Here are 7 essential strategies for trading cryptocurrencies and minimizing losses!
1. A significant market drop can be the perfect time to evaluate quality assets. When a market drop occurs, if your chosen coin only sees a slight drop or moves against the trend, this indicates strong support from institutional investors or market makers.
2. For beginners who don’t know when to buy or sell, the simplest strategy is to track moving averages. In the short term, hold your position as long as the price remains above the 5-day moving average, selling only when it drops below. For a medium-term approach, use the 20-day moving average.
3. During an uptrend in the market, if prices are rising but trading volume remains stable, take decisive action and hold. If the trend remains intact while volume drops, hold your position.
4. If a coin shows no price movement within three days of purchase, it is usually best to sell. Likewise, if your coin drops 5% after entry, don’t hesitate to cut your losses. 5. When a currency has fallen 50% from its peak and endured eight consecutive days of decline, it is likely entering oversold territory, presenting an opportunity for a recovery.
6. Focus on the leading currencies, not the smaller or obscure ones. Major assets tend to show stronger gains during rallies and better resilience during declines. The key to short-term success is to buy during momentum, even if prices seem high, and sell at higher points.
7. Always trade in line with the prevailing market trend. The ideal buy price is not necessarily the lowest, but the one that fits the broader trend.
