what is crypto and bitcoin trading: Complete basics course 2025

Cryptocurrency and Bitcoin trading have changed the financial world, offering traders new ways to invest and make profit. Whether you are a beginner trader or have knowledge of trading but want to become an expert in this field, understanding the basics of cryptocurrency trading is too important. In this complete crypto course, we will cover everything from the fundamentals of crypto trading to strategies as market trends, Support and resistance, Candlestick Patterns, Trading Chart Patterns, and the Fibonacci Retracement Strategy, platforms, and investment opportunities. Let’s get started!

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency, it’s different from traditional cash, which we use normally. Cryptocurrency is decentralized, it means no banks or governments control it. Crypto currencies operate on decentralized networks based on blockchain technology. The most famous example? Bitcoin, the original gangster in crypto that started it all in 2009. Some of the most well-known cryptocurrencies include:

• Bitcoin (BTC)– The first and most valuable cryptocurrency.
• Ethereum (ETH)– Known for its smart contract functionality.
• Ripple (XRP)– Used primarily for cross-border transactions.
• Litecoin (LTC)– A faster alternative to Bitcoin.
• Meme Coins (DOGE, SHIBA)– Popular for speculative investments.

Key Terms to Know about Cryptocurrency:

• Blockchain: A public and a decentralized, digital ledger that records all transactions across the platform (like a digital receipt book).
• Wallet: A secure app or platform that (e.g., MetaMask) stores your crypto.
• Exchange: A platform like Coinbase or Binance where you can buy or sell any crypto.

What is Bitcoin Trading?

Bitcoin trading refers to the buying and selling of Bitcoin to make a profit. It is the most dominant cryptocurrency, Bitcoin has a significant impact on the overall crypto market. Traders use different strategies to make profit from bitcoin trading. You can earn money by using the following trading types.

• Scalping– traders hold positions for seconds to minutes. You can do multiple trades a day.
• Swing Trading– Holding BTC for days or weeks to capitalize on market swings.
• Position trading – Long-term investing plan based on Bitcoin’s potential growth.

Best Crypto Trading Strategies

• Technical Analysis– Using charts, analysis, and indicators to predict market movements.
• Fundamental Analysis– To identify a coin’s movement based on news and market trends.
• Trend Analysis – Trend is your friend. Always follow the trend and you will get a profit.

What is Spot Trading in Crypto?

Spot trading in crypto means the process of buying and selling cryptocurrencies at the current market price. When you engage in spot trading, you are directly purchasing or selling the actual asset (like Bitcoin, Eth, or other coins) at the current market price, known as the spot price.

Key Features of Spot Trading:

• You own the actual cryptocurrency, and can sell any time if it’s in profit or loss.
• The transactions are settled instantly.
• No leverage trading is involved (you trade with the capital you have in your crypto wallet).
• Spot trading has Lower risk compared to futures trading.

Example: If you buy 1 Bitcoin at $50,000 on a spot exchange, you own that Bitcoin and can hold it, sell it, or transfer it as you wish. You have complete rights over it.

What is Futures Trading in Crypto?

Futures trading in crypto is a type of trading where traders speculate on the future price of a cryptocurrency without actually owning it. Instead of buying the asset, traders enter into a currency or coin to buy or sell it at a predetermined price at a later date.

Key Features of Futures Trading:

• In future trading you don’t own the actual cryptocurrency.
• Future trading allows you to trade with leverage (borrowed funds from the exchange to increase position size).
• You can make a profit with both, like if the coin goes up or goes down.
• In future trading, you have higher risk compared to spot trading due to leverage.

Example: If you open a long position in Bitcoin futures at $50,000 with 10x leverage, and Bitcoin rises to $55,000, you make a significant profit. But if it drops to $45,000, you can face heavy losses or liquidation.

What is Margin Trading in Crypto?

Margin trading in crypto allows traders to borrow money from an exchange to trade larger positions than their actual account balance. This increases potential profits, but also you can face heavy losses if you are not an expert trader.

Key Features of Margin Trading:

• Uses leverage(e.g., 2x, 5x, or higher) to trade with borrowed funds.
• It requires collateral(an initial deposit) to open a position.
• Can be used for both long(betting on price increase) and short (betting on price decrease) trades.
• If losses exceed collateral, the exchange liquidates your position (automatically sells assets to cover losses).

