What are some cryptocurrency trading strategies?
I trade Binance and have earned and lost a lot of money in the last several months; here are my techniques (in random order).
First, purchase the dips. The issue is determining if it is a blip or a larger slump. Most cryptocurrencies have a daily natural peak and bottom.
Second, avoid chasing breakouts. So you're in the middle of your exchange, browsing trends - and BAM! You notice one rising. Your natural instinct is to purchase this shooting star. Then it crashes and takes you with it in E seconds.
Third, never purchase peaks. If you can't resist the impulse to acquire a coin whose value is rising, at the very least, NEVER, EVER buy when the green line is close to vertical.
Fourth, trade against USDT currency pairs. This is not guaranteed, but when trading against ETH or BTC, there is natural volatility on both sides of the pair.
Fifth, trade coins in large quantities. The greater the trading volume, the more predictable the trends. When hunting for alt-coins, aim to discover those with a high trading volume.
Sixth, long-term coin fundamentals have no bearing on short-term trades. You'll meet a lot of XRP, XML, Cardano, Zerox, and other cryptocurrency fans.
Seventh, daily news IS IMPORTANT. I follow CCN and a few other crypto news outlets, and when a big story breaks, it affects coin value. A flurry of news stories boosted XRP from $2.60 to $4.68 two months ago.
The eighth point is that coin hype is nonsense. There will be a lot of buzz from long-term holders looking to increase the value of their coin. For example, Justin Sun and his army of TRX supporters are constantly blogging about why it's supposed to be fantastic.
Ninth, Ignore. The mainstream press reports about crypto crashes on a daily basis, instilling fear among traders, which leads to crashes.
Tenth, understand when to walk away. After a couple of hours of trading, you grow weary and your reflexes can go to shit.
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