversify your portfolio. ...
  4. Understand the order book. ...
  5. Undertake technical and fundamental analysis. ...
  6. HODL through the dips. ...
  7. Consider market cap, not just price. ...
  8. Learn different trading strategies.
Nov 12, 2023

How can I learn crypto trading for free? ›

Ava Academy's free online courses for cryptocurrency trading offer a self-paced learning approach, allowing you to progress through the material at your own speed.

What is the best crypto market for beginners? ›

Best Crypto Exchanges and Apps for May 2024
  • Best for Low Fees and Best for Experienced Traders: Kraken.
  • Best for Beginners: Coinbase.
  • Best Mobile App: Crypto.com.
  • Best For Security: Gemini.
  • Best for Altcoins: BitMart.
  • Best for Bitcoin: Cash App.
  • Best Decentralized Exchange: Bisq.

How long does it take to learn crypto? ›

It varies from individual to individual. For instance, if a layman with no finance-related experience will take more time to get good at crypto trading than a person who's trading stocks for a year or two. Getting good at cryptocurrency trading depends from person to person.

What do I need to know before starting crypto? ›

Here are a few tips to keep in mind before starting trading in cryptocurrencies:
  • Caution first: The crypto market is just a decade old and is still in its early stages. ...
  • Invest only what you can afford to lose: ...
  • Do your research: ...
  • Use a trusted exchange: ...
  • Learn the technicalities:

How can I make money daily with crypto? ›

8 Proven Ways for Making Money with Crypto
  1. Mining. The most common way to make money with crypto is through mining. ...
  2. Staking. ...
  3. Trading. ...
  4. Investing. ...
  5. Lending. ...
  6. Earning Interest. ...
  7. Affiliate Programs. ...
  8. ICOs.

How do you make $100 a day on Binance? ›

If you put in $1000 on Binance and track a 10% rise on one pair, you will have made $100. Repeat this every day and you will be making $100 a day, every single day.

How much crypto can I get for $100? ›

Convert US Dollar to Bitcoin
USDBTC
100 USD0.00155617 BTC
200 USD0.00311234 BTC
250 USD0.00389043 BTC
400 USD0.00622468 BTC
11 more rows

How much can a crypto day trader make? ›

As of Apr 29, 2024, the average annual pay for a Cryptocurrency Trader in the United States is $96,774 a year. Just in case you need a simple salary calculator, that works out to be approximately $46.53 an hour. This is the equivalent of $1,861/week or $8,064/month.

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