Following the birth of Bitcoin in 2008, cryptocurrency trading emerged. Only a few years later, one alternative currency after the other would enter the market. Now, speculators can trade tens of thousands of market pairs, against BTC, ETH, or simply USD.
How can you navigate yourself in this fast-paced environment? How do you find the newest and fastest-growing markets? How can you create an overview of all your exchange accounts?
This article is dedicated to making you feel less overwhelmed in the hectic crypto world and highlight the best way to trade cryptocurrency.
Before exploring every aspect of cryptocurrency trading, it’s important that you approach the markets with a plan. The difference between a successful beginner in trading and a losing trader is your cryptocurrency trading strategy. Consider reading our Portfolio Management article, and decide the size of your investments carefully.
Proper cryptocurrency trading strategies are based on a set of rules that you consistently respect. This is the key to a profitable, long-term trading system. Let’s touch on a few important subjects of what was described in the Portfolio Management article.
-To start, you decide the total amount of money you want to invest.
Secondly, you decide if you want to be an active trader, a passive investor, or both.
Once you have decided this, you can start going into depth, and learn about how to create the best trading strategies.
Listing out a few important elements of a successful cryptocurrency strategy:
Create a plan that pre-decides the size of your total investment
understand liquidation and manage it
Diversify your investments
Enter markets with the Dollar-Cost Averaging method
Understand basic technical analysis indicators (MAs, RSI, Bollinger Bands, etc)
Trade with proper risk management, following the 1% risk rule
Use Good Crypto, the only tool you need for tracking your portfolio performance and performing
successful trades with risk management
This list should help you on your way. It’s especially important to understand basic charting and technical analysis indicators when creating a day trading cryptocurrency strategy, or swing trading cryptocurrency.
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