Want to get into crypto trading but don't know how to start? Actually, the basic logic of virtual currency trading isn't complicated. Let me give you a quick overview.

First and foremost, the biggest difference is the opening hours. Unlike stock markets with fixed trading sessions, cryptocurrencies operate 24/7, all year round—no holidays like Labor Day, National Day, or Spring Festival. Since users are dispersed worldwide and time zones vary, market fluctuations can happen at any time. That’s why some say the crypto world never sleeps.

Secondly, there are no limit-up or limit-down restrictions. Those who have traded stocks know that A-shares have daily price limits, but cryptocurrencies do not. What does this mean? The price could be high one second and then plummet the next, or vice versa—sudden surges are also possible. This unpredictability is both an opportunity and a risk, and the thrill of crypto trading largely comes from this.

The trading units are also different. Stocks typically have a minimum purchase of 100 shares, but in crypto, you can buy as little as 0.0001 BTC, greatly lowering the barrier to entry. If you have a few hundred dollars, you can start trading, which is quite friendly for beginners.

Another key feature is T+0 trading. Stocks are T+1, meaning you buy today and sell tomorrow. But cryptocurrencies can be bought and sold at any time without restrictions, which is why short-term trading is so common in the crypto space.

Regarding order types, there are two main ways. Limit orders let you specify a price; the trade executes only when the market reaches that price. For example, if BTC is at $6,500 and you think that’s too high, you can set a buy order at $6,300. When the price drops to that level, the order automatically executes. Market orders, on the other hand, buy immediately at the current market price—fast but possibly not at your desired price.

Next is market sentiment. Bull markets are characterized by a generally optimistic outlook, with prices trending upward for a long time. Bear markets are the opposite—everyone is pessimistic, and prices keep falling. Trading strategies differ significantly between these two environments.

Stop-profit and stop-loss are essential skills. Take profit when you’ve earned a certain amount to lock in gains. Stop-loss is even more important—set a loss limit, and once triggered, close the position immediately to prevent further losses. Many people understand this in theory but hesitate to execute it in practice, which is why many traders end up losing money.

Getting trapped in a position is the worst experience. You think the price will go up, but after buying in, it keeps falling, and your losses far exceed your comfort zone. Break-even or profit only when the price rebounds, turning losses into gains. Many traders develop a gambler’s mentality after being trapped, hoping for a reversal, but often the situation worsens.

There are also overbought and oversold concepts. Overbought means the price has risen too high without fundamental support, often leading to a correction after a sharp increase. Technically, RSI over 75% indicates overbought. Oversold means the price has fallen too low, with RSI below 25%, and is likely to rebound. Simply put, when the price hits a peak, it tends to fall; when it hits a bottom, it tends to rise.

Manipulative tactics like诱多 (诱多, “fake bullish signals”) and诱空 (“fake bearish signals”) are common.诱多 involves creating a false impression of an upward trend to lure buyers, only to drop the price and trap them.诱空 is the opposite—faking a downtrend to scare sellers, then rallying to catch them off guard. These are traps traders need to watch out for.

Cutting losses, or “cutting meat,” means closing a losing position. It sounds painful, but sometimes it’s necessary. Instead of hoping for a reversal, it’s better to stop loss early to prevent bigger losses. Before you actually cut your position, the loss is only on paper; once you do, it becomes real. Many people hesitate to take this step, leading to larger losses over time.

Missing the opportunity (“踏空”) means the market moves up before you buy, or you sell and then the price continues to rise. When prices surge, FOMO (Fear of Missing Out) often kicks in, but blindly chasing highs can also lead to being trapped.

Although these concepts may seem complex at first, with some practice, they become clearer. Since crypto trading has no opening hours and operates 24/7, it requires stronger self-discipline and risk awareness. Beginners are advised to start small and learn as they go.