Cryptocurrency Trading

Cryptocurrency trading involves buying, selling, and exchanging digital assets like Bitcoin, Ethereum, and altcoins to profit from price movements. Unlike traditional markets, crypto operates 24/7, offering high volatility and frequent trading opportunities.

Key Points:

• Traded on exchanges like Binance, Coinbase, and WazirX through spot or derivatives markets.
• Driven by market sentiment, regulations, and blockchain innovations.
• Requires strong risk management due to extreme price swings.

Regulation & Compliance:

• Partially regulated market – Regulations vary by country, with some fully legalizing, restricting, or banning crypto trading.
• In India, crypto trading is taxed at 30% on profits and 1% TDS per trade, but not legally recognized as currency.
• Unlike stocks or commodities, crypto lacks investor protection laws, making regulatory updates crucial for traders.

Time Frames Used:

• Short-Term: 5-minute (M5), 15-minute (M15), 1-hour (H1) (Scalping & Intraday).
• Long-Term: Daily (D1), Weekly (W1) (Swing & Position Trading).

Example:

• A trader buys Bitcoin at $50,000 and sells at $52,500 within hours, making a $2,500 profit per BTC.