Today I want to discuss some strategies and some tips to invest our cryptocurrencies effectively, many people know that the cryptocurrency market is not regulated and above all is something extremely dangerous because of its volatility, it is something really attractive if you are a good trader, but it can be very risky if you do not know how to operate, it is really something that can cause huge losses.
What should we take into account before trading?
I think a really profitable strategy is to make the right decision, what I mean is that we can wait for a market rise or a really considerable price drop to enter, I think when the Bitcoin drops 15% we can generate a really attractive profit, for this simple reason we should keep in mind that it is important to know when to enter and when to exit, many traders claim to read the Japanese candlesticks and do technical analysis and that is great for trading short and taking leverage.
I think we have to take some time to analyze the market, this is very important to take advantage of an opportunity and leverage effectively, this is something very risky and that is something to take into account, but we can mention that it is interesting the profit that we can generate daily with a good capital, but the best advice from expert traders is simply to educate yourself a lot about trading and cryptocurrencies, this can be really important to not lose our capital.
Create a trading plan: This is something important, we have to keep in mind what we want to achieve when we do trading, when you have a short or long term goal can be really great all this, for this simple reason to have our goal clear in trading can be a very important point.
Practice on DEMO account: Many people do not like to lose money and for this simple reason they should think about practicing with money or assets that are not real, this is highly recommended to people who are starting to trade assets and especially if they do it with leverage, this is just a great idea, it is interesting to trade with fake money or assets and trade without risk.
Risk management: I think that taking into account the risk of leverage is really important, because simply if you take a very high risk ratio you can get a very high return, but all your capital can be affected, for example if you have 100$ and you have a ratio of 1:100 you can buy or sell a financial asset with a value of 1000$ and this is really very interesting and at the same time very risky, always keep this in mind.
Intraday Trading
I think this is the best we can study, it is really interesting to open a trade and close it in 4 hours and get a 3%, we can also talk about scalping, something very similar and we will talk about this very soon, intraday trading is to open a trade per day and then close it the next day, I think 12 hours can be the minimum, but 4 hours is also considered intraday trading.
When you open a position, this position can be maintained with the closing of the market, let's assume that we place a position when the NY stock market opens its doors and close it the next day, when the NY stock market closes, your position continues to move.
Trading with Scalping
I think this can be very interesting and above all can generate a lot of profit, this is basically to open positions all day and close them in 5, 10 or 30 minutes. For example, if we open a trade with Bitcoin and close with profit in 30 min, this can be considered Scalping, this is the technique used by the most experienced traders, it is something very similar to intraday trading, but I think it has much more risk and above all with much higher frequency, it can really sound very entertaining for passionate traders.
See you in the next installment, remember that the material published here is for educational and entertainment purposes only, I am not responsible for your money and I recommend doing it at your own risk.
Acknowledgments:
- https://leofinance.io/
- https://leofinance.io/@leoglossary/leoglossary-main-menu
- @leoglossary
- @leofinance
- @leomarkettalk
- https://pixabay.com/
Miranda Casal - Quora - Instagram - Discord
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