Crypto Night: Steps to Trade and Master Crypto in 2025

Getting to Know Digital Currencies - Technologies Changing the World

Digital currencies, also known as cryptocurrency, are a new form of asset existing solely in the digital world. They are created using (cryptography) technology to secure transactions and manage funds. Cryptos are not controlled by any central authority, such as a central bank, but operate in a decentralized manner on peer-to-peer networks.

The main difference of crypto is that it operates independently and can transfer funds directly between individuals without intermediaries. This system leverages blockchain technology, a distributed database maintained by multiple nodes, making transactions secure and tamper-proof.

Why Crypto Has High Potential - Key Features

Decentralization and Censorship Resistance: No entity can control or halt your transactions, reducing reliance on banks and government control.

High Security: Once a transaction is confirmed on the blockchain, it cannot be altered or deleted. Cryptography technology protects against hacker attacks.

Transparency and Trustworthiness: Public ledgers allow everyone to verify transactions, creating transparency and confidence.

Privacy: Users can transact without revealing full personal information, using only public addresses instead.

Low Fees and Speed: Cross-border transfers are easy, with lower costs than traditional banks and much faster.

Easy Accessibility: Anyone with an internet connection can access and use crypto, helping many in remote areas gain financial access.

Types of Digital Currencies - How to Choose Trading

Currently, there are thousands of cryptocurrencies. Basic knowledge of different types will help you trade wisely:

Original Bitcoin-based Cryptocurrencies: Litecoin, Bitcoin Cash – use the same technology as Bitcoin but with improvements for faster transactions and lower fees.

Smart Contracts (Smart Contracts): Ethereum, Cardano, Polkadot – have the potential to build applications, acting as a “world computer” that is decentralized.

Stablecoins (Stablecoins): USDT, USDC – pegged to fiat currency at a 1:1 ratio, suitable for reducing volatility risk.

Privacy Coins: Monero, Dash – designed to hide identities and transaction data.

Community Coins: Dogecoin – created by communities, often for entertainment and expression.

For beginners starting out, it is recommended to trade cryptocurrencies with high trading volume, such as Bitcoin, Ethereum, Ripple, Cardano, Dogecoin, Solana, and Polygon, as they have sufficient liquidity for convenient transactions.

How to Trade Crypto - 2 Paths for Beginners

Path 1: Buy and Hold Actual Cryptocurrency

This method makes you the owner of real digital coins, whether Bitcoin or Ethereum. You need to go to a (exchange) platform, register, and create your (wallet).

Advantages:

• Owns real assets
• Suitable for long-term belief in the potential
• No contracts, no leverage, limited risk

Disadvantages:

• Must wait for prices to rise to profit (In a bear market, you might wait a long time)
• Risk of hacking if stored on an exchange
• Need knowledge on securely storing wallets

Path 2: Trade Crypto via CFD (Contract for Difference)

CFD is a contract where you bet on price movements without owning the actual cryptocurrency. You don’t need to worry about wallet storage or hacking.

Advantages of CFD Trading:

• Profit from both rising and falling markets (short selling)
• Use leverage to control larger positions with less capital
• No need to store wallets
• Practice with demo accounts before real trading (demo account)

Example: If Bitcoin is at $30,000 USD and you think it will go up, buy 0.1 lot with 1:10 leverage, requiring only a margin $300 USD$600 . When the price reaches $36,000 USD, you profit (USD) at a 200% return rate.

⚠️ Be Cautious with Leverage: Leverage is a double-edged sword. It amplifies gains but also losses. Beginners should use low leverage and set good stop-loss levels.

Practical Use of Crypto in Daily Life

• Payments: Online and offline stores increasingly accept crypto.
• Cross-border Transfers: Low cost, fast, no need for banks.
• Investment and Speculation: Popular among traders seeking high returns.
• Decentralized Apps (dApps): Operating on blockchain without single control points.
• Smart Contracts: Automated, trustless agreements without third-party reliance.

Risks to Understand

High Volatility: Crypto prices can fluctuate hundreds of dollars within hours. The crypto market is small, and traders’ excitement can rapidly change prices.

Cyberattack Risks: Despite encryption, exchanges and wallets can be attacked. Use secure hardware wallets for holding crypto.

Legal and Regulatory Risks: Different countries have various policies; future regulations may restrict or ban crypto.

Technical Risks: Blockchain technology is still evolving and may have vulnerabilities or unresolved issues.

Market Manipulation: Lack of regulation means large groups of holders can coordinate to pump and dump prices.

Safe Tips for Investors

Research First: Understand how it works, study project documents, team backgrounds, and use cases.

Choose Trustworthy Platforms: Use exchanges with good security measures, 2FA, cold storage, and transparent fee structures.

Diversify Portfolio: Don’t invest all in one coin. Trade multiple assets like Bitcoin, Ethereum, and try small amounts of altcoins in demo mode.

Explore Wallet Options:

• Hardware Wallets (Ledger, Trezor): Most secure for long-term holding.
• Software Wallets (MetaMask): Convenient for frequent trading but require caution.

Stay Updated: Major news can change markets. Avoid emotional trading.

Set Stop-Loss: Before trading, decide how much you’re willing to lose. Use low leverage, especially as a beginner.

Don’t Invest Money You Can’t Lose: Crypto is highly risky. Avoid using essential funds or borrowed money.

Summary - Crypto Night for 2025

Crypto remains an attractive market worldwide in 2025, with profit potential and blockchain innovation. You can choose to trade via buying and holding or using CFDs for simplicity. Both methods have pros and cons.

The key to safe crypto investing is knowledge and risk management. Remember, this market is volatile. Set your strategies, use stop-loss orders, and don’t FOMO. With good understanding and preparation, you can navigate the crypto market confidently.

However, always remember that investing in crypto carries high risks and may not suit everyone. Study thoroughly and try trading with demo funds before committing real money when you’re ready.