A Complete Guide To Cryptocurrency Trading For Beginners - Binance Academy

Tr din Essenti ls Technic l An lysis Economics
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A Complete Guide to Cryptocurrency

Tr din for Be inners
Be inner 2mo o 63m
Wh t is tr din ?
Tr din is fund ment l economic concept th t involves buyin nd sellin ssets. These
c n be oods nd services, where the buyer p ys the compens tion to the seller. In other
c ses, the tr ns ction c n involve the exch n e of oods nd services between the tr din
p rties.
In the context of the fin nci l m rkets, the ssets bein tr ded re c lled fin nci l
instruments. These c n be stocks, bonds, currency p irs on the Forex m rket, options,
futures, m r in products, cryptocurrency, nd m ny others. If these terms re new to you,
don’t worry – we’ll expl in them ll l ter in this rticle.
A Complete Guide to Cryptocurrency Tr din for Be inners

The term tr din is commonly used to refer to short-term tr din , where tr ders ctively
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enter nd exit positions over rel tively short time fr mes. However, this is sli htly
misle din ssumption. In f ct, tr din m y refer to wide r n e of different str te ies,
such s d y tr din , swin tr din , trend tr din , nd m ny others. But don’t worry. We’ll
o throu h e ch of them in more det il l ter.
Wh t is investin ?
Investin is lloc tin resources (such s c pit l) with the expect tion of ener tin
profit. This c n include usin money to fund nd kickst rt business or buyin l nd with
the o l of resellin it l ter t hi her price. In the fin nci l m rkets, this typic lly involves
investin in fin nci l instruments with the hopes of sellin them l ter t hi her price.
The expect tion of return is core to the concept of investment (this is lso known s ROI).
As opposed to tr din , investin typic lly t kes lon er-term ppro ch to we lth ccru l.
The o l of n investor is to build we lth over lon period of time (ye rs, or even
dec des). There re plenty of w ys to do th t, but investors will typic lly use fund ment l
f ctors to find potenti lly ood investment opportunities.
Due to the lon -term n ture of their ppro ch, investors usu lly don’t concern themselves
with short-term price fluctu tions. As such, they will typic lly st y rel tively p ssive,
without worryin too much bout short-term losses.
Tr din vs. investin – wh t’s the

difference?
Both tr ders nd investors seek to ener te profits in the fin nci l m rkets. Their methods
to chieve this o l, however, re quite different.
Gener lly, investors seek to ener te return over lon er period of time – think ye rs or
even dec des. Since investors h ve l r er time horizon, their t r eted returns for e ch
investment tend to be l r er s well.
Tr ders, on the other h nd, try to t ke dv nt e of the m rket vol tility. They enter nd
exit positions more frequently, nd m y seek sm ller returns with e ch tr de (since they’re
often enterin multiple tr des).
Which one is better? Which one is more suit ble for you? Th t’s for you to decide. You c n
st rt educ tin yourself bout the m rkets, nd then le rn by doin . Over time, you’ll be
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Sne k peek t the l test Bitcoin (BTC) prices ri ht now.
Wh t is fund ment l n lysis (FA)?

Fund ment l n lysis is method for ssessin fin nci l sset’s v lu tion. A
fund ment l n lyst studies both economic nd fin nci l f ctors to determine if the v lue
of n sset is f ir. These c n include m croeconomic circumst nces like the st te of the
wider economy, industry conditions, or the business connected to the sset (if there’s one).
And these re often tr cked throu h m croeconomics le din nd l in indic tors.
Once the fund ment l n lysis is complete, n lysts im to determine whether the sset is
underv lued or overv lued. Investors c n use this conclusion when m kin their
investment decisions.
In the c se of cryptocurrencies, fund ment l n lysis m y lso include n emer in field

of d t science th t concerns itself with public blockch in d t c lled on-ch in metrics.
These metrics c n include the network h sh r te, the top holders, the number of
ddresses, n lysis of tr ns ctions, nd m ny more. Usin the bund nce of v il ble
d t on public blockch ins, n lysts c n cre te complex technic l indic tors th t me sure
cert in spects of the over ll he lth of the network.
While fund ment l n lysis is widely used in the stock m rket or Forex, it's less suit ble for
cryptocurrencies in their current st te. This sset cl ss is so new th t there simply isn’t
st nd rdized, comprehensive fr mework for determinin m rket v lu tions. Wh t’s more,
much of the m rket is driven by specul tion nd n rr tives. As such, fund ment l f ctors
will typic lly h ve ne li ible effects on the price of cryptocurrency. However, more
ccur te w ys to think bout crypto sset v lu tion m y be developed once the m rket
m tures.
Wh t is technic l n lysis (TA)?

Technic l n lysts work with different ppro ch. The core ide behind technic l n lysis
is th t historic l price ction m y indic te how the m rket is likely to beh ve in the future.
Technic l n lysts don’t try to find out the intrinsic v lue of n sset. Inste d, they look t
the historic l tr din ctivity nd try to identify opportunities b sed on th t. This c n
include n lysis of price ction nd volume, ch rt p tterns, the use of technic l indic tors,
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nd m ny other ch rtin tools. The o l of this n lysis is to ev lu te iven m rket’s
stren th or we kness.
With th t s id, technic l n lysis isn’t only tool for predictin the prob bilities of future
price movements. It c n lso be useful fr mework for risk m n ement. Since technic l
n lysis provides model for n lyzin m rket structure, it m kes m n in tr des more
defined nd me sur ble. In this context, me surin risk is the first step to m n in it. This
is why some technic l n lysts m y not be considered strictly tr ders. They m y use
technic l n lysis purely s fr mework for risk m n ement.
The pr ctice of technic l n lysis c n be pplied to ny fin nci l m rket, nd it’s widely

used mon cryptocurrency tr ders. But does technic l n lysis work? Well, s we’ve
mentioned e rlier, the v lu tion of the cryptocurrency m rkets is l r ely driven by
specul tion. This m kes them n ide l pl yin field for technic l n lysts, s they c n
thrive by only considerin technic l f ctors.
Fund ment l n lysis vs. technic l n lysis

– which is better?
Th t entirely depends on your tr din str te y. Actu lly, why not use both? Most m rket
n lysis methods work best when they’re combined with other methods or indic tors. This
w y, there’s bi er ch nce of findin more reli ble investment opportunities. Combinin
different tr din str te ies c n lso help elimin te bi ses from your decision-m kin
process.
This concept is sometimes referred to s confluence. Confluence tr ders combine multiple

str te ies into one th t h rnesses benefits from ll of them. The ide is th t the tr din
opportunities presented by the combined str te ies m y be stron er th n the ones
provided by only one str te y.
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Wh t drives the fin nci l m rkets?

The price of n sset is simply determined by the b l nce of supply nd dem nd. In other
words, it’s decided by the buyers nd sellers. Where supply meets dem nd, there’s
m rket. But wh t else c n drive the v lue of fin nci l sset?
A Complete
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f ctors, such s the st te of the
economy. In ddition, there c n be technic l f ctors like the m rket c pit liz tion of
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cryptocurrency. Also, there m y be other f ctors to consider, such s m rket sentiment or
recent news.
However, these re just th t – f ctors to consider. Wh t re lly determines the price of n

sset in iven moment is simply the b l nce of supply nd dem nd.
Wh t is m rket trend?
A m rket trend is the over ll direction where the price of n sset is oin . In technic l
n lysis, m rket trends re typic lly identified usin price ction, trend lines, or even key
movin ver es.
Gener lly, there re two m in types of m rket trends: bull nd be r m rket. A bull m rket
consists of sust ined uptrend, where prices re continu lly oin up. A be r m rket
consists of sust ined downtrend, where prices re continu lly oin down. In ddition,
we c n lso identify consolid tin , or “sidew ys” m rkets, where there isn’t cle r
direction l trend.
Bitcoin h s been in bull m rket throu hout ll its existence.
It’s worth notin th t m rket trend doesn’t me n th t the price is lw ys oin in the
direction of the trend. A prolon ed bull m rket will h ve sm ller be r trends cont ined with
it, nd vice vers . This is simply just the n ture of m rket trends. It’s m tter of
perspective s it ll depends on the time fr me you re lookin t. M rket trends on hi her
time fr mes will lw ys h ve more si nific nce th n m rket trends on lower time fr mes.
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A peculi r thin bout m rket trends is th t they c n only be determined with bsolute
cert inty in hindsi ht. You m y h ve he rd bout the concept of hindsi ht bi s, which
refers to the tendency of people to convince themselves th t they ccur tely predicted n
event before it h ppened. As you’d im ine, hindsi ht bi s c n h ve si nific nt imp ct on
the process of identifyin m rket trends nd m kin tr din decisions.
Wh t is m rket cycle?
You m y h ve he rd the phr se th t “the m rket moves in cycles”. A cycle is p ttern or
trend th t emer es t different times. Typic lly, m rket cycles on hi her time fr mes re
more reli ble th n m rket cycles on lower time fr mes. Even so, you c n eventu lly find
sm ll m rket cycles on n hourly ch rt just s you m y do when lookin t dec des of d t .
M rkets re cyclic l in n ture. Cycles c n result in cert in sset cl sses outperformin

others. In other se ments of the s me m rket cycle, those s me sset cl sses m y
underperform other types of ssets due to the different m rket conditions.
It’s worth notin th t it’s lmost impossible to determine in ny iven moment where we
currently re in m rket cycle. This n lysis c n be done with hi h ccur cy only fter th t
p rt of the cycle h s concluded. M rket cycles lso r rely h ve concrete be innin nd
endpoints. As it turns out, bein in the present moment is n exception lly bi sed viewpoint
in the fin nci l m rkets.
If you’d like to re d more bout m rket cycles, check out The Psycholo y of M rket Cycles.
Ch pter 2 – Fin nci l M rkets nd Tr din

Instruments
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Wh t is fin nci l instrument?
Wh t is the spot m rket?
Wh t is m r in tr din ?
Wh t is the deriv tives m rket?
Wh A
t Complete
re forw rdGuide to Cryptocurrency
nd futures contr cts? Tr din for Be inners
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Wh t re perpetu l futures contr cts?
Wh t re options contr cts?
Wh t is the forei n exch n e (Forex) m rket?
Wh t re lever ed tokens?
Wh t is fin nci l instrument?
In simple terms, fin nci l instrument is tr d ble sset. Ex mples include c sh, precious
met ls (like old or silver), document th t confirms ownership of somethin (like
business or resource), ri ht to deliver or receive c sh, nd m ny others. Fin nci l
instruments c n be re lly complex, but the b sic ide is th t wh tever they re or wh tever
they represent, they c n be tr ded.
Fin nci l instruments h ve v rious types b sed on different cl ssific tion methods. One of
the cl ssific tions is b sed on whether they re c sh instruments or deriv tive instruments.
As the n me would su est, deriv tive instruments derive their v lue from somethin else
(like cryptocurrency). Fin nci l instruments m y lso be cl ssified s debt-b sed or
equity-b sed.
But where do cryptocurrencies f ll? We could think of them in multiple w ys, nd they could
fit into more th n one c te ory. The simplest cl ssific tion is th t they re di it l ssets.
However, the potenti l of cryptocurrencies lies in buildin n entirely new fin nci l nd
economic system.
In this sense, cryptocurrencies form completely new c te ory of di it l ssets. Wh t’s

more, s the ecosystem evolves, m ny new c te ories m y be est blished th t wouldn’t
otherwise be possible. E rly ex mples of this c n lre dy be seen in the Decentr lized
Fin nce (DeFi) sp ce.
Wh t is the spot m rket?

