Crypto Trading Strategies 2020
The crypto industry is a profitable industry in the modern world. But even in it, there are especially profitable earning methods. This, of course, is about digital trading. Competently playing in the market of new currencies, everyone can earn huge amounts. Nevertheless, trading is a rather risky task if you do not know how to trade in 2020. For the part of our audience that is just starting to work with investments and investments, we have prepared some of the most effective crypto trading strategies. Each of these tactics will allow even beginners to enrich themselves. So read carefully so you don’t miss anything important. So let’s get started.
Proven crypto trading strategies
First of all, it’s worth understanding that 2020 has just begun. Therefore, it is rather difficult to build any reliable forecasts. But even over the past 2 months, you can make sure that the market as a whole is growing. Serious analysts make positive forecasts regarding the success of cryptocurrency trading for this year.
The further theory will be built on the example of Bitcoin (BTC). It is the first digital coin that often acts as a “market indicator” because its behavior directly affects all courses. Note that in January 2020, BTC grew by more than 27%. However, this does not mean at all that such aggressive growth rates will continue for the remaining 10 months. The reason for this is high volatility, which can bring down the price of most coins in an instant.
But a competent trader is always ready for changes in the price of assets, all thanks to properly built trading. There are two areas of trade: active and passive. And with cryptocurrencies, these tactics are applicable. Beginners, acting cautiously and deliberately, will be able to earn and at the same time save most of the budget if the market falls. However, passive investments tend to work over long distances. That is, you should not expect serious profits in the shortest possible time. For such purposes, active trading has been created, which we will discuss.
The fact is that active trading is not only a tangible income but also a tremendous experience. Using active trading tactics, you can gain invaluable knowledge about cryptocurrency trading strategies. About all this – right now.
Crypto day trading strategies
Now, having learned about the main directions of trading, we can proceed to a detailed analysis of the active trading strategy. Let’s start with day trading crypto strategies. Such methods of trading are that the crypt needs to be sold on the same day when it was purchased. Such short deals used to require a lot of free time and certain skills. But today, thanks to the development of technological progress, even this process is fully automated.
- Then you should learn about such a thing as positional trading. This technique is widely used in the classical finance market, but now it can be used in relation to cryptocurrencies. It is necessary to analyze graphs for a long time, calculate the future of coins and pay attention to the mood of the market. The last indicator shows the main focus of assets, whether they grow in price or fall. A competent trader, if not strange, can earn even when cryptocurrencies fall in value. But it takes many years of trial and error to gain such skills. The meaning of positional trading, you guessed it, is in open positions. If a trader is sure that Bitcoin will grow, he opens a corresponding position. In the case when the forecast turned out to be successful, the trader makes a profit and closes the deal.
- Swing trading is another of the crypto coin trading strategies. This strategy is impossible without knowledge of technical and fundamental analysis. A huge theoretical base is the main assistant to the trader in trading. Sellers and buyers of assets begin to work as soon as the direction of the market changes. It is at this turning point that prices are most unstable. And if the trader correctly calculates the further movement of the charts – he gets a big profit.
- Scalping can also be attributed to strategies from the “day trading cryptocurrency” class. Scalpers are very competent and experienced traders who can work with dozens of transactions in one day and close all of them for the benefit of themselves. Such professionals are forced to use hundreds of charts and market analyzers, but today there are simpler trading methods.
As you understand, all of the described day trading strategies crypto are quite complex and time-consuming procedures. But with the right approach, each of the methods can bring huge profits. However, today it is not necessary to sit in front of the monitor for hours waiting for a successful transaction. There are so-called “trading bots” that greatly simplify the trading process. Let’s discuss this technical solution.
Crypto bot trading strategies
In fact, working with a bot is very simple and affordable. The program operates according to the specified algorithms, choosing the best strategy to start trading with Bitcoin. Then, when the forecast is made, the system informs its owner. The trader gets a rough idea of how the market will behave. Based on this, you can conclude profitable deals.
Most technical solutions use classic crypto trading bot strategies. The only difference is that trading is getting easier. Even a complete beginner can master trading bot strategies crypto. Of course, experienced traders are forced to use several bots at once. Combining the indicators of various programs, the specialist gets a reliable idea of how BTC or any other cryptocurrency will change.
Crypto futures trading strategies
We can confidently tell you that using the information in this article, you can start earning on crypto trading in 2020. All you need to start is a strong budget and a good bot trader to help you make great deals.