This trading FAQ for beginners gathers the questions that arrive most often through our contact page. Each answer is deliberately short. If you need the detail, follow the link to the matching guide, or look up unfamiliar words in the glossary.
Before you read the answers
None of these answers tells you what to buy or when. They describe how things work, what they cost and where people commonly go wrong. Decisions about your own money are yours, and for personal advice you should speak to a regulated financial adviser in your country.
Useful starting points: how crypto works, how forex trading works, how the stock market works and how to choose a broker.
Three habits that answer many questions
- Convert everything into money. Percentages, pips and leverage ratios are easier to misjudge than dollar amounts. Our pip, position size, margin and crypto profit calculators do the conversion for you.
- Check the source, not the summary. Rules, fees and trading hours come from regulators, exchanges and the firms' own documents. Screenshots and forum posts are a starting point at best.
- Test withdrawals before trusting balances. A number on a screen is only a promise until money can leave the platform.
If your question is not answered below, it may be covered in our scams guide or our guide to fees. You can also suggest it through the contact page.
Beginner questions
Is PyxelTrade an exchange, broker or trading app?
No. Despite the name, PyxelTrade is an independent information website. We do not offer accounts, deposits, trading, wallets or apps, and we never contact readers about investments. Anyone claiming otherwise is not connected to us.
What is the best crypto trading platform for a beginner?
There is no single answer, because availability, regulation and protections depend on your country and what you want to do. We explain how to compare platforms yourself, starting with your regulator's register, full costs and withdrawal rules, in our guide on how to choose a broker.
How much money do I need to start?
You need nothing to learn: read, use demo accounts and try the calculators. If you later decide to invest, only use money you could afford to lose entirely, especially in crypto, and remember that fees weigh more heavily on small amounts.
What is the difference between Bitcoin and USDT?
Bitcoin is a cryptocurrency with a fixed supply cap whose price floats freely and can swing sharply. USDT is a stablecoin issued by Tether that aims to stay worth one US dollar. One is used as a speculative asset, the other mostly as a dollar substitute for moving and parking money.
Which USDT network should I choose?
The one that both the sending and receiving side support and have selected. Common options are Tron (TRC20, addresses start with T) and Ethereum (ERC20, addresses start with 0x). A mismatch can mean the funds are lost.
What is leverage and why is it risky?
Leverage lets you control a position bigger than your deposit. It magnifies losses exactly as much as gains, so a small price move can wipe out your money. Retail caps in the UK and EU range from 30:1 on major currency pairs down to 2:1 on crypto CFDs.
Why do I lose money when the price hasn't moved?
Because you paid the spread and trading fees on the way in and the way out, and possibly deposit, withdrawal or overnight charges too. A trade must move in your favour by at least the total cost before it is in profit.
Are stocks safer than crypto?
Shares bought through a regulated broker come with stronger custody rules and disclosures, and their value is tied to company earnings. They can still fall sharply. Crypto adds platform risk, irreversible transfers and generally larger price swings.
How can I tell if a platform is a scam?
Check the exact firm name and web address on your regulator's register, be wary of guaranteed returns and pressure to deposit, and treat any demand for a fee or tax before withdrawal as a clear sign of fraud. Our scams guide lists more warning signs.
Do you give tips on which coins or shares to buy?
No. We do not recommend individual coins, shares or platforms, and we have no referral deals. Our guide to comparing coins shows the questions to ask about any token instead.