The spot m rket is where fin nci l instruments re tr ded for wh t’s c lled “immedi te
delivery”. Delivery, in this context, simply me ns exch n in the fin nci l instrument for
c sh. This m y seem like n unnecess ry distinction, but some m rkets ren’t settled in
c sh inst ntly. For ex mple, when we’re t lkin bout the futures m rkets, the ssets re
delivered t l ter d te (when the futures contr ct expires).
In simple terms, you could think of spot m rket s the pl ce where tr des re m de “on
the spot.” Since the tr des re settled immedi tely, the current m rket price of n sset is
often referred to s the spot price.
So, whof Contents
T ble t does this me n in the context of cryptocurrency m rkets? Wh t c n you do on the
Bin nce spot m rket? You c n exch n e coins with e ch other. So, if you w nt to exch n e
your BNB to BUSD, you o to the BNB/BUSD spot m rket, nd voil ! In the s me w y, if
you’d like to exch n e your BNB to BTC, you’d o to the BNB/BTC spot m rket. Once your
orders re filled, your coins will be sw pped inst ntly. This is one of the e siest w ys of
tr din cryptocurrencies.
Wh t is m r in tr din ?
M r in tr din is method of tr din usin borrowed funds from third p rty. In effect,
tr din on m r in mplifies results – both to the upside nd the downside. A m r in
ccount ives tr ders more ccess to c pit l nd elimin tes some counterp rty risk. How
so? Well, tr ders c n tr de the s me position size but keep less c pit l on the
cryptocurrency exch n e.
When it comes to m r in tr din , you’ll often he r the terms m r in nd lever e. M r in

refers to the mount of c pit l you commit (i.e., put up from your own pocket). Lever e
me ns the mount th t you mplify your m r in with. So, if you use 2x lever e, it me ns
th t you open position th t’s double the mount of your m r in. If you use 4x lever e,
you open position th t’s four times the v lue of your m r in, nd so on.
However, be w re of liquid tion. The hi her lever e you use, the closer the liquid tion
price is to your entry. If you et liquid ted, you’ll risk losin your entire m r in. So, be very
w re of the hi h risks of tr din on m r in before ettin st rted. The Bin nce M r in
Tr din Guide is n essenti l resource before you et st rted.
M r in tr din is widely used in stock, commodity, nd Forex tr din , s well s the Bitcoin
nd cryptocurrency m rkets. In more tr dition l settin , the funds borrowed re provided
by n investment broker. When it comes to cryptocurrencies, the funds re typic lly lent by
the exch n e in return for fundin fee. In some other c ses, however, the borrowed funds
m y come directly from other tr ders on the pl tform. This will usu lly incur v ri ble
interest r te (fundin fee), s the r te is determined by n open m rketpl ce.
So, we’ve briefly expl ined wh t m r in tr din is, but there’s lw ys more to le rn. If
you’d like to re d more, check out Wh t is M r in Tr din ?.
Wh t is the deriv tives m rket?

Deriv tives re fin nci l ssets th t b se their v lue on somethin else. This c n be n
underlyin sset or b sket of ssets. The most common types re stocks, bonds,
A Complete
commodities, Guide
m rket to Cryptocurrency
indexes, Tr din for Be inners
or cryptocurrencies.
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The deriv tive product itself is essenti lly contr ct between multiple p rties. It ets its
price from the underlyin sset th t’s used s the benchm rk. Wh tever sset is used s
this reference point, the core concept is th t the deriv tive product derives its v lue from it.
Some common ex mples of deriv tives products re futures contr cts, options contr cts,
nd sw ps.
Accordin to some estim tes, the deriv tives m rket is one of the bi est m rkets out
there. How so? Well, deriv tives c n exist for virtu lly ny fin nci l product – even
deriv tives themselves. Yes, deriv tives c n be cre ted from deriv tives. And then,
deriv tives c n be cre ted from those deriv tives, nd so on. Does this sound like sh ky
house of c rds re dy to come cr shin down? Well, this m y not be so f r from the truth.
Some r ue th t the deriv tives m rket pl yed m jor p rt in the 2008 Fin nci l Crisis.
Wh t re forw rd nd futures contr cts?

A futures contr ct is type of deriv tives product th t llows tr ders to specul te on the
future price of n sset. It involves n reement between p rties to settle the tr ns ction
t l ter d te c lled the expiry d te. As we’ve discussed with deriv tives, the underlyin
sset for contr ct like this c n be ny sset. Common ex mples include cryptocurrency,
commodities, stocks, nd bonds.
The expir tion d te of futures contr ct is the l st d y th t tr din ctivity is on oin for
th t specific contr ct. At the end of th t d y, the contr ct expires to the l st tr ded price.
The settlement of the contr ct is determined beforeh nd, nd it c n be either c sh-settled
or physic lly-delivered.
When it’s delivered physic lly, the underlyin sset of the contr ct is directly exch n ed.
For ex mple, b rrels of oil re delivered. When it’s settled in c sh, the underlyin sset isn’t
exch n ed directly, only the v lue th t it represents (in the form of c sh or cryptocurrency).
If you’d like to tr de futures on Bin nce, m ke sure to check out The Ultim te Guide to
Tr din on Bin nce Futures.
Wh t re perpetu l futures contr cts?

Futures products re re t w y for tr ders to specul te on the price of n sset. However,
wh t if they w nt to rem in in their position even fter the expiry d te?

Enter perpetu l futures contr cts. The m in difference between them nd re ul r futures
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contr ct is th t they never expire. This w y, tr ders c n specul te on the price of the
underlyin sset without h vin to worry bout expir tion.
However, this presents problem of its own. Wh t if the price of the perpetu l futures
contr ct ets re lly f r from the price of the underlyin sset? Since there’s no expiry d te,
the perpetu l futures m rket could h ve si nific nt, continu l disp rity with the spot
m rket.
This is why perpetu l futures contr cts implement fundin fee th t’s p id between
tr ders. Let’s im ine th t the perpetu l futures m rket is tr din hi her th n the spot
m rket. In this c se, the fundin r te will be positive, me nin th t lon positions (buyers)
p y the fundin fees to short positions (sellers). This encour es buyers to sell, which then
c uses the price of the contr ct to drop, movin it closer to the spot price. Conversely, if the
perpetu l futures m rket is tr din lower th n the spot m rket, the fundin r te will be
ne tive. This time, shorts p y lon s to incentivize pushin up the price of the contr ct.
To summ rize, if fundin is positive, lon s p y shorts. If fundin is ne tive, shorts p y

lon s.
Perpetu l futures contr cts re hu ely popul r mon Bitcoin nd cryptocurrency tr ders.
If you’d like to re d more bout perpetu l futures contr cts, check out Wh t Are Perpetu l
Futures Contr cts?.
Wh t re options contr cts?

An options contr ct is type of deriv tives product th t ives tr ders the ri ht, but not the
obli tion, to buy or sell n sset in the future t specific price. The m in difference
between futures contr ct nd n options contr ct is th t tr ders re not obli ted to
settle options contr cts.
When tr ders buy n options contr ct, they specul te on the price oin in direction.
There re two types of options contr cts: c ll options nd put options. A c ll option bets on
the price oin up, while put option bets on the price oin down.
As with other deriv tives products, options contr cts c n be b sed on wide v riety of
fin nci l ssets: m rket indexes, commodities, stocks, cryptocurrencies, nd so on.
Options contr cts c n en ble hi hly complex tr din str te ies nd risk m n ement
A Complete
methods, such s hedGuide
in to Cryptocurrency
. In the context of Tr din for Be inners
cryptocurrencies, options mi ht be the most
useful
T ble offor miners who w nt to hed e their l r e cryptocurrency holdin s. This w y, they’re
Contents
better protected inst events th t could h ve detriment l imp ct on their funds.
If you’d like to re d more bout options contr cts, check out Wh t Are Options Contr cts?.
If you’d like to tr de options on Bin nce, be sure to re d our options uide for iOS nd
Android first.
Wh t is the forei n exch n e (Forex)

m rket?
The forei n exch n e (Forex, FX) m rket is where tr ders c n exch n e one country’s
currency into nother. In essence, the Forex m rket is wh t determines the exch n e r tes
for currencies round the world.
We m y often think of currencies s “s fe h ven” ssets. Even the term “st blecoin” should
imply, in theory, th t the sset is somehow s fe from vol tility. However, while this is true to
some extent, currencies c n lso experience si nific nt m rket fluctu tions. How come?
Well, the v lue of currencies is lso determined by supply nd dem nd. In ddition, they
m y lso be influenced by infl tion or other m rket forces rel ted to lob l tr de nd
investment, nd eopolitic l f ctors.
How does the Forex m rket work? Well, currency p irs m y be tr ded by investment b nks,
centr l b nks, commerci l comp nies, investment firms, hed e funds, nd ret il Forex
tr ders. The Forex m rket lso en bles lob l currency conversions for intern tion l tr de
settlements.
Forex tr ders will typic lly use d y tr din str te ies, such s sc lpin with lever e, to
mplify their returns. We’ll cover how ex ctly th t works l ter in this rticle.
The Forex m rket is one of the m jor buildin blocks of the modern lob l economy s we
know it. In f ct, the Forex m rket is the l r est nd most liquid fin nci l m rket in the
world.
Wh t re lever ed tokens?
Lever ed tokens re tr d ble ssets th t c n ive you lever ed exposure to the price of
cryptocurrency without the usu l requirements of m n in lever ed position. This
me ns you don’t h ve to worry bout m r in, coll ter l, fundin , nd liquid tion.
Lever ed tokens re n innov tive fin nci l product th t only exist th nks to the power of
A Complete
blockch in. Lever Guide to Cryptocurrency
ed tokens Tr din forby
were initi lly introduced Bederiv
inners
tives exch n e FTX, but
since then
T ble of h ve seen v rious ltern tive implement tions. The m in ide behind them,
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however, is still the s me – tokenizin open lever ed positions. Wh t does this me n?

Lever ed tokens represent open perpetu l futures positions in tokenized form.
Remember when we discussed how deriv tives c n be cre ted from deriv tives? Lever ed
tokens re prime ex mple since they derive their v lue from futures positions, which re
lso deriv tives.
Lever ed tokens re re t w y to et simple lever ed exposure to cryptocurrency.

