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The Basics of Cryptocurrency

THE BASICS OF CRYPTOCURRENCY


Cryptocurrencies have now emerged as a popular alternative amongst the traders. Experts suggest that the Blockchain technology introduced by the cryptocurrencies has the potential to revolutionize the future of the finance sector. However, we also understand that so much of technical jargon can be overwhelming for the beginners.

PLEASE FOLLOW THE SIMPLE TIPS MENTIONED BELOW TO GET STARTED WITH CRYPTOCURRENCY TRADING

TRADING STRATEGY SELECTION

There are four elementary strategies that you may use. However, please note that there is no ultimate strategy to succeed as a cryptocurrency trader. On the basis of the following, you may work out your own strategy.

DAY TRADING

This is the most common and simple style of cryptocurrency trading. Traders utilizing this strategy close all positions within the same day in which they were taken, leaving nothing overnight at all.

POSITION TRADING

This is a more complicated strategy compared to day trading where the timeframe can be as long as from many days to months. To execute this trading strategy, you will have to consider many different factors and analyze the long-term market trends. In general, positions can be opened as soon as a trend is established, and closed when it breaks.

SWING TRADING

This trading strategy is implemented mostly in the periods of breaking trends. The trading timeframe is longer than day trading, but lower than position trading. Though this strategy is suited for a volatile market condition, it requires the market to move in a single direction.

SCALPING

Scalping is a strategy is applied mostly within short trading timeframes. The trading profit earned is the difference between bid price buying and ask price selling. Scalping works well in a quiet market, and for smaller amounts.

SELECTION OF TRADING CURRENCY AND TRADING TIMEFRAME

As a trader, it is important for you to opt for a timeframe that is in accordance with your goals. Another important aspect is the proper analysis of available data. A high percentage of the cryptocurrency traders operate within hourly and daily timeframes without any issues. Most of the trading applications also allow custom timeframes, and you can make the selection as per your preference.

LOGGING

As mentioned earlier, maintaining a detailed record of the market changes and your response (and vice versa) is extremely important. Make sure that your trading log includes the trading system, market, entry date and time, entry price, target, stop loss, exit price, maximum excursion, and the maximum adverse excursion.

MARKET NEWS

Regardless of their experience and knowledge, all cryptocurrency traders must follow the latest financial, crypto, and political news. This is extremely important because the cryptocurrency market reacts very fast.

STUDY

There is no alternative to studying the latest articles and guides on cryptocurrency trading. We, at concrest.com, regularly publish educational content related to cryptocurrency trading through our website.

Hope you enjoyed reading this article. Please do come back for more.