Introduction

Cryptocurrency trading is no longer just a tech nerd's side hustle; today's world has made it a financial phenomenon that captivates everyone from college students to institutional investors. But with opportunity comes confusion, especially for those starting out.

If you are asking yourself how to get started with crypto trading, what equipment to use, and how to evade common mistakes, this beginner-friendly guide crafted by prop experts is the go-to resource. This blog arms you with fundamental knowledge, safety tips, strategies, and everything you need to begin with confidence.

What is Cryptocurrency?

Cryptocurrency is a form of digital currency powered with blockchain technology. Unlike government-backed fiat currency, cryptocurrencies are digital, and decentralized, and can't be manipulated by a central authority.

• Bitcoin (BTC) - the first cryptocurrency which is often referred to as digital gold
• Ethereum (ETH)- characterized by smart contracts and decentralized applications or (DApps)
• Solana (SOL), Cardano (ADA), and Polygon (MATIC) - most recognized for having fast and scalable networks
• Stablecoins- like USDT or USDC, they are pegged to real-world currencies such as the US Dollar

👉 For a complete guide on storing your crypto safely, check out our blog on Types of Crypto Wallets – A Comprehensive Guide.

What is Crypto Trading?

In simple terms, crypto trading involves buying and selling cryptocurrency with the aim of profiting due to changes in the asset price. This differs from a longer-term investing (HODLing) because trading is focused on short- to medium-term profits based on a mix of technical analysis, news, and market sentiment.

There are two main types of crypto markets:

• Spot Trading- they involve buying and selling the actual crypto asset
• Derivatives Trading- speculation of asset price is done via futures or options without possessing the asset.

Unlike traditional stock markets that close during weekends and holidays, crypto markets are open 24/7.

How does Crypto Trading Work?

Here's a brief overview of how the crypto trading process works:

• Sign up to a crypto exchange platform (for example: Binance)
• Deposit funds (could be crypto or fiat)
• Select a trading pair (for instance, BTC/USDT)
• Buy when the price is low, and sell when the price is higher.

Want to choose the best platform for your region? Check out our guide to the best online brokers for crypto trading.

Why Trade Cryptocurrency? - Discover the Potential Beyond Traditional Markets

 
The advantages of trading cryptocurrencies include the possibility of profit, the ability to access markets anytime since they are open 24/7, as well as opportunities to exploit market fluctuations. With growing adoption and decentralized systems in place, traditional financial systems are being challenged, making crypto an attractive investment for those seeking innovation and diversification. 

1. High Opportunity Markets Always Capitalise On Volatility

For those quick on their feet, cryptocurrencies can provide lucrative opportunities as prices can change dramatically in mere minutes.

2. Accessible Anywhere Around The Globe

Trading is made simple for any person across the globe as all that is needed is an internet connection, with no need for intermediaries such as banks. 

Want to know where crypto is most welcomed worldwide? Check out the top 10 crypto-friendly countries for traders in 2024.

3. No Qualifications Needed

Multiple online trading venues including Binance, KuCoin, and Coinbase allow you to enter the market with as little as 10 dollars.

4. Enhanced Portfolio Diversification

Cryptocurrencies serve as an additional asset enabling diversification in your investment portfolio beyond traditional stocks, bonds, or real estate.

Types of Strategy for Crypto Trading

When it comes to trading crypto, having a clear strategy can make all the difference between luck and logic. From day trading and swing setups to arbitrage and bots, each tactic serves a different style and goal.

Essential Tools & Platforms for Crypto Traders

Exchanges

• Binance - The most popular exchange with excellent liquidity.
• Coinbase - Great for beginner traders from the US and Europe.
• Bybit - Well known for futures and derivatives.
• Kraken - Very secure and has availability of fiat currencies, highly rated.

Charting Tools

• TradingView - Real time charts with technical tools and social aspects.
• CoinMarketCap / CoinGecko - Monitor coin prices along with their corresponding volumes and rankings.