If you’d like to tr de them on Bin nce, check out A Be inner's Guide to Bin nce Lever ed
Tokens (BLVT).
If you’d like to re d bout FTX Lever ed Tokens, check out A Be inner's Guide to FTX
Lever ed Tokens.
Ch pter 3 – Tr din nd Investment

Str te ies
Contents
Wh t is tr din str te y?
Wh t is portfolio m n ement?
Wh t is risk m n ement?
Wh t is d y tr din ?
Wh t is swin tr din ?
Wh t is position tr din ?
Wh t is sc lpin ?
Wh t is sset lloc tion nd diversific tion?
Wh t is the Dow Theory?
Wh t is the Elliott W ve Theory?
Wh t is the Wyckoff Method?
Wh t is buy nd hold?
Wh t is index investin ?
Wh t is p per tr din ?
WhA Complete
t is Guide
tr todin
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Cryptocurrency Tr din for Be
str te y? inners
A tr din str te y is simply pl n you follow when executin tr des. There’s no sin le
correct ppro ch to tr din , so e ch str te y will l r ely depend on the tr der’s profile nd
preferences.
Re rdless of your ppro ch to tr din , est blishin pl n is cruci l – it outlines cle r

o ls nd c n prevent you from oin off course due to emotion. Typic lly, you’ll w nt to
decide wh t you’re tr din , how you’re oin to tr de it, nd the points t which you’ll enter
nd exit.
In the followin ch pter, we’ll et into few ex mples of popul r tr din str te ies.
Wh t is portfolio m n ement?
Portfolio m n ement concerns itself with the cre tion nd h ndlin of collection of
investments. The portfolio itself is roupin of ssets – it could cont in nythin from
Be nie B bies to re l est te. If you’re exclusively tr din cryptocurrencies, then it will
prob bly be m de up of some combin tion of Bitcoin nd other di it l coins nd tokens.
Your first step is to consider your expect tions for the portfolio. Are you lookin for b sket
of investments th t will rem in rel tively protected from vol tility, or somethin riskier th t
mi ht brin hi her returns in the short term?
Puttin some thou ht into how you w nt to m n e your portfolio is hi hly benefici l.
Some mi ht prefer p ssive str te y – one where you le ve your investments lone fter
you set them up. Others could t ke n ctive ppro ch, where they continuously buy nd
sell ssets to m ke profits.
Wh t is risk m n ement?

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M n in risk is vit l to success in tr din . This be ins with the identific tion of the types
of risk you m y encounter:
M rket risk: the potenti l losses you could experience if the sset loses v lue.
Liquidity risk: the potenti l losses risin from illiquid m rkets, where you c nnot e sily
find buyers for your ssets.
Oper tion l risk: the potenti l losses th t stem from oper tion l f ilures. These m y be
due to hum n error, h rdw re/softw re f ilure, or intention l fr udulent conduct by
employees.
Systemic risk: the potenti l losses c used by the f ilure of pl yers in the industry you
oper te in, which imp cts ll businesses in th t sector. As w s the c se in 2008, the
coll pse of the Lehm n Brothers h d c sc din effect on worldwide fin nci l systems.
As you c n see, risk identific tion be ins with the ssets in your portfolio, but it should t ke
into ccount both intern l nd extern l f ctors to be effective. Next, you’ll w nt to ssess
these risks. How often re you likely to encounter them? How severe re they?
By wei hin up the risks nd fi urin out their possible imp ct on your portfolio, you c n
r nk them nd develop ppropri te str te ies nd responses. Systemic risk, for ex mple,
c n be miti ted with diversific tion into different investments, nd m rket risk c n be
lessened with the use of stop-losses.
Be sure to check out Fin nci l Risk Expl ined nd A Be inner’s Guide to Underst ndin
Risk M n ement.
Wh t is d y tr din ?
D y tr din is str te y th t involves enterin nd exitin positions within the s me d y.
The term comes from le cy m rkets, referencin the f ct th t they’re only open for set
periods durin the d y. Outside of those periods, d y tr ders re not expected to keep ny
of their positions open.
Cryptocurrency m rkets, s you prob bly know, re not subject to openin or closin times.
You c n tr de round the clock every d y of the ye r. Still, d y tr din in the context of
cryptocurrency tends to refer to tr din style where the tr der enters nd exits positions
within 24 hours.

InT dbleyoftrContents
din , you’ll often rely on technic l n lysis to determine which ssets to tr de.
Bec use profits in such short period c n be minim l, you m y opt to tr de cross wide
r n e of ssets to try nd m ximize your returns. Th t s id, some mi ht exclusively tr de
the s me p ir for ye rs.
This style is obviously very ctive tr din str te y. It c n be hi hly profit ble, but it
c rries with it si nific nt mount of risk. As such, d y tr din is ener lly better suited to
experienced tr ders.
Wh t is swin tr din ?
In swin tr din , you’re still tryin to profit off m rket trends, but the time horizon is lon er
– positions re typic lly held nywhere from couple of d ys to couple of months.
Often, your o l will be to identify n sset th t looks underv lued nd is likely to incre se
in v lue. You would purch se this sset, then sell it when the price rises to ener te
profit. Or you c n try to find overv lued ssets th t re likely to decre se in v lue. Then,
you could sell some of them t hi h price, hopin to buy them b ck for lower price.
As with d y tr din , m ny swin tr ders use technic l n lysis. However, bec use their
str te y pl ys out cross lon er period, fund ment l n lysis m y lso be v lu ble
tool.
Swin tr din tends to be more be inner-friendly str te y. M inly bec use it doesn’t
come with the stress of f st-p ced d y tr din . Where the l tter is ch r cterized by r pid
decision-m kin nd lot of screen time, swin tr din llows you to t ke your time.
Wh t is position tr din ?
Position (or trend) tr din is lon -term str te y. Tr ders purch se ssets to hold for
extended periods ( ener lly me sured in months). Their o l is to m ke profit by sellin
those ssets t hi her price in the future.
Wh t distin uishes position tr des from lon -term swin tr des is the r tion le behind
pl cin the tr de. Position tr ders re concerned with trends th t c n be observed over
A Complete
extended periods –Guide
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T ble h nd, typic lly seek to predict “swin s” in the m rket th t don’t necess rily
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correl te with the bro der trend.

It’s not uncommon to see position tr ders f vor fund ment l n lysis, purely bec use their
time preference llows them to w tch fund ment l events m teri lize. Th t’s not to s y
technic l n lysis isn’t used. While position tr ders work on the ssumption th t the trend
will continue, the use of technic l indic tors c n lert them to the possibility of trend
revers l.
Like swin tr din , position tr din is n ide l str te y for be inners. Once in, the lon
time horizon ives them mple opportunity to deliber te on their decisions.
Wh t is sc lpin ?
Of ll of the str te ies discussed, sc lpin t kes pl ce cross the sm llest time fr mes.
Sc lpers ttempt to me sm ll fluctu tions in price, often enterin nd exitin positions
within minutes (or even seconds). In most c ses, they’ll use technic l n lysis to try nd
predict price movements nd exploit bid- sk spre d nd other inefficiencies to m ke
profit. Due to the short time fr mes, sc lpin tr des often ive sm ll percent e of profits
– usu lly lower th n 1%. But sc lpin is numbers me, so repe ted sm ll profits c n dd
up over time.
Sc lpin is by no me ns be inner’s str te y. An in-depth underst ndin of the m rkets,

the pl tforms you’re tr din on, nd technic l n lysis re vit l to success. Th t s id, for
tr ders th t know wh t they’re doin , identifyin the ri ht p tterns nd t kin dv nt e
of short-term fluctu tions c n be hi hly profit ble.
Wh t is sset lloc tion nd diversific tion?

Asset lloc tion nd diversific tion re terms th t tend to be used interch n e bly. You
mi ht know the principles from the s yin don’t keep ll your e s in one b sket. Keepin
ll of your e s in one b sket cre tes centr l point of f ilure – the s me holds true for
your we lth. Investin your life s vin s into one sset exposes you to the s me kind of risk.
If the sset in question w s the stock of p rticul r comp ny nd th t comp ny then
imploded, you’d lose your money in one swift movement.
This isn’t just true of sin le ssets, but of sset cl sses. In the c se of fin nci l crisis,
you’d expect ll of the stock you hold to lose v lue. This is bec use they’re he vily
correl ted, me nin th t ll tend to follow the s me trend.
Good diversific tion isn’t simply fillin your portfolio with hundreds of different di it l
A Complete
currencies. Guide
Consider to Cryptocurrency
n event Tr din
where the world for Be inners
overnments b n cryptocurrencies, or
qu ntum
T ble computers bre k the public-key crypto r phy schemes we use in them. Either of
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these occurrences would h ve profound imp ct on ll di it l ssets. Like stocks, they
m ke up sin le sset cl ss.
Ide lly, you w nt to spre d your we lth cross multiple cl sses. Th t w y, if one is
performin poorly, it h s no knock-on effect on the rest of your portfolio. Nobel Prize winner
H rry M rkowitz introduced this ide with the Modern Portfolio Theory (MPT). In essence,
the theory m kes the c se for reducin the vol tility nd risk ssoci ted with investments
in portfolio by combinin uncorrel ted ssets.
For more on the topic, check out Bin nce Ac demy’s Asset Alloc tion nd Diversific tion, or
Bin nce Rese rch’s Explorin the Diversific tion Benefits with Bitcoin.
Wh t is the Dow Theory?
The Dow Theory is fin nci l fr mework modeled on the ide s of Ch rles Dow. Dow
founded the W ll Street Journ l nd helped cre te the first US stock indices, known s the
Dow Jones Tr nsport tion Aver e (DJTA) nd Dow Jones Industri l Aver e (DJIA).
Thou h the Dow Theory w s never form lized by Dow himself, it c n be seen s n
re tion of the m rket principles presented in his writin s. Here re some of the key
t ke w ys:

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Everythin is priced in – Dow w s proponent of the efficient m rket hypothesis (EMH),
the ide th t m rkets reflect ll of the v il ble inform tion on the price of their ssets.
M rket trends – Dow is often credited with the very notion of m rket trends s we know
them tod y, distin uishin between prim ry, second ry, nd terti ry trends.
The ph ses of prim ry trend – in prim ry trends, Dow identifies three ph ses:
ccumul tion, public p rticip tion, nd excess & distribution.
Cross-index correl tion – Dow believed th t trend in one index couldn’t be confirmed
unless it w s observ ble in nother index.
The import nce of volume – trend must lso be confirmed by hi h tr din volume.
Trends re v lid until revers l – if trend is confirmed, it continues until definite
revers l occurs.
It’s worth rememberin th t this isn’t n ex ct science – it’s theory, nd it mi ht not hold
true. Still, it’s theory th t rem ins hu ely influenti l, nd m ny tr ders nd investors
consider it n inte r l p rt of their methodolo y.
For more, check out An Introduction to The Dow Theory.
Wh t is the Elliott W ve Theory?

