3 Proven strategies to start Trading Crypto
In the elusive world of crypto, you need to be confident enough to have a winning game plan. It is intuitive or we can say unlearned trading platform. You can only learn about this through more and more research. Crypto assets are a high-risk investment, and trading them without a plan of action in place can often lead to a loss of invested capital. While most analysts would agree there is no “perfect” trading plan.
Many people are not that confident about crypto Trading so here we are providing 3 proven strategies to start Trading in crypto.
Strategy 1: Scalping
Scalping is a process of taking profits of small market movements, quickly setting foot in and way out positions during a day, or maybe even an hour. The key is making profits through small trades as possible while avoiding losses – you don’t need high returns per trade, you should rather maintain a higher win/loss ratio.
Scalper traders usually try to avoid high uneasy transit, because it’s unpredictable. A thin market also has huge spreads between bids and asks. It allows scalpers to generate profit easily on those chinks, buying on one side, and selling on the other.
Advantages: Scalping is considered kindly safe. It engages very small time frames, thus it’s possible to exit the trade anytime if something goes wrong. Also if you have a series of bad trades, you can always stop and take a break to relax and chill. You can always check how much you win and lose.
Downsides: Requires some exposure in reading indicators, requires patience and direction. The scalper trader has to view charts closely, staying near the trading terminal, to be able to react quickly to market changes. Also, scalpers have to compete with trading bots that also try to use scalp opportunities, and they can be more efficient because they don’t ever get tired.
Strategy 2: Buy the Dips and Hold
To new investors, it might seem unreasonable, but a drop in any asset’s price is a great chance to buy. Especially big drops. Assuming it is a brawny asset, the price will go back up when the market regains belief. This is even known as BTFD.
When the news is good, people rush to buy overvalued cryptocurrencies. When something bad happens, they panic and sell their coins at below their true value.
Advantages: It doesn’t require any specialized high-frequency trading software. You only need to make a single trade and you don’t need to-the-millisecond accuracy. When done precisely, you’ll profit from the upward route of the cryptocurrency plus the amount it was undervalued.
Downsides: This is a fundamentally long term approach, so you probably won’t see quick profits. Timing is everything, and this plan of action requires an excellent understanding of market conditions as well as a cool head in times of disorder.
3. Invest in Staking Coins
To apply for this strategy, you have to do some serious research. “We’re seeing diversification beyond stocks. Many investors’ portfolios today contain alternative investments like gold, cryptocurrencies, and commercial real estate.
Stake coins and tokens are the crypto assets that perfectly range with the diversification aim, as they generate staking profits over time. You have to buy them, lock them and stake them, becoming an authentic node in their respective network. For generating new blocks and securing blockchain networks these validator nodes receive rewards. It’s similar to mining, but instead of buying expensive hardware, you buy crypto assets that are easier to get rid of if you decide to cash out. There are many staking coins and tokens, such as DASH, NEO, Lisk, COSMOS, Qtum, Waves, and Ethereum will also join the list in a few years. We don’t recommend anything specific, you can choose those assets that you like.
Advantages: It doesn’t require any additional maintenance from you. After acquiring and freezing the staking tokens. You can forget about them until the next staking cycle. You can always sell them at any moment, and they don’t depreciate,
unlike the mining hardware. Downsides: You’re still bare to some degree to the uncertainties of the market. If the staking asset loses 50% in a bear market, 7% staking rewards won’t be enough to compensate for it.
In the elusive world of crypto, you need to be confident enough to have a winning game plan. It is intuitive or we can say unlearned trading platform. You can only learn about this through more and more research. Crypto assets are a high-risk investment, and trading them without a plan of action in place…