A GUIDE FOR CRYPTOCURRENCY BEGINNERS – DEFINING YOUR INVESTMENT STRATEGY

This is the topic that I haven’t seen many people talk about recently so I figured that I would bring it up. There are too many people who are unclear about why they’re investing or how they’re investing their time and energy into crypto. Most of you can’t even define if you are a daytrader, a swing trader, or a holder. Without this definition, it’s impossible to make accurate investment decisions based upon your goals.

So let’s talk about it.

DAY TRADING
First, let’s talk about being a daytrader. Most daytraders that I know, make their decisions based upon the market cycles during that day. They make trades on the daily and they either move back to bitcoin or US dollars before they go to sleep every night. Their goal is to get 3 to 5% gains on every trade, which will allow them to make hopefully, 50% to 100% on their trading bag daily. This is all dependent upon the market that day and what coins they are targeting.

Personally, I’m not a daytrader. It takes a lot of time, effort, and focus to watch a chart all day long and understand which coins are going to do what which days, and it’s just not my style. That being said, I know a lot of people who are very successful day trading and have done very well for themselves in this area. If it’s a strategy that you choose to take, great, I just don’t know anything about it.

SWING TRADING
Swing traders are people who make trading decisions based upon weekly and monthly cycles. I personally would refer to myself as a swing trader. I make trading decisions based upon coins that I believe will make 2–3x, if not more, movements over 2 to 3 week periods. Sometimes I hold these coins for longer than three weeks, and I’m OK with that. Swing trading is one of the most effective means of trading, in my opinion, if it can be done effectively. If you can find good entries on coins that are mostly at their local bottoms, and hold those coins for a month, then, in a good market, you can make solid money.

HODL STRATEGY
Finally, there are other people who just hold coins. These are known as people who like to play the long hold game. There’s nothing wrong with this, in fact, some people do extremely well with this method. If you make trading decisions based on the long term, then you need to have what is known as ‘strong hands’. These trading decisions can be challenging because you need to learn to have lots of patients when making a training decision. When buying a coin, you have to know that you are going to hold it for over a year, if not longer. For many people that are new to the space, this ability to be patient and to see the long-term potential of a coin is just not there. For others who see the potential of crypto currency in the long term, then being a long-term trader can be extremely successful and simple. It just really depends upon your strategy and how you function as an individual.

SIDENOTE:
When you become more advanced as a trader, you might be able to implement each one of these strategies into your overall portfolio strategy. This will take some time, some effort, and a really good understanding of yourself as an individual investor. There is no need to rush the steps, as this will come with time and experience.

FINALLY,
There’s nothing wrong with any of these trading strategies. Each of these strategies is effective in their own way and people are successful with these trading strategies depending upon their own personalities. The key is you have to understand and choose which type of trader you are. You must have the self awareness to understand what you are good at, what you are not good at, and which skills you need to learn in order to be successful in any of these categories. So, for those of you that are beginning in the cryptocurrency realm, you must understand which path you would like to pursue, and make a decision before you begin investing your money.

DISCLAIMER:
I do not give financial advice. I am not a financial advisor. If you are looking for financial advice, then you should go to google and look for a financial advisor in your area. The shit I write is simply for entertainment purposes. You should never blindly trust anyone on the internet who tells you where or how to invest your money.

Source: https://whalereports.com/a-guide-for-cryptocurrency-beginners-defining-your-investment-strategy/