Cryptocurrency

Welcome to BitGroup.  A Website where we talk about trading and investing in cryptocurrencies.

What are CryptoCurrencies

Cryptocurrencies are virtual currencies that only exist in the digital world.  They are not backed by any country nor are they tied to any physical goods.  Their value is entirely dependent on supply, demand and the trust people place in the currency. The most popular cryptocurrency is bitcoin.

Cryptocurrencies are tracked using a public digital ledger.  This ledger shows every transaction but does not show who owns each coin.  Just the wallet that it is placed in. This makes cryptocurrencies into anonymous currencies that can be used for transactions that you do not want to be tracked.

You can read more about how each currency works in our articles about individual currencies such as Bitcoin, Ether, Monero och Dogecoin.

High Risk, High Reward

Investing in cryptocurrencies can be very profitable but it is also very high risk.  You can earn a lot of money but you can also lose a lot.  Cryptocurrencies are higher risk than most other investments due to their very high volatility.   Take a look at the chart below. Bitcoin was worth almost USD20 000 coin at the end of 2017. One year later a Bitcoin was worth USD 3500.  Those who invested at the top lost more than 80% of their investment.    Bitcoin has not returned to peak value but has had several new tops and drops since then.

The stock market is a lot lower risk than Crypto.

Investing in Crypto

You should never invest in Crypto unless you can afford to lose the money you invest.    It is impossible to know if a cryptocurrency will go up or down in value.  The market is unpredictable and often acts irrationally.  It often reacts to hype more than fundamental news.   You always risk losing money. Many investors have made large profits but most people who made large profits invested early. Many who started investing later has lost money.

I do not recommend that you invest in cryptocurrency.

Daytrading crypto

Daytrading crypto can be very profitable due to the fact that most cryptocurrencies are very volatile.  There are several different techniques that can be used to earn large profits.  Cryptocurrencies can, however, be very unpredictable and day trading crypto is therefore very high risk.  This is especially true if you trade using leverage.  Swings in the market can cause very large loses.  A position can be wiped out in minutes.

Brokers & trading platforms

There are two ways to invest in cryptocurrencies.  You can exchange a Fiar currency for a cryptocurrency. You will then own that currency until you exchange it back or exchange it for another currency.  The currency will hopefully be worth more when you exchange it back.   The other option is to buy financial instruments.based on a cryptocurrency.

If you want to buy a currency than you should use a crypto exchange. They allow you to exchange fiat currency for crypto.  There are a lot of different brokers to choose from.

If you want to invest in a crypto-backed financial instrument then you need to visit a trading platform.  Most Forex, Binary Options and CFD trading platforms allow a selection of crypto-backed products.   The exact selection of products varies between different platforms.  Examples of good trading platforms include eToro, Oanda, AvaTrade, IQ Broker and several other platforms.

Day Trading Cryptocurrency

Day trading cryptocurrency has become very popular, especially among newer investors looking for quick wins and adrenaline-packed strategies. It’s fast-paced, unpredictable, and accessible to just about anyone with a smartphone and a trading app. But behind every success story you see online, there are plenty of quiet losses—and the reality is far more complex than it looks on the surface.

For long-term profitability, it is important to understand what you’re buying, why it matters, and how it fits into your bigger financial picture. Simply chasing the ”next big altcoin” has been the downfall of many novice traders and investors. There’s huge upside, but do your homework. Manage your risk. Don’t let hype make decisions for you. And remember: you don’t have to be early, perfect, or all-in to benefit from cryptocurrency speculation. What you do need to do is be smart, calm, put in the work, and employ risk management strategies that allow you to stay in the game instead of being wiped out when the market takes a turn for the worse.

Below, we will take a look at a few examples of things that are good to understand and know more about before putting any money on the line.

What Is Day Trading?

As a currency day trader, you open and close positions within the same trading day. You never leave any positions open for longer. While a stock exchange has very clearly defined opening hours, cryptocurrency is traded 24/7, so the idea of a trading day is more vague. Generally speaking, cryptocurrency day traders will open and close positions within 24 hours, and many employ strategies where positions are opened and closed much quicker than that.

