Crypto trading is the act of buying and selling cryptocurrencies, such as Bitcoin or Ethereum, on a cryptocurrency exchange. A cryptocurrency exchange is a platform that allows users to buy, sell, and trade digital currencies.
To start crypto trading, a person needs to create an account on a cryptocurrency exchange and fund it with either fiat currency (such as USD or EUR) or with other cryptocurrencies. Once the account is funded, the user can place buy or sell orders for the desired cryptocurrency.
The price of cryptocurrencies is determined by supply and demand on the exchange, just like traditional financial markets. Traders try to make profit by buying low and selling high, or by short selling (selling high and buying low).
It’s important to note that cryptocurrency markets can be highly volatile, meaning that the prices can fluctuate rapidly and unpredictably. As with any type of financial investment, there is always risk involved, and it’s important to do your own research and understand the risks before investing in cryptocurrencies.