1. Day Trading
This is a strategy that is used by short-term traders in short term crypto trading, it involves the process whereby the trader closely and actively watches the crypto market to be able to know and judge how to make his trade. This is usually done with lots of commitment and dedication to enable the trader to monitor the market trends.
In this system, the trader aims at making small profits to add to a bigger amount. Knowing that the cryptocurrency market is open 24/7 hour, trading can be very risky most times such that there is no guaranteed profit. Despite that, day trading is a very good way of making money online, such that you can make as much as 5% to 10% profits on your investments, knowing that it capitalizes on the instability of the stock.
This process of speculating on financial products and assets keeps traders up to date on what comes out in the market, they also place lots of orders in a single day.
2. Scalping
In this pattern of short-term trading strategy, the trader buys and sells very quickly in a day, resulting in multiple trading of stocks within that same day. The investors trade on penny stocks such that they can buy and sell very quickly which may happen within minutes as the case may be.
Any trader who wishes to use this cryptocurrency strategy should have at least a free commission brokerage so that if you are buying and selling within minutes it will not eat into your profit. When scalping the trader should try to focus on one currency pair or position at a particular time to give them higher chances of success.
As earlier said the technique can give you small profits per transaction and the risk is also very minimal. It is a good tool for newbie crypto traders, to enable them to learn and get more experienced. It is advised you invest little funds for a start. Additionally, scalping uses little funds and a smaller volume of coins to note as many changes may occur.
3. Swing Trading
Swing trading entails using a graphical representation of the prices instability and fluctuation to identify the current trending stock in a particular time interval. We know the prices of these various stocks vary in both directions, which may result in rising or falling.
Swinging in the stock market means identifying a repeating time frame of price behavior and then capitalizing on the stock by buying or selling it.
Unfortunately, this particular system of trading is reserved for experienced traders, most especially those that are well-grounded in identifying and understanding charts and indicators. Mobile apps and charts are essential tools in this strategy. The user of this strategy needs to also understand peaks and drops to use the pattern effectively. The Binance is a good example of a swing trading strategy.
