If you know which strategy is suitable for you to use in crypto trading, here are 5 strategies that you can use, including:
•Day Trading
The first strategy that can be used to gain profits in cryptocurrency trading is day trading.
The day trading strategy is a strategy that is quite widely used by traders. Generally, this strategy is used by daily traders, you know.
Well, in simple terms, day trading can be defined as a strategy used by traders by opening and closing trades within the same day or within one day.
In day trading, traders will make multiple trades in one day and close crypto deals on the same day.
The goal of this strategy is to profit from intraday price movements, or to make quick profits.
In addition, with a crypto day trading strategy, traders can avoid risks and costs if they hold a trading position for more than a day.
This strategy can be done if you as a trader have enough time to make purchases and sales and also focus on running it all day long.
•Trend Trading
Trend trading aims to allow traders to maximize their profits by holding trading positions as long as they can rather than changing positions more quickly.
Well, however, this crypto trading strategy is a type of trading that uses an opening trading position that must be in line with the trend, yes.
In terms of time, this trend trading strategy can be applied for the long, medium or short term depending on the trend that is occurring in the market.
Understanding technical indicators to be able to read and identify ongoing trends is essential in this strategy.
•Scalping
Scalping is a form of day trading that is done with high frequency, or often called micro trading.
The goal of scalping is to make small profits from buying and selling crypto in large quantities.
As with trend trading, the opening position in this strategy must also be in line with the trend and frequently enter and exit the market according to the development of the trend that occurs in the market.
For cryptocurrency assets that have fluctuating volatility, scalping strategies are very effective to apply in the buying and selling process.
•Swing Trading
The next crypto trading strategy is swing trading which opens up many opportunities for traders to make profits.
The focus of swing trading is the price oscillations that occur in a trend so that traders gain maximum profits with market volatility that moves in two directions according to the developing trend.
However, the difficulty in identifying swings can lead to difficulties in buying and selling on definite price movements.
Therefore, traders need to have a good understanding of technical indicators and also factors that can influence market movements.
•Position Trading
For traders who want a long-term crypto trading strategy, position trading is a very suitable strategy.
Position trading strategy is an activity to hold a position for a long period of time or more than one day, it can be weeks, months or even years.
Considerations that can be made by traders in this strategy are competitor factors, technology and also the rate of adoption.
This strategy is suitable for those of you who want to trade with less frequency than the various strategies explained above.
sc:magic crypto