Example: If you have $1,000 and use 5x leverage, you can trade $5,000 worth of crypto. If the price increases by 10%, you gain $500(instead of $100 without leverage). If the price drops by 10%, you lose $500 (and risk liquidation).

What is Automated Trading in Crypto?

Automated trading is the use of trading bots, algorithms, or AI to buy and sell cryptocurrencies based on predefined rules. It reduces the need for manual trading and operates 24/7. In automated trading, you don’t need anything manually to do.

Key Features of Automated Trading:

• Reduces emotional decision-making and executes trades instantly.
• Can be low-risk(Dollar-Cost Averaging (DCA) bots, grid trading) or high-risk (high-frequency trading).
• Works even when you’re offline or asleep.

Example: If a bot is programmed to buy Bitcoin when RSI is below 30 and sell when RSI is above 70, It will execute trades automatically without your intervention.

Which one should you use?

It depends on your account size and your choice. If you want small risk, then go for spot trading.

Choose Spot Trading If:

Looking for a low-risk, long-term investment strategy?
Want to own actual cryptocurrency assets securely?
Prefer to avoid leverage and liquidation risks?
Just starting or investing casually?

Best For: New traders, long-term holders and those who want a safe entry into crypto.

Step-by-Step: How to Start Crypto Trading

Choose a Reliable Crypto Exchange

Pick platforms like Coinbase, which is best for beginners, or Binance, which has advanced tools. Look for:

• Low fees
• Security features (2FA, cold storage)
• Supports the best crypto to buy now like Bitcoin, Eth, XRP, and Sol.

Set Up a Crypto Wallet

• Hot Wallet: Connected to the internet (e.g., Trust Wallet). Great for frequent trading.
• Cold Wallet: Offline storage (e.g., Ledger). Which is ideal for long-term crypto investments.

Learn to Read Crypto Charts

• Candlesticks: check candlesticks for reversal point.
• Support/Resistance: check support and resistance, which gives us the key bouncing back points.
• Use tools like TradingView to analyze the market and take an entry.

Understanding Crypto Market Trends

The crypto market follows three types of trend, like the forex and stock market. Market moves every time in these trends.

1. Bull Market– when any currency price is going up, that’s called a bull run.
2. Bear Market– When the market is going down side and creating lower highs and lower lows, called a bear market.
3. Sideways Market– When the market is ranging, in a certain zone and not going high or low, this is called a sideways market.

Using trend indicators like Moving Averages, RSI, and MACD can help predict price movements.

Top 5 Cryptocurrencies for Beginners (2025)

1. Bitcoin (BTC): The safest bet.
2. Ethereum (ETH): Powers smart contracts and NFTs.
3. Binance Coin (BNB): Used for trading fee discounts.
4. Solana (SOL): Fast, low-cost transactions.
5. Stablecoins: Tether (USDT) or USD Coin (USDC) to hedge volatility.

Best Cryptocurrency Trading Platforms

To start trading, you need a best trading app-platform. Here are the top cryptocurrency exchanges:

1. Binance– Best for altcoin trading and futures trading.
2. Coinbase– Best for beginners and U.S. traders.
3. Kraken– Ideal for margin trading and security.
4. Bybit– Best for leveraged trading.
5. com– A complete crypto ecosystem with staking and cashback.

Common Mistakes to Avoid in Crypto Trading

• Ignoring Risk Management– Always set stop-loss orders to protect your capital from big losses.
• Emotional Trading– Avoid impulsive trades based on fear or greed.
• Lack of Research– Always analyze coins before investing in it.
• Overleveraging– High leverage can lead to big losses.

Free vs. Paid Crypto Courses: Which is Better?

• Free Cryptocurrency Course: Great for basics (you can get a free course anywhere on YouTube). Free courses are just an overview and fewer things will be there.
• Paid Crypto Trading Course: Give deeper knowledge about trading strategies. You will always need a mentor to be a successful expert trader.

Frequently Asked Questions (FAQs)

Final Thoughts: Your Crypto Journey Starts Now

Crypto and Bitcoin trading isn’t a guaranteed way to become rich, but with the right knowledge and strategy, it’s a great way to grow your wealth. Start with small capital, and keep learning (check out our other strategies for crypto), and remember: even the pros make mistakes. Always keep learning from your mistakes.

“Trade with Confidence, Trade with Heist!” Heist Trader Academy wishing you Happy-trading!