As of 2024, a million cryptocurrencies are in place, so it could be an understatement to call it a year of volatility for the crypto exchange market. Interest from investors continues to flood in despite the fluctuations. Cryptocurrencies are stealing the spotlight. Even though the world is still skeptical about their usage and safety. However, this blog sheds light on some untapped ways of mastering crypto trading. But before getting into the crux of it, let us understand what it means. Cryptocurrency: Guide for Beginners Think of it as a special currency that is digitally encrypted. Cryptocurrency uses cryptography with blockchain technology to secure all its transactions. To cut a long story short, cryptocurrencies utilize blockchain technology. Blockchain simply means that transactions are recorded into "blocks" closed and secured in such a way that they cannot be hacked, altered, or cheated for a seamless crypto exchange experience. It might seem complex, but blockchain technology uses a digital ledger. Smart Crypto Trading Strategies Crypto trading is one of the best digital currency exchange for money-making ventures and is considered a passive income usually recommended to those who want to grow financially. Also, transactions using cryptocurrencies are decentralized and ensure that they are safe, immutable, and transparent. Are you still fetching options on the best place to buy crypto? Consider the following strategies: Day Trading This type of crypto trading involves buying and selling currencies within one trading day. This is a strategy that demands the highest levels of market attention, situational analysis, and risk tolerance. Also, according to various crypto trading platforms, day trading can generate high income from short-term profits. ● Example: Observing an upward shift in the share prices of a tech company, an investor decides to invest $52, analyzing the support level being $50 & resistance level being $60. Being vigilant, he has to quickly sell for profit as soon as the price reaches $57. Scalping Yet another form of trading, crypto scalping, is a trading strategy that popularly shines across various crypto trading platforms; it always involves the speedy making of money by selling and buying cryptocurrencies. It demands on-the-dot reflexes, knowledge of the market dynamics, and a proper risk management plan. ● Example: A scalper makes an order to sell at $25,005 with the expectation to fluctuate to $25,020. If, at all, it goes up to $25,020, well then, of course, there is a chance that the scalper sells his Bitcoin for a profit of $15. If it doesn't go in as he had thought, and it goes even the opposite, then the loss lines up for the scalper. Swing Trading A strategy for securing the maximum gains from swing trading is to hold the stocks for a few days to even weeks just to catch the price gains which usually occurs in a very short period, and then we can resell it at a better price. They also consider the best place to buy crypto and technical patterns. ● Example: A trader is dealing with $850 and it turns out it is shooting up to $1000 in the upcoming week, then the trader will stay still for a signal from the market, and as soon as it hits the mark, best crypto to buy he sells the profits. Dollar-cost averaging (DCA) Strategy. Dollar-cost averaging is the game of juggling between intervals. It can be defined as the procedure that an investor deploys when buyers invest an equivalent amount of cryptocurrency at predictable intervals. In the case of investing conscious decisions need to be made on trusting any crypto trading platform. ● Example: A trader observes that the price of Bitcoin established in Exchange A is $25,000 per coin, while for the same coin in Exchange B, the price is $25,200 per coin. He then obtains Bitcoins at the former and proceeds to sell it at the latter for a profit. Arbitrage Arbitrage is where a trader obtains an asset from one market and simultaneously sells it in another market to earn from the differences. It is one of the best crypto exchange techniques, entailing fluctuating rate discrepancies and requiring high-frequency trading. ● Example: A trader sees that Bitcoin is priced at $5,000 in Exchange A, but at the same moment it rose to $5,200 in Exchange B. He buys initially at Exchange A and then moves to Exchange B. He then can purchase Bitcoins at the former and then proceed to the latter to sell them. Finally, Prepare for Volatility! The trading market is considered to be among the most unstable ones, with the cryptocurrency prices going through rollercoaster rides constantly. If you intend to be a part of it, be sure to study the market and secure your money into a small amount or in stocks and bonds. Deploy some smart strategies that can benefit you as you place your bets. Through this blog, some enlightening strategies might just hover over your mind, helping you to pick the best for you.