Day trading strategies typically aim to make profits from small short-term price movements, and in some cases, day traders will open and close a position withing seconds or minutes. This require high-liquidity assets, otherwise your order may not be executed at the desired price point.

Day trading is about short bursts of profit, reacting to price charts, reading momentum, and sometimes chasing hype and make the market psychology work to your advantage. It’s a game of speed and timing.

If you’re drawn to day trading, go in prepared. Understand the risks, manage your emotions, and don’t let the excitement blind you to the realities. Because in day trading, the price of impatience can be steep.

While day trading can involve buying and selling assets directly, e.g. stocks or currencies, it is also possible to use derivatives. The advent of exchange-traded funds (ETFs) has also made fund-share day trading popular. All this means that you do not actually have to buy and sell Bitcoins, Litecoins, etcetera to gain exposure the cryptocurrency exchange-rates. Instead, you can use other solutions if you prefer, and many day traders speculate on cryptocurrency price movements without ever owning cryptocurrencies.

Can You Make Money Day Trading Cryptocurrency?

Yes—but most people who try do not become successfull long-term. Success in day trading typically requires serious discipline, a dedication to learning, a well-tested system, and hours of screen time. It’s not passive income. It’s not easy money. And it’s definitely not something to do with rent money or savings you can’t afford to lose.

If you’re serious about it, start small. Practice on demo accounts. Use stop-loss orders to limit your downside and take-profit orders to limit your greed. Keep a trading journal and continously strive to improve yourself.

Crypto Day Trading vs. Crypto Swing Trading

Day Trading: Opening and closing positions within the same trading day.

Swing Trading: A swing trader keeps positions open longer than a day trader; often for weeks or months (depending on the circumstances).

Crypto Trading vs. Crypto Investing

Traders are in and out of positions comparatively fast fast, chasing short-term or mid-term price swings. Investors, on the other hand, are playing a longer game. They’re buying and holding assets they believe will grow in value over time— often years or even decades.

In addition to buying cryptocurrencies outright, investors who believe in the longer-term validity of blockchain based cryptocurrencies, smart contracts, and similar, can invest in companies in the cryptocurrency industry. Some will even invest in adjecent companies, e.g. semiconductor companies since a growth in the use of blockchain-based solutions is predicted to result in a huge demand for semiconductors.

Why Has Cryptocurrency Trading Become So Popular?

Volatility

Crypto’s extreme volatility is part of the appeal. In the stock market, a 3% move in a day is considered big. In crypto? Coins can swing 10%, 20%, even 50% in a single session. That kind of movement attracts risk-takers looking for fast returns.

24/7

Unlike the stockmarket, cryptocurrency trading is available 24/7, every day of the year. For many, this makes it easier to fit cryptocurrency trading into their schedule.

Accessability

The advent of high-quality trading platforms online have caused a boom in all kinds of retail trading and speculation, as it is now possible to get started even with a very small bankroll. In the past, trading and speculation came with much larger trading costs, and was something carried out with people who had access to quite a lot of money. Today, I can open a trading account with an online broker, deposit $100 and get started.

This is not something unique to the cryptocurreny sphere, but it is definitely one of the reasons why cryptocurrency trading is so popular.

Hype

There is no denying that the hype surrounding cryptocurrencies and blockchain technology has helped boost mainstream interest in cryptocurrency trading. Cryptocoins such as Bitcoin and Dogecoin are houshold names, institutional investors are eager to gain exposure, and the internet is filled with rags-to-riches stories about fortunes being won and lost and won again through cryptocurrency.

Cryptocurrency Day Trading is High-Risk

Day trading is incredibly risky in itself, and cryptocurrency trading is even more volatile than things like blue-chip stock day trading or EUR/USD speculation.

