Cryptocurrency trading strategies

The act of buying and selling cryptocurrencies for profit is known as cryptocurrency trading. The three elements that make up the definition of cryptocurrency trading are the way of working, the object and the trading strategy.

Cryptocurrency trading is one of the best ways to make passive income. Currently, crypto trading has been phenomenal for the past few years as many traders have become rich. There are different cryptocurrencies to invest in which have given more profits in the last few years.

A strong crypto strategy is the best way to maximize profits and minimize losses. It is important to note that crypto trading is riskier than trading traditional commodities on Forex markets, as digital assets are volatile. As a result of volatility, traders need to have a strong cryptocurrency strategy.

Let’s move on, let’s look at the best cryptocurrency trading strategies that can help you maximize your profits.

Crypto trading breakout strategy
This crypto trading strategy has significant advantages: confirmation and guaranteed entry. Sometimes, when cryptocurrencies make big moves, they don’t pull back; traders looking for deep returns — more often than not — miss out on swing profits.

The breakout strategy is an excellent form of trading to make a profit because of the significant price trends it creates.

Swing Trading
I call it a strategy for experts. Swing trading is for traders who buy but don’t want to hold cryptocurrencies for a long time. This strategy involves the use of technical analysis, candlestick patterns, etc. Traders using this method mainly apply technical details when trading.

Buy and hold strategy
The buy and hold strategy is probably the most widely used, as it requires little or no technical details. The Buy and Hold trading method is also one of the most profitable ways to trade cryptocurrencies as most digital coins are not too far from their all-time highs and would move up to gain new price points.

Traders who have bought and held digital assets over the past few years have reaped their rewards. However, traders who used long (buy) trading strategies counted a lot of losses.

Support and Resistance Crypto Trading Strategy
In order to know the trend of market prices of digital assets, critical peaks and troughs must be identified. Critical highs are reached in areas of resistance, while troughs are found in areas of support.

You should know that when former resistance becomes new support, the market is experiencing an extraordinary opportunity to buy in a solid uptrend — support and resistance help interpret chart patterns as well as mathematical indicators.

In addition, support and resistance lines help you know the entry and exit levels of a trade within the current price action. Before trading, it is necessary to obtain potential trading ranges predicted by support and resistance levels.

Candlestick crypto trading strategy
Crypto candlestick trading strategy includes shaved bar, engulfing bar and pin bar. Trading shaved bars is used to know the solid price momentum of cryptocurrencies, but it has to be done in the right way.

Traversing bar technology helps determine the price action of cryptocurrencies. Covering the entire price range tells you where the “whales” are investing their funds. On the other hand, a Pin bar includes a single price bar, usually a candlestick price bar that indicates a sharp reversal and price rejection. Using the pin bar method is a great way to maximize your profit while trading.

Related posts:

When you step into a big home improvement store, you’ve probably noticed there are A LOT of shelves full of A LOT of merchandise. I spent ten years as a manager at Home Depot and far from finding the…

House cleaning is a task that very few people look forward to but this infographic from HappyCleans may change your mind on cleaning. The graphic looks at cleaning as if it were a workout and will…

The image above shows a person holding up a phone that reads nothing but “blacklist” in large white letters The way you use your phone is a modern thumbprint. The articles we read, what we buy, the…