Inserting an article dedicated to crypto trading in a text that deals with blockchain and cryptocurrencies are inevitable; one of the advantages of this technology is that all those who discover it immediately feel the need to understand how the market works. The reasons that push a person to start trading cryptocurrencies can vary. Some do it out of pure curiosity, to better understand the same technology, or simply because they see the possibility of earning money. It is widespread that those who approach cryptocurrencies very often decide to open a trading account on an exchange platform.
This has allowed many people to acquire the first rudiments of economic-financial education: a form of education almost absent in our country and greatly needed. The “quantum” leap that people who start using BTC and other cryptocurrencies make is that they can freely invest it since they have complete control of their money. And for the rest, as I like to say, “Even a monkey can make a profit by trading.” What does this activity consist of? I think one word is enough to say it, which is “rules.” Trading is a system of rules. Approach cryptocurrencies very often decide to open a trading account on an exchange platform.
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This has allowed many people to acquire the first rudiments of economic-financial education: a form of education almost absent in our country and greatly needed. The “quantum” leap that people who start using BTC and other cryptocurrencies make is that they can freely invest it since they have complete control of their money. And for the rest, as I like to say, “Even a monkey can make a profit by trading.” What does this activity consist of? I think one word is enough to say it, which is “rules.” Trading is a system of rules. What a trader does is take advantage of these value fluctuations to make a profit, buy BTC at a low price (for example, at $100), and resell at a higher price (for example, at $120); the difference between the selling price and the buying price represents the profit (or loss) realized with that single operation.
In cryptocurrency trading, we can observe two significant trends: traders who constantly operate in pairs with a fiat currency (for example, buy BTC to earn dollars). Those who trade in cryptocurrencies (buy any altcoin to earn BTC.). Whoever operates in the first way (i.e., accumulates dollars) is a person who is probably convinced that the supremacy of fiat currencies will never be scratched by cryptocurrencies. Consequently uses price changes to earn more legal tender currency. Those who instead operate in the second way (i.e., accumulate Bitcoin) are convinced that, regardless of what happens during bearish cycles. BTC is destined in the long term to continue to increase its value, consistently hitting new peaks.
[ccpw id=”645″]The most popular trading strategies include:
Scalping: means that the trader opens and closes numerous transactions during the same day. Aiming to make a profit in the shortest possible time by taking advantage of even the most minor price changes.
Day trading:
In this case, the trader tends to make fewer operations, rarely exceeding two or three on the same day. As a basic rule, each operation is opened and closed strictly within 24 hours.
Swing trading:
Those who do this type of trading reduce the number of transactions even more compared to the day trader. And as a basic rule, the duration of the trade is extended from one day (maximum duration of day trading) up to ten days (indicatively the maximum time frame within which the single transaction should be closed.). The most popular trading strategies include:
Scalping:
This means that the trader opens and closes numerous transactions during the same day. Aiming to make a profit in the shortest possible time by taking advantage of even the most minor price changes.
Cassettes:
Between when the drawer opens an operation and when he closes it, months can easily pass; moreover, it is difficult for this operator to manage more than two or three investments simultaneously.
In general, a good trader knows how to adapt his operations to all four trading styles based on the market trend. Therefore, depending on the moment the trader decides to adopt one style instead of another. The same trader who today does scalping could then suddenly adopt a swing crypto trading logic. Then go back to scalping once the previous operations are closed.
Crypto trading is a system of rules.
Trading is a system of rules; once these rules are set correctly, you inevitably start making a profit. This does not mean that you will quickly become a billionaire. But simply that you will be able to make your savings relatively quickly. When we talk about crypto trading, the tricky thing is not even learning the technique (which, after all, is accessible to anyone) but having complete control of one’s psychology.
Each trader is constantly exposed to a tremendous psychological pressure that induces him. Regardless of the rules he has given himself, to sell or buy unreasonably. The point is that no matter how good you are, all traders are trading at a loss. A good trader accumulates more profit than loss. The psychological reactions of each operator can be different and can change. As well as from person to person, from situation to situation. Therefore, no rules are valid for everyone to manage the most demanding aspect (the psychological dimension) of the trading activity.
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