Next Lesson: How To Excel As A Crypto Trader

The basic things you need to understand about trading if you want to become a successful trader

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Online trading is done in pairs:

For this lesson we will be using this currency quote or currency pair below as example.

BTC/USD = 3,800USD
Base / Quote = Exchange rate

Base currency(BTC)/Quote currency(USD) =Exchange rate (3,800USD)

For the trader:

1. BUY BTC: Means that you will spend 3,800USD to buy 1BTC

2. SELL BTC: Means that you will sell 1 BTC, and receive 3,800USD

For the exchange floor:

Bid:
A. the price at which the exchange floor will buy the base currency (BTC) from you
or
the price at which you will sell the base currency (BTC) to the exchange floor

Ask:
A. the price at which the exchange floor will sell the base currency (BTC) to you
or
B. the price at which you will buy the base currency (BTC) from the exchange floor.

There are two trading actions that an online trader executes to make profits in trading.

1. Going "long" = buy
   buy base currency and hold, when exchange rate goes up, sell base currency and make profits.

2. Going "short" = sell
   Sell base currency, and wait for the exchange rate to go down, then buy back base currency and make profits.

My trading lessons are brief, straight to the point and concise. The aim of these lessons is to build interest of readers in cryptocurrencies, by breaking down complex trading terminologies and concepts to simple terms which the layman, and newbie to trading can relate with and build sufficient interest to delve into the profitable world of online trading.

*For expert traders reading my posts, please I encourage you to scrutinize and constructively criticize my trading lessons, and where i may be erring, please correct me by dropping your comments.