4 Cryptocurrency Strategies For Beginners( 2022 update)

In this article, I’m going to outline and explain the 4 cryptocurrency trading strategies which you can Used to make money.

In the last Live stream on our YouTube channel, the founder of Digital Swap, Emmanuel Jacob said ” Crypto trading strategies is a kind of pattern that you follow to make money from Cryptocurrency trading. He also said that it the rules you will be setting in order to enter trade and a set of rules you need to exist.

Now, let’s dive in to understand what really is cryptocurrency trading and cryptocurrency trading strategies is all about.

Understanding Cryptocurrency Trading.

The trend of financial institutions including cryptocurrencies in their portfolios has intensified in recent years. The first pure digital assets to

be included in an investment portfolio by asset managers are called cryptocurrencies .

Although they share the same characteristics as traditional assets, they have their own distinct nature. The act of buying and selling cryptocurrencies to earn a profit is known as cryptocurrency trading.

The three elements that make up the definition of cryptocurrency trading are the operating mode, the object and the trading strategy.

4 Cryptocurrency Trading Strategies  For Beginners ( 2022 Update).

Financial risk can be mitigated with an efficient trading strategy. It keeps you from making rash and impulsive judgments that can cost you a lot

of money. If you are a beginner, you could even consider trading on the Binance Futures testnet to become familiar with the world of highs and

lows. Here are some of the common strategies that are popular among crypto traders:

1. Scalping

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Scalping is also a popular trading strategy in the cryptocurrency market. This trading strategy allows traders to profit from little price movement at frequent intervals. The goal is to add up small profits each day to generate a substantial amount over time.

Scalpers often use leverage to open more trades and tight stop losses to manage risk. They trade using one-minute, 15-minute, and 30-minute time frames. Their trades usually last for a couple of seconds or minutes but typically less than one hour.

2. Day trading.

The strategy of crypto day trading entails entering and exiting a position in the market on the same day within crypto trading hours. It’s also known

as intraday trading because trades are typically started and concluded within a single day.

So, can you day trade Bitcoin ( BTC)? Yes, day trading BTC is like playing with Bitcoin volatility throughout the day.

The entire point of day trading cryptocurrency is to profit from tiny market movements. Because

cryptocurrencies are volatile, day trading in the crypto market may be pretty rewarding.

Trading strategies are devised using technical analysis by day traders, but it is a time-consuming and risky strategy that is mainly suitable for advanced traders.

3. Swing Trading.

Trades executed using this strategy usually span more than a day, but usually not longer than a few weeks or months. As a result, some people

refer to this strategy as a medium-term trading strategy because it sits between the day trading and position trading strategies, giving traders more time to consider their decisions.

You won’t get to make spontaneous decisions as you would in a shorter-term strategy—you can

make trading decisions with less emotion or rationality, which is why this trading style is usually recommended for beginner traders.

4. Buy and Hold (Position Trading).

Position trading allows traders to hold trading positions for a long time. It could be months or even years. Traders using this strategy usually

ignore short-term price movement and focus more on long-term trends.

To make this type of trade, traders usually focus on the daily, weekly,

and monthly timeframes. Position traders also use fundamental analysis to evaluate potential market price trends and consider other factors

such as market trends and historical patterns.

Conclusion.

Cryptocurrency trading is one of ways to make money off the internet. In fact, over millions of people across the world trade it daily.

Cryptocurrency trading is very volatile compared to other financial markets. this is why 4 cryptocurrency trading strategies for beginners was written to educate you so as to know the best strategies to embark on as you start your trading journey. Join our telegram channel to learn more on the subject matter around and Crypto updates.

Have you learned anything?. Or did you have anything informative and educative to add? Or which topic did you want us to write to you again?. Let us know it in the comment section.