Unlike the traditional stock exchange, crypto trading takes place 24 hours and 7 days a week.
In order to exchange in cryptocurrency, people need to have a cryptocurrency wallet and cryptocurrency exchange to trade on. There are more than 4,000 cryptocurrencies in existence but bitcoin expert advisors suggest that beginners should take a safe step by choosing distinguished coins such as Bitcoin.
Choosing a prominent name helps to minimize the risk of the immensely volatile nature of the cryptocurrency market.
List of Top-Trading Strategies suggested by Crypto Trading Experts
A trading strategy is a typical plan for all your trading activities. A well-organized trading plan can help you reduce the financial risks and decision-making time.
Moreover, having a fine trading plan makes you prepared for the potential outcomes and determines how you should react during some unexpected circumstances in the market.
We will talk about two typess of trading strategies, that is
1: Active Trading
2: Passive Trading
The Active Trading strategy involves trading in a short period of time. This technique requires constant involvement and regular observation, which makes it a time-consuming method. These are 4 general strategies that subordinate active trading: Day trading, swing trading, Trend trading, and Scalping.
Day Trading: Day trading possibly the most prominent trading method. The word “day trading” comes from the conventional markets where the practice of buying and selling securities is done within the same day and no position is held overnight. Traditionally day trading was practiced by advanced traders and specialists, although digital trading has made it less challenging for the newcomers.
Swing Trading: Swing Trading is a type of strategy in which a trader holds positions for more than a day to few weeks. Swing traders mostly use the set of trading rules which are formulated with the help of technical and fundamental analysis. These combinations of rules or algorithms are designed to determine the ideal time to sell or buy equities and thus try to gain profit from waves of volatility.
Trend Trading: As the name suggests, the trend trading method is used to gain profits from the current market direction. Trend traders buy and hold positions for a longer period of time, usually a few weeks to a few months, depending upon the trend. However, trend traders also have to think about the probability of a trend reversal. Trend trading can be ideal for novice traders if they learn to analyze the market direction thoroughly.
Scalping: Scalping is one of the fastest strategies used by active traders. Scalpers don’t aim to exploit large moves and make profits from market trends. They focus on taking advantage of small moves that occur again and again, that is why scalpers don’t hold positions for a longer period and generally sell it quickly once a trade becomes profitable. It is an advanced trading strategy that should be used by experts having a deep knowledge of the complexity of the market.
Another, the best advice you can get is to opt for a bitcoin online courses where you can learn to use a hybrid approach combining multiple strategies. A well-devised plan by analyzing technically and fundamentally can surely help you gain advantage in the long run.
The Passive Investment is a type of strategy which is used to gain the maximum returns by decreasing the buying and selling process. Passive investment strategy requires less involvement due to which the management of the portfolios needs less time and attention. There are 2 strategies which are used under Passive investment:
Buy-and-hold strategy: It is a passive investment strategy where investors buy and hold an asset for a long time, despite market trends and fluctuations. Equities bought under this strategy don’t require active involvement and monitoring. The sole purpose behind this technique is to generate profit with minimum trading in the market. This strategy mostly requires fundamental analysis and doesn't deal with technical indicators.
Index Investing: It might be the most popular form of passive investing, where investors purchase ETFs and hold a wide market index. The main benefit of index investing is having lower trading costs because of low chances of fluctuation in index fund’s portfolios. Another advantage is that index investing is far easier to implement and often produces high after tax results which makes it tax efficient.
Cryptocurrencies have the sky-high potential to make money investing today. Following specific strategies may not generate profits all the time, as they can overlap each other at some times. So, you should create a trading journal in which you can analyze each strategy’s performance and can track what works for you and whatnot.