Lesson 1 – A beginner’s guide to cryptocurrency trading

Krypto und Aktien Academy von BISON

In recent years, cryptocurrencies have experienced unprecedented hype. Digital currencies, led by Bitcoin, have gained extreme popularity in just a few years. Although cryptocurrencies are increasingly becoming part of everyday life, terms such as “coin”, “blockchain”, or “wallet” remain unfamiliar to many newcomers.

What are cryptocurrencies?

Cryptocurrencies are a relatively new form of digital or virtual currency that utilizes cryptography for security, making them resistant to counterfeiting. Typically, cryptocurrencies can be exchanged and traded similarly to any other fiat currency.

Cryptocurrencies eliminate the need for intermediaries like banks in financial transactions and grants each user complete control over their money.

Why are cryptocurrencies significant?

  1. Security: Thanks to their decentralized nature, cryptocurrencies are not dependent on a central authority or middleman. This independence makes them potentially resistant to central points of attack or failure, enhancing security as manipulation or unwanted interference becomes harder.

  2. Anonymity: Transactions and accounts can be relatively anonymous, though the level of anonymity varies depending on the cryptocurrency.

  3. Transparency: Since the transactions are recorded on a public ledger, the process is transparent. By accessing the public address of any user, you can view the transactions they have made.

  4. Lower transaction fees: Traditional banking systems and online money transfers usually involve fees and exchange costs. In contrast, cryptocurrencies –– due to the miners (individuals who validate and verify transactions) being compensated by the network –– often involve little or no fees.

  5. Accessibility: Cryptocurrencies are accessible to anyone with an internet connection, providing financial inclusion to those excluded from traditional banking systems.

Risks of cryptocurrency trading

Due to the fact that the market is very volatile, trading cryptocurrencies also involves risks. So, when making investment decisions, it’s important to remember to only invest what you are prepared to lose.


Nakamoto, S. (2009). “Bitcoin: A Peer-to-Peer Electronic Cash System”. Online verfügbar unter: https://bitcoin.org/de/, zuletzt aufgerufen am 01.09.2023.

Antonopoulos, A. M. (2017). “Mastering Bitcoin: Unlocking Digital Cryptocurrencies”. O’Reilly Media.

Gandal, N., Hamrick, J.T., Moore, T., & Oberman, T. (2018). “Price Manipulation in the Bitcoin Ecosystem”. Journal of Monetary Economic, online verfügbr unter: https://econpapers.repec.org/article/eeemoneco/v_3a95_3ay_3a2018_3ai_3ac_3ap_3a86-96.htm, zuletzt aufgerufen am 01.09.2023.

Lewis, Antony (2018): The Basics of Bitcoins and Blockchains von Antony Lewis, Mango Media.

Deutsche Bundesbank Eurosystem, online unter: https://www.bundesbank.de/en/press/speeches/are-crypto-assets-a-threat-to-financial-stability–908084, zuletzt aufgerufen am 01.09.2023.


The content of this article is for informational purposes only and does not constitute financial, investment, and/or trading advice. We strongly recommend that you conduct the necessary research before making an investment, and/or trading decision. Please note that past performance does not guarantee future results.

Liability of the Börse Stuttgart Group and its subsidiaries for the article is excluded.