It is very important to have a proper risk-managment plan in place and the discipline to stick to it, even when things get emotional in the heat of the moment. Failing to make a proper risk-managment plan and adhere to it is a reason why so many novice cryptocurrency traders quickly wipe out their entire account balance. One wrong trade, one sudden drop in price, and your balance can disappear in seconds—especially if you’re using leverage. Leverage lets you borrow money from your broker to increase your trade size, and it will multiply both profits and losses. Leverage is often a contributing factor when traders go from “up big” to “liquidated” before lunch.

Emotional control is a huge factor when it comes to risk management. During the trading sessions, emotions such as greed, fear, and FOMO (fear of missing out) will try to convince you to ignore your risk management plan. Revenge trading is another big emotional mistake. Also known as chasing losses, revenge trading happens when a particularly scathing loss shakes you emotionally and make you leave the risk-managment routines behind in your efforts to win back the money you lost. Often, it involves an additoinal emotional component where the trader have a strong need to prove (to themselves or other people) that despite this recent burning loss, they are actually very smart and very skilled. Emotional trading can destroy even the best strategy. It’s one thing to have a plan. It’s another to stick to it when prices are pumping or crashing at full speed.

Another example of a major risk involved in cryptocurrency trading is broker/platform risk. Cryptocurrency is still new and largely unregulated field, without the time-honored laws, routines, and institutions that have evolved to protect stock exchange traders and safeguard the integrity of the stock market.

Compared to well established and strictly regulated stock exchanges, the crypto world can feel like the Wild West. Brokers and platforms can turn out to be scams, traders can be left without recourse when platforms or wallets are hacked, and there is also the problem with market manipulation. Whale wallets can shift prices, bots can fake volume, and smaller coins are especially prone to pump-and-dump schemes.

In some cases, traders prefer to use derivatives that give them exposure to cryptocurrency exchange-rate movements instead of buying and selling cryptocurrency outright. This way, they can stay on more well-regulated trading platforms. It will not protect you from exchange-rate manipulation, but it will protect you from the increased broker/platform risk associated with cryptocurrency.

Taxation

The law systems governing cryptocurrency are still evolving and there is still a lot of uncertainty, e.g. due to a lack of clear regulation and guiding court cases. Before you start cryptocurrency trading, it is a very good idea to find out more about what the tax situation looks like in your country, and make a plan to avoid the common pitfals.

In some countries, every cryptocurrency trade is an individual taxable event. That means if you make 100 trades in a month—even if they’re just small ones—you may have to report each one come tax season. Many new traders don’t realize this until they’re stuck trying to piece together every buy and sell from multiple platforms. And if you’re not tracking your trades properly? It can become a nightmare fast. One example of a horrible situation is when the tax agency can see that you´ve had income for the tax year, but you do not have the proper documentation to show your deductibles. You risk being taxed on profits without being permitted to do any deductions.

Which Are The Biggest Crytocurrencies?

At the time of writing, these are the largest cryptcurrencies by market cap. Some of them are not considered suitable for short-term speculative trading since they are pegged to another currency or basket of currencies. Of course, pegs can be broken, but that type of speculation is very much not recommended for novice cryptocurrency traders.

• Bitcoin BTC $1.67 trillion
• Ethereum ETH $225 billion
• Tether USDT $144 billion
• XRP XRP $124 billion
• BNB BNB $87 billion
• Solana SOL $65 billion
• USDC USDC $60 billion
• Dogecoin DOGE $25 billion
• Cardano CAR $24 billion
• TRON TRX $22 billion
• Toncoin TON $10 billion
• Chainlink LINK $9.2 billion
• UNUS SED LEO LEO $8.6 billion
• Stellar XLM $8.4 billion
• Avalanche AVAX $8 billion
• Sui SUI $7.7 billion
• SHIBA INU SHIB $7.5 billion
• Hedera HBAR $7.5 billion
• Polkadot DOT $6.5 billion
• Litecoin LTC $6.4 billion

Source: CoinMarketCap, April 2025

How to Start Trading Cryptocurrency

Buying and selling crypto can sound complicated—wallets, exchanges, gas fees, keys—it’s a lot. But once you break it down, it’s actually pretty straightforward. You don’t need to be a tech wizard, and you don’t need a ton of money. You just need to know where to start, how to stay safe, and what to avoid.

