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Cryptocurrency Trading For Beginners- Online Course For FREE

  • Andrew Strogoff
    Cryptocurrency trading guide

    From trading basics to tactics and strategies. With the 12-part course, you’ll learn the ropes of cryptocurrency trading


Cryptocurrency Trading For Beginners- Online Course For FREE
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Many people nowadays want to try cryptocurrency trading. They create accounts on different exchanges, invest money, start trading. However, as statistics shows, only 10 percent of traders are successful. This is the main reason why we have decided to create our free online course on how to start cryptocurrency trading.

The main reasons why the majority of newcomers lose all their money or a part of their investments buying or selling cryptos are the following:

  1. Lack of basic knowledge about the structure and principles of financial market activity. The majority of beginner traders have little knowledge on how exchanges work and why the price changes.


  2. Wrong choice of cryptocurrency exchange. Those websites vary as they offer different trading conditions, types of orders, trading platforms, security level, quality of the support etc.

  3. Lack of understanding how to forecast price fluctuations. Most beginners don’t know how to predict price fluctuations and they place orders randomly, sometimes in the end of big tendencies.

  4. Absence of basic money and risk management rules. Newcomer traders often try to place orders, using all their means. They do not place stop losses and have no profit targets (which results in the absence of understanding where to fix positions).

  5. Lack of discipline. Beginners often take right decisions, but they are not disciplined to follow their trading systems.

  6. Absence of a strategy and trading plan. Professional traders always have a strategy, which helps them to find entry points. They have also a trading plan comprising their risks policy etc.

  7. Influence of different types of emotions. Novice investors are often affected by fears and greed. Those negative emotions lead them to defeat.

  8. Lack of money. This is also one of the reasons, why many beginners lose their investments. They put a small amount on their trading account, trying to increase it in a fast manner. However, they end up losing all their means as they have to break too many rules, including money and risk management to achieve their goals.

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How to get started in cryptocurrency trading

All traders have two ways to start cryptocurrency trading. The first is to open an account in any crypto exchange, to put money and to begin placing orders, looking at the charts. This way is the easiest one, but in most cases, it is a dead end scenario. Why?

Those investors have almost no chances to win as they have no skills, neither experience. There are some lucky guys, who catch serious tendencies accidently. However, they can’t earn money constantly and lose all their profit in the next trades.

Investors, who think about how to get started in cryptocurrency trading, may choose another way – meaning to begin their markets’ journey with proper education. This way is better as an investor will be prepared for different market situations and will be able to react appropriately to them.

For this purpose, we have prepared a special trading course for beginners. It includes several important topics related to trading and investments in cryptocurrencies. Here is the brief plan of what you can find there.

Trading basics

Trading is not about winning a couple of times occasionally. It is a long-term journey with many obstacles along the way. The main task of every investor is to overcome them and to earn money. Sounds easy, doesn’t it?

However, as we have already mentioned above, only 10 percent of traders are successful as the others retreat at some point in their trading careers losing their investments. When you start you need some knowledge to understand the price fluctuations, the reasons why quotes go ups and downs, find entry points and protect your capitals.

In the beginning of their career some traders try to start with strategies as they want to reach their targets faster. However, this is a wrong way as strategies is a practical aspect already. Beginners need theory in order to understand how it works in general and what factors affect price fluctuations.

We start our free online cryptocurrency trading course with several articles on how to trade in general and what are the main factors, influencing the price of Bitcoin and Altcoins. The information in those articles may seem obvious and well-known. However, it is very important as here there are the basics of trading, how it works and the aspects that are worth your attention.

Trading financial markets and cryptocurrencies is like driving a car. You may know how to start the engine, to change gears or to steer. Nevertheless, if you don’t know traffic rules, you can’t drive safely. When you deal with financial markets, you have to know the main rules to better understand what’s happening around you.

