How to trade cryptocurrency? Crypto Trade Strategies
Cryptocurrency trade is becoming very popular even in India, it is a constantly growing business. With the trending tech market, cryptocurrency trade is touching the heights of the sky on a regular basis.
So let’s understand what cryptocurrency trade is, how it works and what are its strategies?
About Crypto Trading
Crypto trading is all about the digital market, in which buying, selling, investing, and exchanging digital assets are done. Cryptocurrency trade is not a kid’s game, it requires a lot of market research and analyzing skills to trade. Financial expertise is core in crypto trading.
Crypto trading is similar to trading in stocks or equities or simply commodities. As it is full of risks and pitfalls and ups and downs, it requires a player in financial exchanges to survive for the long term.
To get long-term benefits in cryptocurrency trade, trade enthusiasts or financial experts need to develop master plans or strategies that can make the journey fun and safe at the same time.
Well, there is a very huge list of cryptocurrency trading platforms all around the world. Top crypto trading platforms in the market for the time being are-
How do cryptocurrency markets work?
Cryptocurrency markets are as similar as the traditional ones. It also requires market research, analysis, acquisition of customers, buying, and selling. The market runs on demand and supply. But the crypto market is all about the digital sphere. Also, it is based on a decentralized system that detaches economic and political disputes unlike what happens in traditional markets.
Still, as no market is free of disputes or concerns, cryptocurrency trade/market also includes some uncertainty in it which affects the value and volume of crypto coins. Some factors which impact the prices or demand and supply of cryptocurrencies are-
- Market Capitalisation: what is the actual value of coins in existence, and what strategies are made by traders/ market researchers/ for acquisition.
- Supply: the total number of coins/digital assets that comes into the market at what rate. And for how long they stay or are released, destroyed, or go off-track.
- Promotion: how much coverage that particular coin/token gets, how that is portrayed by the media or exchange platforms.
- Alliance: how instantly cryptocurrency gets integrated into the existing scenario such as with social media platforms, exchanges, marketing websites, or e-commerce payment mode.
How does the crypto trade work?
Cryptocurrency trade basically works on a CFD account or Contract for Difference account. It is a kind of financial imitative product that allows traders to speculate on the rate of digital assets. CFDS are low in cost and can be traded online anytime, anywhere. Hence it has low barriers for its investors and traders' arrival. Though it helps traders in getting better profit. It can take a downturn too sometimes. Apart from CFD accounts, traders keep spread, leverage, margin, and pips in their minds. These are some terms that are important for you to understand before stepping into any crypto trade. Have a good glimpse here-
- What is spread?
Spread is the price set for crypto, it stands between the buying and selling prices of digital assets. Simply understand the prices used in other traditional financial markets, you will always be informed of two prices of any object.
Now, those who want to go for the long term should trade at the buy price. It goes above the market price on the graph. And if one wants to open a short position, advised trading at the selling price which remains below the market rate.
- What is leverage?
Leverage in Crypto trading refers to that gained exposure amount of coins that turns high with market factors and crypto hype. Traders do not pay any extra value for it, they just pay a small initial deposit amount.
- What is the margin?
Margin is a term that is used for the deposits they make to begin and maintain the leveraged position.
- What is PIP?
Pips are the units that are used to measure the cryptocurrencies value and the movements in its price.
Crypto Trading Strategies
There are various steps and strategies that crypto marketers or crypto traders follow to achieve their objectives. Let’s try to understand each strategy through which one can earn most of the market profit.
Here I am writing major strategies that traders keep in their mind while implementing their blueprints to acquire more customers and for better conversion.
1. Intraday Strategy
Intraday strategies are for the short term, these are followed by the investors who wish to invest in any digital coin for a short time period. It becomes compulsory for every trader to offer different periodic schemes to their customers.
2. Long Term Strategy
Strategies or plannings are made and followed by the marketers and investors respectively. These are the guidelines made or followed by the people for a long-term goal.
3. Primary Market Research:
The first and foremost thing in any trading is to do proper market research. This step does not require a highly skilled researcher/analyst, but to be updated with all the current affairs of crypto is all that matters.
For this, you can subscribe to any crypto industry like CoinCRED, Binance Academy, Coinlord, etc to get the crypto information.
In this strategy, traders buy digital assets (cryptocurrencies) from one market and sell them in another one at different prices. These different prices of coins are called “spread”. Traders have always opened markets to explore new investors, buyers, and crypto sellers. On the basis of best liquidity and trading commission, traders do their deals.
Traders are advised to sign in on various exchange platforms to get the best opportunity.
5. High-Frequency Trading:
High-frequency trading is something that is related to algorithms and trading bots. This algorithmic trading strategy accelerates cryptocurrency entry and exit. This type of strategy is developed by high mathematical and computer science candidates.
This trading strategy is followed by the traders and business experts to evaluate the current crypto volume, past crypto value, its emerging trend, crypto market assumptions, and future predictions about cryptocurrencies. Scalpers need to take care of margin requirements to avoid market risks.
7. Volatility Preparation:
The cryptocurrency market is highly volatile, investors and consumers need to be aware of this fact. Traders can use this strategy to influence more of their target audience. Also by cogenting them that investing/ trading in something fresh can be challenging, we just need to be prepared for it all.
Digital Assets traded by CoinCRED
CoinCRED is an exchange platform that deals with buying, selling, investing, and trading cryptocurrencies. It trades the world’s smallest cryptocurrency to the larger and more popular digital coins like Bitcoin, Ethereum, Binance Coin, Tether, Ripple, USD Coin, Polkadot, Uniswap, Terra, Litecoin, Cordano along with hundreds of crypto coins.
On this trading platform, you can deposit and withdraw crypto instantly. It also provides specialized facilities too to its investors and traders like safe and secure transaction services. Customer support service 24/7, you can contact us via emails, texts, and calls. CoinCRED assists its traders and investors by launching a mobile application for ease of accessibility.
CoinCRED also powers the crypto atmosphere by providing easy, securely invest, saving, spending, earning, and use of crypto with it.