In this guide below, we will look at how you can actually buy and sell cryptocurrency on cryptocurrency exchanges. In this section of this article, we will not get into crypto-based derivatives, and we will also not look at the trading and investing that is taking place outside the exchanges (when cryptocurrency is transferred directly from the seller to the buyer).

Step 1: Pick a Crypto Exchange

Choosing a crypto exchange isn’t about finding the one with the flashiest app or catchiest marketing campaign. You want something safe, reliable, reputable, easy to use, and well-suited to your trading strategy and goals. With hundreds of exchanges out there, it’s easy to get overwhelmed if you don’t know what to look for.

Examples of important aspects:

• Is the exchange suitable for my trading strategy and risk management plan?
• Is the platform stable, free of bugs and easy to navigate?
• What would it cost to implement my specific trading strategy on this exchange?
• How are trader assets stored?

Before you pick any exchange, we suggest you scroll down a bit further on this site and read through the section where we explain in more detail how to go about to find an appropriate cryptocurrency exchange.

Step 2: Create and Verify Your Account

Once you have selected an exchange, sign up. You’ll need to provide your name, email, and probably a selfie with your ID. Yes, it’s annoying—but it’s part of the standard KYC (Know Your Customer) process. It’s required to prevent fraud and money laundering, and it’s totally normal.

Step 3: Security

Enable all security settings. Use a strong password and two-factor authentication.

Step 4: Make Deposits Possible

Once verified, link your bank account, card or other transaction method so you can move money in. Typically, cryptocurrency exchange will allow you to deposit national money (e.g. USD), so you don´t have to make a cryptocurrency transfer.

Step 3: Choose the Crypto You Want to Buy

Start simple and continously evalutate your trading strategy. Bitcoin and Ether (Ethereum) are the most stable and widely used cryptocurrencies. If you’re more adventurous, there are thousands of other coins out there—but be warned, a lot of them are just noise.

Check the current price, decide how much you want to risk, and hit “Buy.” You can usually buy a fraction of a coin—so don’t worry if Bitcoin is sitting at $40,000. You can buy $10 worth and still own a piece.

Step 4: Selling Crypto

Selling is basically the same as buying—just in reverse. Go into your exchange, select the crypto you want to sell, and choose how much.

Selling can trigger taxes. In many countries, selling crypto is a taxable event if you made a profit. Learn about applicable tax rules and keep appropriate records to avoid bad surprises down the road.

Step 5: Storage

Once you buy, your crypto sits in your account on the exchange. That’s fine short-term, and for small amounts. If you plan to hold it for a while, or if your trading is successfull and your bankroll gets big, consider moving at least part of it to your own wallet. Why? Because exchanges are prone to get hacked, freeze withdrawals, or just go down when you need them most. Do not put all your eggs in one basket. Move some of your cryptoassets to another wallet; online or offline.

A hot wallet (app-based, like MetaMask or Trust Wallet) is easy to use. A cold wallet (hardware, like Ledger or Trezor) is more secure for long-term storage.

Picking The Right Cryptocurrency Exchange

1. Make Sure It Works For You

Do not waste your time evaluating exchanges that ultimately will be out of reach for you. Some exchanges aren’t available in certain countries or states due to regulations. Binance.com, for example, doesn’t operate in the United Stats, and traders in the United States have to use Binance.US instead, which has fewer features.

Check if the platform is available to traders in your country, and if it accepts any transaction method that you are okay with using.

2. Security

If an exchange isn’t secure, nothing else matters. Hacks happen. Platforms go down. Some vanish overnight. Your best line of defense is picking a platform that takes security seriously.

