The crypto currency market opens enormous earning options for traders. The reason is the high volatility
of digital assets, which allows purchasing and selling crypto coins at different prices and generating
income in that way. They do it using the five main strategies we will discuss in this article.
First, let’s talk about additional tools traders use:
- P2P exchange
- Spot crypto markets
- Futures derivatives
- Mgin and leverage
- And other tools.
Five Trading Techniques for Every Trader to Know
Here are the most widespread methods to trade crypto.
- Scalping – implies opening and closing trades in short intervals. They may last 2 seconds
- 30 minutes. This method requires particular traders’ attention and concentration on the
price chart. Of course, this strategy is largely used by experienced traders.
- Intraday strategy – takes no more than 24 hours for a trader to enter and exit the trade.
Allows generating income in small portions relying on the crypto markets up and down
- Swing method. It takes more than 24 hours but usually no more than a few weeks. That
is a strategy giving more time for a trader to reflect
- Buy and hold – the longest timeframe, taking for several months or even years. That is a
long-term investment suitable for assets with good growth prospects.
- Arbitrage – implies opening trades on different crypto markets and receiving income from
price differences between those markets. In simple terms, a trader uses several crypto
platforms and takes advantage of their price differences.
Where Can a Trader Practice the Strategies?
Some crypto platforms, for example, WhiteBIT and Coinbase, have the option of demo trading. That
means you should not put your money right away, you can just register an account and use demo tokens.
This feature allows understanding how trading techniques work and finding gaps in a trader’s knowledge,
as well as practising as long as one needs to become a confident exchange user.