Crypto Trading || Ready-to-go trade strategies
The Crypto craze is the talk of the town these days. If you are a Crypto enthusiast who is keen to know about Cryptocurrency trading, we have got you covered. This investment vehicle to revolutionize our economic lives via buying and selling the underlying coins through an exchange is decentralized, meaning they run across a network of computers and neither backed by a central authority. Unlike the conventional currencies like US dollar, cryptocurrency is not controlled by a single entity.
The Crypto currencies market is booming and Cryptocurrencies like Ethereum, Ripple, Litecoin, Bitcoin and EOS, can be traded in financial markets on cryptocurrency exchanges or expert trading platforms.
To be successful in cryptocurrency trading one needs to have an effective trading strategy. So, here we bring for you a few strategies for all levels of cryptocurrency trading.
- Swing Trading
We agree that in cryptocurrency the price movement goes up & down in a curve, so this form is beginner-friendly where you get more time to determine your trading positions as compared to day trading or scalping, where you need to make decisions in the blink of an eye. A short-term strategy that is all about identifying the fluctuating pattern & leveraging it for banking profits with the position being maintained over a period of days to weeks. In Crypto this strategy is also referred to as BTFD that means grab a digital value that has dropped in value.
The time period varies when it comes to swing trading so most swing trades involve gains over a period of a few days to weeks at a time.
As mentioned earlier, this form focusses on extremely short-term trade for profits, and usually is not recommended for beginners as crypto prices can change rapidly and one needs to know the exact exit points before entering the trade. Certainly, not an easy task for an amateur. Still in the infancy stage it requires calculation, discipline, efforts & skills that will revolutionize Binary option the way we do business in 2022. Involving the practice of making profits from small price movements, scalping is a part of the day trading where scalpers make several trades during a single day trade.
Scalping makes the most sense for traders, institutions & organisations who aim to make more profits that hold large amount of Crypto (Whales) to scalp.
- Crypto Day Trading Strategy
The day trading strategy is a game of numbers strategy which is one of the best as compared to the other markets due to extra time benefits as the crypto market is live 24/7, so this kind of trading involves buying a particular crypto coin when its value is low & selling it when the value rises. But, a major problem in dealing with this strategy is that it is impossible to predict the price movement of cryptocurrencies unless you have a crystal ball. Sometimes, it becomes tough to perform manually, so to succeed in this strategy, one can consider automating your trades using trading applications or crypto trading bots like Coinrule.
The volatility of crypto leads to many potential opportunities, and is recommended for advanced traders.
- Hodling Trading
If you are looking for long-term investment then this strategy allows you to hold crypto assets for months or a few years. HODL (Hold on for dear life) as it goes by the name is a passive trading style where traders believe in ‘cashing out big’ in the long run. So, if you are willing to take your eyes off the Crypto charts, then this one is for you. This is the longest trading cycle lasting for years. HODling doesn’t involve regular monitoring of the crypto chart, investors mainly rely on fundamental analysis. The timeline of this strategy is rather unpredictable, so one should take profits at the right time. The buy & hold strategy has additional benefits such as cutting out short-term market noise and relieving investors from bearing the psychological burden of watching markets constantly.
This strategy may not be popular for altcoins, but for BTC it sure is and best suited for stocks, commodities and major indexes.
- Arbitrage Trading Strategy
Arbitrage refers to the strategy under which a trader buys crypto in one market & capitalizes on the price difference between cryptocurrencies across various markets. This form of trading is a great option for investors looking to make high frequency trade with very low risk returns because it does not require predictive analysis.
Although, the concept of arbitrage strategy is not a new one, having existed since years in stocks, foreign exchange markets, and bonds, yet the development of quantitative systems designed to spot price differences across separate markets has put arbitrage trading out of reach of most retail traders. Recommended for traders who have prior experience in this type of trading.
- Automated Trading
Automated Trading strategy is a growing trend worth giving a shot especially if you are a novice in the trade. This form of strategy involves using algorithms or bots to complete trade apart from the mental peace that makes investment safer. With pre-defined strategies or the ones that can be set by the user themselves, minimizes the risks and increases the odds of success.
The biggest appeal of automated trade is its ability to save time. People opt for automated trading so that they can benefit from the market fluctuation even while at work or asleep. Currencies used for automated trading are Bitcoin, USDT and Ethereum.
Crypto trading is profitable, but only if done correctly as there is no fit-for-all trading style. Every trader will have a trading style and strategy that suits their individual personality and trading budget, so stick to the one best suited for you. After gaining experience you can level-up your game by diversifying with different trading strategies (for example, automation + manual swing trading) in order to be the most successful crypto trader. With no thumb rule, by utilizing the trading indicators, you can achieve high profits in cryptocurrency trading.