The crypto market is subject to rapid fluctuations. There are small changes during the day as well as large periods of downward and upward market trends. They are called bullish and bearish trends. As of August 2022, we are witnessing the bear market trend when all crypto rates are dripping. Maybe now is the best time for crypto investment as long as the rates are low.
Cryptocurrency trading is a process when you buy and sell cryptocurrency, trying to make a profit from its price changes. Rates may change during the day or for a much longer period of time when you buy and hold assets until their price boosts. In this article, we will observe some popular trading strategies.
Strategies for Crypto Investment
The most often used trading strategies are:
- Day trading
- Swing trading
- Position trading
One of the most popular cryptocurrency trading strategies that allow receiving income within one day is day trading. A trader opens and exits positions many times a day and receives small portions of profit from each deal closed. That is, a trader is focused on small market fluctuations that are happening within 24 hours.
How to Start Trading Cryptocurrency?
To begin with, you need to have some crypto. For that purpose, you can register on one of the most credible crypto exchanges (WhiteBIT, Binance, etc.) and register an account. To be able to buy a digital asset with fiat, you need to pass the KYC verification. Sometimes it may take up to one week.
Next, add your bank card and move the needed amount of money to your account. Click “Trade”, and you will be directed to the trading section, where you will see a crypto calculator. It will help you understand how much money you need to buy crypto assets and what fee you will pay. Also, the calculator will show the up-to-date rate.
If it suits you, proceed with the transaction. In a similar way, you can convert your crypto to any other asset following the strategy you pick. But in all, be careful not to make these common mistakes crypto investors are making.