Crypto Trading Strategies That Actually Work
Cryptocurrency trading has caught the attention of traders around the world. Even the skeptical traders have now confidently started trading in cryptocurrencies as the possibility of making bigger profits, in this case, is irresistible. For the sake of those who do not have much expertise in the field, there have been several ready to use trading bots developed. Even the professional traders can use these bots to save some time. Irrespective of the approach you take here are some cryptocurrency trading strategies that are known to work for the beginners as well as for the pros-
If you are an active trader looking for a strategy that is not too risky, then this one is for you. Pull out the chart of the chosen cryptocurrency. Identify the reliable support and resistance levels. Then look for those support or resistance levels where breakouts are prone to occur. Breakouts are those instances where the price movements are strong enough to crack through the support or resistance levels and these are times when the trend is likely to continue in the direction of the breakout. So buying cryptocurrencies at such times would be a good idea.
Dollar cost averaging
Dollar cost averaging is one method that can be used in any market and it can be used by those who have very little time to spend studying the assets and the market. When you choose to use dollar cost averaging in cryptocurrency market you would be using a fixed capital to buy a cryptocurrency on the regular basis, say on a monthly basis. So on the same date every month you would be buying the chosen cryptocurrency whether its price is increasing or decreasing. You would adjust the quantity in a way that keeps the purchase value the same every time. So market ups and downs would be adjusted in the long run and you would have a steady increase in the volume of cryptocurrencies you hold.
Look for the lowest price level
When you are aware of the top cryptocurrencies and their average price trends then look for those times where the prices drop low. Buying them at their lowest price would be the most straightforward way to trade. So with the assurance that the currency would definitely correct itself, you can then choose to sell the cryptocurrency once the price has significantly increased.
Buy the pullback
When a cryptocurrency has reached its highest peak and then starts falling then it is called pullback. A support level would pop up and so buying a pullback is considered a less risky crypto trading strategy.