Definition
Trading is a financial activity where assets are bought and sold in markets, typically in response to changing prices. In the context of crypto, trading involves exchanging cryptocurrencies for other digital assets or for traditional currencies like dollars or euros. It is based on the idea that asset prices move over time, creating opportunities to enter and exit positions at different price levels.
As a concept, trading covers many styles and timeframes, but always centers on the exchange of value between willing participants. It relies on markets that match buyers and sellers, record transactions, and display current prices. In crypto, this can happen on centralized platforms or decentralized protocols, but the core idea of trading remains the same: swapping one asset for another under agreed terms.
Context and Usage
In everyday usage, trading often refers to actively participating in markets, watching prices, and deciding when to buy or sell. In crypto, the term can apply to simple, occasional exchanges as well as more frequent, systematic activity. It is distinct from merely holding assets, because trading implies a willingness to change positions based on market conditions.
The concept of trading underpins how liquidity forms in crypto markets and how prices are discovered. It connects individual participants, institutional actors, and market infrastructure into a continuous process of value exchange. Whether done manually or through automated tools, trading remains the fundamental mechanism by which crypto assets move between market participants.