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Analysis methods

Those who have already learned basic information about markets and cryptocurrency trading may take the next step. Market fluctuations look unpredictable at first glance as the price moves up and down. There are two main analysis methods helping investors to forecast the price – technical and fundamental.

The first one helps traders to predict price fluctuations via charts. There are several types of analysis tools that you may use in order to make market forecasts. They are the following:

  1. Indicators

  2. Candlestick patterns

  3. Graphic patterns

  4. Price action

Technical analysis is illustrative as you can see the price changes and all signals on the chart. This method is rather simple as it requires no special knowledge. The only thing traders need to learn is how this or that tool works.

Fundamental analysis is more complicated as it is not illustrative. In cryptocurrency trading, investors monitor the news and try to predict their influence on different coins.

Those are brief descriptions of those methods. In our complete cryptocurrency analysis methods guide, you will learn much more about those two forecasting techniques.

Trading tips and tricks

Most beginner traders are looking for some Holy Grail when they start their career. They think there is some unique strategy or system, that will give profit in any situation. This belief leads some traders to significant losses as they try many systems and fail finally.

There are some trading secrets, that may help all newcomers significantly. We have prepared several articles on this subject. We are not going to give you a Holy Grail of trading as it doesn’t exist.  We will provide some useful advice that will help you in your everyday trading routine.

Money and risk management

There is a strong belief among beginners that a strategy giving 100 percent positive results can be found. However, professional traders know and understand that the outcome of every single position is random and can’t be predicted.

How do they make money, if they have not a 100 percent strategy to win? The secret here is proper money and risk management system. There are several ways to reduce risks in trading. We are going to provide you with some useful methods in our articles.

Money management may be compared to a family budget. Those who plan it monthly and yearly, make savings. Those who avoid to do it or fail to plan family budget properly, spend all their money and make debts.

The situation with trading is the same. An investor has to properly manage his or her money as it is his or her trading budget. If successful, he will increase his or her investments and will have an opportunity to reinvest them partially to increase his or her trading capacities. Otherwise, he risks to lose a part or all invested capitals.

As for the risk management, it goes hand by hand with money management. Remember the advice and rules that we suggest in our articles.

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Trading psychology

For some beginner traders, the psychology aspect sounds like chimera. They skip those long but interesting articles thinking that they have no useful information for them. However, the truth is that psychology plays the key role in trading.

What is happening when a trader places an order to buy or sell cryptocurrency? Several emotions affect his or her decision including fears, greed, excitement and the others. Those have ruined many trading accounts already as investors sometimes take  illogical steps influenced by his or her inner “enemies.”

Why is it very important to read those articles about trading psychology? They will help you to find out your inner “enemies” and to fight them to decrease their influence on your trading routine.

How do emotions affect investors results? Briefly, they make trader to breach self-discipline and to deviate from his or her trading system. Let’s say an investor has bought Bitcoin for $9,000. He conducted an analysis previously and found out that the price may rise towards $9,500. He sets this level as his or her target and places order.

Later, the price reaches this level, but trader becomes greedy, thinking he can earn even more. Instead of closing the position at a previously established level, he does nothing, waiting for more profits. Here there are two possible scenarios – the price may develop its progress further upwards or decline from those levels. What is the best idea here? To follow previously established trading rules.

Trading psychology articles will teach traders how to control their emotions and not letting them out in the moments of placing and closing orders.

Articles on trading

Those who learn how to make money from cryptocurrency trading, may be interested in special articles, regarding trading plans, work on errors, trading systems etc. They are very important aspect especial for beginner traders as they need to follow their trading plan in every single position.

Trading strategies

Professional cryptocurrency investors use different strategies to increase their chances to get profit. Those strategies are sets of rules to find entry points. They are very important as those systems allow traders to place orders wisely and not randomly as most beginners do.

Here you can explore trading strategies from the easiest to more complicated. Those are the samples of what you can do for your trading routine. All the systems are adopted for cryptocurrency trading.

