Cryptocurrency trading and investing can only be successful if you know what exactly you are doing and why. That means deep knowledge of the market, understanding the trends, understanding cryptocurrency charts and being able to perform fundamental and technical analysis before making a decision to buy cryptocurrencies. Unfortunately, becoming a successful trader is not that easy. Psychological factors must also be taken into account. Never be guided by your emotions, greed or hopes.
Cryptocurrency prices are very volatile, which has both negative and positive impacts on traders. On the one hand, it is a chance to generate income in a growing market; on the other, it is a risk of losing. Instead of being guided by emotions, experienced investors and traders usually stick to a strategy that helps them understand the best moment to buy and sell crypto. Here are some of the most popular techniques.
- Day trading
- Position trading
How Does Day Trading Work?
Day trading is the most popular trading method. If this strategy is used correctly, you can make a living out of it. Beginners may find this strategy complex as it requires quick reactions to market fluctuations and quick decisions on buying selling cryptocurrency. It also involves a lot of experience and market knowledge. Perhaps that is why day trading is not the best choice for novices. However, experienced investors consider this strategy a very easy way to make a living. Day trading is not a strategy that suits everyone. Cryptocurrency prices change rapidly and require quick reactions, which some may consider too frequent and risky. For this reason, some people prefer longer-term strategies, such as “swing” or “position” trading.
To understand day trading strategies, you can try them out on a demo account at the WhiteBIT exchange. WhiteBIT offers a demo account that allows you to practice any trading technique or tool using demo tokens. In this way, you can learn how to buy crypto online, identify your weaknesses and gaps, learn to control your emotions and gain experience to become a successful investor in the future. On the other hand, while practising, it is not excluded that you discover that this type of making money doesn’t suit you and switch to a less risky strategy. Everything comes with experience.