As the crypto market is evolving, many people want to join it and become owners of cryptocurrency. Once you buy crypto, you have the following options for using it further:
- You can use it for trading on a crypto exchange and receiving income.
- You can hold crypto in the long run until the market trend changes and the crypto price rises.
- You can use your crypto coins to buy goods and pay for services where it is available.
The market offers many platforms for trading cryptocurrency, using different tools, for example, staking, futures trading, leverage and margin, spot, etc. Some strategies were developed for efficient crypto currency trading. Let’s talk about them.
Crypto Currency Trading Strategies
The market of digital assets is incredibly volatile. Prices change daily, and to succeed in trading, it is necessary to adhere to a strategy. It helps to understand when it is the right time to buy digital assets and when to sell them. Picking a strategy is one of the main tasks every trader sets for himself.
Here are the most common strategies:
- Position trading implies buying crypto and holding it in the long run. It is the best strategy for beginner investors, allowing enough time to think and analyse the market without a rush.
- Scalping. Allows generating profit from every slight market fluctuation. Trades last from a couple of minutes to 30 minutes. This strategy allows for making portions of profit many times a day.
- Day trading. A trader closes the position not later than 24 hours after its opening. The strategy allows for making money from the price movements during the day.
- Swing trading lasts from one day to a few weeks.
On the WhiteBIT crypto exchange, you can practice any trading strategy on a demo account. It will help you understand which strategy is better for you. Also, demo trading will allow you to learn to control emotions while trading cryptocurrency and make weighed decisions.
