10/14/2025

12 min read

How to start trading cryptocurrencies

Crypto trading can be exciting and profitable, especially if you know the basics. For beginners, getting started with trading cryptocurrencies like Bitcoin or Ethereum often seems complex. Those who understand the mechanisms can develop targeted strategies and assess risks more effectively.

In this guide, we’ll explain the basics of crypto trading, how to trade cryptocurrencies such as coins and tokens, which platforms are suitable for beginners and what regulatory framework applies. We’ll also show you the advantages and risks and how to avoid common beginner mistakes.

Basics: Crypto trading means buying and selling coins like Bitcoin or Ether and tokens in order to profit from price movements.
Process: To get started, choose a provider or platform, create and verify your account, deposit fiat currency and begin with small amounts.
Opportunities and risks: High liquidity and global availability offer potential for profit, but strong price fluctuations and security risks can lead to losses.
Costs: Depending on the platform, crypto trading may incur fees for transactions, deposits and withdrawals, as well as possible spreads.

Simply explained: what is crypto trading?

Crypto trading refers to the active buying and selling of digital assets like Bitcoin, Ethereum or other coins and tokens via specialised platforms, exchanges or brokers. The goal is to take advantage of price movements to generate profit.

Unlike traditional financial markets, crypto trading takes place around the clock. This results in more opportunities to respond to price changes. Trading is done either against government-issued currencies such as the euro or US dollar or through direct exchange with other cryptocurrencies via an exchange.

Crypto trading can take place over very short periods, such as within a few hours, or be more long-term when a position is held for weeks or months. Regardless of the strategy chosen, a basic understanding of cryptocurrencies and market mechanisms is important in order to make informed decisions.

How does trading with crypto work?

In crypto trading, you place buy or sell orders via an exchange or broker. Current prices and trading volumes are displayed in real time. Depending on your objective, you can use different types of orders: a market order executes the purchase or sale immediately at the current price, whereas a limit order is only triggered when a specified price is reached.

Traders often base their decisions on market analysis. This includes technical indicators like moving averages, the relative strength index (RSI) or the moving average convergence divergence (MACD). Fundamental factors, such as news about projects or regulatory developments, can also significantly affect the prices of coins and tokens.

Trading cryptocurrencies generally requires continuous monitoring of the market. Many traders rely on chart analysis, price alerts or automated tools to react quickly. For beginners, it’s especially sensible to start with small amounts, get used to the process and test the functions of the chosen platform.

Regulatory framework and taxes in crypto trading

Those who engage in crypto trading operate in a heavily regulated environment that has changed significantly in recent years. In the European Union, the Markets in Crypto-Assets regulation (MiCA) creates a unified framework for handling coins and tokens for the first time. The regulation was adopted in June 2023 and will be fully applicable from the end of December 2024.

With MiCA, platforms such as exchanges and brokers offering crypto trading must hold an EU-wide valid licence and meet clear standards for security, transparency and consumer protection. This includes verifiable risk warnings, measures against market abuse and requirements for the custody of digital assets. Additional requirements apply to specific types of tokens, such as asset-referenced tokens or e-money tokens, including fixed liquidity reserves and a registered office within the EU.

Crypto tax is also an important aspect of the framework. Profits from trading may be subject to tax depending on the type of transaction, holding period and the applicable rules in your country of residence. Keeping a complete record of all trades helps ensure you meet your tax obligations correctly.

Learning crypto trading: a step-by-step guide

Getting started with crypto trading works best with a clear plan. Instead of investing large amounts straight away, you should first understand the basics. Learn how to choose a suitable platform and get familiar with the main functions, as coins and tokens can be traded in different ways – depending on strategy and experience.

The following steps will show you how to set up your account, prepare for trading and carry out your first transactions. This way, you can enter the world of crypto trading with confidence and structure.

