Top 5 Cryptocurrency Trading Strategies

2021-2-25 12:01

Cryptocurrencies have been the talk of the town lately, with everybody and his uncle sharing how their Bitcoin and Altcoin endeavours have turned profitable. Now if you’re reading this, you’re probably wondering how come your trading activity hasn’t been as exciting as everyone else’s. Fear not – by finding the right strategy for you, you’ll soon be able to start trading like a pro.

The best part? It doesn’t take much to learn how to trade Bitcoin and other cryptocurrencies. All you’ll need is a reliable wallet provider and an excellent broker offering fast execution, low spreads and commissions. And, if it offers a free demo account, all the better! Remember that profits and losses are both possible outcomes when it comes to trading, but if you approach the market smartly, your profits will outweigh your losses by far.

Let’s begin. These are the top 5 trading strategies for cryptocurrency traders:

1. Fundamental Analysis

Fundamental analysis uses economic indicators to determine when to exit and enter the markets. A technique that has been used by traders all over the world for decades, fundamental analysis is based on news reports and announcements which often have a direct, immediate and lasting impact on market prices. Moreover, cryptocurrency news can come at any time, without prior notice.

Traders should know what news events can impact the asset they’re trading on, have an efficient system to be notified of breaking news stories, and be prepared to open a position as soon as the news is announced. Naturally, positive news will result in bullish sentiment for cryptocurrencies and negative news may see prices slipping. Since the prices of Bitcoin and other cryptocurrencies are strongly linked to major currencies like the US Dollar, political news that weakens Forex currencies may also strengthen the cryptocurrencies concerned.

2. Swing Trading Cryptocurrencies

By analysing chart patterns, swing traders are able to identify movements and understand when a correction or reversal is likely to take place. Swing traders often use technical indicators such as Bollinger Bands to mark support and resistance levels on their charts.

Typically, a swing trader opens a position every one to three days and may keep them open for a week or longer. This strategy is an attractive option for traders who don’t have much time to dedicate to watching the charts, while still earning quite a large profit! To ride the market swings, traders still need to know what’s going on in the news as prices can change direction in a moment.

3. Day Trading Cryptocurrencies

If you’re looking for short-term profits, day trading cryptocurrency could be the right choice for you. The volatile nature of cryptocurrencies such as Bitcoin means that market movements occur often, creating opportunities to profit even within 24 hours. What’s more, the cryptocurrency markets never close, so if you’re trading after office-hours there’s still a good chance for you to profit.

Put simply, day trading means that any positions you open will be closed within the same day. This strategy can be quite demanding, however, as traders need to remain alert during the period in which their positions are open. If this isn’t possible, using stop-loss orders and take profit orders on your positions can prevent you from losing funds.

4. Scalping Cryptocurrencies

Arguably one of the most profitable trading strategies for digital currencies, scalping is a fast and high-frequency method of trading. It involves opening and closing positions in a very short time span, resulting in more trades with lower profits. The thought behind scalping is that the smaller profits will add up nicely at the end of the trading day, while losses are kept to a minimum. When using this technique, it’s important to find a broker that doesn’t charge high commissions or wide spreads as this would mean that your funds will get eaten up by the broker’s fees. Rather, go for a 0% Commission broker such as CedarFX to make the most of your funds!

5. Buy & Hold Strategy

The buy and hold strategy is considered to be more of a long-term approach as it allows for profits to build up over a period of time. It can be viewed as an investment strategy if the asset being bought is likely to increase in value over time. However, if the trade goes wrong, it may also result in losses.

Ready to try out these cryptocurrency trading strategies for yourself? Create a free demo or live 0% Commission account with CedarFX, the world’s first eco-friendly broker. Start trading today at www.cedarfx.com.

Sign up

The post Top 5 Cryptocurrency Trading Strategies appeared first on Coin Journal.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Cryptocurrency (GCC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0034358 (-100%)

strategies trading cryptocurrency uncle journal coin lately

strategies trading → Результатов: 126


MoonTrader ICO

MoonTrader team has developed and is supporting the trading terminal (MoonBot - moon-bot. com) which was introduced in October 3, 2017. Currently, the performance of MoonBot surpasses that of most existing trading systems as a result of its advanced functionality and the high security features designed to protect your trading activities.

2019-6-13 21:03


FantasyCryptos Launches to Help Traders Get Rewards for the Best Investment Strategies

FantasyCryptos has launched a new crypto game that allows investors to test their investment strategies against others. Crypto exchanges contribute massively to the growth of the crypto market. The main problem, however, is that you must stake big to make substantial profits from trading on such platforms. There’s always the option of simulating trades on […]

2019-5-14 02:28


Crypto Masterbot: Legit Automated Trading Signals?

