We live in the day and age of cryptocurrency. Our society is on the verge of going cashless and soon, the cryptocurrency market would be the biggest market. Not to mention, different countries have introduced their own cryptocurrencies and the buying and selling of cryptocurrencies is taking place on a large scale. If you’re thinking of investing in cryptos, consider whether buying or selling suits your needs best. In this article, we will discuss about some cryptocurrency exchange strategies.
Buying and Selling Cryptocurrencies
Before you can even begin trading, you have to buy some cryptocurrencies. For this, you have to first identify which exchange you would like to trade in, as per our recommendations one can go for Digital Ticks Exchange. Each exchange is different but not perfect in every aspect. You just have to select that exchange that suits your needs and requirements.
Some notable cryptocurrency exchanges are Binance, Bitmex, Bitfinex, KuCoin, Huobi, Changelly, Bittrex and
Digital Ticks just to name a few. All you need to do is setup an account there, connect your bank account, debit or credit card and start exchanging!
Now that you’ve decided on the platform for cryptocurrency exchange, its time to decide which cryptocurrencies you want to buy. Here are some cryptocurrencybuying tips for you. If you are a beginner, you should start with major cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ripple XRP and Litecoin. With so many cryptocurrencies around, it can be best to choose those that you know something about, rather than taking a broad-brush approach. In short, don’t get involved in many cryptocurrencies. Get involved in few and study its trading history carefully.
Now that you’ve decided on the cryptocurrencies that you want to buy and sell, it’s time to learn some cryptocurrency exchange strategies. You can find many crypto trading strategies online but we are going to describe some of the best techniques that are being used by many crypto traders all over the world. Some of these techniques are day trading, scalping, trend trading, swing trading, position trading and automated trading.
This trading technique helps in making quick profits from intraday price movements. It is where you open and close trades within a single day. The advantage here is that you avoid the costs and risks associated with holding positions overnight.
It is a high form of trading where your goal is to make small profits from a large number of trades. You open positions in line with a trend and enter the market multiple times as it develops. It is one of the most short term strategies. Highly recommended if you want to exchange volatile assets like cryptocurrency.
In this technique, your main aim is to maximize profit by holding position open for as much of the price movement as possible instead of opening and closing multiple positions quickly. It can be a short, medium or a long strategy depending on the time the trend develops.
The main focus of swing trading is to notice price oscillations in the trend, aiming to make the most of market volatility by trading moves in both directions as the trend develops, hence the name “swing”. This technique is quite unpredictable for extremely high and low trades because you cannot tell when a “swing” is underway.
Position trading involves holding a position for longer than a day; for weeks or even months. This technique allows you to add few trades as a position trader compared to other strategies. Highly recommended, if you want to take-out a long term position on a cryptocurrency.
Automated trading involves the use of computer to monitor the market and look for opportunities to place trades automatically. You need a good algorithm for this, though. It entirely depends on how you program the computer to monitor and on what conditions it should place trades. Platforms like Cryzen offers the best environment for you to write your own algorithm.
So far we have discussed digital currency buying and selling techniques, along with some famous trading strategies. However, there are some tips that would help you get the best out of your trading.
Learn First: Cryptocurrency market is not a platform for experiments or taking uncalculated risks. Study the market first. Notice its trends and then start planning out your strategy.
Trading plan: A trading plan is like the blueprint of all the operations you’re going to perform like risk objectives, training strategies, risk management rules and more. Try to define all of these things first.
Practice: Practice makes a man perfect. Even applying the best strategy does not guarantee success. So, if you’re a beginner, create a demo account and practice strategies. This will help you a lot.
Be disciplined: Be disciplined and consistent when trading. Don’t be overconfident or underconfident. Be sure to stick with your plan and don’t let emotions take control over you.