Cryptocurrency transactions worldwide have shot through the roof. They’re doubling every year.
However, crypto trading is very risky and it’s possible to lose money. It is important to use strategies that make it fun in order to get a good return on your investment.
Wes Gunderson’s day trading strategies
Investing in cryptocurrencies and trading them on the same day relies on technical indicators. The goal is to gain profit before prices fluctuate during the day. You required to have general understanding of the technical chart to be successful in this type of trading.
Things to look out for in a range trading strategy
Resistance and support levels are created by experienced analysts to inform cryptocurrency traders. The resistance level is the height at which a price may rise, and the support level is the price below that it should not fall.
Traders will typically use the increased trading volume to their advantage and book profit. There is always a risk, so it is best to be smart, taking care of margins and other important rules to avoid bad trades. Traders analyze a crypto asset, past trends, and volumes, using this information to choose an entry point and exit point within a day.
High-Frequency Trading (HFT)
HFT Algorithmic trading is only possible with structured data and powerful programming languages. Crypto bots are created by understanding mathematical complexities of the market, which is beyond the scope of novices.
It can be difficult to time crypto market entry and exit points, so a safer investment strategy is “Dollar Cost Averaging.” This strategy involves investing a fixed amount at regular intervals. With DCA, investors do not need to time the market and can focus on building wealth in the long term.
In DCA style of trading ,exit strategy could also be tricky. It requires the study of the market trend and understanding of the market cycle. If you have some sort of knowledge about the technical charts, then it can give you the clue about appropriate time to exit .
Build balanced portfolio
Cryptocurrency is still a relatively new phenomenon and it is important to research different methods of trading crypto, as well as the risks involved. It is also important to make sure governments have regulations in place for digital currencies.
Having cryptocurrencies in a variety of brackets can help beat volatility.
Investors can choose to diversify their investments by never investing more than 4% in any one crypto. Those who do so will increase their risk tolerance, which over time will result in consistent returns for your portfolio.
Follow below steps to avoid falling pray to any kind of Scam.
Investing decisions shouldn’t be based on hype. False information tends to very quickly travel through social media channels.
Do your Own Research
To be a successful trader, one of the best ways to go about it is to do research on the value of the asset. It doesn’t really matter if you aren’t an expert in trading, you can still conduct research by reading all the news articles that are relevant to the industry. WazirX makes this easy because they’ll present all the articles you need to read at a glance in one place.
Before investing in cryptocurrency, you should research it thoroughly and make sure that your investments are working towards your financial goals. You can find out more about some popular cryptocurrencies like Bitcoin, Ethereum, Tron, Ripple, and LTC.
In an arbitrage strategy, you buy crypto in a market with a higher price and sell it in another. The difference between the buy and sell prices is called the “spread.” Due to different cryptocurrency trading volumes from one exchange to another, this strategy can help you to make money and exit in profit.
Betting on Bitcoin volatility
Traders of cryptocurrencies, such as Bitcoin, can increase their risk by trading in futures contracts. The way to go about it is to buy a call and put option at the same time. When the prices for these assets change too much, you must also sell your option in order to make a profit.