Elliott W ve Theory (EWT) is principle positin th t m rket movements follow the
psycholo y of m rket p rticip nts. While it’s used in m ny technic l n lysis str te ies, it
isn’t n indic tor or specific tr din technique. R ther, it’s w y to n lyze the m rket
structure.
The Elliott W ve p ttern c n typic lly be identified in series of ei ht w ves, e ch of which

is either Motive W ve or Corrective W ve. You would h ve five Motive W ves th t follow
the ener l trend, nd three Corrective W ves th t move inst it.

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An Elliot W ve Cycle, with Motive W ves (blue) nd Corrective W ves (yellow).
The p tterns lso h ve fr ct l property, me nin th t you could zoom into sin le w ve
to see nother Elliot W ve p ttern. Altern tively, you could zoom out to find th t the p ttern
you’ve been ex minin is lso sin le w ve of bi er Elliot W ve cycle.
Elliott W ve Theory is met with mixed reviews. Some r ue th t the methodolo y is too
subjective bec use tr ders c n identify w ves in v rious w ys without viol tin the rules.
Like the Dow Theory, the Elliott W ve Theory isn’t foolproof, so it should not be viewed s
n ex ct science. Th t s id, m ny tr ders h ve h d re t success by combinin EWT with
other technic l n lysis tools.
Check out An Introduction to the Elliott W ve Theory for more inform tion on the topic.
Wh t is the Wyckoff Method?

The Wyckoff Method is n extensive tr din nd investin str te y th t w s developed by
Ch rles Wyckoff in the 1930s. His work is widely re rded s cornerstone of modern
technic l n lysis techniques cross numerous fin nci l m rkets.
Wyckoff proposed three fund ment l l ws – the l w of supply nd dem nd, the L w of
C use nd Effect, nd the L w of Effort vs. Result. He lso formul ted the Composite M n
theory, which h s si nific nt overl p with Ch rles Dow’s bre kdown of prim ry trends. His
work in this re is p rticul rly v lu ble to cryptocurrency tr ders.
On the pr ctic l side of thin s, the Wyckoff Method itself is five-step ppro ch to tr din .
It c n be broken down s follows:
Determine the trend: wh t’s it like now, nd where is it he ded?

Identify stron ssets: re they movin with the m rket or in the opposite direction?
Find ssets with sufficient C use: is there enou h re son to enter the position? Do the
risks m ke the potenti l rew rd worth it?
Assess the likelihood of the movement: do thin s like Wyckoff’s Buyin nd Sellin Tests
point to possible movement? Wh t do the price nd volume su est? Is this sset
re dy to move?
Time your entry: how re the ssets lookin in rel tion to the ener l m rket? When is
the best time to enter position?
A Complete
The Wyckoff Guide
Method to Cryptocurrency
w s introduced lmost Trcentury
din for Be inners
o, but it rem ins hi hly relev nt to
this d ofy.Contents
T ble The scope of Wyckoff’s rese rch w s v st, nd therefore the bove should only be
seen s very condensed overview. It’s recommended th t you explore his work in more
depth, s it provides indispens ble technic l n lysis knowled e. St rt with The Wyckoff
Method Expl ined.
Wh t is buy nd hold?
The “buy nd hold” str te y, perh ps unsurprisin ly, involves buyin nd holdin n sset.
It’s lon -term p ssive pl y where investors purch se the sset nd then le ve it lone,
re rdless of m rket conditions. A ood ex mple of this in the crypto sp ce is HODLin ,
which typic lly refers to investors th t prefer to buy nd hold for ye rs inste d of ctively
tr din .
This c n be n dv nt eous ppro ch for those th t prefer “h nds-off” investin s they

don’t need to worry bout short-term fluctu tions or c pit l ins t xes. On the other h nd,
it requires p tience on the investor’s p rt nd ssumes th t the sset won’t end up tot lly
worthless.
If you’d like to re d bout n e sy w y to pply this str te y to Bitcoin, check out Doll r-
Cost Aver in (DCA) Expl ined.
Wh t is index investin ?
Index investin could be re rded s form of “buy nd hold.” As the n me implies, the
investor seeks to profit from the movement of ssets within specific index. They could do
so by purch sin the ssets on their own, or by investin in n index fund.
A in, this is p ssive str te y. Individu ls c n lso benefit from diversific tion cross
multiple ssets, without the stress of ctive tr din .
Wh t is p per tr din ?
P per tr din could be ny kind of str te y – but the tr der is only pretendin to buy nd
sell ssets. This is somethin you mi ht consider s be inner (or even s n experienced
tr der) to test your skills without puttin your money t st ke.
You m Ay Complete
think, for inst nce,
Guide th t you’ve discovered
to Cryptocurrency ood
Tr din for Bestr te y for timin Bitcoin dips,
inners
Tnd wof nt
ble to try profitin from those drops before they occur. But before you risk ll of your
Contents
funds, you mi ht opt to p per tr de. This c n be s simple s writin down the price t the
time you “open” your short, nd in when you close it. You could equ lly use some kind
of simul tor th t mimics popul r tr din interf ces.
The m in benefit of p per tr din is th t you c n test out str te ies without losin your
money if thin s o wron . You c n et n ide of how your moves would h ve performed
with zero risk. Of course, you need to be w re th t p per tr din only ives you limited
underst ndin of re l environment. It’s h rd to replic te the re l emotions you
experience when your money is involved. P per tr din without re l-life simul tor m y
lso ive you f lse sense of ssoci ted costs nd fees, unless you f ctor them in for
specific pl tforms.
Bin nce offers couple of options for p per tr din . For inst nce, the Bin nce Futures
Testnet provides full-fled ed interf ce. If you’re buildin tr din bots or pro r ms
yourself, then the spot exch n e testnet c n be ccessed vi API.
Ch pter 4 - Technic l An lysis B sics
Contents
Wh t is lon position?
Wh t is shortin ?
Wh t is the order book?
Wh t is the order book depth?
Wh t is m rket order?
Wh t is slipp e in tr din ?
Wh t is limit order?
Wh t is stop-loss order?
Wh t re m kers nd t kers?
Wh t is the bid- sk spre d?
Wh t is c ndlestick ch rt?
Wh t is c ndlestick ch rt p ttern?
Wh t is trend line?
Wh t re support nd resist nce?
Wh t is lon position?
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A lon position (or simply lon ) me ns buyin n sset with the expect tion th t its v lue
will rise. Lon positions re often used in the context of deriv tives products or Forex, but
they pply to b sic lly ny sset cl ss or m rket type. Buyin n sset on the spot m rket
in the hopes th t its price will incre se lso constitutes lon position.
Goin lon on fin nci l product is the most common w y of investin , especi lly for those
just st rtin out. Lon -term tr din str te ies like buy nd hold re b sed on the
ssumption th t the underlyin sset will incre se in v lue. In this sense, buy nd hold is
simply oin lon for n extended period of time.
However, bein lon doesn’t necess rily me n th t the tr der expects to in from n
upw rd movement in price. T ke lever ed tokens, for ex mple. BTCDOWN is inversely
correl ted to the price of Bitcoin. If the price of Bitcoin oes up, the price of BTCDOWN oes
down. If the price of Bitcoin oes down, the price of BTCDOWN oes up. In this sense,
enterin lon position in BTCDOWN equ ls downw rd movement in the price of Bitcoin.
Wh t is shortin ?
A short position (or short) me ns sellin n sset with the intention of rebuyin it l ter t
lower price. Shortin is closely rel ted to m r in tr din , s it m y h ppen with borrowed
ssets. However, it’s lso widely used in the deriv tives m rket, nd c n be done with
simple spot position. So, how does shortin work?
When it comes to shortin on the spot m rkets, it’s quite simple. Let’s s y you lre dy h ve
Bitcoin nd you expect the price to o down. You sell your BTC for USD, s you pl n to rebuy
it l ter t lower price. In this c se, you’re essenti lly enterin short position on Bitcoin
since you’re sellin hi h to rebuy lower. E sy enou h. But wh t bout shortin with
borrowed funds? Let’s see how th t works.
You borrow n sset th t you think will decre se in v lue – for ex mple, stock or
cryptocurrency. You immedi tely sell it. If the tr de oes your w y nd the sset price
decre ses, you buy b ck the s me mount of the sset th t you’ve borrowed. You rep y
the ssets th t you’ve borrowed ( lon with interest) nd profit from the difference
between the price you initi lly sold nd the price you rebou ht.
So, wh t does shortin Bitcoin look like with borrowed funds? Let’s look t n ex mple. We
put up the required coll ter l to borrow 1 BTC, then immedi tely sell it for $10,000. Now
we’ve ot $10,000. Let’s s y the price oes down to $8,000. We buy 1 BTC nd rep y our
debt of 1 BTC lon with interest. Since we initi lly sold Bitcoin for $10,000 nd now
rebou ht t $8,000, our profit is $2,000 (minus the interest p yment nd tr din fees).

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Wh t is the order book?
The order book is collection of the currently open orders for n sset, or nized by price.
When you post n order th t isn’t filled immedi tely, it ets dded to the order book. It will
sit there until it ets filled by nother order or c nceled.
Order books will differ with e ch pl tform, but ener lly, they’ll cont in rou hly the s me
inform tion. You’ll see the number of orders t specific price levels.
When it comes to crypto exch n es nd online tr din , orders in the order book re
m tched by system c lled the m tchin en ine. This system is wh t ensures th t tr des
re executed – you could think of it s the br in of the exch n e. This system, lon with
the order book, is core to the concept of electronic exch n e.
Wh t is the order book depth?

