Crypto trading is on the rise, as more and more investors are in search for an alternative instrument of wealth creation. Especially the current situation caused by an extended lockdown, has pushed many people towards digital assets.

There are more than 5,000 cryptocurrencies available today in over 20,000 different types of markets. Besides, dozens of crypto tokens are spawned by blockchain ventures every week. This says a lot about the gaining popularity of the new-age asset. With the massive growth Bitcoin exhibited in a few years since its launch, crypto trading is slowly making it into every investor's portfolio. For newcomers, who want to try their hand at crypto trading, here is a quick guide on how to get started. 

What is Crypto Trading and How does it Differ from Traditional Stock Trading? 

Crypto trading is based on speculating the cryptocurrency price fluctuations using a CFD (contract for difference) trading account, or buying and selling the underlying coins through a crypto trading exchange.

The key features of crypto trading compared to traditional stock trading, are as follows:

Easier to start trading

Traditional trading demands a lot of money and paperwork to commence. Whereas crypto trading requires only a few dollars and little to no paperwork. 

Highly volatile 

Since there are no standard global regulations, best practices, or defined rules in crypto trading, the market is highly volatile compared to the centralized traditional market. 

High rewards

But with volatility comes huge returns too. Profits and losses will be significant in crypto trading. 

Needs quick decision-making skills 

Crypto exchanges are live 24/7, unlike traditional exchanges that function during a distinct time frame. Hence, the market instantly reacts to all events.

To earn profit, it is important to keep a close watch on the news and make super quick decisions.

Volatility is both the boon and the bane in crypto trading. The market responds to external factors quite instantaneously. 

Top 5 Trading Styles

1. Scalping

Scalping is one of the most preferred trading styles, if one prefers to play it safe. A scalper makes small profits from slight price fluctuations, generally, after a trade is executed. The strategy is to exit as soon as the price reaches a certain mark as one large loss will nullify the many profits made by the investor.

2. Day Trading 

In day trading, you buy and sell financial instruments on the same day. Day trading is similar to scalping in the sense that both have a clear exit strategy and both play it safe. But, in day trading, you exit after a time frame with less than 24 hours. 

3. Swing Trading 

Swing trading is a speculative trading strategy. Here, the crypto asset is put in the market for one or more days speculating profit after a short swing or price change. The time frame is a little longer than in day trading.  

4. Position Trading

Position trading features the longest trading time frame. As a result, there are underlying risks as well as opportunities in position trading. Position traders won't pay heed to short-term price fluctuation but focus on earning huge profits in the long run. That is over months or even years. Profit and loss will be considerable in position trading.

5. Copy Trading 

New to crypto trading? Interested in crypto trading but not sure how to go about it? Copy trading is a popular form of trading where experienced and newbie traders seek the help of seasoned traders (or “trading gurus”) with impressive track records to take part in the trading. “Followers” copy the trades of expert traders and benefit from their experience. Expert traders gain a percentage of the profits they generate for the followers. The more profits a trader helps make, the more reputation he/she gains. The better the reputation the more followers the expert trader can win over. This is a win-win situation for both. This way, people who have both money and interest, but little time, knowledge, and experience in crypto trading can benefit from the expertise of others. 

Owing to the growing interest in cryptocurrencies, copy trading has gained traction from investors across the world. Copy trading helps newbie crypto investors take the plunge into the market, learn the tricks and hacks, and earn profit with little risk. 

Multiple platforms offer copy trading facilities today with manual and semi-automated features. 

Tycoon is the world's first fully-automatic social crypto trading platform that links traders to reputed exchanges like Binance through their powerful APIs. Tycoon provides an advanced, yet easy-to-use interface for professional traders and new users to connect with each other. 

A secure API connection will monitor all activities of the traders and the data is copied to a follower's portfolio automatically. Security is one of the features that set apart Tycoon from other trading platforms. Developed keeping up with the highest security standards under the continuous assessment of individual algorithms, we ensure all our users safety trading with lowest risks.

Users can access and manage their investments at exchanges of their choice. Tycoon never stores their investments but rather lets users assign a portion of their assets to preferred traders and mark an individual stop-loss. This way, the portfolio is diversified to optimize management. You can kickstart crypto trading the easy and safe way with us.

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Media contact

Company: Tycoon Ltd

Contact: Serdar Bisi

Email: info@tycoon.io

Website: www.tycoon.io