What Is Crypto Trading? A Beginner’s Friendly Guide

Published: 5 Jul 2025

Do you want to know what crypto trading is in simple words? Many people today earn money online by buying and selling digital coins like Bitcoin. This is called crypto trading. It sounds complex, but it’s easy once you understand the basics.

This guide is for beginners who want to learn what crypto trading for beginners. If you are new and looking for clear information about cryptocurrency for beginners, you are in the right place. We will explain everything in short, simple steps. No hard terms. No confusing lines. Just real, useful help.

Table of Content

What Is Cryptocurrency?
What Is Crypto Trading and How Does It Work?
1. Types of Crypto Trading
2. How Does Trading Crypto Work?
How Do I Start Crypto Trading?
1. Step-by-step guide for beginners
What Is a Crypto Trading Strategy?
1. Is Crypto Trading Legal in Pakistan?
How Much Is 1 Crypto in RS?
Risks of Crypto Trading (And How to Stay Safe)

What Is Cryptocurrency?

Cryptocurrency is a type of digital money. You can use it to buy things, sell goods, or invest and make a profit. It only exists online and is not printed like regular money.

Some popular cryptocurrencies are Bitcoin and Ethereum. These are used by millions of people around the world.

Unlike real money, cryptocurrency has no physical form. You can not touch it or keep it in your wallet. It’s also not controlled by any government or bank. This makes it free from rules that apply to regular currencies.

Cryptocurrency works through a special system called blockchain. A blockchain is like a public digital notebook that safely records every transaction. It’s shared across many computers, so no one can cheat or change the records.

What Is Crypto Trading and How Does It Work?

Crypto trading means buying a digital coin at a low price and selling it when the price goes up. This is how many people earn a profit in the crypto world. It’s like buying gold or dollars at a low rate and selling when the rate increases.

Example: Ali buys Bitcoin for 10,000 PKR. A few days later, its price went up to 12,000 PKR. He sells it and earns 2,000 PKR. This is a simple crypto trade.

Types of Crypto Trading

There are different ways people trade crypto. Choose what fits you best:

1. Spot Trading

You buy and sell crypto immediately at the current market price. It’s quick and simple.

2. Long-Term Holding (HODL)

You buy a coin and hold it for months or years, waiting for a big price increase.

3. Day Trading

You buy and sell coins multiple times a day to catch small price changes. It needs focus and quick decisions.

How Does Trading Crypto Work?

Trading starts when you create an account on a crypto exchange. You deposit money, choose a coin (like Bitcoin or Ethereum), and decide whether to buy or sell.

If you buy low and sell high, you make a profit.
If the price drops, you may face a loss.

That’s why it’s important to watch the market and trade carefully.

How Do I Start Crypto Trading?

Are you ready to begin your crypto journey, but do not know where to start? Do not worry. Starting crypto trading is easier than you think. Just follow these simple steps, even if you are a beginner.

Step-by-step guide for beginners

Choose a trusted exchange: Start by picking a well-known crypto exchange. Some popular ones are Binance, OKX, and KuCoin. These platforms are easy to use, even on your mobile phone.
Create your account: Sign up using your email or mobile number. The process is simple and only takes a few minutes.
Verify your identity (KYC): For safety, exchanges will ask for your ID (like your CNIC or passport). This step is called KYC (Know Your Customer). It helps protect your account.
Deposit money (PKR or USD): You can add money to your account using a bank transfer or through services like EasyPaisa or JazzCash (on supported platforms). Start small. Even 1,000 PKR is enough to begin.
Buy your first crypto coin: Once your money is added, go to the “Buy” section and choose a coin like Bitcoin or Ethereum. With one click, you’re now a crypto trader.

Pro Tip: If you are not ready to use real money, try a demo account first. Many platforms offer this feature, so you can practice trading with fake money. It’s a safe way to learn without any risk.

What Is a Crypto Trading Strategy?

When you start crypto trading, you need a plan. This plan is called a crypto trading strategy. It helps you decide when to buy and when to sell. Without a strategy, many beginners make quick decisions and lose money.

