Crypto trading strategies exist to help you make profits. According to a recent report, only 4% of the world’s population owns cryptocurrency. This is extremely surprising considering the big buzz around cryptocurrency. Experts say that the slow adoption of cryptocurrency investors is due to the fact that people do not understand cryptocurrency and also the fact that cryptocurrency trading is very volatile with many potential dangers and traps for those that are not familiar with it. To overcome the obstacles and reap long term gains from cryptocurrency trading, investors must need to crypto trading strategies that will protect them and help them make profits.
There are many methods and strategies for investing in crypto. It is not a one method fits all approach. Before investing in cryptocurrency you need to decide what type of investor you want to be. In this article we will discuss the different types of crypto trading to help you make an informed decision.
The HODL METHOD is very common in the crypto world. This method is typically used by people that do not have much time to track the markets and just want to invest for the long term. They just invest and forget about it with hopes that they will get a good return in the long run. This is a very hands-off method and is usually triggered by the media depending on what is buzzing at the time. If you want to get your feet wet with crypto while you go about your daily life then the HODL method may be for you.
The SCALPING METHOD is usually used by experienced traders. When scalping you are trading on very low time-frames up to 5 minutes. With this method you are literally trading on the market move by the minute. Your trades will be very short-term. You will enter and exit many trades within an hour. When using the scalping method you must know how to perform technical analysis. You need to know how to use and understand the trade charts while using support, resistance and moving averages to predict your market moves.
SWING TRADING METHOD
The SWING TRADE METHOD focuses on the market activity on longer timeframes over the course of a few hours. The goal of swing trading is to capture short to medium gains through the use of technical analysis.
POSITION TRADING METHOD
The POSITION TRADING METHOD is only concerned with the long-term investments usually days, weeks or months at a time. Position trading doesn’t care about daily fluctuations in price nor does it even worry about the media buzz on a daily basis. It’s basically the investor’s long-term view of the investment.
Crypto trading can be very profitable with the right level of research, experience and guidance. As you can see from the crypto trading strategies discussed in this article, everyone can invest in cryptocurrency. It is just a matter of figuring out what method works best for your lifestyle. Before making any investments, do your research. You must always have a plan for investing. An entry and exit plan. Do not let greed cloud your judgement. The crypto markets are very volatile but also very rewarding if approached correctly. If you are ready to start making money with crypto, sign up for Altcoin Trading Strategy today.