Guide to Creating a Database in Cryptocurrency Transactions

What you need to know before you start

Cryptocurrencies have become one of the most significant areas of investment in the modern world. Millions of people - from individual investors to large financial institutions - are participating in this market. However, for new investors, the complexity of the terminology and the speed of market fluctuations can seem daunting.

If you are planning to make your first transactions or simply want to deepen your knowledge, this guide presents the fundamental elements you need to understand - from the initial steps of registration to the various strategies and techniques for risk protection.

Understanding Cryptocurrency Transactions

Definition and Basic Principles

The trading of digital currencies essentially involves the buying and selling of cryptographic assets through specialized platforms, with the aim of generating profits. A crucial feature of digital markets is that they operate without interruption - 24 hours a day, 7 days a week - which provides participants with significant flexibility but also exposes them to continuous price fluctuations.

Today there are thousands of digital currencies available for transactions. The most well-known of these - Bitcoin (BTC) and Ethereum (ETH) - are based on blockchain network technologies that give their names to the respective currencies.

How Transactions are Conducted

There are two main directions in which an investor can move. The first is the long-term position - buying an asset with the expectation that its price will increase in the future. The second is the short-term position - selling an asset with the forecast of lower pricing.

Every investor has different characteristics - some prefer to hold their positions for long periods, while others execute trades more quickly. These differences depend on personal strategy and risk tolerance.

Transactions can be conducted between digital currencies and traditional currencies (USD, EUR) or between different cryptocurrencies. The choice of exchange and the assets you trade will significantly determine your experience.

The First Steps: Preparing to Create an Account

Creation of Fundamental Knowledge

Before you start real transactions, it is essential to take the time to learn the basic concepts. Familiarize yourself with the main scientific articles and educational materials related to cryptocurrency transactions.

Selection of a Reliable Platform

Choosing the right platform is critical. Look for exchanges that have:

• Proven track record of reliability and positive reputation
• Strong security measures
• Effective customer service
• Ease of use for beginners

For those who are new to the space, it is recommended to start with a centralized exchange. As you gain experience, you can explore decentralized platforms (DEX).

Account Creation and Security

After selecting an exchange, you will need to create an account. This includes:

• Registration of email address
• Definition of a strong password
• Acceptance of the terms and conditions of the service

Most platforms require identity verification (KYC) for security and regulatory compliance reasons. You will need to submit identification documents, proof of residence, and possibly additional information.

Start Your First Transactions

Funding your Account

After completing the account creation, the next step is to deposit funds. You can deposit traditional currencies through:

• Bank transfers
• Bank transfers
• Credit cards ( depending on the platform )

If you already hold digital currencies, you can transfer them directly to your account. However, always be cautious with transfer addresses - sending to the wrong address can result in permanent loss.

Understanding Trading Pairs

Cryptocurrencies are traded in pairs (, for example BTC/USDT, ETH/BTC). A pair shows the two assets being exchanged:

Cryptocurrency - Fiat: A pair like BTC/EUR allows you to buy Bitcoin using euros. If Bitcoin costs 92,175 euros, you will need this amount for one unit of BTC.

Cryptocurrency - Cryptocurrency: Pairs like ETH/BTC show you the price of one cryptocurrency in relation to another. For example, Ethereum may be trading at 0.02285 BTC per unit.

Important: You can purchase cryptocurrencies even in very small amounts, starting from 5 euros.

Analysis of the Order Book

The order book is a live list of all buy and sell orders submitted by investors. This gives you a snapshot of supply and demand at various price levels.

• Buy Orders (Bids): Displayed from the highest to the lowest offered price
• Sell Orders (Asks): Displayed from the lowest to the highest asking price.

Order Types

Buy Orders at Current Price

This is the simplest type of order. You buy or sell immediately at the best available price, without any delay.

Example: If Bitcoin is trading at the highest bid of $100,000 and the lowest ask of $100,100, a market order at the current price will be executed at $100,100 (lowest ask).

Limit Orders

These orders allow you to set a specific price level or better for buying or selling. They are slower, but they give you control over the exact price.

Example: If Bitcoin is trading at $100,000 but you want to buy it for $98,000, you can set a limit order. If the price drops to $98,000, the order will be executed.

Development of Personal Strategy

Creating your own strategy is more important than copying others. Every investor has different needs and risk thresholds.

A valuable tool is a transaction diary, where you record:

• Every transaction you make
• The reasoning behind every decision
• The results

This will help you recognize patterns and improve your decision-making process over time.