Here are three simple strategies that are good for beginners:

1. Buy & Hold (HODL)

This means you buy a coin and hold it for a long time. You don’t sell it when prices go up or down quickly. You wait and give it time to grow.

2. Dollar Cost Averaging (DCA)

In this method, you invest small amounts regularly.

Example: You buy crypto worth 1,000 PKR every week or month. This way, you don’t worry about price changes too much.

3. Swing Trading

This means you buy when the price is low and sell when it rises. You don’t hold the coin for long. You take small profits from price swings.

Example: You buy a coin at 500 PKR and sell it when it reaches 600 PKR.

Tip: Always avoid panic selling. Many new traders get scared when prices drop and sell too early. Be patient. Stick to your strategy.

Is Crypto Trading Legal in Pakistan?

Current Status

Crypto trading in Pakistan remains illegal.

The State Bank of Pakistan (SBP) and the Ministry of Finance reaffirmed in May 2025 that banks and financial institutions are not allowed to handle cryptocurrency transactions
Though the government has formed the Pakistan Crypto Council to explore future rules, no legal framework exists.

What You Should Do

Always research before trading in Pakistan.
If you choose to use global or peer-to-peer (P2P) platforms, know the risks carefully.
Be cautious and do not trust unofficial trading apps or unverified wallet services.

Quick Recap

Trading is still banned for Pakistani banks.
The Pakistan Crypto Council (PCC) is studying it, but no law yet.
Proceed at your own risk.

How Much Is 1 Crypto in RS?

Crypto prices change every second. Today, one Bitcoin may cost 18 lakh PKR, and tomorrow it can be more or less. That’s why it’s important to check the latest rate before buying or selling.

You can easily find the price of any cryptocurrency in PKR using Google. Just type something like:
“1 Bitcoin to PKR” or “1 Ethereum in PKR”

You can also use free apps or websites like:

Binance (PKR conversion option available)

Risks of Crypto Trading (And How to Stay Safe)

Crypto trading can help you earn a profit, but it also comes with some risks. It’s important to know these risks before you start. Let’s look at the most common problems beginners face and how to stay safe.

1. Prices Change Quickly (Volatility)

Cryptocurrency prices go up and down fast. One day, Bitcoin might be worth 10,000 PKR. The next day, it could drop to 8,000 PKR. This sudden change is called volatility. It can bring big profit, but also big loss. Always be careful when trading.

2. Scams and Fake Platforms

Some websites and apps look real but are fake. They steal your money or personal information. If a platform sounds too good to be true, it probably is. Use only trusted exchanges like Binance, OKX, or Coinbase.

How to Stay Safe in Crypto Trading

Here are some easy tips to help you stay protected:

Use 2FA (Two-Factor Authentication): This adds an extra layer of security. Even if someone knows your password, they can’t log in without the code sent to your phone.
Don’t Share Your Wallet Keys: Your wallet key is private. It works like your bank PIN. Never share it with anyone, not even friends.
Start Small: Do not invest big money at the beginning. Try with a small amount like 1,000 PKR. Learn first, grow slowly.

Conclusion

Now you know what crypto trading is and how it works in simple words. It means buying and selling digital coins like Bitcoin to earn a profit. If you are new, start small, use trusted apps, and learn step by step.

Crypto trading can be exciting and rewarding, but only if you stay informed. This guide was made for beginners to understand the basics of cryptocurrency for beginners and start their journey with confidence.

Common Questions

1. What is cryptocurrency in simple words?
Cryptocurrency is digital money. You can use it online to buy, sell, or trade. It has no physical form like coins or notes.

2. Is crypto trading risky?
Yes, it can be risky. Prices go up and down fast. That’s why it’s smart to start small and learn before you invest big.

3. Can I make a real profit from crypto trading?
Yes, many people earn a profit. But you need the right knowledge, a good plan, and patience. Profit is not always quick or easy.

4. How much money do I need to start crypto trading?
You can start with as little as 500 to 1,000 PKR. Some apps let you begin with even less. Always start with an amount you can afford to lose.