My Secret Cryptocurrency Trading Strategy

It’s not that one model is just better than another, the important takeaway here is that you should be aware of which type of scenario you are dealing with, as it varies from asset to asset. Part of why this is also important is that it plays into how the market capitalization is calculated. They ideally should be transparent about their credentials and history. If they can show other successful projects they have worked on, all the better. If you cannot determine the main names and faces behind a project, this could potentially be a huge red flag. If you give this team your money and they just disappear, how would you find them? This is why it is generally very important to learn at least a bit about the major players on a team before investing in anything.

However, 9 signals very commonly trigger, yet no follow up occurs and price fails to react. The tool, while accurate and helpful, isn’t a guarantee and unlike other visual indicators based on moving averages, there is more room for error. It signaled a 9 sell signal when the asset reached its all-time high at $20,000, then again recently when it was trading over $10,000.

This cryptocurrency trading strategy is very unique and you cannot find it on internet, I have been using it since 2015 and made this strategy By leaps and bounds research. First of all I shared the way by which you can create your own cryptocurrency trading account on Binance exchange.

You should be aware of the risks associated with trading and seek advice from an independent certified financial adviser if you have any doubts. Some links on this page might be affiliate links, where we get a small commission if you purchase through the link. It doesn’t cost you anything extra and we only recommend products that we absolutely love.

So you will have to do your research to see where you can buy that cryptocurrency. For example, if you want to buy IOTA, you will need to open a trading account at Bitfinex because that is the only exchange where it is currently traded. If you want to invest in cryptocurrencies for the long-term, this guide will show you everything you need to know. Get specific strategies, chart patterns and learn what to look for in a cryptocurrency that makes it a good investment prospect. In the above figure, we can notice that Bitcoin’s price fails to break above resistance while Ethereum’s price broke above and made a new high. This is the first sign that the best Bitcoin trading strategy is about to signal a trade.

Earn Crypto Rewards Monthly

For those unfamiliar, the RSI is an indicator of overbought and oversold levels. The rationale behind this behavior is that if there is sufficient strength pushing the price in a given direction, then the chances are that the move will continue for a while.

  • From charting minute movements to viewing the entire price history on a weekly, monthly, and yearly time-scale.
  • You are trusting the exchange’s security measures and not your own.
  • What currency and coins you’re trading can influence the rate.
  • To be a successful cryptocurrency trader it is important to adapt to a single strategy.

Pattern day trading strategies are a type of trading method in which traders are looking for specific patterns through the price chart in the form of candlesticks patterns or bars. These patterns can anticipate the next move with some accuracy, though you have to learn how they work and understand that there is a risk that the price may behave differently than what you expect.

Exchanges which offer margin trading allow users to lend coins for a percentage return. Even at 1% a month, that comes to 12% a year as a safe return. When crafting your cryptocurrency strategy, cross-reference different indicators from several sources.

The average price will ultimately end up being much lower or higher than if you were to purchase in one payment. Dollar cost averaging allows an investor to average out his purchase price within this set intervals, thereby, managing short-term risk. The entire market cap hasn’t even reached a trillion dollars. Whether you’re looking for a side gig, a hobby, or even a career, crypto investing can be a lucrative endeavor. Binance is another well-made platform that is easy to navigate and provides a considerably wide range of different cryptoassets to buy and sell.

However, volatility doesn’t have to be an issue if you have a cryptocurrency investment strategy. The TD Sequential indicator is a technical analysis indicator made by market timing wizard Thomas Demark. It’s become increasingly popular in cryptocurrencies, accurately calling many of Bitcoin’s tops and bottoms. Using the midline simple moving average of the Bollinger Bands as a trigger for long or short signals, can prove to be a steady, successful strategy for crypto traders. The Relative Strength Index is the first indicator we’ll explain due to how straightforward it is to use for an effective, profit-generating trading strategy that regularly yields positive results.

Welcome To Mycryptoparadise Get The Best Crypto Signals And Trade Crypto Like A Professional.

Later on, you’ll learn how to apply this information together with the cryptocurrency trading strategy. The best Bitcoin trading strategy is an 85% price action strategy and a 15% cryptocurrency trading strategy that uses an indicator.

cryptocurrency trading strategy

Reversal strategies are probably the riskiest ones from this list, so beginners should better look for better alternatives. This trading style tries to catch a trend reversal ideally right before it happens, i.e., before an uptrend turns into a downtrend or vice versa. That means traders are trading against the trend for a while cost them their deposited funds. Needless to say, a day trader cannot do without technical analysis indicators and tools, which are providing great insight into the historical price data.


When trading cryptocurrency the price of bitcoin is leading in this market. Trading cryptocurrency has gained a lot of popularity among professional traders. This article explains 4 profitable ways for trading strategy cryptocurrency. There are people in this world who would sell a blind person a pair of glasses if they could make money. Those same people play in the cryptocurrency markets and use every opportunity to exploit less-informed investors.

cryptocurrency trading strategy

While bitcoin day trading does have some risks, there are many ways these risks can be reduced. Here are some of the top ways to enhance your Bitcoin trading strategy. If you followed our cryptocurrency trading strategy guidelines, your chart should look the same as in the figure above. For now, all should be good, so it’s time to move forward to the next step of our best Bitcoin trading strategy. What we really want to see is the OBV moving in the same direction as the Bitcoin price.

