Cryptocurrency prices are very volatile and subject to manipulation. The market possesses great potential to grow and make huge profits. If you want to survive in this market, then you will have to play smart and put a few trading strategies in place. these sis strategies will enable you to thrive like never before.
Our first trading strategy is a very advanced one, whose main cause is market imperfections. Arbitrage traders take advantage of the imbalances in assets and other financial instruments by making money off their differences. The best part is how simple this strategy is, you can adapt it even without any experience of the market. All you need is a little technical knowledge.
This is another recommendable strategy for this year. It is a long-term strategy whereby the trader holds on to their assets for a long period of time, it could be a couple of hours, days, or even weeks.
This strategy requires a lot of technical analysis before entering into the market since you need to first identify the trend in the market.
This is a very popular technique within the crypto sphere, applied by most traders and dealers. The first thing you need to do is identify the oversold as well as overbought assets within the market. Then you will simply proceed to sell the oversold assets and buying the overbought assets.
In essence, you are identifying the price of assets and coins, buying them just like any other investors, and then waiting for the prices to reach their peak level before you can sell the assets. It always comes in handy when there is no suitable trend in the market.
This is a very lucrative strategy that utilizes small fluctuations in the price of a crypto coin. Investors tend to buy coins and assets at low prices and sell them at higher prices and sometimes vice versa.
Traders who apply this technique are called scalpers; and a scalper needs to be familiar with the ups and downs of the market, all its conditions, and deep knowledge of the particular asset that they are trading.
Most scalpers have about 100 trades daily and they are always ready to take full advantage of specific fluctuations in the market. They should have the ability to use volatility and fluctuations to their advantage.
This type of trading only allows for very small fluctuations in that you buy and sell coins and assets within a day. It is a very lucrative way to trade, as the trader makes the most of the changes within the day and they get to withdraw their cash on the same day.
Three factors are considered in this trade and they are namely trading volume, liquidity, and volatility. And it only works when the market is doing well. the longest a trader can hold on to their asset is a couple of hours.
This is another great strategy in the market for 2020. A position trader is a long term investor who does not concentrate too much on a small day to day or monthly fluctuations. Such a trader may only conduct 2-3 transactions in a year. In fact, the only time that this strategy is imposed is in case of a complete shutdown or a threat to their assets.