Choosing the right trading platform

Choosing a secure and regulated platform is crucial when starting crypto trading. Look out for features such as two-factor authentication, encrypted data transmission and a transparent fee structure. A user-friendly interface, real-time price displays and a wide selection of coins and tokens make getting started easier. Also check which payment methods are available and how quickly deposits and withdrawals are processed.

The Bitpanda platform offers you an intuitive user interface, a large selection of cryptocurrencies and high security standards – regulated by European financial market authorities.

New to Bitpanda? Register your account today!

Create and verify your account

Once you've chosen a platform, you'll need to create an account. To do this, enter your personal information and choose a secure password. Make sure the platform offers security features such as two-factor authentication to protect your crypto trading as effectively as possible.

Next comes verification. This legally required process – also known as “Know Your Customer” (KYC) – is designed to prevent money laundering and fraud. Typically, you'll upload a valid form of ID and confirm your identity via a video identification process or a selfie. Depending on the platform, you may also need to provide proof of address.

Gather information and conduct research

Before you start crypto trading, it’s wise to get an overview of the relevant coins and tokens. This includes knowing a project’s purpose, understanding potential applications and assessing the size and activity of the community. Market capitalisation and trading volume provide further insights into liquidity and market position.

Reliable sources of information are helpful for balanced assessment. Official project websites, whitepapers and reputable crypto news sites offer good insight into technical fundamentals and current developments. Price charts and rankings on platforms like CoinMarketCap also help track trends and market movements. Basic knowledge of market mechanisms and indicators in crypto trading can support your learning. Price trends, chart patterns and news events are among the factors that traders frequently consider in their decisions.

The Bitpanda platform provides not only a wide range of cryptocurrencies but also real-time market data and price trends that can support your own analysis.

Start trading crypto

After setting up and verifying your account, you can deposit funds in fiat currencies such as euros or US dollars. Platforms often offer several deposit methods such as bank transfer, credit card or other payment services. Be aware of possible fees and processing times. Then select the cryptocurrency you want to trade on the exchange. In the order entry field, you specify the amount and order type.

For beginners, starting with smaller amounts is ideal to learn about the functions and gain initial experience. Observe price trends, try out different order types and gain confidence in trading crypto. Many platforms display real-time price data and offer simple interfaces, making it easy for newcomers to trade their first coins or tokens quickly.

Advantages and risks of crypto trading with Bitcoin or other crypto coins

Crypto trading can offer profit opportunities but also involves the risk of loss. Trading Bitcoin, Ether or other coins and tokens takes place in a fast-moving market with sometimes significant price fluctuations. A clear overview of the possible advantages and risks helps you assess your own approach more effectively.

Advantages of crypto trading

The advantages of crypto trading include:

24/7 market: Cryptocurrencies like Bitcoin or Ethereum can be traded at any time, as the market is open around the clock.
Wide selection of assets: Traders can choose from a variety of coins and tokens, from established projects to new market entrants.
High liquidity in top coins: Major cryptocurrencies usually have high trading volumes, which facilitates quick transactions.
Low entry barriers: Even small amounts in fiat currencies like euros or US dollars are sufficient to start crypto trading.
Diverse strategies: From short-term trading to long-term holding, there are various approaches depending on your goal.
Global reach: Crypto trading is possible in most countries and opens up global opportunities – while some smaller nations ban or restrict trading, these are the minority worldwide.
Technological innovation: Blockchain technology enables transparent transactions and new use cases in finance.

Risks of crypto trading

The risks of crypto trading include:

High volatility: Prices of coins and tokens can change rapidly within a short time.
Loss of invested capital: Incorrect assessments or sudden price movements can lead to financial losses.
Security risks: Poorly secured accounts or platforms can be targeted by cyberattacks such as hacking.
Lack of deposit protection: Unlike traditional bank deposits, many platforms offer no legal protection.
Emotional decisions: Panic selling or buying out of fear of missing out (FOMO) can negatively affect your trading strategy.
Regulatory changes: New rules may restrict access to certain coins or platforms.
Technical issues: Platform outages or delays can disrupt transactions.

