Crypto Playing Strategy for Beginners

Playing Crypto should not be careless, especially if you are still a beginner. Entering because of FOMO is a frequent mistake.

The trend of financial institutions including cryptocurrencies has increased in recent years. Cryptocurrencies have the same characteristics as traditional assets, they have different properties.

The crypto play strategy that investors formulate in cryptocurrency trading is an algorithm that defines a set of set rules for buying and selling digital assets in the cryptocurrency market.

This article will take an in-depth look at various crypto trading strategies such as day trading, futures trading, high frequency trading (HFT), dollar cost averaging and scalping.

How to Play Crypto

There are several ways to play crypto that beginners need to know. This allows us to minimize the potential losses that arise when starting to invest.

Of course, it must be known that crypto investment is a high-risk activity. We must be able to minimize the potential losses that arise when investing.

Also read: VCG Token Update Recap: September Week IV

HODL

HODLing is a safe way of playing crypto, where people buy cryptocurrencies and keep them for a long time. This allows investors to benefit from increased asset values. So, how to profit in crypto with HODL strategy?

HODLing allows investors to take advantage of long-term value appreciation when they invest 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.

Because cryptocurrencies have such a short history compared to commodities such as gold and silver or fiat currencies such as the United States dollar and euro, they are vulnerable to fraudulent activities such as money laundering. Therefore, some countries may not support cryptocurrencies, which affects the value of digital assets.

Also read: MetaMask Is A Crypto Wallet, Here Are The Benefits!

Dollar-cost averaging (DCA)

In the DCA crypto play strategy, a certain amount of money is invested periodically but piecemeal, allowing traders to profit from rising markets without putting their holdings under market risk.

Simply select a fixed amount of money to invest in the chosen cryptocurrency over a set time to use a dollar cost averaging strategy. Then, regardless of market movements, you keep investing until you reach your goal.

You buy at the highs and lows of the market when you use a dollar cost averaging strategy. In addition, DCA smooths the investment to invest in the cryptocurrency of choice over time without being affected by extreme highs or lows as if you were investing a large amount at once.

Since this is a long term strategy, you will have to pay more fees when trading crypto assets. Therefore, do your own research before implementing any crypto trading strategy.

Scalping

Scalping is exploiting market inefficiencies to make a profit. However, play crypto by way of scalping requires an increase in trading volume to generate profits. 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. Whales or large traders usually utilize this strategy to trade large positions.

Swing Trading

Swing traders play with market volatility for about a week or a month. They form strategies using fundamental and technical trading indicators. In swing trading, traders have ample time to track crypto asset prices and make investment decisions.

On the other hand, Swing trading often requires quick judgment and execution, which is not ideal for beginners. Also, traders must stay active every day and measure the market even if they don't trade every day, making it a complex and time consuming strategy.

However, bots and crypto signals are examples of automated technologies that can help execute swing trades more quickly. For example, a trading robot will scan the market and buy and sell assets without human intervention once certain criteria are met.

Also read: The difference between Crypto Coins and Tokens and Their Effect on Prices

Trading Trends

Trend trading or positions involve holding positions for several months to profit from directional signals. Usually, trend traders enter into short positions when they anticipate traders going down. However, they invest for the long term if they forecast an upward market movement.

Regardless, they should consider trend reversal using indicators such as moving average convergence divergence and stochastic oscillator to increase the success of their investment strategy.

Since novice traders are concerned about the financial risks associated with crypto investments, trend trading is for them. Nonetheless, whether a novice or an advanced trader, one must exercise due diligence before committing to funds.

There is no best or worst way to play crypto. If you are looking for the best crypto exchange for day trading or the best app for trading cryptocurrency, You have to focus on your financial or investment goals first.

Also, 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 such as order types and decide which trading indicators you want to adopt.

Also read: Staking Is a Crypto Deposit, Here's the Explanation!

Keep doing DYOR when you want to invest in crypto assets. So, we can have extensive insight about a crypto asset.

For your information, VCGamers has launched a crypto asset named $VCG Tokens. You can find VCG Token easily at Indodax, BitMart, Uniswap and Pancakeswaps.

VCG Token is now the only medium of exchange in RansVerse, the first metaverse in Indonesia built on the collaboration of RANS Entertainment, VCGamers, Shinta VR and UpBanx.

Keep up with information about crypto only at VC News!