Cryptocurrencies are developing at a very rapid pace since 2009 when the first crypto in the form of Bitcoin was introduced in the market. Since then, the concept of crypto trading has also evolved that is at its peak due to the possibility of a high return.
Cryptocurrency trading means buying, selling and exchange of cryptocurrencies to earn profit. The major three aspects through which the definition of crypto trading gets complete are the object, operating mode and the trading methods.
The crypto trading strategies or methods are very necessary while doing the actual trading as knowing about different strategies will be helping you in analyzing which method will best suit you.
Why We Need a Crypto Trading Method?
It would not be a wise decision if you do crypto trading only based on random methods or intuition. If you do trading based on your gut feeling, you may get enough return over your investment, however, this accomplishment will only be because of your luck. Without a proper method or strategy, you cannot be able to replicate such positive results in future.
The traders who want to get a high return on their investment consistently always focus on adopting a strategic approach. Through this blog, we would make you aware of the major crypto trading methods that you can use for getting positive consistent results.
Day trading is one of the most used crypto trading methods. In this method, entering and exiting positions will be on the same day. In this trading method, the crypto traders would be focusing to capitalize on the single-day movements in the price.
Generally, day traders trades on higher timeframes than others however, they close their positions on a single date. The major aim behind day trading is to make a profit from the small fluctuations in the market which generally happen daily in the form of bear and bull market activities.
It is recommended that if you are a beginner, you should avoid this method while doing blockchain trading as it is more suitable for experienced traders.
Scalping Crypto Trading
If you are doing online crypto trading in India either as a beginner or an experienced person, you must have heard about Scalping which is also a very popular trading strategy in the crypto market.
Through this trading method, the trader will be making a profit through the little fluctuations in the price at frequent intervals. The major goal of adopting this crypto trading method is to collect a small amount of profit daily. So that a substantial amount could be gather over time.
Typically, the scalper trades for less than one hour in a single session and their trading session can last from a few seconds to a few minutes. In general circumstances, they do the crypto trading using a one-minute, 15-minute or 30-minutes time frame.
Swing Trading is the form of long-term crypto trading strategy that includes holding positions for more than a single day but not longer than a few weeks or months. It is a method of trading in which traders will be grabbing the advantage of the volatility of the crypto market. In the whole process, it would take several weeks or months to take full advantage.
It has been observed that swing traders use technical as well as fundamental factors for formulating their trade ideas. Swing traders would be understanding the patterns and volatility of the market through technical indicators and charts that play a major part in this type of trading method.
If you want to sell the cryptocurrency from one market and then sell it to another market with earning a profit, this type of trading method is known as Arbitrage Trading. Here in this method, the crypto trader would be making huge profits by analyzing the prices of crypto assets on two or more crypto exchange platforms and will be taking decisions accordingly.
There are several opportunities to do arbitrage trading due to an infinite number of crypto exchange platforms available in the market. Due to this, it becomes easy for a trader to analyze the price of a particular cryptocurrency on different exchange platforms and earn huge profits.
Position Trading (Buy and Hold)
As the name suggests, this crypto trading strategy would be allowing the trader to hold their trading positions for a long period. There is no limit to how much time you can hold a cryptocurrency as it can be a few months or even a few years. For instance, if you have purchased Bitcoin from a crypto exchange platform, you can hold it for several months or years to focus on long-term trends.
However, it is very necessary that while adopting this method for it, as a crypto trader, you should focus not only on the long-term timeframes but also on daily and monthly timeframes.
If you are a beginner in trading, it can be a complex task for you to analyze which method or strategy is best for you. In such times, the crypto trading fantasy games come into play that helps in nurturing your crypto trading games. It helps you in taking wise decision to make huge profits.
There are several play-to-earn games in the market, however, Trade the Games is the best blockchain trading game. It offers you a free platform to learn crypto trading and get aware of the different methods of trading. After playing TTG, you can properly analyze which method best suits you for getting huge returns and profit without the risk of losing money.
So, hurry and download this application on your mobile or desktop to improve your trading skills.