Look for features like:

• Two-factor authentication (2FA)
• Withdrawal whitelists
• Cold storage for most customer funds
• Insurance coverage (some major exchanges offer limited protection)

If you’ve never heard of the exchange and it launched three months ago with zero public info about who runs it? Walk away.

3. Check What Coins They Offer

Not every exchange has every coin. If you’re planning to buy big names like Bitcoin or Ethereum, you’re fine pretty much anywhere. But if you’re looking to buy smaller altcoins, meme coins, or new projects, some platforms won’t have them.Make sure the exchange supports the assets you care about. No point signing up for something that doesn’t carry what you want to trade or invest in.

4. Understand the Fees

Fees sneak up on people—especially if you’re trading often or moving money in and out of the platform. Some exchanges (like Coinbase) charge higher fees for convenience, while others (like Binance or Kraken) are cheaper but less beginner-friendly. Know what you’re paying for.

There are usually several different fees to consider:

• Trading fees
  What you pay when buying and selling. Also known as tradition commissions.
• Spread
  The gap between the buy exchange rate and the sell exchange rate used by the exchange.
• Deposit/withdrawal fees
  What it costs to move funds in or out.

Always calculate what it would cost to employ your specific trading strategy at this exchange. An exchange that is ideal for one strategy can be all kinds of wrong for another.

5. User Interface

Make sure the user interface is easy to navigate. You shouldn’t need to click through ten screens just to buy $50 of Bitcoin. A clean, intuitive interface can be the difference between a good experience and giving up before you even start.

Coinbase is famously beginner-friendly. Gemini, Kraken, and Binance are a bit more complex and offer more advanced options, which has made the more popular among seasoned traders.

6. Read the Reviews—But Filter the Noise

Look up real user feedback as it can tell you a lot about the day-to-day experience: how fast customer support responds, how often withdrawals get delayed, how easy the app is to use, and what problems people keep running into.

Ignore random complaints about price drops—that’s not the exchange’s fault. Focus on stuff like frozen accounts, login issues, and poor support. That’s where the red flags live.

7. Customer Support

Things go wrong. You want a platform that can help when they do. Some exchanges have 24/7 chat. Others make you email a black hole and wait a week. Check what support options they offer before you sign up. You don’t want to be stuck with a frozen withdrawal and sucky customer support.

Other Ways to Buy and Sell Cryptocurrency

You do not have to go through an exchange to buy and sell cryptocurrency. Avoiding the exchange is especially common among investors who want to buy and hold cryptocurrency for a long time, while short-term traders typically need the liquidity and the tools offered by an exchange.

Some people use peer-to-peer (P2P) platforms to buy directly from others. It can be cheaper, but also riskier if you don’t know what you’re doing.

There are also crypto ATMs in some cities where you can buy with cash. They’re convenient but usually charge high fees.

A Few Tips to Keep in Mind

• Don’t panic buy or sell because of headlines or tweets. Prices in crypto are volatile. Stick to your plan.
• Always double-check wallet addresses before sending crypto. One wrong character and your money’s gone. No do-overs.
• Watch out for fees. Some exchanges charge a lot for convenience. Others are cheaper but more technical. Read before you click.

Investing Instead of Trading

You can absolutely gain exposure to the cryptocurrency world and profit from it without becoming a short-term or mid-term trader. For many, actually investing long-term in cryptocurrecy or cryptocurrency companies is the right way to go.

Cryptcurrency has gone from internet curiosity to serious investment option in just over a decade. What started with Bitcoin as a fringe experiment is now a trillion-dollar market, and you’ve probably heard the success stories—someone bought early, held tight, and now they’re “retired at 32.” Tempting, right?

Long-term investing— doing your research, buying strong assets and holding on to them through ups and downs—has proven time and again to be a more reliable way to grow wealth. It’s easier to manage and you are far less likely to burn you out. With that said, some people prefer actually feel less stressed as day traders, because they get to close all open positions before they leave the screen for the day. Yes, the actual trading session is stressful, but with no open positions at the end of the day, there is no need to lay awake at night, worrying about currency fluctuations.

