What is Cryptocurrency Trading

What is Cryptocurrency Trading?

What is Cryptocurrency Trading, you ask? Trading has been around a long time. Man has traded goods or services since the beginning of time. When trading crypto, you are just using a system or network that allows trade as a market, typically on an exchange.

Buy low and sell higher for a profit, easy, right? Well, there is a little more to it than that. You can actually make a profit trading crypto when the market is going down as well. You can be a long term trader and make a few long term trades that may last weeks or months.

On the other hand, you may decide to be a short term trader or even a scalper where you make multiple trades over a short period of time. A short term trader will spend a lot more time watching the markets and may take multiple trades over hours or days. These trades may last minutes, hours or a day or two at the longest.

There are many things to consider when trading crypto, but the end game is to profit. There are thousands of strategies out there and different ways to trade cryptocurrency, and ultimately you need to find what suits you. Let’s have a look into some of these different ideas and ways to trade so you can understand What is Cryptocurrency Trading and decide which path you want to go down.


Yes, HODLing (it is not misspelt) is the simplest form of trading. HODLing is simply buying a coin and holding it with no intention to sell. A HODLer hopes the coin goes up in value. Buying a coin and holding it is a straightforward trade. You are trading money for a cryptocurrency. That is a crypto trade in its simplest form.

Some people are happy to buy and hold and treat it as a long term investment. In the DeFi Space, it is also possible to borrow against the coins you hold. You can use your coins as collateral for a loan. In DeFi, you can also Lend your coins you HODL and receive guaranteed interest up to 8% APR.

You can buy crypto to HODL in a lot of different ways these days. You don’t have to use an exchange. You can even buy crypto on PayPal these days, although you will get a better deal on a reputable exchange. Some people don’t want to open accounts at exchanges, don’t want to do the KYC, and are happy to pay a premium for buying crypto elsewhere.

If you are planning to just HODL, getting the absolute best price at an exchange is not as critical as short-term trading. A platform like CAKE DeFi is an excellent, trusted option. If you want to HODL and put your crypto to work, and earn some extra coin. You can even buy right on the platform. Check out CAKE DeFI to earn truly passive income.

Long Term Trader

As opposed to a HODLer, a long term trader will sell for a profit and not hold forever. A long term trader does not have to be actively involved in the market and its movements. A longer-term trader might only scan the market once a month to see any opportunities to place a trade.

CoinSpotThere are various long-term strategies for crypto trading, but basically, you want to buy low and sell high. A longer-term trader will usually only enter the market when they think a coin is good value and can move higher. They will then sell the coin for a profit when it has gained in value.

A longer-term trader will most likely have a trading account on an exchange. This makes it easy to buy and sell when you want to trade. Fees need to be considered but are not a huge issue because there is no high volume of trades. You need an exchange to trade the coins that you want to trade and an exchange you can cash out easily on.

If you consider Long Term Crypto Trading, I recommend you look at the free Trader Cobb course. It covers all the basics that you need to get started, from opening your trading accounts & setting up your charts to basic Technical Analysis.

Another great free resource is CoinMarketCap. It is a great place to research coins and see what exchanges they are available on.

Short Term Trader

When I say short term trading, I am not referring to scalping. I am talking about using smaller time frames to place trades. Because the crypto market is open 24/7, you can trade when it suits you and as much or as little as you want. A short term trade could be anything from minutes to hours or even a few days long.

A short-term trader will look for an exchange that has the coins they want to trade and need to consider liquidity in the market because when you want to sell, you need to sell. No good getting stuck holding a coin you don’t want because you can’t sell it.

Because you may be placing regular trades, fees can add up fast and eat into profits, so fees need to be considered. You also want the ability to cash out as easy as possible with minimal fees involved. All these things need to be considered when trading.

Once again, if you are considering short term trading crypto, my number 1 recommendation is the Free trader Cobb course. The course has been developed by Craig Cobb. Craig has been a full-time professional trader for over 16 years and exclusively trading the crypto markets for the last 4 years.

Craig has experience in the market, and that is what matters when it comes to results.

You can read my Full Review here===> Trader Cobb Review – Is it worth your coin?

Different Markets & Margin

As you can see from the image on the left that there are various markets for each coin. I have used Bitcoin as an example here and done a quick search on CoinMarketCap.

You can see at the top this is the spot market, and I have only listed the top 10. There are literally hundreds. As I have mentioned, CMC is a great place to research and find what exchanges have which markets available.

I personally like to trade the Perpetual markets on the FTX exchange. I like this market because FTX has a great choice and is a reputable exchange.

I can short sell on the perpetual futures market, which means I can profit when the market falls. You can also trade with margin on FTX, which is a way to leverage your trading position.

Some consider trading with margin risky, and it can be, but once you learn to manage your risk properly you can use it to your advantage to make an even greater profit. So as you can see, there are quite a few things to consider when trading before diving headfirst into it.

Putting it All Together.

What is cryptocurrency trading? As you can see, there are many different ways and many different markets to trade on. No one is right or wrong. If you want to trade crypto, you need to find a strategy and market that suits you personally. For that reason, I highly recommend you have a look and start with the Free Trader Cobb Crypto Course.

The free course covers all the basics that you need to know, like settings up your trading accounts, using charts, basic Technical Analysis and much more. You will also figure out what sort of trader you want to be, short term, long term or even a combination of both.

Once you have completed the free course, you will have a good basic understanding of the crypto market and how it all works. Then, if it is something you want to continue with, you can go on and do the “Become a Master” course. In this paid-for course, you will learn the exact three strategies that Craig uses.

These strategies will work in any time frame in any market. You will also learn how to manage your risk, which is critical for success. A good Trading Plan and having the right Trading Psychology will also play a role in your success as a trader but don’t worry; all these factors are covered in the course.


So What is Cryptocurrency Trading, well it can be a lot of things, but at the end of the day, you are trading something of value. The fastest way to succeed as a crypto trader is to follow someone who already has that success. The someone is Trader Cobb, and the best part is you can start for free.

Trading does not have to be hard or complicated. You DO NOT need to know how to use all the technical indicators. The Trader Cobb course will give you all the basic you need to set you up for success. Trader Cobb doesn’t just sell a strategy; he provides a complete package.


Sure, you can go it alone and learn all this stuff yourself, but why not learn from someone who has the experience in the market you want. It is no guarantee for success, but it sure beats the trial and error of going it alone. I have personally done the course and use the Trader Cobb method.

So if you really want to know What is Cryptocurrency Trading, do yourself a favour and take a look at the free course from Trader Cobb and remember…

Be the Best you can Be

DeFi Dave

! DISCLAIMER: I am not a financial advisor. This is not financial advice. The content and material I provide on 2dsirecrypto.com is my opinion only and general in nature. Always do your own research before investing any money. You should always understand the risks involved in trading and investing and seek advice from licensed professionals before undertaking any investments of your own.

2 thoughts on “What is Cryptocurrency Trading?”

  1. I appreciate the way you broke it down for any beginner to understand. It is about trading, about buying and selling. You buy when it is abundant and cheap and sell Whe it is scarce and expensive. Thank you for clarifying on the terms holder, short term and long term traders. This are are basic terms that can get you confused, expecially if you are not familiar with finance 

    1. Hi 
      Good to see you appreciated the post, thanks for the reply. Trading can be a lot more than buying cheap and selling when it is expensive. You can also short the market with futures contracts, you sell when high and buy when low, I know it doesn’t sound right but trust me it is and you can make money when the market is going down.

      DeFi Dave

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