This website is possibly a scam. BEG cannot confirm the truth behind the features mentioned on the website. What is Crypto Masterbot? Crypto Masterbot is an online platform that boasts of offering its users lucrative trading opportunities using its auto trader that features free and instant access to top-rated automated trading strategies. The automated trading […]

2019-4-29 12:42


eToro Officially Launches Crypto Trading Platform & Wallet in the U.S.

Global platform allows U. S. customers from 32 states and U. S. territories to trade 13 cryptoassets with multi-asset trading to arrive in Q1 2020 New York, NY — March 7, 2019 — eToro, a global multi-asset trading platform with over 10 million registered users, announced the launch of its platform and cryptoasset wallet in the United States.

2019-3-8 22:43


Invest & Trade Smarter With Renovato – the Next Generation Crypto Exchange

With a large number of post-2017 cryptocurrencies entering the market, the need for a trading platform that offers the right strategies to offset investor risk has become a market necessity. Bridging the Gap Between Exchanges – Introducing Renovato Based in the United States but with a global presence, the Renovato platform will shape the industry […] The post Invest & Trade Smarter With Renovato – the Next Generation Crypto Exchange appeared first on CaptainAltcoin.

2019-3-5 11:54


Фото:

Invest & Trade Smarter With Renovato – the Next Generation Crypto Exchange

With a large number of post-2017 cryptocurrencies entering the market, the need for a trading platform that offers the right strategies to offset investor risk has become a market necessity. Bridging the Gap Between Exchanges – Introducing Renovato Based in the United States but with a global presence, the Renovato platform will shape the industry […] The post Invest & Trade Smarter With Renovato – the Next Generation Crypto Exchange appeared first on ZyCrypto.

2019-3-4 18:11


Binance DEX проводит конкурс для трейдеров

Криптовалютная биржа Binance объявила о запуске конкурса для трейдеров, желающих протестировать возможности ее новой децентрализованной торговой платформы. Призовой фонд турнира составляет 10 000 BNB.

2019-3-2 13:20


Binance учредила призовой фонд на 10 000 BNB для конкурса трейдеров своей децентрализованной биржи

Криптовалютная биржа Binance объявила о запуске конкурса для трейдеров, желающих протестировать возможности ее новой децентрализованной торговой платформы. Призовой фонд турнира составляет 10 000 BNB.

2019-3-1 12:19


Y Combinator-Supported Mudrex Expands To A Larger Audience Creating Crypto Trading Bots

Mudrex Expands To A Larger Audience Creating Crypto Trading Bots After several months of operating in a closed beta, Y Cominator’s Mudrex aims at expanding to a wider audience around the world. In this way, traders will have the possibility to automate their strategies without having to write any single line of code. Y Combinator […]

2019-2-23 20:48


Optimal Bitcoin Investment And Crypto Trading Strategies During The Bearish Blockchain Battlefront

It has been ten years since cryptocurrencies originally emerged, and these days, there are those who believe that their time has already passed. Skeptics have been calling Bitcoin and every altcoin that followed a bubble for years now, although they gained a lot more confidence since the market crash of early 2018. However, while the […]

2019-2-17 09:21


Bitcoin Traders Turn to Derivatives in Droves: The Ultimate Sign of Crypto Winter?

Amidst the worst bear market in the 10-year history of the crypto market, Bitcoin traders have pivoted from long-term strategies to derivatives and options. According to a Bloomberg report, individual Bitcoin traders, as well as many initial coin offering (ICO) projects and investment firms, are engaging in over-the-counter (OTC) derivatives trading.

2019-2-13 16:35


Kepler Technologies Launches LUKRUM Portfolio Tracker Application with Advanced Tools for Streamlined Crypto Asset Management

Kepler Technologies has just introduced LUKRUM, a crypto portfolio tracker app designed to help users with valuable insights on the most profitable trading strategies. This free, secure and user-centric application comes with numerous attractive features including access to real-time prices, the latest market charts, advanced crypto portfolio analytics, auto-syncing with all exchange accounts and blockchain […] The post Kepler Technologies Launches LUKRUM Portfolio Tracker Application with Advanced Tools for Streamlined Crypto Asset Management appeared first on Ethereum World News.

2018-12-18 23:02


Фото:

Kepler Technologies Launches LUKRUM Portfolio Tracker Application with Advanced Tools for Streamlined Crypto Asset Management

Kepler Technologies has just introduced LUKRUM, a crypto portfolio tracker app designed to help users with valuable insights on the most profitable trading strategies. This free, secure and user-centric application comes with numerous attractive features including access to real-time prices, the latest market charts, advanced crypto portfolio analytics, auto-syncing with all exchange accounts and blockchain […] The post Kepler Technologies Launches LUKRUM Portfolio Tracker Application with Advanced Tools for Streamlined Crypto Asset Management appeared first on ZyCrypto.

2018-12-18 21:14