What fees are incurred when trading cryptocurrencies?

Depending on the provider, platform and type of transaction, various fees may apply when trading crypto. The most common is the transaction fee, which is charged for every purchase or sale of coins and tokens. It's usually calculated as a percentage of the traded amount and typically ranges between 0.1% and 1%, though it may be higher depending on the exchange or asset. Some providers use a “maker-taker” model, where the fee also varies by order type.

You may also face deposit and withdrawal fees, such as for bank transfers, credit card payments or withdrawing cryptocurrencies to an external wallet. For fiat currencies like euros or US dollars, these costs often depend on the payment method used.

Another cost factor can be the difference between the buy and sell price, known as the “spread”. This gap isn’t always immediately visible but directly affects the effective transaction price. Some platforms also charge fees for special functions, such as setting stop orders or using leverage. Swapping between different cryptocurrencies may also incur additional costs.

If you trade regularly, it’s important to understand the fee structure of your chosen platform in detail. Transparent cost information helps you realistically assess your actual returns in crypto trading.

Conclusion: How to start crypto trading properly prepared

Crypto trading offers many opportunities but requires knowledge and careful preparation. A successful start begins with choosing a regulated platform, understanding the basics of crypto trading and having a suitable strategy. If you want to succeed long-term when trading coins like Bitcoin or Ether and tokens, you should monitor the market, continue learning and consistently apply security measures.

The crypto market changes quickly. Continuous learning, adaptability and a mindful approach to opportunities and risks create a solid foundation for continually developing your own trading strategy.

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Frequently asked questions about crypto trading

Here we answer the most frequently asked questions about crypto trading with Bitcoin and other coins and tokens.

How can I learn crypto trading?

If you want to start trading crypto, the process usually takes just a few steps:

Choose a platform for your crypto trading, such as Bitpanda.
Set up your account and complete the verification.
Use a demo version or start by investing small amounts.
Learn the basic functions of your platform.
Develop a simple trading strategy that matches your personal investment goals.
Observe your first crypto trades and learn from them.

Which strategies work best for crypto trading?

The best strategy for crypto trading depends on factors such as risk tolerance, available capital and the time you can invest. Common approaches include:

Day trading: Multiple trades are executed within a single day to take advantage of short-term price movements.
Swing trading: Positions are held over several days or weeks to benefit from mid-term trends.
HODLing: Coins or tokens are held for a long time to benefit from potential value increases.
Cost average effect: A long-term strategy in which a fixed amount is regularly invested in cryptocurrencies to balance out price fluctuations and reduce the average purchase price.

Is crypto trading safe?

The safety of crypto trading can be divided into two areas: technical security and market risk. You can do a lot to protect yourself technically, such as choosing a regulated platform, using two-factor authentication and securely storing your wallet access data and passwords.

Despite such measures, crypto trading with coins and tokens is subject to a volatile market. Prices can change rapidly, and this risk cannot be completely eliminated.

What are common beginner mistakes in crypto trading and how can I avoid them?

Common mistakes include emotional decisions, such as panic selling during falling prices or spontaneous purchases out of fear of missing an opportunity (FOMO). A clearly defined approach can help reduce impulsive behaviour.

Another risk for beginners is investing all your money in a single coin or token. A broader selection reduces dependence on individual projects. Using leverage without experience can lead to disproportionately large losses. Lack of research and failing to observe tax obligations are also among the most common pitfalls in crypto trading.

Is crypto trading worth it?

Whether crypto trading is worth it depends on personal factors such as experience, risk tolerance and available capital. The high price volatility of coins and tokens can offer profit opportunities but also carries significant risks of loss. If you're willing to engage with market mechanisms, learn continuously and manage risk consciously, you can benefit from trading – but there's no guarantee of success.