Cryptocurrencies are the most popular option for investment and trading. If we look at crypto charts, we can investigate crypto assets’ rates fluctuations in the short and long run. It opens the opportunity for traders to make income during the day and for several months.
Not all crypto assets are volatile. Some cryptocurrencies are pegged to fiat currencies like the dollar or euro, so their price does not change with the overall market trends. They are called “stablecoins”: Tether, USD Coin, Binance USD, etc. Traders buy such coins to hedge risks. For example, when they suppose the future market drop, they convert their savings to stablecoins. The most widespread pair with stablecoin is BTC USDT. It actually shows the up-to-date Bitcoin rate against the US dollar. Trading is based on strategies.
Strategies For Trading CryptocurrencyÂ
Here are the most often used strategies:
- Scalping is a popular strategy which allows earning small incomes every day from tiny price fluctuations. It implies frequent opening positions that may last a couple of minutes to half an hour.
- Day trading implies opening and closing positions based on price fluctuations in one day. The essence is to earn from small volatile market activities.
- Swing trading involves a longer period – one day to a few weeks. It gives traders more time to think and assess the market, avoiding spontaneous decisions.Â
- Position trading works in the long run – up to a few years. Hence, investors ignore daily price movements but rather learn tech analysis and crypto charts to evaluate market trends for the future.
So trading is profitable only if you learn how the market works and practice a lot. Crypto holders can practice trading on the WhiteBIT exchange demo trading. It allows noticing all the hidden things you could miss when trading on the real market.Â
