Beginner Crypto Trading Strategies You Should Use

Crypto Assets is a high-risk investment, and if you don't use a crypto trading strategy, you can lose your invested capital. 

Basically no strategy crypto trading Perfect". However, if you are still a beginner, you really have to know what are the basics in trading in the cryptocurrency world.

The risk of loss can be reduced by an efficient crypto trading strategy. It keeps you from making hasty and impulsive judgments that can cost a lot of money.

Crypto Trading Strategy

If you are a beginner, you can use some of the easy ways or steps below. 

Make Day Trades

This strategy requires entering and exiting a position in the market on the same day within the crypto trading hours. It is also known as trading intraday because it usually starts and finishes in one day. 

The essence of day trading is to profit from small market movements. Since cryptocurrencies are volatile, day trading in the crypto market may be quite beneficial. This strategy is designed using technical analysis.

HODL (buy and hold)

HODLing is an investment or trading technique by buying cryptocurrency and keeping it for a long time. This allows investors to benefit from increased asset values. 

HODLing allows take investors or traders to benefit from long-term value appreciation when investing for a long time.

Investors can benefit from HODL strategies because they are not subject to short-term volatility and can avoid the risk of selling low while buying high.

Arbitrage Trading

This way of taking advantage of arbitrage opportunities to profit through cryptocurrency trading strategies or Bitcoins.

Arbitrage is a trading method in which a trader buys cryptocurrency in one market and sells it in another. The spread is the difference between the buy price and the sell price.

You may be able to book profits due to the difference in liquidity and trading volume. You can register an account on exchanges with significant price differences for the cryptocurrencies you trade to take advantage of this opportunity.

However, you will have to pay your deposit, withdrawal and trading fees twice, reducing the profits you take home. Also, if you miss the price differential across the two exchanges (as mentioned above), you cannot take advantage of that arbitrage opportunity.

Also read: How to Learn Crypto To Start Trading, Read This!

Do Scalping

This way of exploiting market inefficiencies to make a profit. However, the scalping method requires an increase in trading volume to make a profit. Scalpers check historical trends and volume levels before deciding on entry or exit points for the day.

Regardless of the risks, a smart trader pays attention to margin requirements and other important rules to avoid a bad trading experience.

Scalping prefers highly liquid markets because it is quite predictable when one should enter or exit the market. 

Also read: How to Find Good Micin Coins for Trading

You need to be aware of the asset class you want to add to your investment portfolio, along with the level of risk you want to take on. Next, familiarize yourself with the basics of cryptocurrency trading.