The Ultimate Beginner’s Guide to Investing and Trading Bitcoin and Cryptocurrencies

An introduction to money and monetary policy

What are cryptocurrencies?

  • You trust the government not to devalue it through inflation.
  • You must trust your bank to safeguard your currency and not accidentally or deliberately lose it.
  • You trust that other people in your day to day life will also consider your currency as valuable.

What is Bitcoin?

Investing and Trading Bitcoin

What are financial markets?

  • Stocks traded on exchanges like the New York Stock Exchange (NYSE) or the NASDAQ.
  • Government and corporate bonds traded either on exchanges or between a broker and private buyers and sellers in what’s known as an over-the-counter market.
  • Commodities such as gold, oil, and agricultural products traded on exchanges like the Chicago Board of Trade (CBOT).
  • Currencies traded on the decentralized foreign exchange market between numerous brokers, dealers, and private institutions as well as many independent exchange venues.
  • Various types of derivatives, such as futures, options, and CFDs, used for placing short term transactions which do not require settlement at the conclusion of the contract.

What is the difference between trading and investing?

How to invest in cryptocurrencies

BTC/USD weekly chart showing nine entry points for buying Bitcoin in 2020 (Source: TradingView)

How to trade cryptocurrencies

BTC/USD 15-minute chart showing six short-term order to buy Bitcoin (Source: TradingView)

Crypto trading vs investing

What influences the value of an asset?

How supply and demand affect the price of Bitcoin

BTC/USD 30-minute chart showing increases in sell volume and subsequent downtrends (Source: TradingView)
Bitcoin market capitalization 30-day moving average (Source: Blockchain.com)

Types of cryptocurrency market analysis

Technical analysis

BTC/USD 5-minute chart showing Bollinger Band trading strategy (Source: TradingView)

Fundamental analysis

TIP!

Where to buy and trade cryptocurrencies

Conclusion: are you ready to enter the cryptocurrency market?

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CryptoCaptain.com helps crypto investors time their buys and sells of Bitcoin & co. CryptoCaptain is the first to use AI-based analysis of the market sentiment.

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CryptoCaptain

CryptoCaptain

CryptoCaptain.com helps crypto investors time their buys and sells of Bitcoin & co. CryptoCaptain is the first to use AI-based analysis of the market sentiment.