Popular Trading Strategies for Beginners and Experienced Traders

Day Trading - For Experts Only

Day trading involves entering and exiting positions within a single day, often within just a few hours. Investors using this strategy primarily rely on technical analysis to identify quick price movements.

Although it can be profitable, day trading is extremely stressful, time-consuming, and requires significant experience. Not recommended for beginners.

Swing Trading - Ideal for Beginners

Swing trading focuses on the medium-term trends of the market, with positions held from a few days to a few months. This allows more time for analysis and decision-making.

Compared to day trading, swing trading is much more suitable for beginners because it does not require constant monitoring and does not have the same psychological pressure.

Scalping - For Experts Only

Scalping is performed in very short time frames - a few minutes or even seconds. The goal is to take advantage of minimal price fluctuations.

This strategy is not suitable for beginners because:

• Requires excellent technical analysis
• Generates small profits per transaction
• Requires many transactions for significant profits
• High transaction frequency means higher costs

HODLing - The Most Relaxed Approach

HODLing is not technically an active trading strategy, but rather a long-term subscription. “HODLers” buy cryptocurrencies and hold them for months or years.

This approach is one of the least stressful options. It is ideal for those who:

• They believe in the long-term growth of the cryptocurrency space.
• They have a high tolerance for short-term fluctuations
• They want a “buy and forget” approach

While it requires patience, HODLing has historically proven to be a strong strategy, especially for Bitcoin.

Technical Analysis: Reading the Charts

Candlestick Charts - The Foundation of Technical Analysis

A candlestick chart represents the price movements of an asset over a specific time period. Each “candle” (candlestick) displays four critical data points:

• Open (Opening): The opening price of the period
• High (High): The highest price reached
• Low (Low): The lowest price reached
• Close (Closing): The last price of the period

The charts can have different time frames - hourly, daily, weekly, etc.

Support and Resistance Levels

These are critical price levels:

• Support (Support): A price level where demand tends to stop the price from falling. Buyers tend to intervene at this point.

• Resistance (Resistance): A price level where supply tends to stop the upward movement. Sellers tend to intervene at this point.

Technical Indicators for Identifying Opportunities

Investors use various tools to understand price movements:

• Moving Averages (Moving Averages): Show the average price over a period of time
• Bollinger Bands: Measure the volatility around a central moving average
• Ichimoku Clouds: A composite indicator that provides support, resistance, and various other information.
• Fibonacci Retracements: Help identify potential support and resistance levels

Fundamental Analysis: Evaluation of True Value

Beyond the charts, serious investors evaluate cryptocurrencies based on:

• The Technology: How innovative is the underlying network?
• The Development Team: What is their experience and background?
• Tokenomics: How is the currency distributed? What is the total supply?
• Adoption: Are individuals and companies making real use of it?

Fundamental analysis in the cryptocurrency space also includes:

• Chain Data (On-Chain Data): Number of active addresses, transaction volume, etc.
• Project Roadmaps: What are the upcoming updates?
• Community Activity: How active is the user community?

Risk Management: The Key to Long-Term Success

Regardless of the strategy you choose, risk management is crucial.

1. Limitation of Losses

The most important thing is never to engage in transactions that exceed the amount you can afford to lose.

Use these commands for protection:

• Stop Loss: Set a price level below which you will automatically sell, limiting your losses.
• Take Profit: Set a price level above which you will automatically sell, securing your profits.

2. Development of Exit Plan

Before you even start a transaction, know how you will exit it. Plan your trades and execute according to your plan.

A specific exit plan helps you to:

• Secure your profits when the market is favorable
• Prevent large losses if things worsen
• Avoid emotions that can lead to poor decisions

3. Diversification

Do not put all your funds into a single cryptocurrency. Instead:

• Hold a variety of different assets
• Balance the size of each position
• Redesign your portfolio periodically

This minimizes the risk of experiencing catastrophic losses from a single title.

4. Hedging (For More Experienced )

For those with some experience, hedging a portfolio means opening positions that move in opposite directions.

Example: You hold $10,000 in Bitcoin but are worried about lower prices. You could buy a put option that gives you the right to sell BTC at $100,000. If the price drops to $80,000, the put option limits your losses.

Concluding Thoughts

Cryptocurrency markets are extremely volatile and unpredictable. However, with continuous education and disciplined application of sound risk management principles, you can become a more skilled investor.

The main principles to remember:

• Priority in Risk Management: This is more important than any profit.
• Continuous Learning: Stay updated on the latest developments
• Skill Improvement: Learn from your mistakes
• Strategy Adjustment: Change your strategies according to the market

Remember that time and patience are powerful tools in the cryptocurrency space. With the right plan and the right mindset, you can build a sustainable investment path.