Vocabulary

It is a separate section with the most popular and commonly used trading terms. It is important to know them as those words can be found not only in our daily reviews and different articles including this cryptocurrency trading beginners guide but also on different forums.

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How to choose a cryptocurrency exchange?

This is an article, giving readers some tips to make their cryptocurrency exchange choice easier and more effective. We are going to give you complete guides on the most popular trading websites as well.

Conclusion

As you may see, this crypto trading guide for beginners covers different aspects of trading. You will be provided with all necessary theoretical materials. Have a nice practical journey upon completion of this course and do not hesitate to ask questions.

Cover image via u.today
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DOBI Trade Review: Safe Cryptocurrency Exchange or House of Cards?

  • Alex Morris
    ⭐ Features

    Under the veneer of a safe exchange, DOBI Trade hides inflated trading volumes that need a more thorough review. Read our review to find out how safe DOBI Trade is


DOBI Trade Review: Safe Cryptocurrency Exchange or House of Cards?
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DOBI Trade General Information

DOBI Trade is a little-known Chinese exchange that started operating in May 2018. Apart from its website, the exchange also has an Android app.  

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Unlike major crypto-to-crypto exchanges, DOBI Trade only features a small number of cryptocurrencies, but new coins are being constantly added there. This digital asset trading platform has rather strict listing rules to ensure investor protection. Its listing conditions include regulatory compliance, a certain degree of innovativeness, and an active user base. On Oct. 24, for instance, DOBI Trade also listed the TaTaTu coin embraced by Hollywood’s A-lister Johnny Depp. As U.Today reported earlier, the superstar has joined a Blockchain startup in order to democratize the movie industry.

Still, while having very little assets, DOBI Trade trumps many major exchanges by the level of liquidity — this is the 5th biggest exchange in the world by daily trading volumes. Anyway, this is a rather questionable success which many experts believe to be a direct result of wash trading.

Apart from being a cryptocurrency exchange, DOBI Trade is also a cryptocurrency ATM manufacturer and even presented mining watches. Shenzhen, its parent company, puts emphasis on empowering financial technology services with the help of Blockchain technology.  
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With that being said, DOBI Trade remains just a little-known Chinese cryptocurrency exchange, and it has an abysmal 28 rating on scamadviser.com which analyzes ownership details, the location of the site, popularity, and so on. Hence, U.Today will help you determine whether DOBI Trade is really worth your attention.

Setting up a DOBI Trade Account

Creating an Account

Obviously, the first thing that you want to do is to create a new account with this website. Click the “Register” button at the top right corner of the screen to see a pop-up registration form where you have to enter your email address and come up with a secure password. Alternatively, you can register with your phone number. Once you’ve done that, make sure to open your confirmation letter with a link.
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After successfully completing the registration process and logging in to your account, you can see the home page of this exchange. The interface of DOBI Trade doesn’t have any special features that are worth pointing out — it looks like an armada of other fledgling Chinese exchanges that struggle to find their niche in the maturing market. Nevertheless, it is worth mentioning that the site is quite informative: the front page features all the recent announcements above the chart with the latest price swings. However, all the guides that are present on the site are written in broken English which is hardly understandable.

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Security

Now that we’ve covered the process of creation of an account, let’s have a look at some major security features offered by DOBI Trade. They do not require you to enable 2FA authentication, but you can enable this function in the account settings. Before that, you have to install Google Authenticator, a multifactor mobile app that generates timed codes for every log-in attempt.  
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To enjoy all the functions of the exchange, you also have to complete the know-your-customer (KYC) verification procedure. It’s a mandatory rule for all regulatory compliant exchanges that help to prevent many cases of money laundering, terrorist funding, and other illicit practices. All newly registered users have to verify their identity by uploading a photo of their passport (both front and back). The following types of documents are accepted on DOBI Trade.

