Cryptocurrencies have gained mainstream popularity due to their innovative technology. But it is hard to deny the fact that many investors pay attention to them, first of all, as a financial instrument for earning money. There are many ways to make money from cryptocurrencies. One of them is cryptocurrency trading. If you are finally ripe for serious financial affairs and have some start-up capital, but don’t know where to start your career as a cryptocurrency trader, this guide is designed especially for you. We will also cover the different types of cryptocurrency trading.
Cryptocurrency trading strategies
Strategies developed on the basis of precise calculations are the pretext for endless debates among traders. Many are sure that they are indispensable for the volatile cryptocurrency market, while others are sure that this is where they are not applicable. Either way, there are several strategies for trading digital assets.
The most widespread one is considered to be the strategy, which is based on moving averages. Thus, a trader can determine the average rate in the selected time interval. If the graph indicators are higher than the moving average, the value of the asset is increasing, below – the price is decreasing. It is a stretch to call this strategy accurate and the best one.
The most optimal strategy for today is based on impulses, pullbacks and breakouts. This strategy is called short positions. It is designed for trading at short intervals, in which a market participant sells available coins with further elaborate redemption, but at a lower price. They provide the guaranteed profit, but also are connected with big risks. Timely tracking points allow for Japanese candlesticks. They have proven to be the best in all the years of trading.
News strategy is also popular among traders. The only problem is that it is not easy to find true news about cryptocurrencies. When reading the forum, be prepared for the fact that some news can be posted as part of an impending bubble, rather than reflecting reality. When choosing to trade on signals, you should stock up on several reputable sources of information, but you still shouldn’t give up your own market analysis.
How much can you earn on the cryptocurrency exchange
Naturally, you would like to know specific figures, but in this case, the trader’s earnings depend solely on his actions and capital. Profit averages 10% of the amount per day. And deals of $25-50 thousand are quite usual for large exchanges. Overall, 10% of the deposit per day is far from the most impressive figure.
Nowadays, crypto-trading is considered as one of the most promising types of activity, allowing earning both on rise and fall of rates. If a trader does not yet know how to properly trade on a crypto exchange, his income will leave much to be desired. Some traders manage to close 9 out of 10 deals successfully, while others have less profitable operations and correspondingly lower earnings.