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5 Great Books to Learn How to Trade Crypto

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Image Credit: ayo888/DepositPhotos

Finally, some good news from the markets—there are an increasing number of signs that suggest the crypto winter is over. A bull market could be in the early stages of development.

If you were an envious spectator last time around in 2017 and you’re hoping to make sure you can earn some profit this time, the best way to make sure you’re prepared is to educate yourself on how to trade crypto.

Crypto trading shares some common themes with equity trading, but there are also some key differences that you need to know about.

So, if you can’t tell an EMA from an NVT ratio, keep reading. We’re going to round up five of the best books for people who want to learn how to trade cryptocurrency.

(Warning: Crypto markets are highly volatile. Inexperienced traders could suffer significant losses. Don’t risk your future; only trade with what you can afford to lose.)

1. An Altcoin Trader’s Handbook

The author of An Altcoin Trader’s Handbook, Nik Patel, is a famous cryptocurrency trader who enjoys a large following on Twitter. You can find him at @cointradernik.

At the time he wrote the book, Patel had been involved in the crypto trading world for five years. The first part of the book details those years; the author tells stories from his personal trading experiences and imparts the knowledge he picked up.

The second part of the book is more about the practicalities of trading crypto. He explains how to balance risk in your portfolio, how to analysis micro-cap and low-cap coins, and how to maximize your accumulation and distribution of coins.

The book is available in paperback on Amazon. A Kindle version is also available.

2. Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond

Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond is less story-like than Nik Patel’s book.

The authors, Chris Burniske and Jack Tatar (who are both equity fund managers) present the information in a more educational format.

There are four key parts of the book that deal with crypto trading:

  • How to value crypto assets.
  • Managing your portfolio and managing risk.
  • How to navigate bubbles and crashes.
  • Guide to crypto exchanges, ICOs, and other market vehicles.

Burniske and Tatar also discuss their predictions for the future of crypto, as well as offering some detail on the underlying blockchain tech such as how it works and how it is created.

The book is available in hardback, audiobook, and Kindle versions.

3. Cryptocurrency Trading and Investing: Beginners Guide to Trading and Investing in Bitcoin, Altcoins, and ICOs

Cryptocurrency Trading and Investing is written by Aimee Vo. She is an ex-investment advisor at UBS and had been involved with equity trading for seven years before beginning to focus on crypto.

The book is mostly beginner-level material, though people who are starting to move into the intermediate level of skill will find useful content in the final third.

In the first part of the book, Vo dedicates considerable time to simple concepts such as how to create a crypto wallet, how to choose an exchange, and how to buy your first cryptocurrency.

In later chapters, the book starts to focus on more advanced concepts, including analyzing ICOs, trading cryptocurrency on margin, and how to perform technical analysis on coins.

You can pick up the Kindle version or the paperback release.

4. Japanese Candlestick Charting Techniques

When you log into a crypto exchange, you will be greeted by the now-familiar site of a candlestick chart. Candlestick charts show the opening price, closing price, high price, and low price for a particular time period.

The charts originated in Japan; they weren’t widely used in the west until a couple of decades ago. Japanese Candlestick Charting Techniques is written by one of the men responsible for educating western audiences—Steve Nison.

The book is approaching its 20th birthday. However, if you want to get a grasp on how to read, interpret, and analyze candlestick charts for better entry/exit points, patterns, and more profit, it’s the only book on the topic that you need to read.

Due to its age, Nison’s book is written using examples from the stock market, but the theory perfectly carries over into the crypto world.

5. The Art and Science of Technical Analysis

The Art and Science of Technical Analysis by Adam Grimes builds on the theories introduced in Japanese Candlestick Charting Techniques while adding further technical analysis skills.

Importantly, Grimes doesn’t profess technical analysis to be the right approach 100 percent of the time. In the book, he explains how to ignore then randomness and spot the patterns that can help you become a successful trader.

The book only discusses the indicators that the author believes in. For example, he uses market data to debunk the value of Fibonacci analysis, despite many traders using it extensively.

If anything, it proves how two people can look at the same chart and interpret it in an entirely different way. The more viewpoints you are aware of, the more confident you can be in the trades you’re making.

Practice Makes Perfect

As we said at the start, crypto markets are highly volatile. But at the same time, you need to practice trading in order to improve. As is so often the way, you can learn a lot more from actually doing than you can from endlessly reading books on the subject.

Therefore, we recommend that new traders start with paper accounts. They don’t involve real money, thus allowing you to hone your skills without fear of financial loss.

When you’re ready, make sure you check out our list of the best crypto exchanges and begin your trading journey.

Dan Price
Dan has a background in both finance and technology. Previously, he worked for more than five years as a private financial consultant, advising clients on single investments, fund portfolios, long-term savings, and more. Dan holds professional qualifications from the UK's Chartered Insurance Institute, including a Certificate in Discretionary Investment Management and a Diploma in Financial Planning. Dan also writes for Blocks Decoded's sister publication, MakeUseOf. He started at the company in 2014 and has gone on to hold several key positions in the organization. In mid-2017, Dan finally started to invest in crypto. He is a firm advocate of index tracking funds and automated portfolio balancing. He's currently using the Crypto20 token and Hodlbot for exposure to the top 50 coins.
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