The order book depth (or m rket depth) refers to visu liz tion of the currently open
orders in the order book. It usu lly puts buy orders on one side, nd sell orders on the other
nd displ ys them cumul tively on ch rt.
Order book depth of the BTC/USDT m rket p ir on Bin nce.
In more ener l terms, the depth of the order book m y lso refer to the mount of liquidity
th t the order book c n bsorb. The “deeper” the m rket is, the more liquidity there is in
A Complete
the order Guide
book. In this to Cryptocurrency
sense, Tr din
m rket with more for Bec inners
liquidity n bsorb l r er orders without
Tconsider ble
ble of Contents effect on the price. However, if the m rket is illiquid, l r e orders m y h ve
si nific nt imp ct on the price.
Wh t is m rket order?
A m rket order is n order to buy or sell t the best currently v il ble m rket price. It’s
b sic lly the f stest w y to et in or out of m rket.
When you’re settin m rket order, you’re b sic lly s yin : “I’d like to execute this order
ri ht now t the best price I c n et.”
Your m rket order will keep fillin orders from the order book until the entire order is fully
filled. This is why l r e tr ders (or wh les) c n h ve si nific nt imp ct on the price when
they use m rket orders. A l r e m rket order c n effectively siphon liquidity from the order
book. How so? Let’s o throu h it when discussin slipp e.
E er to le rn more? Check out Wh t is M rket Order?.
Wh t is slipp e in tr din ?
There is somethin you need to be w re of when it comes to m rket orders – slipp e.
When we s y th t m rket orders fill t the best v il ble price, th t me ns th t they keep
fillin orders from the order book until the entire order is executed.
However, wh t if there isn’t enou h liquidity round the desired price to fill l r e m rket
order? There could be bi difference between the price th t you expect your order to fill
nd the price th t it fills t. This difference is c lled slipp e.
Let’s s y you’d like to open lon position worth 10 BTC in n ltcoin. However, this ltcoin
h s rel tively sm ll m rket c p nd is bein tr ded on low-liquidity m rket. If you use
m rket order, it will keep fillin orders from the order book until the entire 10 BTC order is
filled. On liquid m rket, you would be ble to fill your 10 BTC order without imp ctin the
price si nific ntly. But, in this c se, the l ck of liquidity me ns th t there m y not be
enou h sell orders in the order book for the current price r n e.
So, by the time the entire 10 BTC order is filled, you m y find out th t the ver e price p id
w s much hi her th n expected. In other words, the l ck of sell orders c used your m rket
order to move up the order book, m tchin orders th t were si nific ntly more expensive
th n the initi l price.
Be w AreComplete
of slipp Guide
e when
totr din ltcoins, Trs some
Cryptocurrency tr Be
din for din inners
p irs m y not h ve enou h
liquidity to fill your m rket orders.
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Wh t is limit order?
A limit order is n order to buy or sell n sset t specific price or better. This price is
c lled the limit price. Limit buy orders will execute t the limit price or lower, while limit sell
orders will execute t the limit price or hi her.
When you’re settin limit order, you’re b sic lly s yin : “I’d like to execute this order t
this specific price or better, but never worse.”
Usin limit order llows you to h ve more control over your entry or exit for iven
m rket. In f ct, it u r ntees th t your order will never fill t worse price th n your
desired price. However, th t lso comes with downside. The m rket m y never re ch your
price, le vin your order unfilled. In m ny c ses, this c n me n losin out on potenti l
tr de opportunity.
Decidin when to use limit order or m rket order c n v ry with e ch tr der. Some tr ders
m y use only one or the other, while other tr ders will use both – dependin on the
circumst nces. The import nt thin is to underst nd how they work so you c n decide for
yourself.
E er to le rn more? Check out Wh t is Limit Order?.
Wh t is stop-loss order?
Now th t we know wh t m rket nd limit orders re, let’s t lk bout stop-loss orders. A
stop-loss order is type of limit or m rket order th t’s only ctiv ted when cert in price is
re ched. This price is c lled the stop price.
The purpose of stop-loss order is m inly to limit losses. Every tr de needs to h ve n

inv lid tion point, which is price level th t you should define in dv nce. This is the level
where you s y th t your initi l ide w s wron , me nin th t you should exit the m rket to
prevent further losses. So, the inv lid tion point is where you would typic lly put your stop-
loss order.
How does stop-loss order work? As we’ve mentioned, the stop-loss c n be both limit or
m rket order. This is why these v ri nts m y lso be referred to s stop-limit nd stop-
m rket orders. The key thin to underst nd is th t the stop-loss only ctiv tes when
cert in price is re ched (the stop price). When the stop price is re ched, it ctiv tes either
m rket or limit order. You b sic lly set the stop price s the tri er for your m rket or
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limit order.
However, there is one thin you should keep in mind. We know th t limit orders only fill t
the limit price or better, but never worse. If you’re usin stop-limit order s your stop-loss
nd the m rket cr shes violently, it m y inst ntly move w y from your limit price, le vin
your order unfilled. In other words, the stop price would tri er your stop-limit order, but
the limit order would rem in unfilled due to the sh rp price drop. This is why stop-m rket
orders re considered s fer th n stop-limit orders. They ensure th t even under extreme
m rket conditions, you’ll be u r nteed to exit the m rket once your inv lid tion point is
re ched.
E er to le rn more? Check out Wh t is Stop-Limit Order?.
Wh t re m kers nd t kers?
You become m ker when you pl ce n order th t doesn’t immedi tely et filled but ets
dded to the order book. Since your order is ddin liquidity to the order book, you’re
“m ker” of liquidity.
Limit orders will typic lly execute s m ker orders, but not in ll c ses. For ex mple, let’s
s y you pl ce limit buy order with limit price th t’s consider bly hi her th n the current
m rket price. Since you’re s yin your order c n execute t the limit price or better, your
order will execute inst the m rket price ( s it’s lower th n your limit price).
You become t ker when you pl ce n order th t ets immedi tely filled. Your order
doesn’t et dded to the order book, but is immedi tely m tched with n existin order in
the order book. Since you’re t kin liquidity from the order book, you’re t ker. M rket
orders will lw ys be t ker orders, s you’re executin your order t the best currently
v il ble m rket price.
Some exch n es dopt multi-tier fee model to incentivize tr ders to provide liquidity.
After ll, it’s in their interest to ttr ct hi h volume tr ders to their exch n e – liquidity
ttr cts more liquidity. In such systems, m kers tend to p y lower fees th n t kers, since
they’re the ones ddin liquidity to the exch n e. In some c ses, they m y even offer fee
reb tes to m kers. You c n check your current fee tier on Bin nce on this p e.
If you’d like to re d more, check out Wh t Are M kers nd T kers?.

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Wh t is the bid- sk spre d?
The bid- sk spre d is the difference between the hi hest buy order (bid) nd the lowest sell
order ( sk) for iven m rket. It’s essenti lly the p between the hi hest price where
seller is willin to sell nd the lowest price where buyer is willin to buy.
The bid- sk spre d is w y to me sure m rket’s liquidity. The sm ller the bid- sk
spre d is, the more liquid the m rket is. The bid- sk spre d c n lso be considered s
me sure of supply nd dem nd for iven sset. In this sense, the supply is represented
by the sk side while the dem nd by the bid side.
When you’re pl cin m rket buy order, it will fill t the lowest v il ble sk price.
Conversely, when you pl ce m rket sell order, it will fill t the hi hest v il ble bid.
Wh t is c ndlestick ch rt?
A c ndlestick ch rt is r phic l represent tion of the price of n sset for iven
timefr me. It’s m de up of c ndlesticks, e ch representin the s me mount of time. For
ex mple, 1-hour ch rt shows c ndlesticks th t e ch represent period of one hour. A 1-
d y ch rt shows c ndlesticks th t e ch represent period of one d y, nd so on.
D ily ch rt of Bitcoin. E ch c ndlestick represents one d y of tr din .
A c ndlestick is m de up of four d t points: the Open, Hi h, Low, nd Close ( lso referred

to s the OHLC v lues). The Open nd Close re the first nd l st recorded price for the
iven timefr me, while
A Complete Guidethe
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Cryptocurrency thedin
lowest nd inners
for Be hi hest recorded price,
respectively.
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C ndlestick ch rts re one of the most import nt tools for n lyzin fin nci l d t .
C ndlesticks d te b ck to the 17th century J p n but h ve been refined in the e rly 20th
century by tr din pioneers such s Ch rles Dow.
C ndlestick ch rt n lysis is one of the most common w ys to look t the Bitcoin m rket
usin technic l n lysis. Would you like to le rn how to re d c ndlestick ch rts? Check out
A Be inner’s Guide to C ndlestick Ch rts.
Wh t is c ndlestick ch rt p ttern?
Technic l n lysis is l r ely b sed on the ssumption th t previous price movements m y
indic te future price ction. So, how c n c ndlesticks be useful in this context? The ide is
to identify c ndlestick ch rt p tterns nd cre te tr de ide s b sed on them.
C ndlestick ch rts help tr ders n lyze m rket structure nd determine whether we’re in
bullish or be rish m rket environment. They m y lso be used to identify re s of interest
on ch rt, like support or resist nce levels or potenti l points of revers l. These re the
pl ces on the ch rt th t usu lly h ve incre sed tr din ctivity.
C ndlestick p tterns re lso re t w y to m n e risk, s they c n present tr de setups

th t re defined nd ex ct. How so? Well, c ndlestick p tterns c n define cle r price
t r ets nd inv lid tion points. This llows tr ders to come up with very precise nd
controlled tr de setups. As such, c ndlestick p tterns re widely used by Forex nd
cryptocurrency tr ders like.
Some of the most common c ndlestick p tterns include fl s, tri n les, wed es, h mmers,
st rs, nd Doji form tions. If you’d like to le rn how to re d them, check out 12 Popul r
C ndlestick P tterns Used in Technic l An lysis nd A Be inner’s Guide to Cl ssic l Ch rt
P tterns.
Wh t is trend line?
Trend lines re widely used tool by both tr ders nd technic l n lysts. They re lines
th t connect cert in d t points on ch rt. Typic lly, this d t is the price, but not in ll
c ses. Some tr ders m y lso dr w trend lines on technic l indic tors nd oscill tors.
The m in ide behind dr win trend lines is to visu lize cert in spects of the price ction.
This w y, tr ders c n identify the over ll trend nd m rket structure.
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The price of Bitcoin touchin trend line multiple times, indic tin n uptrend.
Some tr ders m y only use trend lines to et better underst ndin of the m rket
structure. Others m y use them to cre te ction ble tr de ide s b sed on how the trend
lines inter ct with the price.
Trend lines c n be pplied to ch rt showin virtu lly ny time fr me. However, s with
ny other m rket n lysis tool, trend lines on hi her time fr mes tend to be more reli ble
th n trend lines on lower time fr mes.
Another spect to consider here is the stren th of trend line. The convention l definition
of trend line defines th t it h s to touch the price t le st two or three times to become
v lid. Typic lly, the more times the price h s touched (tested) trend line, the more reli ble
it m y be considered.
If you’d like to re d more bout how to dr w trend lines, check out Trend Lines Expl ined.
Wh t re support nd resist nce?

Support nd resist nce re some of the most b sic concepts rel ted to tr din nd
technic l n lysis.
Support me ns level where the price finds “floor.” In other words, support level is n
re of si nific nt dem nd, where buyers step in nd push the price up.
Resist nce me ns level where the price finds “ceilin .” A resist nce level is n re of
si nific nt supply, where sellers step in nd push the price down.
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Support level (red) is tested nd broken, turnin into resist nce.
Now you know th t support nd resist nce re levels of incre sed dem nd nd supply,
respectively. However, m ny other f ctors c n be t pl y when thinkin bout support nd
resist nce.
Technic l indic tors, such s trend lines, movin ver es, Bollin er B nds, Ichimoku
Clouds, nd Fibon cci Retr cement c n lso su est potenti l support nd resist nce
levels. In f ct, even spects of hum n psycholo y re used. This is why tr ders nd
investors m y incorpor te support nd resist nce very differently in their individu l tr din
str te y.
Would you like to know how to dr w support nd resist nce levels on ch rt? Check out
The B sics of Support nd Resist nce Expl ined.
Ch pter 5 – Technic l An lysis Indic tors
Contents
Wh t is technic l n lysis indic tor?

