Basics regarding crypto trading that needs to be learnt.
If you are trading on any exchange you must have knowledge and grip on these basics. You must search, learn and expertise these strategies before taking a trade.
1. Scalping
This strategy asks you to keep a close eye on market and get in and out of a trade in short intervals of time. Remember the market is mostly volatile and one can get most profit between these red and green candles in short intervals. Scalping can be done mostly in 1 hour, 15 minutes charts. Scalping helps to increase your portfolio with the passage of time.
2. Dollar Cost Average (DCA)
Dollar cost average is a great strategy for long term and short term investors aswell. For example if you have an investment of 3000$. You invested 1000$ in a coin whose price was 1$ and its expected to rise to 3-4 dollars in future. So, in odds when market dumps. Let's say by 10-20 percent you buy more of that coin for 1000$ at a lower price. If it dumps even more you buy more of that coin for 1000$. This will make your buying average lower and give you tremendous profits when the coin hits the desired target.
3. Arbitrage
Sometimes prices of an alt coin varies from an exchange to another exchange.So , In this strategy you buy a coin at lower price from on exchange and sell it at a higher price on another one. For example you witness an alt coin on and exchange whose price shows as 1$. And now you open the binance app and its price shows as 1.1$. Now what you have to do is to buy the alt on a lower price on an exchange transfer it to binance or any other exchange where price is higher. There you sell it and make your profits.
4. Swing Trading
In swing trading you buy an alt coin at lower price when market is low hold them and sell them when market recovers in next business days.
5. Range Trading Strategy
In range strategy you must have a grip on charts/technical analysis. You just wait for the coin to hit its support level where more buyer and waiting to buy that coin aswell. Then after buying wait till it hits its resistance level and sell it and make bigger profits.
6. RSI Strategy
Relative strength Index commonly known as RSI indicator. This indicator shows which coin is over bought or oversold. By this indicator you would know if a coin is over bought. The buyers will book their profits at a specific point. Similarly, If a coin is over sold more buyers will try to accommulate it at a lower price. So, with this strategy you can take both long and short positions keeping in mind if it is overbought or oversold.
#CryptoTradingGuide #binance #thecryptoduo
Join binance now using referral code 5293599236 and start making your money.