Cryptocurrencies are a hot class asset to trade. Numerous cryptographies have achieved an absolutely phenomenal return over the last few years. A good example is our best cryptocurrency to invest in 2018, which returned more than 33,000 percent in 2017.
A solid cryptocurrency strategy is one that maximizes profit potential while minimizing risk. Trading cryptocurrencies can be more risky than trading conventional financial instruments like forex currency pairs. Crypto are much more volatile than fiat currencies and are also less liquid.
As with any other asset class, a solid trading strategy is crucial to successful cryptocurrency trading.
When liquidity is thin and volatility is high, stop-loss orders may seem ineffective. Also, cryptocurrencies are a young asset class that has a lot more to prove to the world. Many cryptos have little intrinsic value and could be sensitive to ‘fall and burn’.
Although trading cryptocurrencies has been relatively easy for many people so far (due to extremely powerful bullish trends), it can definitely be a challenge. Because crypto files are so volatile, individuals who trade them should be armed with the right mindset and be prepared to face (and exploit) volatility when presented.
The three largest cryptos – bitcoin, ether (ethereum) and ripples. (Images are for display only, as cryptocurrencies are digital and intangible.
Cryptocurrency buying and holding strategy
Buying and holding cryptocurrencies has definitely been one of the most profitable cryptocurrency trading strategies to date. This is not surprising, as most major cryptocurrencies are not far from their highest times at the moment, and many are currently moving towards fresh highs. The guys who have bought and kept these crypto files over the last few years so far have all been nicely rewarded.
On the other hand, many traders who have used other long (buy) trading strategies have left the market prematurely and missed some healthy earnings.
More detailed information and tips on buying and retaining cryptocurrency trading.
Cryptocurrency trading with price action
Price trading is reliable and useful in basically all financial instruments that are traded. Human psychology creates common patterns of price action that are useful to informed traders. Learn how to interpret them and you could put a few pounds in your pockets.
Why cryptocurrencies can be traded effectively with price action.
Breaking through the strategy of cryptocurrency trading
Two very important benefits of breaking crypto trading are confirmation and guaranteed entry. When cryptocurrencies are really on the move, sometimes they don’t make deep returns. People waiting for such returns often miss good opportunities to make a profit with a trend / momentum.
Tired of waiting for a decent retreat? Breaking through crypto trading works great, especially when constantly pushing in one direction.
Breakthrough trading is a great way to trade cryptocurrencies due to the massive price movements they produce. Strong one-sided moves are ideal for making money by punching.
Swing cryptocurrency trading strategy
Not every trader has the patience to perform crypto trading by buying and holding. For those individuals, swing trading can be a good option.
There are numerous swing trading strategies that use all sorts of candle patterns, technical indicators, and even the mood in retail. Swing traders often use a combination of technical and thorough analysis, but mostly focus on technical data.
The volatile nature of the cryptocurrency market makes it an excellent playground for swing traders if used properly.
Candlestick cryptocurrency trading strategies:
Shaved bar of cryptocurrency trading strategy
Momentum is really useful when trading traditional markets, so why not use it when crypto trading? Candlesticks with shaved bars can be strong indicators of a solid price swing, but they should be used in the right context.
To find out exactly what a shaved bar is and how to trade it in the cryptocurrency market, look in this space for a link to a detailed article on shaved bar strategies. Don’t miss this one!
Learn more about candlestick trading.
Satisfying the cryptocurrency trading strategy Bar
Individual candle holders contain strong indications of the direction of the order flow and where the price is likely to go. The powerful puddle that grips is one of them and marks the levels at which reversals are likely to occur. Covering the entire price range of the previous candle says a lot about where the big players in the market are investing their money. We will soon learn more about swallowing at least a crypto store!
Pinbar cryptocurrency trading strategy
Pinbar is one of the most profitable signals for price action. Often referred to as hammers or shooting stars (depending on the position and nature of the candles), pinbars are ‘cherry on the cake’! As with other financial instruments, a decent bar on cryptograms is something you can’t afford to miss.
Check out this space for pinbar store earning strategies coming soon.
Cryptocurrency strategy for support and resistance
Understanding support and resistance is quite convenient in the world of trading, not only with forex, stocks and commodities, but also with the new child in the block – cryptocurrencies. For example, when the previous resistance turns into new support, we often encounter great buying opportunities in strong growth. Look for strong support in this space & the cryptocurrency resistance strategy is coming soon!
For more information on trading with support and resistance, follow this link.
The basic strategy of cryptocurrency trading
Cryptocurrencies are not all the same. Some are mined, while others are created all at once and are slowly released to the market. Some crypto-files earn a type of interest when they are owned, and some are tokens used by innovative development networks / platforms. Other considerations such as the maximum supply of cryptocurrency, alternative uses (other than being an exchange medium), can greatly affect its future performance.
Offering a particular cryptocurrency usually plays an important role in its price. The supply of Bitcoin is limited to a maximum of 21 million units.
Of course, all the important news regarding the development, regulation and application of different cryptocurrencies can also have a significant impact on their price. Other price catalysts include vulnerabilities in blockchain systems, crypto hacking, scalability issues, and so on.
Learn all about the basic strategies of forex trading here.
Tackle Taurus (trend) along the Horns
Now that you know more about the different ways to trade cryptocurrencies, now is the time to get involved in this dynamic market. To get started quickly and easily, take a look at our top crypto brokers and compare the different benefits and features offered by each. Take advantage of the powerful trend of crypto bulls today.