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What Is Trading

Trading involves buying an asset at a low price and selling it at a higher price to make a profit. In cryptocurrency trading, the goal is to buy when prices are low and sell when they are high, with the potential for profit or loss depending on market fluctuations. Professional traders can profit regardless of whether prices rise or fall.

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4 views1 page

What Is Trading

Trading involves buying an asset at a low price and selling it at a higher price to make a profit. In cryptocurrency trading, the goal is to buy when prices are low and sell when they are high, with the potential for profit or loss depending on market fluctuations. Professional traders can profit regardless of whether prices rise or fall.

Uploaded by

mccarthyeva55
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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🔹 What is Trading?

Trading means you buy something at a low price, and then sell it later at a higher
price.
The goal is simple: buy cheap, sell expensive, and keep the difference as your
profit.
In crypto trading, the thing you're buying and selling is not a product or a stock —
it's a cryptocurrency like Bitcoin, Ethereum, or many others.
Just like gold or dollars, crypto prices go up and down every day.
When the price is low, that’s the best time to buy.
When the price is high, that’s the best time to sell.

🧠 The goal of trading:


Buy when the price is low ➡️ Earn money from the difference.
Sell when the price is high ➡️

🧾 Simple Example
Let’s say:
You buy Bitcoin when the price is $100
Later, the price goes up to $150
You sell your Bitcoin at that higher price
You just made $50 profit

But, if the price goes down instead:

You buy at $100,


The price drops to $80,
You sell because you're worried it will go lower,
You lose $20 — that’s called a loss

The good part of trading with the proffesional is that you make
money in all situations - whether the price goes up or down.

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