  • The Chinese Mainland ID Card (for the residents of China)  

  • Passport or Foreign ID Card (for foreign users)

  • Driver’s license

Just like any other exchanges, the user who wants to get their identity verified has to hold a photo together with a piece of paper that shows the address of the exchange (dobitrade.com).

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NB: DOBI exchange usually approves accounts in 24 hours.

Those who want to engage in trading on the DOBI trade exchange have to set a trading password. Go to “My Account” and click “Set” in the corresponding section. This is an extra security measure that will help to enhance the protection of your funds.  

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Adding payment methods

DOBI Trade is a crypto-to-crypto trading platform, which essentially means that debit card payments are not allowed there. First, you have to purchase Bitcoin (or any other digital asset) on Coinbase or any other fiat-to-crypto exchange, and then you can deposit money here.

Depositing and sending cryptocurrency   

In order to deposit money, you have to go to your account setting and choose the “Deposit” option. In the newly opened window, you have to choose the currency you need in order to generate the corresponding wallet address (not all cryptocurrencies are available for payments at the moment). This is the address of the recipient that you have to enter in your cryptocurrency wallet from where you are planning to transfer the earlier specified amount of funds. It could be any fiat-to-crypto exchange where you have already bought cryptocurrency with fiat money or a cryptocurrency wallet. Once you’ve sent the money, it will be automatically deposited to your DOBI Trade account.        

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In order to send funds to your wallet, simply choose the “Withdraw” section that is situated right below the previous one. The modus operandi is similar — pick the coin that you want to withdraw and then specify the amount of payment that has to be sent to your wallet.

NB: It is mandatory to undergo the verification process if you want to withdraw funds (the detailed instruction has been given above). On top of that, you also have to set a trading password.   

How to Use DOBI Trade

Now, we will review the main page of DOBI Trade, trying to determine its main feature. The home page features all the following sections.

  • OTC (over-the-counter trading)

  • Exchange (the actual cryptocurrency exchange where you can purchase and sell cryptocurrencies)

  • User Guide (the instructions about how to use this platform)

  • Announcement (the most recent news and upgrades)

  • About Us (guides and more information pertaining to the modus operandi of the exchange)

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Their OTC trading platform is designed for purchasing cryptocurrencies with fiat money (you can also deposit cryptocurrencies). The list of available fiat currencies includes the Chinese Yuan (CNY), the Indonesian Rupiah (IDR), the Malaysian Ringgit (MYR), and the Thai Baht (THB). Similarly to peer-to-peer exchanges in the likes of Paxos and LocalBitcoins, you simply post your offer with detailed instructions. Neither the US dollar nor Euro is accepted there, so it is obviously not suitable for US traders. Hence, the website is Chinese-only, but those who still need to use this service can always resort to Google Translate. If you are interested in their over-the-counter trading solution, follow this detailed instruction which has been outlined on the DOBI Trade official Medium blog.       

In order to start trading, you have to choose the “Exchange” section. Similarly to any other cryptocurrency exchanges, it features a TradingView-powered candlestick chart that displays most recent price fluctuations. It offers many drawing tools for high-profile traders to perform an in-depth technical analysis, such as the Shiff pitchfork and the Gann Box, a rather powerful instrument for detecting recurring price cycles. Your trading history is displayed right below the graph.

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Meanwhile, you can see detailed information about the most recent price swings at the top of the screen after choosing a necessary trading pair in a drop-down window. There are three base currencies — BTC, ETH, and DOB — that form trading pairs with all available assets. According to CoinMarketCap, the EOS/BTC and ETH/BTC pairs are responsible for almost half of the exchange’s daily trading volume.
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Purchasing Cryptocurrency

If you want to purchase cryptocurrencies, pay attention to the “Buy & Sell” section at the right bottom of the page. Once you’ve chosen the trading pair you need, simply fill out the form with necessary information. First, you have to specify the price at which you want to purchase the currency and then enter the number of coins. Once you’ve created an order, you have to wait until it gets executed. The list of all orders is displayed on the right.
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DOBI Trade Fees

