Cryptocurrency Trading Strategies for Beginners
Let us start with “What are trading strategies?”
Trading strategies are there to provide objectives for traders to earn more with lesser capital; just like how a successful business should operate. There are a lot of trading strategies that are being written all over the internet today, but what we’ve noticed is that most of these so-called “strategies” are just plain common sense; something that is hard to come by nowadays.
Real trading strategies should be based on quantifiable specifications that can be analyzed based on historical data that can be used for future trading scenes. Finding the right strategy to help traders earn more is actually the first step of the ladder to success. If you are reading this today and you are looking for strategies to help you out, then you have done the first step. What people fail to realize is that a very good strategy is something that starts before the main planning occurs. Without further delay, let’s get right into that!
Crypto Trading Book with Detailed Trading Strategies
One of the best sources on the internet when it comes to crypto trading strategies, is the new ebook “successful crypto trading for beginners”.
The reader not only gets the whole field of crypto trading precisely explained, he also gets a whole set of very detailed trading strategies with explanations of the exact market scenario, where to find buy and sell areas in the scenario, and even how to effectively protect the trade from a painful loss.
The major intention of the ebook is to teach the reader how profitable crypto trading works in detail so he won’t be dependent from any leaders in the field to tell them what to do.
This ebook is really amazing – with this piece of content you definitely get how the profitable game works.
General Trading Strategies
One of the advantages of learning new things is that you do not know anything about it. If you are new to trading, claim it! There’s nothing wrong with being new with something since we were not born with the knowledge that we haven’t worked hard for.
One of the best ways to approach the trading world is with an open mind, just like anything new that you want to learn. Get your sponge ready and absorb the following strategies listed below:
- Long/Short – These are basic jargons that are being used in the trading world. When a trader is in a “Long” trade this means that they have bought something and are hoping that the price will go up to make a profit. On the other hand, when a trader is doing “Short” trades this means that the trader sells what they have in hand. Why would you want to sell a perfectly fine position (crypto)? Profit is made if you can buy for a cheaper price after you have sold it for a much higher one.
- Pairs Trade – Taking the idea of long/short trading and making a profit on whether the price goes up or down. This obvious strategy was not realized until the 80’s by people that love numbers.
- Swing Trading Strategy – Swing trading is somewhere in the middle of Day Trading and Trend Trading. This is because Day Trading is holding an asset from a couple of seconds to a few hours but never more than a day. Trend Trading, on the other hand, is when the trader looks for a longer timetable and keeps the asset between weeks to months. Swing traders hold an asset for a couple of days up to a few weeks.
- Scalping – A trading style (not selling tickets for a higher price) that is the most active one to date. This is because a trader that follows scalping takes advantage of smaller gains but on a larger scale. Multiple entries and exits will pile up and make a hefty sum.
- Day Trading – As mentioned earlier day trading is the buying/selling of assets within the same day.
- Trading on the News – Trading on the news simply or generally means trading in times where something “happens” like a terrorist attack or natural disaster that forces the asset to plummet. Buying at this time is the cheapest since everything goes down so fast but would also have a greater risk of not going up again due to involved instances.
Mentioned above are generally known strategies that you can start from. There isn’t a definitive idea of what trading strategies are and every great trader today has a couple of trade secrets that they have devised over the years and perfected it with experience.
Copy Trading Strategy
Copy trading is a feature that is being introduced by a couple of trading websites today with the examples of eToro.com and 1Broker.com. What happens is that new traders will be able to copy trades from seasoned veterans of the trade making it easier for less-experienced traders to know what to buy when to buy, and of course, when to sell.
The general gist of copy trading is that new users will not need to go through the hassle of learning how to trade and earn at the same time with lesser money being shelled out. But if you are a strategist, you will easily look at it as something that you can use to your advantage.
Buying at the Right Time
One of the basic strategies that you can look into is buying at the right time. It is natural to buy cheap when there’s a surplus of assets lying around. The challenge is to know when the supply is greatly ahead of the demand. Profit can be easily made with the gap between the cheap purchase an expensive sell. Another ideal way to purchase coins is at the time when ICOs (Initial Coin Offering) is introduced.
Look for companies or ideas that have potential to raise the value of their coin and do proper background checks before investing. The reason why people should invest in ICOs is that the price is so cheap and the potential of the price blowing up (to be the next BTC) is something that is too huge to ignore.
Trading strategies have been practiced since the first human civilizations formed. This means that even though we have converted them to our current trading market, the basis of everything is still bartered trade. What are we trying to say here? We’re trying to say that no matter what the strategy is; the main point of following one is to make a profit.
Please note: This post is not financial advice and should not be treated as such. The reader’s trading decisions are only up to him/her. This post doesn’t replace a personal financial advisor.