Crypto Trading Strategies for Beginners
Nowadays everyone is looking for new ways to make money. There are many ways to make money online like freelance, work from jobs, poster making, online digital marketing, stock market trading etc. Today in this topic we will learn about crypto trading basics & strategies which will help new investors to trade in crypto.
First of all, let us know what is crypto trading: Crypto trading is also like the share market where we buy stocks in the stock market, on the other hand, in crypto trading we buy and sell coins. There are more than 1000 plus coins in the crypto trading market. Crypto trading is considered a little more risky than the stock market. Because here in the market sometimes the price goes up and down rapidly. Therefore, if we enter this market without knowing the market, then we can lose a lot. In the world of crypto, Bitcoin is considered the boss of all. Bitcoin is the main currency of the crypto market. Whenever the price of bitcoin goes up and down. The price of alt coins falls or rises rapidly. Bitcoin and crypto are open source and decentralized currencies. All these are based on P2P, which means that no third party is required to transact them. (Like when we transfer money to a bank, we need the bank.)
Bitcoin was created by Satoshi Nakamoto in the year 2009. After the creation of Bitcoin, many coins came into the market.
Let us now talk about crypto trading. How can we earn a good profit by following some good techniques: First of all, let us talk about spot trading. Spot trading means buying coins and holding them in your wallet. In this, we buy coins at a reasonable rate and sell them at a higher price. This gives us profit. To make profit in spot trading, we should keep some things in mind, which we are telling you below:
Wait for the right price: While buying coins, we should not jump into the market immediately, we should wait for the right price. Taking trade in haste can prove fatal for us. When the market is at its high price, we should wait for the right price.
Note: When the price moves down rapidly it is called a bear run and when the market moves up rapidly it is called a BULL run.
. Avoid FOMO: Fear of missing out: We should avoid FOMO. We should not run after a moving train, we should wait for the right price.
While trading, we should not invest all our money in a single trade, we should invest our money in different coins. By doing this our capital remains safe and even if there is a loss in one coin, we get profit in other coins.
3. You should not be too greedy in crypto trading, you should keep a profit target and work accordingly
. We should not over trade in crypto trading. We should set our daily profit target and work accordingly. Over trading leads to losses.
3. One should not trade during news time in crypto trading. During news time, there is a lot of turmoil in the market and the price fluctuates a lot. Due to which our loss can be more (sometimes there can be profit in news trade).
Invest only that much money in trading which you can afford to lose. Investing more money than you can be disastrous.
3. While trading crypto, we should not buy coins at the current price, we should wait for the right price to come. We should not trade in a hurry.
If you follow any group in crypto trading then avoid following too many groups because everyone has their own opinion about trading. You will make wrong decisions by following different opinions (It is best to learn from a guru or a course.
3. Create your own strategy while trading crypto and try to apply it.
Don't be too afraid in crypto trading if you have bought coins: keep calm, your loss may be recovered in a few days (or you can hold by placing a stop loss)
5. Understand the market movement in the crypto market and start taking trades accordingly.
Sometimes traps are made in crypto trading to entangle you in them, you should not fall into such traps. If you fall into this trap then you may incur huge losses.
While doing crypto trading, we should pay attention to the supply of the coin. If the supply of the coin is more, then its price will not increase quickly. The whole game is of DEMAND and supply. If the supply is less, then its price will always go up. On the contrary, if the supply is more and demand is less, then its rate will always go down. Keeping these two things in mind, we should take the trade.
5. While taking a crypto trade, we should read about the project of the coin. We should look at the project carefully to see what is the future of that project, what is the road map and what is the future plan of that coin.
While trading crypto, we should look at the top 10 performing coins and take trades in all of them. By doing this, the chances of your trade being in profit are increased.
. Choose a good exchange to trade. You can verify these exchanges with user reviews and later trade on the exchange where there is no price manipulation.
5 There are many Ponzi and fraud coins in the crypto market. We should be cautious of such projects. And we should only choose good trades and trade in them.
Before taking a trade in crypto, we should take advice from our friends (who are already trading) as we will get to learn something from them which we can apply in the market.
7 Before trading, understand the chart pattern and order book properly and only then start trading.
6. Before starting trading, definitely check the history price in the coinâs chart, this will help you in finding the correct buy point of the coin and you will be able to take the right trade.
. Pay attention to the project news of the coins. When any news of the coin's project comes, then the coin's price movement either goes up or down.
9. Avoid fake buy walls in crypto trading. Sometimes fake order walls are put up by some BOTs to trap you. Always be careful of this or else you may incur huge losses.
6. Do not believe in rumours and fake news while trading. Some groups of people try to mislead you and provoke you to take wrong trades. Be careful of such groups.
After learning the basics, move towards advanced trading by taking a course or learning advanced trading from an expert.
9 Don't rush to take crypto trades, always use BUY limit and SELL limit. BUY LIMIT: Placing an order below the market rate SELL LIMIT: Placing an order above the market rate
1. While taking crypto trade, capital should be invested at different prices, if one of your trades goes into loss then the other trade can bring you profit.
1. While trading crypto, you should not take too many trades at once. You should trade in different cryptos according to your capital amount. If you do not do this, your entire account may be emptied.
4. While trading crypto, you should always check the coin volume (volume means how much amount has been traded in the last 24 hours)
7. Do not trade after continuous loss in crypto trading. Sometimes it happens that some of our trades go into continuous loss. We should start trading the next day.
4 In crypto trading, if a trading strategy does not work, then the next day we should work on a new strategy. We should keep changing strategies while trading. It is not necessary that a trading strategy works continuously.
6. Set your target daily for crypto trading. Take a pen and paper and start writing on it. Set your target and achieve it.
. Pay attention to your emotions and feelings in crypto trading. The crypto market does not work on emotions and feelings. Control your patience and emotions and then trade.
5. We need to stay focused while trading crypto. After taking the trade, we need to keep an eye on the market. If we donât do this, we will end up losing money.
5. Do not trade on weekends as there is less movement in the market on that day. 4. We should not panic while trading crypto, we should work calmly. After taking the trade, the mind should be kept calm. 7. Before joining the ICO & pre-sale of any crypto coin, know how the project of that coin is and when that coin will be listed on the exchange.
Above we have talked about different types of crypto strategies, by applying all these we can earn profit in a trading, you can also make good profit by making your own other techniques. It is also very important to learn money management and risk management in crypto trading, along with this it is also very important to maintain emotion and patience. If you do this trading by staying disciplined then you will definitely succeed in trading. Apart from this, one more thing to note is that sometimes there is turmoil in the crypto market, sometimes the prices go up and down a lot, we need to move according to the market. If you do not follow the market then you will incur a lot of loss, so move according to the market.
On the other hand, follow the market trend and move according to the direction the market is moving if the market is in a BULL run. We should never open a sell order in a BULL run because in a BULL run the market always hits the target at the high. On the other hand, if we talk about BEAR then: BEAR always takes the price down. In a BEAR market, we should look for buy from the lowest point.
Apart from this, sometimes we get to see mixed trends in the market. We need to identify these trends, if we follow the trend then we will definitely get profit. Use your mind to identify these mixed trends and trade accordingly. Apart from this, if you want to learn more advanced trading then you can learn advanced trading by taking a course from market experts.
ConclusionCrypto trading is a great option for side income and regular income. If you trade in a good way, you will be able to make a good profit. Keep in mind that crypto trading involves risk and you can also incur losses here. If you follow the right money management then you can make profit from it. Follow the right crypto policies and get good profit from the market.