The Chinese exchange has the following fee structure:

Type of transaction  

BTC  Market

ETH  Market

NEW  Market

DOB  Market     

Buy

0.1 percent

0.1 percent

0.3 percent

0.2 percent

Sale

0.1 percent

0.1 percent

0.3 percent

0.2 percent

When it comes to DOBI Trade’s fee structure there is no differentiation between market makers and takers. Instead, there is a flat fee that is set at 0.3 percent. Notably, the exchange doesn’t charge any fees for deposits but has a 0.5 percent fee for withdrawals (in any currency).   

Transaction Limits & Liquidity

There are withdrawal limits in place, but the DOBI Trade guides do not specify what maximum amount of payments can be sent to a user’s wallet. In case the user exceeds these laminations, the funds are checked manually, and the withdrawal might be delayed.     

Customer support

According to their official website, they do have customer support, but you have to wait for the reply for up to three days. Hence, there is not much to be said about their customer support since it is clearly very slow. All the help requests should be sent to the exchange’s official email address — [email protected].       

Pros: Does It Bring Anything New to the Table?

Let’s jump into all the major advantages of this exchange.

  1. High level of security. DOBI Trade allegedly offers top-notch anti-fraud technologies and innovative encryption techniques. Moreover, they have strict verification rules.

  2. Liquidity. The exchange boasts a global user base and high trading volumes. However, this claim is rather misleading (U.Today will later explain why its gargantuan trading volumes shouldn’t be taken seriously).

  3. A high speed of payments. DOBI Trade claims that is it able to process up to 10,000 transactions per second.  

  4. Numerous partnerships. The fledgling Chinese exchange is trying to gain traction by teaming up with numerous Blockchain startups. One of its most recent deals was sealed with AirWallet, a decentralized wallet application. DOBI Trade has also partnered with a Chinese technology company Chuangyu which aims to propel the growth of the burgeoning Blockchain industry.

Cons: Suspicious Trading Activity and More

DOBI Trade, the exchange which at the time of writing this article only has 629 subscribers on Twitter, has recently made it to the list of top five biggest exchanges by trading volume, surpassing Huobi by about five mln. The website traffic also doesn’t help — it has an Alexa rank of 47,318 with Indian traders allegedly being its core audience. Of course, these are clear indicators of inflated trading volumes.

Similarly to BitForex and FCoin, DOBI Trade is artificially increasing its trading volumes by means of offering transaction mining rewards. Critics believe that such a controversial practice is a salient example of wash trading — when the same asset is traded multiple times to somehow inflate market activity.

On that metric, DOBI Trade, BitForex and Liquid stand out as having reported transactions many times larger than website visits (see the above chart for more details),” – Bloomberg.

In fact, DOBI Trade goes as far as surpassing all other platforms by wash trading, as the graph below shows.

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DOBI Trade has also recently made headlines because of skyrocketing Litecoin volumes on this exchange: DOBI Trade alone was responsible for 26 percent of its daily trading activity. For comparison, only a minuscule 1.6 percent of Litecoin trade was recorded on Coinbase Pro, the most popular cryptocurrency exchanges in the world. Really makes you think!  

Other major minuses of DOBI Trade include:

  • relatively high fees (as mentioned above, there is a 30 percent flat fee);

  • broken English (some of their guides are hardly readable while the OTC section doesn’t support the English language at all);

  • a small number of coins;

  • poor customer support.   

Conclusion

Any good things about DOBI Trade are easily outshined by its rampant wash trading the purpose of which is to lure gullible investors. While the exchange does offer high liquidity, it is not trusted enough to be your primal choice for a cryptocurrency trading platform since this relatively young Chinese trading platform doesn’t bring anything particularly new to the table. Our consensus is that unless you want to become their 630th subscriber on Twitter, there are far better choices.

Cover image via u.today
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