Mobile Apps

• Trust Wallet or MetaMask - Used to store cryptocurrency safely.
• Binance App/Coinbase App - Banking and trading on the go.

How To Start Trading Crypto: Step By Step Guide

Select a Reputable Exchange

Sign up, do the KYC verification and choose a regulated exchange such as Binance or Kraken.

Add Funds To Your Account

Transfer money through bank deposit, credit card, and even through peer-to-peer (P2P) methods.

Acquaint Yourself With Basic Technical Analysis

Learn about levels of support or resistance, candlestick patterns, volume indicators, and RSI.

Make Small Transactions First

Allocate a small amount of your total funds to test out your strategies without going “all-in”.

Identify My Losses and Gains

With excel, CoinTracking, or many other available apps like Delta, it’s easy to monitor your profits and losses alongside your initial investment.

Risks in Crypto Trading (And How to Avoid Them)

Crypto trading isn’t just about big gains it comes with big risks too. From wild price swings to shady platforms, knowing the pitfalls is the first step to protecting your capital.

Crypto Trading Risks

• Extreme Volatility: Approximately 20% fluctuation in a day, on average.
• Lack of Regulation: Stocks-like regulations are still auxiliary in crypto.
• Scams & Rug Pulls: Alarming murky coins and unreliable platforms.
• Hacks: Avoid storing large funds on megacorporation exchanges.

Taxation and Legal Considerations in India (2025)

Administered crypto in India, attracts a 30% flat capital gain tax along with 1% TDS on transactions exceeding a set limit.

Don't forget to:

• Select platforms supporting jurisdictional tax reporting.
• Preserve trade histories.
• Declare crypto earnings under the “Other Sources of income” header.

Smart And Safe Trading Strategies for Crypto Traders

• Begin with minimal sums: Prioritize funds losable rather than sinkable.
• Employ stop-losses: Leave operational constraints on your downside.
• Stay updated: News on global regulation, ETF approval, and corporate-wide sprints affect pricing.
• Track your performance: using journaling or CoinTracking.

Benefits of Trading Crypto with a Prop Firm vs. Your Own Account

Trading crypto with your own money can be risky, especially when the markets are volatile. That’s where crypto prop firms come in. These firms give you access to large trading capital - so you don’t have to risk your personal savings to take big opportunities.

When you trade through a prop firm, you’re not just getting more buying power. You are also joining a system that’s built to support traders. Many firms offer funded accounts, payout plans and even risk management tools to help you trade smarter.

Another big plus? Accountability. Prop firms often have rules and targets that push you to stay disciplined - something that is easy to lose when trading solo.

In short, if you want to scale your trading without putting your own money on the line then a trusted crypto prop firm can give you a safer and smarter way to grow.

With Crypto Prop Firms, you get a lot of benefits that traditional trading won't give, such as:

• No personal funds are at stake.
• Accounts funded from 10,000 up to 200,000 available.
• Profits are split up to 90%.
• Defined discipline evaluation models.

Top Crypto Prop Firms include: 

• My Crypto Funding
• Get Crypto Funded
• Funded Furtures Family (FFF) 

Visit our full-length article - Top Crypto Prop Firms in 2024 - Honest Reviews + Coupon Codes, for the best firms.

Final Thoughts

The process of starting out in crypto trading can be quite daunting but is easily attainable with the optimum mindset and resources. The one critical element is education, followed by discipline and controlled risks. Whether it's spot trading, trying out leverage, or waiting to get funded accounts via prop firms, ensure to always keep learning.

2025 presents a plethora of tools, opportunities, and most importantly, to beginners looking to smartly and slowly build their portfolio. Make your initial trade decision feel less emotional and more thought out.

Visit The Trusted Prop  for prop firm reviews, challenge fee discounts, and comparisons specifically tailored for crypto traders. Let us help you build a consistent trading journey.