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Cryptocurrency types & strategies to invest

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Cryptocurrency types & strategies to invest

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Cryptocurrency types & strategies to invest

Cryptocurrency trading are based on strategies opposite to traditional financial trading. There are various styles of trading that fit according to person’s choice and goals. Some of the trading types are Scalping, day trading, range trading, swing trading, position trading and investing.

Scalping involves rapid trading to profit from small price changes. It executes more trades within short time frame. 

Day trading executes profits during the same trading day from buying and selling digital assets.  It is done by technical analysis and trading indicators to profit from short term price movements. 

Range trading is a trading within the specific range over a current period of time. The strategy “range-bound trading” aims to profit from price changes within the current range. 

Swing trading captures medium-term price fluctuations from one set level to another over the course of days or weeks. It involves technical analysis, chart patterns and market indicators to decide trading options.

HODLing is a strategy used for holding cryptocurrencies for a longer period of period of time regardless of short-term price movements.

Arbitrage trading aims to profit from price discrepencies on different exchanges. It involves buying of digital currency on one exchange and then selling that currency on another exchange at a higher price. 

Margin trading is trading technique allowing buyers to borrow from a cryptocurrency exchange to enhance their buying power. If you succeed in trading, the reward is significantly higher and  your loss is much more if the trade goes opposite.

Spot trading focus on short-term investments and trading aims to purchase and selling of coins and tokens at the ongoing rate of the market. 

Future trading is a trading of future contracts for cryptocurrency in which a trader make predictions about the assets price at a future date, without needing them to buy. The opportunity to purchase or sell an asset at a predetermined price is an options contract. However, they are not required to buy or sell, unlike in a futures contract. A sell contract is referred to as a put option in which they can make money if there is a decline or anticipate a drop in price, whilst a buy contract is known as a call option, if the price increases or anticipate a rise in price of bitcoin. 

Copy Trading and Social Trading are the platforms  allowing users to benefit from the expertise of successful traders and their trading strategies. 

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