Despite its volatility, the crypto market continues to thrive and spark the interest of many people even if they are unfamiliar with cryptocurrencies. Although some initially thought it would be a passing trend, this asset class proved itself worth investing in as years passed since it has yielded big profits for many traders.
As a result, more and more people are hooked on trading with these digital coins across various parts of the world like Nigeria, India and Turkey. If you are interested in giving this a try, it helps to start with knowing the different tactics related to trading first. Know the best crypto trading strategies for beginners here at Casino Days India:
Different crypto trading strategies for beginners
While trading in cryptocurrency may seem tricky at first, you will eventually get used to it as you continue learning more about the field. Start things off by reading through the different crypto trading strategies for beginners listed below:
In range trading, you are focusing on cryptocurrencies whose market prices tend to go up and down often. The goal for this is to buy coins at a low price and sell them for a higher rate like what is mostly applied in different kinds of investments in forex and stocks. Try looking at the crypto stock chart often to know the best time to buy and sell your assets.
As its name suggests, day trading involves getting profit from the different price changes that happen within one trading day. Day traders tend to enter and exit the market multiple times to take advantage of the price changes and get small profits from it.
Often, day traders use different techniques like Technical Analysis to predict the pattern of the movement of prices and predict the future of the market. This allows traders to make best logical decisions when day trading.
As a short term crypto trading strategy, scalping involves the analysis of a crypto asset which includes its current volume and past trends as well as choosing the right entry and exit point within one trading day. Most traders that use this tactic often sell their coins before there are any signs of fluctuation in the crypto market. You have to be sharp and fast if you want to trade this way.
Swing trading is a short to medium term crypto trading strategy which involves holding your position for more than a day but not beyond a few weeks or months. Traders who use this rely on several technical factors like chart patterns and volumes when making a move. It’s an ideal tactic for beginners who want to actively trade while still having enough time to think about the best decisions within a set period.
Dollar-Cost Averaging (DCA)
Try the dollar-cost averaging (DCA) crypto strategy if you prefer to split your money into smaller amounts and get profit out of it. It’s a simple tactic that is used by many beginner traders since it only involves buying assets on certain days rather than putting all your funds into one account at the same time. Doing this lessens the effects of the market volatility in the crypto field and helps you gain more on average.
Buy and hold
Compared to other crypto trading strategies, the buy and hold tactic is a passive technique that does not involve any constant studying or checking of the market. This is done by buying a large number of coins and holding on it for a long period despite any changes to the market. If you choose this trading option, take note that this is only ideal with more stable coins with big market capitalizations like Bitcoin (BTC) and Ether (ETH) for you to yield good profits.
Arbitrage is a strategy that involves buying cryptocurrency on one market then selling it on another market with a higher price to gain profit. Most traders who use this take advantage of the certain price changes that vary across different markets. To do this, you need to open various accounts in several exchanges where you think the same coin can be traded at different prices.
Helpful tips for first-time traders
Begin your crypto trading journey by applying the following tips:
Familiarize yourself with the different crypto trading strategies
If you’re new to crypto trading, everything may seem overwhelming in the beginning, but you will eventually get used to it as you learn more about the field. Familiarize yourself with the different crypto trading strategies to find the one most suitable for you.
Refrain from limiting yourself to using only one. Instead, shift from one tactic to another whenever the situation demands it. As you get more comfortable with using these strategies, you’ll eventually see which one works best and gives you the biggest amount of profits.
Research about the market
Learning everything about cryptocurrency heavily relies on your knowledge about the market in general. Read through different guides on how to understand crypto charts to better understand how the market works.
Additionally, research everything about the market, the best cryptocurrencies to invest in and where to buy different digital coins. If you want to learn more about cryptocurrencies, try browsing similar articles related to them here at Casino Days India.
Build a balanced portfolio
Amidst concerns about the volatility of the crypto market, there are now better ways to mitigate this issue and one of which is through building a balanced portfolio. A balanced portfolio involves investing in different kinds of digital coins instead of one to beat the volatility and get better returns in the long run.
Refrain from making any trading moves based on hype
Most new traders make the mistake of basing their decisions on the different cryptocurrency news found on many social media platforms. Remember that your move should not solely rely on the hype created online since this information may not always be true. It’s best to do some studying on your own and analyze the markets yourself to make the best judgment.