Bitcoin is the father of the cryptocurrency world, and many people believe in it. If you’re disciplined and can easily manage risks, you could try margin trading. However, you have to place every order very carefully, or you might end up in debt. Buy promising cryptocurrencies and hold onto them for months. For instance, you could buy 100 Ethereum and just check the index in 3 years. If you’re interested in making lots of money, you should remember that it isn’t ‘free money’. You have to resist stress and stay cool-headed in addition to following all of your tactics.

I’ve heard countless horror stories of people investing greedily with their entire life savings or borrowing large sums of money. Ultimately, as the price swings up and down, you should remain calm and still be living a healthy life with room for regular spending. Tax implications, in addition to accumulated fees and bad trades, is another reason why you should not overtrade.

You would then pay back $900 to the exchange, and you would have doubled your investment. Your trading strategy for Bitcoin will be the same as those used for alternative cryptocurrencies, like swing, day trading, scalping and others. Most of your tactics will be similar, but you’ll have more opportunities because Bitcoin is the most popular digital currency. Before day trading, you should check for high volatility of cryptocurrency being traded. This provides more opportunities to make deals, allowing you to gain more profit. For example, Bitcoin Cash has become very valuable since its hard fork on 1 August 2017 because miners need many resources to find new blocks. Acryptocurrency tradingstrategy is a set of actions aimed at creating profit in the cryptocurrency market.

cryptocurrency trading strategy

Totally private transactions can give a currency a much desired characteristic, fungibility. This simply means that one coin is has the exact same value as every other coin. Although Bitcoin transactions were originally thought to be private, detailed analysis of the blockchain can trace some transactions. Monero is a private financial transaction currency that has recently seen a huge spike in price. Transaction time with Ether is fast and the amount of Ether produced every year will remain the same. So the value of the network will have to increase over time, in order for the currency to appreciate. By using this strategy, you can leverage your gains to make higher returns and diversify your portfolio.

Cryptography secures the interactions and then stores them publicly. They serve as a public ledger, cutting out intermediaries such as banks. Specialising in Forex but also offering stocks and tight spreads on CFDs and Spread betting across a huge range of markets. Axi is a global online FX and CFD trading company, trusted by 60,000+ ambitious customers in 100+ countries around the world. Pepperstone offers trading on the major Cryptocurrencies via a range of trading platforms. Dollar cost averaging still requires studying the coin you’re investing in as well as analyzing trends, therefore, it needs to utilize both fundamentals and technicals a little. When Enjin Coin announced its partnership with Samsung, its value swiftly pumped from $0.09 to $0.18 (100% increase) in less than seven hours, and then peaked at nearly $0.25 after two days.

Although cryptocurrency trading has been relatively easy to many people so far , it can definitely be challenging. Because cryptos are so volatile, the individuals who trade them should be armed with the right mindset and be ready to face the volatility when it presents itself. Online you can also find a range of cryptocurrency intraday trading courses, plus an array of books and ebooks.

Creating A Cryptocurrency Portfolio For A 10

However, it can be important to look at the current price, circulating supply, market capitalization, and trading volume before jumping in, so let’s look at these now. If you’re very emotional and tend to make mistakes, you have to use an algorithmic strategy. That means using formulas to identify points at which you need to place different orders. Today, these strategies are associated with using trading robots, but you have to configure them the right way to be successful. An exchange with lots of distinctive cryptocurrency pairs is the first thing you should find.

As most of the people do not know how they can buy bitcoin and other coins with their credit card, Paypal, or with any other local payment method, which is the biggest hurdle for them to buy coins. But I shared a method which will help you to buy bitcoin, USDT or any other cryptocurrency with your local currency and local payment method very easily and fast.

IQ Option for example, deliver traditional crypto trading via Forex or CFDs – but also offer cryptocurrency multipliers. These offer increased leverage and therefore risk and reward. Innovative products like these might be the difference when opening an account cryptocurrency day trading. the cryptocurrency industry evolves more and more every year, we are continuously introduced to new ways that traders are generating profit, and the market as a whole is always expanding with innovation. Making a living day trading cryptocurrency can be a lot easier due to the high volatility nature of the crypto market. High volatility suits day trading very well, so you have the right environment to succeed.

Ignoring both tax implications and exchange fees will severely impact your overall cryptocurrency investment strategy. Swing trading is suitable for those with a small to medium amount of capital to invest. It does not require significant investments as it is quite common for cryptocurrencies to experience percent growth within one trade cycle. The news is particularly important with cryptocurrencies, as enough negative or positive press can easily change the momentum of a coin — sometimes very quickly. When swing trading, it is important to stay up to date with new developments that may affect the price action of your picks. Holding is certainly not the most effective strategy on this list, and nothing guarantees that cryptocurrencies will continue to grow into the future. Furthermore, it is not always optimal to buy at the current time, as cryptocurrencies often see drastic price fluctuations in short periods of time.

If this isn’t possible, using stop-loss orders and take profit orders on your positions can prevent you from losing funds. For newcomers to crypto, seeing their portfolio fluctuate so much can cause people to panic sell.

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