Le din vs. l in indic tors
Wh t is momentum indic tor?
Wh A
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the tr dinGuide to Cryptocurrency Tr din for Be inners
volume?
T Wh
ble oftContents
is the Rel tive Stren th Index (RSI)?
Wh t is Movin Aver e (MA)?
Wh t is the Movin Aver e Conver ence Diver ence (MACD)?
Wh t is the Fibon cci Retr cement tool?
Wh t is the Stoch stic RSI (StochRSI)?
Wh t re Bollin er B nds (BB)?
Wh t is the Volume-Wei hted Aver e Price (VWAP)?
Wh t is the P r bolic SAR?
Wh t is the Ichimoku Cloud?
Wh t is technic l n lysis indic tor?

Technic l indic tors c lcul te metrics rel ted to fin nci l instrument. This c lcul tion
c n be b sed on price, volume, on-ch in d t , open interest, soci l metrics, or even
nother indic tor.
As we’ve discussed e rlier, technic l n lysts b se their methods on the ssumption th t

historic l price p tterns m y dict te future price movements. As such, tr ders who use
technic l n lysis m y use n rr y of technic l indic tors to identify potenti l entry nd
exit points on ch rt.
Technic l indic tors m y be c te orized by multiple methods. This c n include whether

they’re pointin tow rds future trends (le din indic tors), confirmin p ttern th t’s
lre dy underw y (l in indic tors), or cl rify re l-time events (coincident indic tors).
Some other c te oriz tion m y concern itself with how these indic tors present the
inform tion. In this sense, there re overl y indic tors th t overl y d t over price, nd
there re oscill tors th t oscill te between minimum nd m ximum v lue.
There re lso types of indic tors th t im to me sure specific spect of the m rket, such
s momentum indic tors. As the n me would su est, they im to me sure nd displ y
m rket momentum.
So, which is the best technic l n lysis indic tor out there? There isn’t simple nswer to
this question. Tr ders m y use m ny different types of technic l indic tors, nd their
choice is l r ely b sed on their individu l tr din str te y. However, to be ble to m ke
th t choice, they needed to le rn bout them first – nd th t’s wh t we’re oin to do in
this ch pter.
Le Adin
Completevs.
Guidelto Cryptocurrency
in indic tors
Tr din for Be inners
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As we’ve discussed, different indic tors will h ve distinct qu lities nd should be used for
specific purposes. Le din indic tors point tow rds future events. L in indic tors re
used to confirm somethin th t h s lre dy h ppened. So, when should you use them?
Le din indic tors re typic lly useful for short- nd mid-term n lysis. They re used
when n lysts nticip te trend nd re lookin for st tistic l tools to b ck up their
hypothesis. Especi lly when it comes to economics, le din indic tors c n be p rticul rly
useful to predict periods of recession.
When it comes to tr din nd technic l n lysis, le din indic tors c n lso be used for
their predictive qu lities. However, no speci l indic tor c n predict the future, so these
forec sts should lw ys be t ken with r in of s lt.
L in indic tors re used to confirm events nd trends th t h d lre dy h ppened, or

re lre dy underw y. This m y seem redund nt, but it c n be very useful. L in
indic tors c n brin cert in spects of the m rket to the spotli ht th t otherwise would
rem in hidden. As such, l in indic tors re typic lly pplied to lon er-term ch rt
n lysis.
Still e er to le rn more? Check out Le din nd L in Indic tors Expl ined.
Wh t is momentum indic tor?

Momentum indic tors im to me sure nd show m rket momentum. Wh t is m rket
momentum? In simple terms, it’s the me sure of the speed of price ch n es. Momentum
indic tors im to me sure the r te t which prices rise or f ll. As such, they’re typic lly
used for short-term n lysis by tr ders who re lookin to profit from bursts of hi h
vol tility.
The o l of momentum tr der is to enter tr des when momentum is hi h, nd exit when

m rket momentum st rts to f de. Typic lly, if vol tility is low, the price tends to squeeze
into sm ll r n e. As the tension builds up, the price often m kes bi impulse move,
eventu lly bre kin out of the r n e. This is when momentum tr ders thrive.
After the move h s concluded nd the tr ders h ve exited their position, they move on to
nother sset with hi h momentum nd try to repe t the s me me pl n. As such,
momentum indic tors re widely used by d y tr ders, sc lpers, nd short-term tr ders who
re lookin for quick tr din opportunities.
Wh t is the tr din volume?

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The tr din volume m y be considered the quintessenti l indic tor. It shows the number of
individu l units tr ded for n sset in iven time. It b sic lly shows how much of th t
sset ch n ed h nds durin the me sured time.
Some consider the tr din volume to be the most import nt technic l indic tor out there.
“Volume precedes price” is f mous s yin in the tr din world. It su ests th t l r e
tr din volume c n be le din indic tor before bi price move (re rdless of the
direction).
By usin volume in tr din , tr ders c n me sure the stren th of the underlyin trend. If
hi h vol tility is ccomp nied by hi h tr din volume, th t m y be considered v lid tion
of the move. This m kes sense bec use hi h tr din ctivity should equ l si nific nt
volume since m ny tr ders nd investors re ctive t th t p rticul r price level. However,
if vol tility isn’t ccomp nied by hi h volume, the underlyin trend m y be considered
we k.
Price levels with historic lly hi h volume m y lso ive ood potenti l entry or exit point
for tr ders. Since history tends to repe t itself, these levels m y be where incre sed tr din
ctivity is more likely to h ppen. Ide lly, support nd resist nce levels should lso be
ccomp nied by n uptick in volume, confirmin the stren th of the level.
Wh t is the Rel tive Stren th Index (RSI)?

The Rel tive Stren th Index (RSI) is n indic tor th t illustr tes whether n sset is
overbou ht or oversold. It is momentum oscill tor th t shows the r te t which price
ch n es h ppen. This oscill tor v ries between 0 nd 100, nd the d t is usu lly
displ yed on line ch rt.

The RSI indic tor pplied to Bitcoin ch rt.
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Wh t’s the ide behind me surin m rket momentum? Well, if the momentum is incre sin
while the price is oin up, the uptrend m y be considered stron . Conversely, if
momentum is diminishin in n uptrend, the uptrend m y be considered we k. In this c se,
revers l m y be comin .
Let’s see how the tr dition l interpret tion of the RSI works. When the RSI v lue is under
30, the sset m y be considered oversold. In contr st, it m y be considered overbou ht
when it’s bove 70.
Still, RSI re din s should be t ken with de ree of skepticism. The RSI c n re ch extreme
v lues durin extr ordin ry m rket conditions – nd even then, the m rket trend m y still
continue for while.
The RSI is one of the e siest technic l indic tors to underst nd, which m kes it one of the
best for be inner tr ders. If you’d like to re d more bout it, check out Wh t is the RSI
Indic tor?.
Wh t is Movin Aver e (MA)?

Movin ver es smooth out price ction nd m ke it e sier to spot m rket trends. As
they’re b sed on previous price d t , they l ck predictive qu lities. As such, movin
ver es re considered l in indic tors.
Movin ver es h ve v rious types – the two most common one is the simple movin
ver e (SMA or MA) nd the exponenti l movin ver e (EMA). Wh t’s the difference
between them?
The simple movin ver e is c lcul ted by t kin price d t from the previous n periods
nd producin n ver e. For ex mple, the 10-d y SMA t kes the ver e price of the l st
10 d ys nd plots the results on r ph.

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200-week movin ver e b sed on the price of Bitcoin.
The exponenti l movin ver e is bit trickier. It uses different formul th t puts
bi er emph sis on more recent price d t . As result, the EMA re cts more quickly to
recent events in price ction, while the SMA m y t ke more time to c tch up.
As we’ve mentioned, movin ver es re l in indic tors. The lon er the period they
plot, the re ter the l . As such, 200-d y movin ver e will re ct slower to unfoldin
price ction th n 100-d y movin ver e.
Movin ver es c n help you e sily identify m rket trends. If you’d like to re d more
bout them, check out Movin Aver es Expl ined.
Wh t is the Movin Aver e Conver ence

Diver ence (MACD)?
The MACD is n oscill tor th t uses two movin ver es to show the momentum of
m rket. As it tr cks price ction th t h s lre dy occurred, it’s l in indic tor.
The MACD is m de up of two lines – the MACD line nd the si n l line. How do you
c lcul te them? Well, you et the MACD line by subtr ctin the 26 EMA from the 12 EMA.
Simple enou h. Then, you plot this over the MACD line’s 9 EMA – the si n l line. In ddition,
m ny ch rtin tools will lso show histo r m th t illustr tes the dist nce between the
MACD line nd the si n l line.

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The MACD indic tor pplied to Bitcoin ch rt.
Tr ders m y use the MACD by observin the rel tionship between the MACD line nd the
si n l line. A crossover between the two lines is usu lly not ble event when it comes to
the MACD. If the MACD line crosses bove the si n l line, th t m y be interpreted s
bullish si n l. In contr st, if the MACD line crosses below the si n l, th t m y be
interpreted s be rish si n l.
The MACD is one of the most popul r technic l indic tors out there to me sure m rket
momentum. If you’d like to re d more bout it, check out MACD Indic tor Expl ined.
Wh t is the Fibon cci Retr cement tool?

The Fibon cci Retr cement (or Fib Retr cement) tool is popul r indic tor b sed on
strin of numbers c lled the Fibon cci sequence. These numbers were identified in the 13th
century, by n It li n m them tici n c lled Leon rdo Fibon cci.
The Fibon cci numbers re now p rt of m ny technic l n lysis indic tors, nd the Fib
Retr cement is mon the most popul r ones. It uses r tios derived from the Fibon cci
numbers s percent es. These percent es re then plotted over ch rt, nd tr ders c n
use them to identify potenti l support nd resist nce levels.
These Fibon cci r tios re:
0%
23.6%
38.2%
61.8%
78.6%
100%
While 50% is technic lly not Fibon cci r tio, m ny tr ders lso consider it when usin the
tool. In ddition, Fibon cci r tios outside of the 0-100% r n e m y lso be used. Some of
the most common ones re 161.8%, 261.8%, nd 423.6%.
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Fibon cci levels on Bitcoin ch rt.
So, how c n tr ders use the Fibon cci Retr cement levels? The m in ide behind plottin
percent e r tios on ch rt is to find re s of interest. Typic lly, tr ders will pick two
si nific nt price points on ch rt, nd pin the 0 nd 100 v lues of the Fib Retr cement tool
to those points. The r n e outlined between these points m y hi hli ht potenti l entry nd
exit points, nd help determine stop-loss pl cement.
The Fibon cci Retr cement tool is vers tile indic tor th t c n be used in wide r n e of
tr din str te ies. If you’d like to re d more, check A Guide to M sterin Fibon cci
Retr cement.
Wh t is the Stoch stic RSI (StochRSI)?

