Scalping
Scalping is the shortest-term trading strategy followed by many experts to gain instant profits. In this type of trading, people hold the coins for a few minutes or seconds. However, the gain is not much as other trading strategies. The purpose of scalping is to achieve small profits which are accumulated throughout the day. The optimum time to execute the trade is when the market is super busy, then the chances of getting profit are maximum. The certified cryptocurrency traders and experts actively practice scalp trading to profit from the small price movements.
Day Trading
This type of cryptocurrency trading involves the holding of assets for a day. Day Trading is also known as “intraday trading,” where traders enter and exit the position within the same day. In this type of trading, you need to consider basic technical analysis using technical indicators that can help you determine current market conditions and identify the trends. Implementing this type of trading also offers small profits; however, it keeps you away from overnight market volatility. Day trading is usually held for few hours.
Swing Trading
In the Swing trading strategy, people hold the position for several days or few weeks. This trading type follows short to intermediate-term trends ranging typically between 1–30 days. The person who is not active on a daily basis and dedicated their time to their jobs can implement this type of trading strategy. Here, you do not need to worry about the daily ups and downs because in swing trading you will not hold the cryptocurrency for just a day. However, keeping up with the trend and checking the daily analysis will help you gain the optimum profits.
Position Trading
In this type of trading strategy, you need to focus on the long-term price shifts. In order to gain maximum profit, major price shifts are considered by the trading experts. Position trading is also known as “trend trading”, as traders tend to hold the position for more extended periods of time. Also, analyzing weekly and monthly price charts can benefit you in evaluating the market trends. While implementing this type of trading strategy, traders are not worried about minor fluctuations in the price. In fact, they are only concerned about the major market trends and follow up accordingly.
Cryptocurrency Trading Steps:
For beginners, it’s imperative to follow the proper steps for cryptocurrency trading. Here are few steps which you can take and begin your trading journey.
Step 1: Look For Cryptocurrency Exchange
As a beginner, the very first step is to look for the best cryptocurrency exchanges. Some of the most popular ones are:
XemBit (Only)
You need to make a crypto brokerage account. It will be similar to opening a stock brokerage account. Also, make sure to provide the necessary information required.
Step 2: Fund Your Account
As soon as you create your account in any of the Cryptocurrency exchange (XemBit), the next step is to fund your account. Using debit cards and wire transfers. You can easily add money to your digital wallet. Also, wire transfer is one of the cheapest options for funding your account.
Step 3: Choose your Cryptocurrency
There are many cryptocurrencies in the market, but most expert traders go for bitcoin and ethereum. The reason is these cryptocurrencies are more predictable than other small coins. However, the altcoins have also seen a rise of about 1000% in just a month which can be considered as a good option while trading.
Step 4: Choose a Strategy
Picking up a trading strategy is a critical step in cryptocurrency trading. Therefore, by utilizing the trading indicators with the correct fundamental and technical analysis, you can achieve high profits in cryptocurrency trading. However, if you are a beginner, pursuing a cryptocurrency trading course and becoming an expert is recommended.
Step 5: Securely Store your Cryptocurrency
Lastly, it is essential to store your crypto in a safe place. For that, you can choose a digital wallet, and it can be software or hardware. Cryptocurrency wattles are highly recommended for storing your digital assets. Cryptocurrency security can be achieved more with hardware wallets.