However you go about it, crypturrency isn’t a one-way low-risk ticket to financial freedom. It’s risky and volatile, and the legal framworks are evolving in unpredictable ways. The trick is knowing how to approach it smartly and think about cryptocurrency as a long-term investment, not just a get-rich-quick play.

If we look at the last 10 years, there is no denying the upside potential. Bitcoin and Ether have outperformed almost every traditional asset over that time period, and delivered insane returns to early investors. While that kind of growth isn’t guaranteed going forward, the idea of decentralized finance, borderless payments, and blockchain tech has staying power.

Cryptocurrency also offers something few assets do: 24/7 access, global exposure, and the ability to own and control your investments directly. No middlemen, no banking hours. With a cold wallet, you’re the custodian.

For some, long-term investments in cryptocurency is about protecting value from inflation or broken financial systems. For others, it’s a hedge against traditional markets. And for plenty of people, it’s just curiosity—getting in early on “the next internet.”

If you decide to invest long-term in cryptocurrency, you probably need to develop some kind of strategy to block out the noise that is encouraging you to go into a panic and sell everything everyt time the exchange-rate hits a market storm. Crypto prices move fast, and wild swings of 10%, 20%, even 40% in a week aren’t unusual. If that kind of volatility makes your stomach turn, you’ll need a strategy for how to handle it and remain calm.

There’s also regulatory uncertainty to consider before making any long-term commitment. Governments around the world are still figuring out how to deal with cryptocurrency and blockchain technology. One tweet, one lawsuit, one policy shift—boom, your portfolio tanks.

And don’t forget the security side. Exchanges can get hacked. Wallets can be lost. If you don’t understand how to store your assets, you can literally lose everything with one bad click. Cryptocurrency isn’t FDIC-insured or protected by any other governmental insurance. You’re playing in a space where personal responsibility isn’t optional—it’s mandatory.

Tips For Investing Long-Term Without Losing Your Mind

• If you’re going to invest in crypto, start small. Treat it like any high-risk asset—something that could explode in value but might also crash hard. Start small and build up gradually.
• Think long-term. This market moves fast, but you don’t have to. Dollar-cost averaging—buying small amounts over time—is one of the easiest ways to reduce risk and avoid emotional decisions.
• As always, do not risk money you can not afford to lose. This is especially true for high-risk investments like cryptocurrency.
• Do not invest money that you think you might need within the next 12 months. Make sure you have an emergency account in place before you start investing in cryptocurency. Otherwise, you might be forced to panic sell at the bottom of a curve if there is an emergency in your life.
• Learn about the technology that forms the foundation of blockchain based cryptocurrencies. If you understand the foundation, and how things actually work, you are less likely to fall for crazy pitches.
• Store your crypto safely. Learn about wallets, private keys, and seed phrases. If your crypto’s sitting on an exchange, you don’t really control it. Self-custody takes more effort, but it’s the difference between control and hoping someone else doesn’t screw up.
• Diversify. Do not put everything in cryptocurrency. Spread your cryptocurrency investments over more than one cryptocurrency. Do not hold all your cryptocurrency investments in the same wallet. Do not use the same password for more than one wallet. Use dollar-cost averaging to your advantage.
• Stick with the major coins at first. Bitcoin and Ether are the closest things to “blue chips” in this space. They’ve been battle-tested through multiple market cycles. Once you’ve got a handle on those, then maybe explore smaller coins or new projects—but only after research, not just Reddit, Twitter. and FinancrBro hype.
• Be aware that a multitude of scammers are using the popularity of cryptocurrency as a lure to pull in suitable victims. Read about common financial scams; many of the modern cryptocurrency scams are just slightly adjusted versions of older tried-and-tested scams from the past. Also keep in mind that there is a strong overlap between romance scams and crypto-investment scams. That hot profile pic who matched with you on Tinder is not someone you should take financial advice from.

This article was last updated on: April 14, 2025