The Complete Guide to Trading Crypto Assets: What Is Trading?

Bittime - Trading refers to the activity of buying and selling assets, shares, commodities, foreign currencies, and various other investment instruments with the aim of profiting from price changes. People who carry out this activity are called traders. Traders generally make transactions over a short period of time, buying assets when prices are low and selling them when prices rise.

Analytical Techniques in Trading

In trading, many traders use technical analysis, a method that relies on historical data and price patterns to predict future price movements. This technique involves using price charts and various indicators to determine the right time to buy or sell an asset. With this analysis, traders try to take advantage of rapid price fluctuations to gain profits.

Various Trading Styles

Every trader has a different trading style based on factors such as capital, time, experience and risk tolerance. Here are some common trading styles:

1. Position Trader: This type of trader holds assets for longer periods, ranging from one month to one year. They focus on long-term trends and tend to make transactions less frequently.

2. Swing Trader: Swing traders hold assets from one day to one week, trying to take advantage of price movements in the medium term.

3. Day Trader: Day traders make transactions within one day and often close positions before the market closes. They try to profit from short-term price fluctuations.

4. Scalp Trader: Scalp traders execute transactions in very short periods of time, often just seconds or minutes, seeking to profit from very small price movements.

Types of Traders Based on Activity

Traders can be categorized based on their level of activity as follows:

• Active Traders: Active traders use strategy and timing to maximize profits from short-term market movements. They usually carry out around 10 transactions per month with careful calculations.

• Daily Trader: Daily traders, or day traders, focus on market activity in one day. They rely on technical analysis to make decisions and often trade multiple times a day to take advantage of short-term price movements.

Difference between Trading and Investing

Often, trading and investing are considered the same even though they have different goals. Trading focuses on making short-term profits from asset price fluctuations, while investing focuses on long-term growth in asset value. Traders typically target monthly profits of around 10%, while investors are satisfied with annual profits of around 10% to 15%.

Initial Steps to Start Trading

For beginners who want to start trading, here are some important steps:

1. Open a Broker Account: The first step is to open a brokerage account that allows you to buy and sell assets. Many brokers offer a quick and easy online registration process.

2. Determine Budget Allocation: Before starting trading, set a proper budget allocation. It is recommended not to invest more than 10% of the initial capital in one asset. Also make sure to use funds that do not affect your daily needs and have an emergency fund and retirement savings.

3. Understand Market Orders and Limit Orders: Know the difference between market orders, which buy or sell an asset at the best available price, and limit orders, which allow you to set a specific price for a transaction. Understanding these two types of orders will help in managing transaction timing and execution.

4. Use a Paper Trading Account: Many brokers provide a paper trading feature, which is a trading simulation without using real money. This feature is useful for practicing and honing trading skills without financial risk.

5. Set Expectations and Perspective: Set realistic expectations and consider the right perspective in trading. Make sure you have a clear plan and don't get caught up in unrealistic expectations.

Become a Successful Trader

Trading can be a profitable activity if done with good knowledge and planning. By understanding various trading styles, analysis techniques, and the differences between trading and investing, and following the steps to start wisely, you can increase your chances of success in the world of trading.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.