By the way, some people have asked me how to make profits from crypto, so I decided to share some trading experiences I’ve learned over time. Honestly, trading coins isn’t too complicated if you understand its true nature.

What is coin trading? Simply put, it’s buying and selling cryptocurrencies to profit from price fluctuations. For example, you buy Ethereum at $2,500, and by the end of the day, it rises to $2,600, then you sell and take the profit. That’s day trading — a form of trading within the same day.

Many people confuse coin trading with holding coins. The main difference is that holding involves buying and keeping for the long term, while trading occurs over a short period, usually from a few seconds to a few days. Someone who likes to trade continuously, taking advantage of price swings, will choose coin trading. Others who have strong faith in a particular coin will hold it long-term.

There are 5 popular trading strategies you need to know:

The first is high-frequency trading (HFT). This method exploits price changes on a second-by-second basis, using trading bots to place dozens of orders every second. This strategy requires good technology and low costs.

The second is scalping — quick trades. You place many orders within very short time frames (seconds, minutes) and repeat multiple times a day. The goal is to make small profits from each trade, but combined, they can amount to a significant sum.

The third is range trading — trading within a price zone. This approach assumes that the price will fluctuate within a certain range. When the price breaks out of that zone, it might be time to sell.

The fourth is technical analysis. You observe price charts, study market movements to determine the best times to buy or sell. This method is a bit challenging for beginners but very effective.

The fifth is based on news. You predict human reactions based on news from newspapers, Twitter, or other sources.

To gain good trading experience, you should follow these steps:

Step 1: Choose a reputable exchange. If you want to scalping or HFT, you need an exchange with good tools and low costs. If you only trade a few times a week, just pick an exchange with strong security.

Step 2: Analyze and select a suitable strategy. A coin might fit one strategy but not another. Scalpers might choose Bitcoin or Ethereum because of high volatility and liquidity. Trend traders might prefer other altcoins.

Step 3: Determine the timing for placing orders. Use technical indicators like support/resistance, trend lines, or candlestick patterns to find the best price levels.

Step 4: Store coins securely. If you trade frequently, you can keep coins in the exchange’s trading wallet. After the day ends, transfer them to a more secure storage wallet.

Here’s a real example of scalping I like: You choose Bitcoin because it has high volatility and good liquidity. Open the exchange, set the timeframe to 5 minutes, and add the Money Flow Index (MFI) indicator. When the MFI hits 100 for the third time and the next candlestick is bullish, it’s time to buy. Place a Stop Loss below the lowest point of the day, and set Take Profit after 60 minutes. This method helps you earn steady profits if done correctly.

There are some trading terms you should know: Whales are those holding large amounts of coins. Pump means a sharp price increase, dump is a sharp decrease. Hold means to keep coins long-term. Bull is a buyer in a rising market, bear is a seller in a falling market. Stop loss is a protective order to limit losses, take profit is when you want to take gains. Support is a price level where buyers push the price up, resistance is a level where sellers push it down. Long means expecting the price to rise, short means expecting it to fall. Margin is leverage.

In reality, trading experience only comes with practice. Cryptocurrency trading can bring big profits, but it also involves high risks. Before using real money, you should try a demo account to test your strategies. Create an account, deposit virtual funds, trade, and evaluate which method suits you best. Wishing you success on your coin trading journey!