HOW TO SUCCESSFULLY

START TRADING CRYPTO

A STEP-BY-STEP GUIDE
 TABLE OF CONTENTS

Crypto Exchanges to Get Started 03

Terms Cround Crypto Trading as a Beginner 04

Different Type of Orders & Related Terms 05

Support and Resistance 06

Terms Related to Support and Resistance 07

Drawing Trendlines 10

Understanding Charts 12

Learning Indicators 13

Final Thoughts 16
CREATING YOUR FIRST
TRADING ACCOUNT

Before beginning the steps to

create an account visit Coinbase
or Binance!
To open, the account simply
visit the website and click on
sign u
Add the required detail
Create Your Passwor
Upload the required
documents for Identity
Verification.

List of best Crypto

exchanges
Best Apps for Spot Trading:

Coinbase, Kraken, Binance, Gemini

Best Apps for Futures Trading:

Binance, BYDFi, GMX, Bybit

Best Apps for Derivatives Trading:

GMX, Bybit, BitMex, Binance

Best Apps for Margin Trading:

OKX, Bybit, Poloniex, Binance

Best Apps for Copy Trading:

BYDFI, BingX, Bitget

GET FREE CRYPTO SIGNALS

coincodecap.com 03
 TERMS AROUND TRADING
Order Volume: Volume indicates
how much trading activity and
interest a cryptocurrency has in a
certain time frame, usually a day.

Market Cap: It represents the total

worth of all the coins or tokens of a
cryptocurrency that are available.

Price Change: This shows the

difference between the current
price and the previous price of a
cryptocurrency, usually expressed
as a percentage.

24H High/ Low: 24h high/low are

the maximum and minimum
prices of a cryptocurrency in the
past 24 hours.

ATP: ATP means average

transaction price. It is the mean
price of a cryptocurrency
transaction in a certain time
frame.
ATH: ATH means all-time high. It
is the highest price that a
cryptocurrency has ever achieved
since its inception.

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 Different Types of Orders &
RELATED TERMS
Market Order: A market order is a type of order that executes as quickly as
possible at the current market price.

Linit Order: A limit order is a type of order that sets the maximum or minimum
price you want to trade at.

Stop Limit Order: A stop-limit order is an order that triggers a market order when
the price reaches a certain level. A stop-limit order lets you specify the stop price
and the limit price for your trade.

OCO Order: An OCO (One-Cancels-the-Other) order is a type of order that

combines two orders with the same quantity, where if one is executed, the other is
cancelled.

Stop Loss: This term means setting a price below the current price where you will
sell your crypto coins if the price goes down.

Leverage: Leverage means borrowing money from the exchange to trade more
crypto coins.

Spread: The di erence between the bid and ask prices. t represents the
ff I

transaction cost for entering a trade.

o ati it: The measure of the magnitude of price uctuations in a nancial

V l l fl fi

instrument. igher volatility implies greater price swings and potential trading
H

opportunities.

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 Support and Resistance
Support and resistance are fundamental concepts in trading
that play a crucial role in analyzing and predicting price
movements in financial markets. These concepts are
derived from the observation that prices often tend to halt,
reverse, or react strongly at certain levels.
Support is a price level where Resistance is a price level
the price of a crypto coin where the price of a crypto
tends to bounce back up when coin tends to drop back down
it goes down. It is like a floor when it goes up. It is like a
that holds the price from ceiling that blocks the price
falling further. Support can be from rising further. Resistance
seen as a sign of buying can be seen as a sign of
pressure or demand for the selling pressure or supply for
coin. the coin.

JOIN OUR TELEGRAM CHANNEL

GET FREE CRYPTO SIGNALS

coincodecap.com 06
 Terms related to Support and
Resistance
Support Level
A specific price level at which buying pressure is expected to be strong enough to
prevent the price from declining further. It acts as a floor or a "support" for the
price, leading to a potential price bounce or consolidation.
Resistance Level
A specific price level at which selling pressure is anticipated to be significant enough
to prevent the price from rising further. It acts as a ceiling or a "resistance" for the
price, potentially causing a price reversal or consolidation.

Breakout Level
A price movement that surpasses a
significant support or resistance
level, indicating a potential shift in
the prevailing trend. A breakout
above a resistance level suggests
bullish momentum, while a
breakout below a support level
implies bearish momentum.

