cryptocurrency trading

7 crypto strategies everybody should know about

Daksh Murkute | | |

let's be honest, cryptocurrency investors had a very good year in 2021.

 

The cryptocurrency market's total market cap rises from around $700 billion in 2020 to around $2 trillion in 2021.

 

At the same time, there are some cryptocurrencies whose price growth outpaced the overall crypto market's average, resulting in extraordinary profits for their investors.

 

In the same manner, some coins will also skyrocket this year that they were in 2021.

 

So if you're looking for a way to start trading, this blog will teach you the fundamentals of crypto trading which will help you get some favorable returns.

The crypto market is approaching a market cap of $3 trillion.

 

However, cryptocurrencies, like other assets, experienced some ups, and downs in the past, but right now it is moving to become mainstream in the Market. So, if you want to be aware of a few trading strategies and tips then these tips will be useful for you.

 

1. Intraday trading

 

 

 

The practice of buying and selling assets throughout the day, whether it is crypto, forex, or stock trading, is known as day trading.

 

As the day progresses, day trading begins, and prices rise and fall in value and traders face both the possibility of profit and the possibility of loss as a result of these rises and falls. they also frequently use technical analysis to determine long and short positions in cryptocurrency.

 

2. Support and resistance trading

 

7 crypto strategies everybody should know about - Support and Resistance Trading

 

Have you heard about support and resistance before? I am sure you have heard of it. So, the term called support and resistance strategy which people also call "range trading strategy" belongs to that area where traders take support and resistance level to get favorable trade. And how do they do it, they buy assets during the support area and sell them in their resistance area.

 

You can implement range trading at any time but is most effective when the market is not showing any particular long-term trending direction.

 

3. Scalping techniques

 

 

 

Scalping is the best trading technique if you want to trade in a short period of time. It is a trading strategy in which trades are opened and closed in a brief span of time it could be of few minutes or seconds.

 

Most trading techniques out there allow for trades to be held for several hours within the same trading day or several months, but scalping trades are only held for a few seconds or minutes.

 

And the goal of this trading is to make small profits by capitalizing on small price movements.

 

4. Dollar-cost averaging

 

7 crypto strategies everybody should know about - Dollar-Cost Averaging


Dollar-cost averaging is a trading strategy where you choose to invest a set amount of money in a single coin or token on a regular basis, regardless of the price.

 

This is an investment strategy that seeks to average out the amount of money you spend on cryptos over time, instead of nabbing the market at a particularly high or low point.

 

5. Build a balanced portfolio

 

7 crypto strategies everybody should know about - Build a balanced portfolio


The cryptocurrency market is insane and we're all aware of it by now. Days with double-digit wins or losses are no longer unusual, and for anyone who is heavily invested in Bitcoin, this can be an eye-opening experience.

So, Creating a well-balanced portfolio that includes a variety of cryptocurrencies such as Bitcoin, Dogecoin, Ethereum and other crypto coins could go a long way toward mitigating volatility.

 

Also Read: How to spot pump and dump in the cryptocurrency market 

 

6. Avoid FOMO

 

7 crypto strategies everybody should know about - Avoid FOMO


when it comes to trading, emotions are one of the most important aspects to overcome and that’s why many traders lose their money when they trade crypto. It will expose you to unnecessary risk and make your trading experience unpleasant.

 

So as a trader we should take in mind that our decision should never be based on the hype created on forums. If things are not going your way you should restrict yourself for that day to do trade and take your time out to do some other work.

 

7. DYOR (Do Your Own Research)

 

7 crypto strategies everybody should know about - DYOR

 

Even for an experienced trader who trades 24*7  in cryptocurrency, keeping up with general trends is difficult, so you focus on fundamental analysis. Fundamental analysis will help you  in great way to look at the bigger picture of any coin, and for that, you can use,

    1. Coinmarketcap
    2. Twitter
    3. DappRadar
    4. Reddit

 

so these are some strategies and tips you should be taken into your mind before trading.

 

 

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