The Stoch stic RSI, or StochRSI, is deriv tive of the RSI. Simil rly to the RSI, it’s m in
o l is to determine whether n sset is overbou ht or oversold. In contr st to the RSI,
however, the StochRSI isn’t ener ted from price d t , but RSI v lues. On most ch rtin
tools, the v lues of the StochRSI will r n e between 0 nd 1 (or 0 nd 100).
The StochRSI tends to be the most useful when it’s ne r the upper or lower extremes of its
r n e. However, due to its re ter speed nd hi her sensitivity, it m y produce lot of f lse
si n ls th t c n be ch llen in to interpret.
The tr dition l interpret tion of the StochRSI is somewh t simil r to th t of the RSI. When
it’s over 0.8, the sset m y be considered overbou ht. When it’s below 0.2, the sset m y
be considered oversold. However, it’s worth mentionin th t these shouldn’t be viewed s
direct si n ls to enter or exit tr des. While this inform tion is cert inly tellin story, there
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T ble of Contents
E er to le rn more bout the StochRSI? Check out Stoch stic RSI Expl ined.
Wh t re Bollin er B nds (BB)?

N med fter John Bollin er, the Bollin er B nds me sure m rket vol tility, nd re often
used to spot overbou ht nd oversold conditions. This indic tor is m de up of three lines, or
“b nds” – n SMA (the middle b nd), nd n upper nd lower b nd. These b nds re then
pl ced on ch rt, lon with the price ction. The ide is th t s vol tility incre ses or
decre ses, the dist nce between these b nds will ch n e, exp ndin nd contr ctin ..
Bollin er B nds on Bitcoin ch rt.
Let’s o throu h the ener l interpret tion of Bollin er B nds. The closer the price is to the
upper b nd, the closer the sset m y be to overbou ht conditions. Simil rly, the closer it is
to the lower b nd, the closer the sset m y be to oversold conditions.
One thin to note is th t the price will ener lly be cont ined within the r n e of the b nds,
but it m y bre k bove or below them t times. Does this me n th t it’s n immedi te
si n l to buy or sell? No. It just tells us th t the m rket is movin w y from the middle
b nd SMA, re chin extreme conditions.
Tr ders m y lso use Bollin er B nds to try nd predict m rket squeeze, lso known s
the Bollin er B nds Squeeze. This refers to period of low vol tility when the b nds come
re lly close to e ch other nd “squeeze” the price into sm ll r n e. As the “pressure”
builds up in th t sm ll r n e, the m rket eventu lly pops out of it, le din to period of
A Complete
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down, inners
squeeze str te y is
considered neutr l (neither be rish or bullish). So it mi ht be worth combinin it with other
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tr din tools, such s support nd resist nce.

Would you like to m ster your underst ndin of Bollin er B nds? Check out Bollin er
B nds Expl ined.
Wh t is the Volume-Wei hted Aver e Price

(VWAP)?
As we’ve discussed e rlier, m ny tr ders consider the tr din volume to be the most
import nt indic tor out there. So, re there ny indic tors b sed on volume?
The volume-wei hted ver e price, or VWAP, combines the power of volume with price
ction. In more pr ctic l terms, it’s the ver e price of n sset for iven period
wei hted by volume. This m kes it more useful th n simply c lcul tin the ver e price,
s it lso t kes into ccount which price levels h d the most tr din volume.
How do tr ders use the VWAP? Well, the VWAP is typic lly used s benchm rk for the
current outlook on the m rket. In this sense, when the m rket is bove the VWAP line, it
m y be considered bullish. At the s me time, if the m rket is below the VWAP line, it m y
be considered be rish. H ve you noticed how this is simil r to the interpret tion of movin
ver es? The VWAP m y indeed be comp red to movin ver es, t le st in the w y it’s
used. As we’ve seen, the m in difference is th t the VWAP considers the tr din volume s
well.
In ddition, the VWAP c n lso be used to identify re s of hi her liquidity. M ny tr ders

will use the price bre kin bove or below the VWAP line s tr de si n l. However, they
will typic lly lso incorpor te other metrics into their str te y to reduce risks.
Would you like to le rn more bout how you c n use the VWAP? Check out Volume-
Wei hted Aver e Price (VWAP) Expl ined.
Wh t is the P r bolic SAR?

The P r bolic SAR is used to determine the direction of the trend nd potenti l revers ls.
“SAR” st nds for Stop nd Reverse. This refers to the point where lon position should be
closed nd short position opened, or vice vers .
The P r bolic SAR ppe rs s series of dots on ch rt, either bove or below the price.
Gener lly, if the dots re below the price, it me ns the price is in n uptrend. In contr st, if
A Complete
the dots re bove Guide to Cryptocurrency
the price, Tr is
it me ns the price dinin for Be innersA revers l occurs when
downtrend.
the dots
T ble flip to the “other side” of the price.
of Contents
The P r bolic SAR on Bitcoin ch rt.
The P r bolic SAR c n provide insi hts into the direction of the m rket trend. It’s lso
h ndy for identifyin points of trend revers l. Some tr ders m y lso use the P r bolic SAR
indic tor s b sis for their tr ilin stop-loss. This speci l order type moves lon with the
m rket nd m kes sure th t investors c n protect their profits durin stron uptrend.
The P r bolic SAR is t its best durin stron m rket trends. Durin periods of
consolid tion, it m y provide lot of f lse si n ls for potenti l revers ls. Would you like to
le rn how to use the P r bolic SAR indic tor? Check out A Brief Guide to the P r bolic SAR
Indic tor.
Wh t is the Ichimoku Cloud?

The Ichimoku Cloud is TA indic tor th t combines m ny indic tors in sin le ch rt.
Amon the indic tors we’ve discussed, the Ichimoku is cert inly one of the most
complic ted. At first l nce, it m y be h rd to underst nd its formul s nd workin
mech nisms. But in pr ctice, the Ichimoku Cloud is not s h rd to use s it seems, nd
m ny tr ders use it bec use it c n produce very distinct, well-defined tr din si n ls.
As mentioned, the Ichimoku Cloud isn’t just n indic tor, it’s collection of indic tors. It’s
collection th t provides insi hts into m rket momentum, support nd resist nce levels, nd
the direction of the trend. It chieves this by c lcul tin five ver es nd plottin them on
ch rt. It lso produces “cloud” from these ver es which m y forec st potenti l
support nd resist nce re s.
While the
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Contents es pl y n import nt role, the cloud itself is key p rt of the indic tor.
Gener lly, if the price is bove the cloud, the m rket m y be considered to be in n uptrend.
Conversely, if the price is below the cloud, it m y be considered to be in downtrend.
The Ichimoku Cloud on Bitcoin ch rt, ctin s support, then resist nce.
The Ichimoku Cloud m y lso stren then other tr din si n ls.
The Ichimoku Cloud is difficult to m ster, but once you et your he d round how it works,
it c n produce re t results. Check out Ichimoku Clouds Expl ined to le rn more bout it.
Ch pter 6 – Cryptocurrency Tr din Tips
Contents
How do I st rt tr din cryptocurrency?

How to tr de cryptocurrency on Bin nce
Wh t is tr din journ l, nd should I use one?
How should I c lcul te my position size in tr din ?
Wh t online tr din softw re should I use?
Should I join p id roup for tr din ?
Wh A
t isComplete
pump Guide
nd dump
to Cryptocurrency
(P&D)? Tr din for Be inners
T Should I si n
ble of Contents up for cryptocurrency irdrops?
How do I st rt tr din cryptocurrency?
If you’ve decided you’d like to st rt tr din , here re few thin s to consider.
Firstly, you’ll, of course, need c pit l to tr de with. If you don’t h ve s vin s nd st rt

tr din with money you c n’t lose, it c n h ve seriously detriment l imp ct on your life.
Tr din isn’t n e sy fe t – n overwhelmin m jority of be inner tr ders lose money.
You’ll need to expect th t the money you put side for tr din c n v nish quickly, nd you
m y never recover your losses. This is why it’s recommended to st rt with sm ller mounts
to test out the w ters.
Somethin else you’ll lso need to think bout is your over ll tr din str te y. There re
lot of possible venues to t ke when it comes to m kin money in the fin nci l m rkets.
Dependin on the time nd effort you c n put into this undert kin , you c n choose
between m ny different str te ies to chieve your fin nci l o ls.
L stly, here’s n ddition l point. M ny tr ders re t their best when tr din isn’t their
m in source of income. This w y, the emotion l burden is e sier to be r th n if their d y-to-
d y surviv l depended on it. Elimin tin emotion is core tr it of successful tr ders, nd
it’s si nific ntly h rder to do when one’s livelihood is t st ke. So, especi lly when you’re
st rtin out, you could think of tr din nd investin s side venture. And remember to
st rt with sm ll mounts for the s ke of le rnin nd pr cticin . It m y lso be benefici l
to look into w ys of m kin p ssive income with cryptocurrency.
If you’d like to le rn bout simple mist kes to void when it comes to tr din nd technic l
n lysis, check out 7 Common Mist kes in Technic l An lysis (TA).
How to tr de cryptocurrency on Bin nce

So, you’ve decided you w nt to et into the world of tr din cryptocurrency. Wh t do you
need to do?
First, you need to convert your fi t currency into cryptocurrency. The e siest w y to do th t
is by oin to the Buy Crypto p e on Bin nce, where you’ll h ve plethor of options. You
c n buy crypto with debit nd credit c rds, usin your b nk ccount on the P2P exch n e,
nd throu h third-p rty solutions like Simplex, P xful, or Koin x. Once you’re done, you’ll
be p rt of the new fin nci l system!