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 Terms related to Support and
Resistance
False Breakout
A situation where the price briefly moves
beyond a support or resistance level but fails
to sustain the breakout, resulting in a
reversal back within the established range.
False breakouts can lead to whipsaw trades
and can mislead traders.

Consolidation
A period of price movement where
the asset's price trades within a
relatively tight range, often
between support and resistance
levels. It represents a temporary
equilibrium between buying and
selling pressure before a potential
breakout or reversal.

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Support-Turned Resistance
When a previously established support
level is breached, it often transforms into a
resistance level. Traders observe this shift
to determine potential selling
opportunities or areas where the price may
face obstacles.

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 Terms related to Support and
Resistance
Resistance Turned Support
Conversely, when a previously
established resistance level is broken, it
can turn into a support level. Traders
look for this shift as a potential buying
opportunity or a zone where the price
may find support in future pullbacks.

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Price Rejection
When the price approaches a support
or resistance level but fails to breach
it, resulting in a sharp reversal or a
significant reaction in the opposite
direction. Price rejections indicate the
strength of support or resistance
levels.

Multiple Time Frame Analysis

Examining support and resistance levels
across different time frames, such as
daily, weekly, or monthly charts, to gain
a comprehensive understanding of
significant price levels and their impact
on trading decisions

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 Drawing Trendlines
Drawing trendlines on crypto charts can be a valuable tool for technical analysis and
identifying potential price trends. Here's a step-by-step guide to help you draw
trendlines on crypto charts:

Identify the Trend: Determine the direction of the prevailing trend. A trend can be
either upward (bullish), downward (bearish), or sideways (consolidation). Look for
higher highs and higher lows in an uptrend, lower highs and lower lows in a
downtrend, or relatively flat price movement within a range-bound market.

Start with Swing Points: Locate significant swing points on the chart. These are
points where the price made a distinct reversal or change in direction. In an
uptrend, swing lows are potential support points, while swing highs act as potential
resistance points. In a downtrend, swing highs become potential resistance, and
swing lows act as potential support.

Draw Uptrend Line: For an uptrend, draw a line connecting consecutive swing lows.
Ensure that the trendline touches or intersects with the most significant swing lows
possible. The more times the price touches the trendline without breaking below it,
the stronger the trendline becomes.

Draw Downtrend Line: For a downtrend, draw a line connecting consecutive swing
highs. The trendline should touch or intersect with the most prominent swing highs.
The more times the price touches the trendline without breaking above it, the
stronger the trendline becomes.

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 Drawing Trendlines
Validate the Trendline: Step back and assess if the drawn trendline aligns with the
overall price movement and captures the essence of the trend. It should encompass
the majority of price action within the trend and exhibit a clear slope in the
direction of the trend.

Adjust the Trendline: If needed, make adjustments to the trendline to better align
with significant swing points and capture the overall trend. Sometimes, minor
deviations or adjustments may be necessary to accommodate additional price data.

Validate with Candlestick Patterns and Volume: Analyze candlestick patterns and
volume at or near the trendline to validate its significance. Look for bullish
candlestick patterns or increased volume at an uptrend line, and bearish patterns or
higher volume near a downtrend line.

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coincodecap.com 11
Understanding charts
Fundamental Analysis: Fundamental
analysis helps you know if a crypto coin is
worth investing in for a long time or not.

For example, let’s say Alice wants to buy

Ethereum (ETH) for a long time. She does
fundamental analysis by reading the white
paper, finding out about the team, and
looking at how much money it makes. She
thinks Ethereum is a good and helpful
project with a lot of advantages. She buys
ETH for a long time.

Technical Analysis: Technical analysis

helps you guess what the price of a
crypto coin will do next and when to buy
or sell it.

For example, let’s say Bob wants to buy

Bitcoin (BTC) for a short time. He does
technical analysis by looking at the
picture, using numbers, watching the
bars, finding lines, and seeing shapes. He
thinks Bitcoin is going up with a lot of
power. He buys BTC for the short time.

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 indicators
Relative Strength Index Overbought
RSI means a number that tells you how fast
and strong the price of a crypto coin is
changing. If the RSI of Bitcoin (BTC) is above
70, it means the price is too high and may go
down. If the RSI of BTC is below 30, it means
the price is too low and may go up. Oversold

Moving Average Convergence

Divergence
RSI means a number that tells you how
fast and strong the price of a crypto coin
is changing. If the RSI of Bitcoin (BTC) is
above 70, it means the price is too high
and may go down. If the RSI of BTC is
below 30, it means the price is too low
and may go up.

