Crypto Trading Basics

By Crypto Wisdom | Crypto wisdom | 8 Jun 2023




Trading and making profit is a simple concept that I was able to understand, but when it came to applying it to trading terminology I just called it quits. I knew what I wanted to do but it was difficult to execute without knowing the terms used in trading.

Buy low and sell high, you hear a hundred times but why doesn’t it just say that on the trading platforms what does long and short have to do with anything?

 

Buy/Long 


When your data concludes that a certain asset will rise from its current price then it’s time to buy, hold until it reaches your predetermined mark and sell to take profits otherwise known as closing your position. 

(alternatively you can just hold if you believe in the asset long term and take some profit along the way based on your strategy)

Long Term Gains = Green = Buy 

 

 

Sell/Short 


If however your data concludes that this asset will be dipping in price (but it will eventually come back up to its current price or higher) that means short term loss for the asset holders, it’s time to sell, let it dip, then at your predetermined mark buy back in your position which gives you more of that asset. 

Red = asset going down Short Term = Sell in order to reenter at a better price 

If you just sell when an asset is in decline with out the strategy of getting back in, usually it’s at a loss which would mean it’s not a good time to sell and close your position (unless the asset is certainly going under and you want to cut your losses).

For those who are familiar with trading this may seem way too simple and obvious, but hopefully for you newcomers this is somewhat helpful. 

Good luck to all and successful trading! 

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