Crypto Basics: Cryptocurrency Trading Strategies
What probably needs to be mentioned at the outset is that cryptocurrency trading is a high-risk activity. Therefore, if you decide to go in this direction, it is important to mention that, like everywhere else, there is no guaranteed money in cryptocurrency trading and if someone tells you otherwise, that you are guaranteed to make money with them or their strategy, you should take it with a big grain of salt.
Basic cryptocurrency trading strategies.
As I mentioned in the introduction, cryptocurrency trading is a high-risk activity as cryptocurrencies are associated with high volatility. Of course, high risk also brings with it the possibility of high earnings, but it is not for everyone as the volatility is sometimes really high.
High price fluctuations, dips or pumps, all of these are associated with cryptocurrencies. For someone it may be too risky, but during such fluctuations well adjusted traders can make very good money, but they have to follow a clear strategy, without emotional…
Daytraders need to stick to the charts daily and keep a close eye on price fluctuations and also keep track of the various fundamentals associated with a given project that can affect its price. As a daytrader, you have to make friends with cryptocurrency price fluctuations and literally live off them no matter what direction the market is heading. For every price movement, there is also a counter trade at the turning point - an excellent opportunity to increase your profits. Day trading is all about making quick decisions to minimize your exposure to risk and maximize your profits. Of course, no trader is always 100% right, so you must be prepared to close positions even with significant losses. It's not just about successful trades.