Trading is an activity that requires deep knowledge of the market and a lot of practice. The cryptocurrency market is highly volatile, so traders speculate on the price difference and make a profit. However, it is not that easy to generate income by buying cryptocurrency – there are many pitfalls a beginner trader might not be aware of. To trade successfully, you should:
- Pick a credible crypto exchange
- Learn cryptocurrency trading strategies
- Understand crypto charts and the market trends
- Practice trading with small amounts.
Let’s talk about trading strategies.
This is short-term trading where you take advantage of short intraday rate fluctuations. Using this strategy, traders open many positions during the day and receive small portions of income from each.
This type implies that you buy crypto and hold it for several days or weeks. This strategy does not require you to track the assets rates changes throughout the day.
This trading strategy implies opening and closing positions within a day. It is something between swing trading and scalping. You don’t wait overnight, but you close your position before the day ends, no matter if you gain a profit or loss. This strategy requires you to monitor the market during the day and receive small portions of profit from every position you open. One position is held within minutes or hours.
This strategy is based on long-term rate movements. It may take weeks, months, or even years until the asset price shifts in the needed direction. You must understand rate changes at weekly and monthly levels and access the market, considering the fundamental tech indicators to decide on your opening and exit positions. This trading type does not imply checking the daily little market fluctuations. It is long-term trading.
If you want to know how to buy crypto, how to trade and make money from digital assets, as well as if you’re going to practice trading strategies, check out the WhiteBIT blog.