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How To Trade Crypto: A Beginner's Guide

Cryptocurrency can make some investors understandably uneasy, and many are looking for alternative ways to utilise crypto in their strategies. This is where cryptocurrency CFD trading comes into play. Discover more in our step-by-step to crypto CFD trading for beginners, and read on to find out how to trade crypto.

QUICK LINK TO CONTENT

1. How Forex Trading Works with TMGM

2. How Profit is Calculated:

3. Opening the Position

4. Closing the Position

5. Why Trade Forex with TMGM?

6. Transparent Spreads

7. Major Currency Pairs

8. Explore more about Forex with TMGM

What is cryptocurrency CFD trading?

With CFD trading, purchasing and holding the crypto asset is not necessary. Instead, traders open a contract and speculate on how the asset’s price will move.

Does crypto have trading hours?

No, you can open and close positions anytime — each 24-hour period provides a useful marker for traders as they build their strategy.

How to start crypto trading for beginners - The basics

How do you go about trading in cryptocurrency when you are a beginner? Take a look at our step-by-step guide.

1. Sign up for your trading account

The first step to trading crypto for beginners is to set up your trading account. Signing up for an account via TMGM provides the tools and platforms you need to analyse the market and make trades.

2. Download your trading platform

The trading platform is a piece of software you will use to examine price movements and to start trading crypto on international markets.

3. Define your strategy

Crypto trading should be rational, logical, and non-emotional, so you need a strategic approach you can rely on. No strategy is set in stone, and you can always change your strategy at a later date, but it's best to adhere to your strategy during active trades.

4. Asses marketing movements and choose a currency pair

As you browse your platform, you'll be able to select one of a vast number of different options. These range from more established currencies like Bitcoin (BTC) and Ether (ETH) to up-and-comers like Litecoin (LTC) and Ripple (XRP) to less well-known options like Golem (GLM).

5. Open your position

This means the position is live and exposed to the ebb and flow of market forces.

The volatility of these forces could provide a profit, but they are also a key source of risk, so you need to protect your trade. Stop-loss and take-profit tools keep your trade within sustainable parameters.

6. Monitor the market

Track the progress of your chosen coin market. This helps you stay on top of how your trade is doing. Aim to stick to your original strategy where possible.

7. Close your position

When the time is right, you can close your position. This will end the exposure to market forces, and you will receive your profit or absorb your losses.

Crypto trading strategies

Selecting a strategy is vital as you plan how to make money when trading crypto. While there are no guarantees, the strategy will help you to build towards your longer-term targets. Explore some common crypto trading strategies below:

Strategy	What is it?
Scalping	This is a short-term strategy in which positions are opened and closed in minutes. Scalping can deliver more frequent, smaller profits.
Day trading	A slightly longer-term strategy, with positions closed within the same trading day, generally a few hours after opening.
Swing trading	Positions are kept open for several days or even longer as traders seek to take advantage of swings in the crypto market.
Crypto trading derivatives	Derivatives are forms of trading that “derive” their worth from an underlying asset. In this case, the underlying asset is a cryptocurrency pair. These include crypto spot trades, futures and forwards.