The crypto market is approaching a market cap of $3 trillion.
However, cryptocurrencies, like other assets, experienced some ups, and downs in the past, but right now it is moving to become mainstream in the Market. So, if you want to be aware of a few trading strategies and tips then these tips will be useful for you.
1. Intraday trading
The practice of buying and selling assets throughout the day, whether it is crypto, forex, or stock trading, is known as day trading.
As the day progresses, day trading begins, and prices rise and fall in value and traders face both the possibility of profit and the possibility of loss as a result of these rises and falls. they also frequently use technical analysis to determine long and short positions in cryptocurrency.
2. Support and resistance trading
Have you heard about support and resistance before? I am sure you have heard of it. So, the term called support and resistance strategy which people also call "range trading strategy" belongs to that area where traders take support and resistance level to get favorable trade. And how do they do it, they buy assets during the support area and sell them in their resistance area.
You can implement range trading at any time but is most effective when the market is not showing any particular long-term trending direction.
3. Scalping techniques
Scalping is the best trading technique if you want to trade in a short period of time. It is a trading strategy in which trades are opened and closed in a brief span of time it could be of few minutes or seconds.
Most trading techniques out there allow for trades to be held for several hours within the same trading day or several months, but scalping trades are only held for a few seconds or minutes.
And the goal of this trading is to make small profits by capitalizing on small price movements.
4. Dollar-cost averaging
Dollar-cost averaging is a trading strategy where you choose to invest a set amount of money in a single coin or token on a regular basis, regardless of the price.
This is an investment strategy that seeks to average out the amount of money you spend on cryptos over time, instead of nabbing the market at a particularly high or low point.
5. Build a balanced portfolio
The cryptocurrency market is insane and we're all aware of it by now. Days with double-digit wins or losses are no longer unusual, and for anyone who is heavily invested in Bitcoin, this can be an eye-opening experience.
So, Creating a well-balanced portfolio that includes a variety of cryptocurrencies such as Bitcoin, Dogecoin, Ethereum and other crypto coins could go a long way toward mitigating volatility.
6. Avoid FOMO
when it comes to trading, emotions are one of the most important aspects to overcome and that’s why many traders lose their money when they trade crypto. It will expose you to unnecessary risk and make your trading experience unpleasant.
So as a trader we should take in mind that our decision should never be based on the hype created on forums. If things are not going your way you should restrict yourself for that day to do trade and take your time out to do some other work.
7. DYOR (Do Your Own Research)
Even for an experienced trader who trades 24*7 in cryptocurrency, keeping up with general trends is difficult, so you focus on fundamental analysis. Fundamental analysis will help you in great way to look at the bigger picture of any coin, and for that, you can use,
so these are some strategies and tips you should be taken into your mind before trading.