How To Trade Crypto: A Beginner's Guide
Cryptocurrency can make some investors understandably uneasy, and many are looking for alternative ways to utilise crypto in their strategies. This is where cryptocurrency CFD trading comes into play.

Discover more in our step-by-step to crypto CFD trading for beginners, and read on to find out how to trade crypto.
What is cryptocurrency CFD trading?
With CFD trading, purchasing and holding the crypto asset is not necessary. Instead, traders open a contract and speculate on how the asset’s price will move.
Does crypto have trading hours?
No, you can open and close positions anytime — each 24-hour period provides a useful marker for traders as they build their strategy.
How to start crypto trading for beginners - The basics
How do you go about trading in cryptocurrency when you are a beginner? Take a look at our step-by-step guide.
Crypto trading strategies
Selecting a strategy is vital as you plan how to make money when trading crypto. While there are no guarantees, the strategy will help you to build towards your longer-term targets. Explore some common crypto trading strategies below:
Strategy What is it?
Scalping
This is a short-term strategy in which positions are opened and closed in minutes. Scalping can deliver more frequent, smaller profits.
Day trading
A slightly longer-term strategy, with positions closed within the same trading day, generally a few hours after opening.
Swing trading
Positions are kept open for several days or even longer as traders seek to take advantage of swings in the crypto market.
Crypto trading derivatives
Derivatives are forms of trading that “derive” their worth from an underlying asset. In this case, the underlying asset is a cryptocurrency pair. These include crypto spot trades, futures and forwards.
Get started with crypto trading today - Sign up for a TMGM platform
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Frequently asked question

This depends on how you define these terms and your trading style. Generally, the two ways to generate potential profits from cryptocurrency are:

1. Purchase your own digital currency reserve, hold this, and wait to see if it appreciates in value.
2. Open a position with a contract for difference (CFD), and wait to see if your prediction regarding the market direction was correct.

The CFD route means traders can benefit from a crypto price movement without actually investing in the currency itself. Also, with a CFD, traders can possibly profit even if the market moves downward, provided their predictions are correct.

Simple and Weighted Moving Averages (SMAs and WMAs) provide interesting insight into the movement of a crypto market. They are some of the best indicators for crypto traders to pay attention to. The SMA is just the average price over a set period, while the WMA is a little more sophisticated, considering more recent data points to be more important than older ones.

Other valuable indicators include the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). For a more detailed look at these indicators, check out our blog.

The main risk of crypto trading is volatility. Crypto markets can decline very quickly, causing rapid losses for investors. However, with CFDs, the trader does not own any currency but speculates which way the market is headed. Traders can also implement stop-loss measures to limit these rapid declines if they do occur.
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