Volume Weighted Average Price

VWAP means a line that tells you the
average price of a crypto coin based on
how much it was traded. For example, if
the VWAP of Dogecoin (DOGE) is $0.2 and
the current price is $0.25, it means the
price is higher than the reasonable price
and there are more buyers than sellers. If
the VWAP of DOGE is $0.2 and the
current price is $0.15, it means the price
is lower than the reasonable price and
there are more sellers than buyers.

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 indicators
Ichimoku Cloud
The Ichimoku Cloud is a comprehensive
indicator that provides information
about support and resistance levels,
trend direction, and momentum. It
consists of several components,
including the Kumo (cloud), Tenkan-sen
(fast line), Kijun-sen (baseline), and
Chikou Span (lagging line).

Average True Range

ATR measures market volatility by
calculating the average range between
price highs and lows over a specific
period. It helps traders determine the
potential profit targets and stop-loss
levels based on the current market
conditions.

Stochastic Oscillator
The Stochastic Oscillator is a momentum
indicator that compares the closing price
of an asset to its price range over a
specific period. It helps identify
overbought and oversold conditions and
generates buy or sell signals when the
indicator crosses certain threshold levels.

On-Balance Volume
OBV measures buying and selling pressure
based on cumulative trading volumes. It
helps identify the confirmation of trends
and potential trend reversals. Rising OBV
suggests buying pressure, while falling
OBV indicates selling pressure.
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 indicators
Moving Averages
Moving averages are used to identify trends
and smooth out price data over a specific
period. The two most common types are the
Simple Moving Average (SMA) and the
Exponential Moving Average (EMA). Traders
often look for crossovers between different
moving averages as potential buy or sell
signals.

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Bollinger Bands
Bollinger Bands consist of a middle band
(usually a moving average) and two outer
bands that represent the standard
deviation of price movements. They help
identify volatility and potential price
reversal points. When the price touches
the upper band, it may indicate
overbought conditions, while touching the
lower band may suggest oversold
conditions.

Fibonacci Retracement
Fibonacci retracement levels are
horizontal lines drawn on a price chart
based on key Fibonacci ratios (e.g.,
23.6%, 38.2%, 61.8%). These levels
indicate potential support and resistance
areas where price corrections or
reversals might occur.

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 FINAL THOUGHTS
Venturing into the world of crypto trading as a beginner can be both exciting
and challenging. However, armed with the right knowledge and tools, you can
navigate this complex landscape with confidence and increase your chances
of success.

Throughout this guide, we have covered various aspects of crypto trading,

including trading strategies, indicators, exchanges, drawing trendlines, and
recognizing patterns. Let's summarize the key takeaways
Trading Strategies: Develop a solid trading strategy based on your goals,
risk tolerance, and market analysis. Consider both short-term and long-
term approaches, such as day trading, swing trading, and trend following
Indicators: Utilize technical indicators to analyze price movements and
identify potential entry and exit points. Popular indicators include moving
averages, MACD, RSI, and Bollinger Bands. Experiment with different
combinations to find the ones that suit your trading style
Exchanges: Choose a reputable cryptocurrency exchange that offers a wide
range of coins, robust security measures, and user-friendly interfaces.
Consider factors like liquidity, trading fees, customer support, and
regulatory compliance when selecting an exchange
Drawing Trendlines: Trendlines are valuable tools for identifying support
and resistance levels and gauging market sentiment. Use them to
understand the overall direction of a cryptocurrency's price and make
informed trading decisions
Patterns: Study chart patterns such as triangles, head and shoulders,
double tops/bottoms, and flags. These patterns can provide insights into
potential price reversals or continuations, aiding your decision-making
process.

Remember, crypto trading involves risks, and it's crucial to educate yourself
continuously, stay updated with market news, and manage your emotions
effectively. Start with small investments, gradually increase your position
sizes as you gain experience, and always employ proper risk management
techniques like setting stop-loss orders.

Additionally, join online communities, follow reputable traders, and engage in

discussions to learn from others and broaden your knowledge base. Here are
some of our socials to get started!

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COINCODECAP

gaurav@coincodecap.com

https://t.me/coincodecap

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