Now th t you’ve ot your cryptocurrency, the potenti l options re bund nt. Ri ht w y,
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you c n o to the Bin nce spot exch n e nd tr de coins. If you h ve previous experience
with tr din , you could lso check out the Bin nce m r in tr din pl tform or Bin nce
Futures. There re lso p ssive income opportunities v il ble, which include st kin ,
lendin your ssets in Bin nce S vin s, joinin the Bin nce minin pool, nd more.
So f r, these ll included wh t is c lled centr lized exch n e – like Bin nce. These re
exch n es where you deposit your crypto nd do your fin nci l ctivities within the
exch n e’s intern l systems. However, th nks to the m ic of blockch in technolo y, there
re other options out there c lled decentr lized exch n es (DEX). On these venues, your
funds never le ve your own cryptocurrency w llet, so you’ll h ve full custody of them t ll
times. You c n lso connect your h rdw re w llet nd tr de directly from it.
Centr lized exch n es re domin nt in the cryptocurrency sp ce. But m ny tr ders nd

blockch in enthusi sts believe th t si nific nt portion of cryptocurrency tr din volume
will h ppen on DEXs in the future. Go to Bin nce DEX nd try out the tr din experience
yourself!
Wh t is tr din journ l, nd should I use

one?
A tr din journ l is document tion of your tr din ctivities. Should you keep one?
Prob bly! You could use simple Excel spre dsheet, or subscribe to dedic ted service.
Especi lly when it comes to more ctive tr din , some tr ders consider keepin tr din
journ l essenti l to becomin consistently profit ble. After ll, if you don’t document your
tr din ctivities, how will you identify your stren ths nd we knesses? Without tr din
journ l, you wouldn’t h ve cle r ide of your perform nce.
Be r in mind th t bi ses c n pl y m jor p rt in your tr din decisions, nd tr din

journ l c n help miti te some of them. How? Well, you c n’t r ue with the d t ! Tr din
perform nce ll comes down to numbers, nd if you’re not doin somethin well, th t will
be reflected in your perform nce. By meticulously keepin tr din journ l, you c n lso
monitor wh t str te ies perform best.
How should I c lcul te my position size in

tr din ?
One of the most import nt spects of tr din is risk m n ement. In f ct, some tr ders
r ue it is the most import nt thin . This is why it’s critic l to c lcul te the size of your
positions with st nd rdized formul . Here’s how the c lcul tion oes.
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First, you need to determine how much of your ccount you re willin to risk on individu l
tr des. Let’s s y this is 1%. Does it me n you enter positions with 1% of your ccount? No, it
me ns th t if your stop-loss is hit, you won’t lose more th n 1% of your ccount.
Th t m y seem too little, but this is to m ke sure th t few inevit ble b d tr des won’t
blow up your ccount. So, once you’ve ot this defined, you need to determine where your
stop-loss is. You do this for e ch individu l tr de, b sed on the specifics of the tr de ide .
Let’s s y you’ve determined th t you’re oin to pl ce your stop-loss 5% from your initi l
entry. This me ns th t when your stop-loss is hit, nd you exit 5% from your entry, you
should lose ex ctly 1% of your ccount.
So, let’s s y our ccount size is 1000 USDT. We’re riskin 1% with e ch tr de. Our stop-loss
is 5% from our entry. Wh t position size should we use?
1000*0.01/0.05=200
If we w nt to only lose 10 USDT, which is 1% of our ccount, we should enter 200 USDT
position.
This process c n seem bit len thy t first, but it’s essenti l for m n in risk properly.
Good news, we’ve ot n entire rticle bout it: How to C lcul te Position Size in Tr din .
Wh t online tr din softw re should I use?

Ch rt n lysis is core p rt of ny technic l n lyst’s tr din toolkit. But where is the best
w y to do it? Bin nce h s inte r ted Tr din View ch rts, so you c n do your n lysis
directly on the pl tform – both on the web interf ce nd in the mobile pp. You c n lso
cre te Tr din View ccount nd check ll Bin nce m rkets throu h their pl tform.
There re numerous other online ch rtin softw re providers in the m rket, e ch providin
different benefits. Typic lly, thou h, you’ll h ve to p y monthly subscription fee. Some
other ones focused on crypto tr din re Coini y, Tr din Lite, Exoch rts, nd Tensorch rts.
Should I join p id roup for tr din ?

Most likely not. Gre t free inform tion bout tr din is bund nt out there, so why not le rn
from thA t? It’s lso Guide
Complete usefulto
toCryptocurrency
pr ctice tr din Tr
ondin
your for
own,
Besoinners
you c n le rn from your
mist kes nd find wh t works best for you nd your tr din style.
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Enterin p id roup c n be v lid le rnin tool, but bew re of sc ms nd f ke
dvertisin . After ll, it’s quite e sy to f ke tr din results to in followers for p id
service.
It’s lso worth thinkin bout why successful tr der mi ht w nt to st rt p id roup in

the first pl ce. Sure, bit of side income is lw ys welcome, but why do it for hefty fee if
they’re doin so well lre dy?
With th t s id, some successful tr ders run hi h qu lity p id communities with ddition l
services such s speci l m rket d t . Just be extr c reful who you ive your money to, s
the m jority of p id roups for tr din exist to t ke dv nt e of be inner tr ders.
Wh t is pump nd dump (P&D)?

A pump nd dump is scheme th t involves boostin the price of n sset throu h f lse
inform tion. When the price h s one up si nific nt mount (“pumped”), the perpetr tors
sell (“dump”) their che ply bou ht b s t much hi her price.
Typic l price p ttern of pump nd dump scheme.
Pump nd dump schemes re r mp nt in the cryptocurrency m rkets, especi lly in bull

m rkets. Durin these times, m ny inexperienced investors enter the m rket, nd they re
e sier to t ke dv nt e of. This type of fr ud is most common with sm ll m rket c p
cryptocurrencies, s their prices re ener lly e sier to infl te due to the low liquidity of
these m rkets.
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Pump nd dump schemes re often orchestr ted by priv te “pump nd dump roups” th t
promise e sy returns for joiners (usu lly in exch n e for fee). However, wh t usu lly
h ppens is th t those joiners re t ken dv nt e of by n even sm ller roup who h ve
lre dy built their positions.
In the le cy m rkets, people found uilty of f cilit tin pump nd dump schemes re
subject to hefty fines.
Should I si n up for cryptocurrency

irdrops?
M ybe, but be extr c reful! Airdrops re novel w y of distributin cryptocurrencies to
wide udience. An irdrop c n be re t w y to m ke sure th t cryptocurrency isn’t
centr lized in the h nds of only few holders. A diverse set of holders is p r mount for
he lthy, decentr lized network.
However, there’s no such thin s free lunch. Well, sometimes, there m y be, if you et
very lucky! Typic lly, thou h, wh t h ppens is th t the promoters of the irdrop will outri ht
try to t ke dv nt e of you, or will w nt somethin in return.
Wh t will they sk for? One of the most common “ ssets” sked in return for n irdrop is
your person l inform tion. Is your person l d t worth $10-50 worth of hi hly specul tive
cryptocurrency? Th t’s your choice to m ke, but there m y be better w ys to e rn bit of
side income, without puttin your priv cy nd person l d t t risk. This is why you need to
be extr c reful when thinkin bout si nin up for cryptocurrency irdrops.
Closin thou hts

So, we went throu h lot, h ven’t we? Gettin st rted with cryptocurrency tr din c n be
d untin t sk – there re so m ny concepts to le rn. Hopefully, this uide h s helped you
feel bit more comfort ble with cryptocurrency tr din .
However, there is lw ys more to le rn! This is why we’ve cre ted Q&A pl tform specific
to cryptocurrency: Ask Ac demy. If you h ve ny further questions bout cryptocurrency
tr din , blockch in technolo y, crypto r phy, or other rel ted topics, feel free to post one
nd the community will nswer it for you! See you there.
T ble of Contents
Wh t Is Blockch in Technolo y? The Ultim te Guide
1yr o 29m
Wh t Is Network Effect?

T ble of Contents
1mo o 6m
Wh t Is Blockch in Consensus Al orithm?
2yr o 7m
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Tr din Essenti ls Technic l An lysis Economics

A Complete Guide to Cryptocurrency

A Complete Guide to Cryptocurrency Tr din for Be inners

Tr din vs. investin – wh t’s the

Wh t is fund ment l n lysis (FA)?

In the c se of cryptocurrencies, fund ment l n lysis m y lso include n emer in ﬁeld

Wh t is technic l n lysis (TA)?

The pr ctice of technic l n lysis c n be pplied to ny ﬁn nci l m rket, nd it’s widely

Fund ment l n lysis vs. technic l n lysis

This concept is sometimes referred to s confluence. Confluence tr ders combine multiple

Lookin to et st rted with cryptocurrency? Buy Bitcoin on Bin nce!

Wh t drives the ﬁn nci l m rkets?

However, these re just th t – f ctors to consider. Wh t re lly determines the price of n

Bitcoin h s been in bull m rket throu hout ll its existence.

M rkets re cyclic l in n ture. Cycles c n result in cert in sset cl sses outperformin

Ch pter 2 – Fin nci l M rkets nd Tr din

In this sense, cryptocurrencies form completely new c te ory of di it l ssets. Wh t’s

Wh t is the spot m rket?

When it comes to m r in tr din , you’ll often he r the terms m r in nd lever e. M r in

Wh t is the deriv tives m rket?

Wh t re forw rd nd futures contr cts?

Wh t re perpetu l futures contr cts?

A Complete Guide to Cryptocurrency Tr din for Be inners

To summ rize, if fundin is positive, lon s p y shorts. If fundin is ne tive, shorts p y

Lookin to et st rted with cryptocurrency? Buy Bitcoin on Bin nce!

Wh t re options contr cts?

Wh t is the forei n exch n e (Forex)

however, is still the s me – tokenizin open lever ed positions. Wh t does this me n?

Lever ed tokens re re t w y to et simple lever ed exposure to cryptocurrency.

Ch pter 3 – Tr din nd Investment

Re rdless of your ppro ch to tr din , est blishin pl n is cruci l – it outlines cle r

A Complete Guide to Cryptocurrency Tr din for Be inners

A Complete Guide to Cryptocurrency Tr din for Be inners

Lookin to et st rted with cryptocurrency? Buy Bitcoin on Bin nce!

correl te with the bro der trend.

Sc lpin is by no me ns be inner’s str te y. An in-depth underst ndin of the m rkets,

Wh t is sset lloc tion nd diversiﬁc tion?

Wh t is the Dow Theory?

A Complete Guide to Cryptocurrency Tr din for Be inners

For more, check out An Introduction to The Dow Theory.

Wh t is the Elliott W ve Theory?

The Elliott W ve p ttern c n typic lly be identiﬁed in series of ei ht w ves, e ch of which

A Complete Guide to Cryptocurrency Tr din for Be inners

Wh t is the Wyckoff Method?

Determine the trend: wh t’s it like now, nd where is it he ded?

This c n be n dv nt eous ppro ch for those th t prefer “h nds-off” investin s they

Ch pter 4 - Technic l An lysis B sics

A Complete Guide to Cryptocurrency Tr din for Be inners

A Complete Guide to Cryptocurrency Tr din for Be inners

Wh t is the order book depth?

Order book depth of the BTC/USDT m rket p ir on Bin nce.

E er to le rn more? Check out Wh t is M rket Order?.

E er to le rn more? Check out Wh t is Limit Order?.

The purpose of stop-loss order is m inly to limit losses. Every tr de needs to h ve n

E er to le rn more? Check out Wh t is Stop-Limit Order?.

Lookin to et st rted with cryptocurrency? Buy Bitcoin on Bin nce!

If you’d like to re d more, check out Wh t Are M kers nd T kers?.

A Complete Guide to Cryptocurrency Tr din for Be inners

D ily ch rt of Bitcoin. E ch c ndlestick represents one d y of tr din .

A c ndlestick is m de up of four d t points: the Open, Hi h, Low, nd Close ( lso referred

C ndlestick p tterns re lso re t w y to m n e risk, s they c n present tr de setups

Wh t re support nd resist nce?

Ch pter 5 – Technic l An lysis Indic tors