I am not an expert, but I share the main points in my study of the cryptocurrency market and the evolution of my strategy in spot trading. My goal for now is to find a strategy that will allow me to earn on a daily basis in plus and minimize risks while stablecoins await global changes on deposit.
The first step is to analyze the market trend on the daily chart. Trends can be ascending, descending, or sideways.
• Uptrend: Each new high and low is higher than the previous one. This is a good signal to enter a short-term spot.
• Downtrend: Each new high and low is lower than the previous one. I avoid entering in such a trend.
• Sideway trend: the price moves within a narrow range. This can be risky for beginners. That's why I don't go there.
This is just a basic indicator, but I always start screening coins based on the trend and then add other criteria.
I keep 80% of my investments in stablecoins ($BTC $ETH $SOL ) on deposits for long-term prospects, and I leave 20% for active trading. I am not ready to play with new, little-known or high-voltage coins yet, but Binance usually issues a warning about increased risk, so I immediately eliminate such coins. I keep only those coins in my favorites that do not risk disappearing or completely destroying all my investments.
In the next article, I will talk about the next indicator that I pay attention to when selecting coins.
