BITCOIN DECODED / LEARNING LIBRARY
Learn the market. Before you trade.
A beginner’s guide to cryptocurrency trading: charts, order types, risk management and a practice position sizing calculator.
How do you start learning crypto trading?
Begin with spot markets, where you buy or sell the asset itself. Learn how orders execute, what fees apply and how custody works. Then write a simple plan and practise with hypothetical trades. A simulated result is practice, not proof that a strategy will work with real money.
Trading is active decision-making under uncertainty. Investing usually involves a longer holding period. Both can lose money; neither becomes safer just because an asset has a familiar name.
What does a candlestick actually show?
Each candle records an opening price, a closing price, a high and a low for one timeframe. Its body connects the open and close; its wicks show the extremes. Volume shows trading activity on that particular venue.
A five-minute chart and a daily chart describe different intervals. Support and resistance are areas where participants previously responded—not walls that price must respect. Chart patterns and indicators can help organise observations; they cannot guarantee the next move.
Market, limit and stop orders.
A market order prioritises execution at available prices, so the final price can slip. A limit order sets your worst acceptable price but may never fill. A stop order triggers an action at a threshold; whether it becomes a market or limit order depends on the type and platform.
A stop-limit can remain unfilled in a fast move. A stop-market can fill worse than expected. Check venue rules, spreads, depth, fees and minimum sizes before using any order.
Source: Coinbase order documentation ↗Write the plan before the trade.
Record your reason for entry, the price that invalidates the idea, the intended exit and the maximum planned loss. Decide which timeframe you are following. Include fees and likely slippage. If you cannot describe the plan clearly, keep practising.
Review each practice trade in a journal: setup, entry, exit, costs and whether you followed your own rules. Separate a lucky outcome from a repeatable decision. Leverage amplifies losses and introduces liquidation risk; it is not a shortcut to learning.
Practise position sizing.
For a hypothetical long spot trade: risk budget = account size × risk percentage. Units = risk budget ÷ (entry − stop). This estimates a planned loss at the stop price, before fees and slippage.
Educational long-spot example. A stop does not guarantee the loss amount. Fees, gaps and slippage can increase it. No market data or orders are connected.
Source: Kraken position sizing explanation ↗Build knowledge around the trade.
Market knowledge works better alongside technical knowledge. Explore how Bitcoin transactions settle, what Bitcoin Core verifies, how forks differ and how to protect your wallet. Research separate projects such as BTC1 on their own evidence.