Trading is a popular way to make money using different assets, including stocks, commodities, and cryptocurrencies. To master this way of earning, years of practice and experience are needed. A few traders reach success on the first try, and those relying on luck often get burned in the end.
Success in crypto trading has nothing to do with luck, actually, or maybe just a little percentage.
The lion’s share of success in trading belongs to:
in-depth knowledge of strategies;
ability to assess risks and hedge them;
understanding of the market trends;
a lot of practice.
How Do Traders Pick a Cryptocurrency Trading Strategy?
First, let’s list the main strategies for trading:
buy and hold;
To select a suitable method, you should try them all. If you are afraid that you are not ready for dynamic trading, start with the long-term approach – buy and hold assets. For example, you are interested in Chainlink crypto. You buy it and hold it until the LINK price grows, then sell it at a higher rate and make money. This strategy does not require daily tracking habits and quick decision-making. You take your time to analyze the market trends, investigate charts, find patterns, etc. Based on the information
received, you suggest the month or the year when the asset grows and sell it. Buy and hold strategy may take months and years.
The swing method is something between the daily and buy-and-hold strategy. It takes a couple of weeks and may last a couple of months.
If you want to trade daily, pick the intraday trading strategy. Select the perfect time for buying an asset (it should be time before the markets start working) and sell coins during peak business hours. The main thing here is to close your positions in 24 hours.
Scalping trading takes a few seconds to 15 minutes and requires automated programs that track the market and open and close positions without your participation but following the parameters you set.
Take a chance to practice trading style using the WhiteBIT demo trading account to pick the perfect strategy for yourself. WhiteBIT offers a convenient crypto price list with charts and all possible tools.