The development of the crypto-currency market caused a new direction of activity - cryptotrading.
Modern history already knows examples of successful trade in crypto-currencies, but even more there are cases of failures and losses.
To increase your chances of success, you need to know the basic strategies of cryptotrading and skillfully apply them in your work.
Investors and traders
All those who invest money in bitcoin, etherium and other crypto-currencies for the purpose of making profit, are divided into two large camps:
• investors. The main strategy of these players is "buy and hold". They are inspired by the success of those who have fabulously grown rich on the colossal growth of bitcoin. Wishing to follow their example, they acquire this or that crypto currency and for a long time leave it in the portfolio in the calculation of its long and steady growth. With a proper choice of currency and the moment to enter the market, this strategy justifies itself;
• Traders. They earn on intraday fluctuations in rates of crypto-currencies (especially well - on their sharp ups and downs). These players can get impressive profits, and much faster than investors who adhere to the "buy and hold" strategy. At the same time, they have much higher risks of losing everything overnight, especially - given the instability of the market, the crypto currency, which is now passing through the stage of its formation.
Strategies used by traders
Purchase after correction. The trader is waiting for the depreciation of Litecoin, Ripple or other crypto currencies, and then - he catches the moment when the price turns in the direction of growth, and enters the market.
Breakdown of the price maximum. This level is of great interest to traders. When the price of the crypto currency pierces it and is fixed above it, it is more likely to continue its upward movement. That is why after the breakdowns there is a high concentration of purchase orders.
Scalping. This strategy of cryptotrading implies the conclusion of a set of transactions that go one after another, in each of which a minimum price movement is used to make a profit.
Trading on the news. Traders follow important events in the world of crypto-currencies and react to them, making deals on the threshold of a powerful price movement. So, adding a currency to a large stock exchange with a high probability will push it to growth.
This is not a complete list of the main strategies of cryptotrading. We see that many of them are borrowed from the arsenal of traders working in the FOREX market. Study the strategies and apply them in practice, expand your horizons and be vigilant, and your chances of success in trading with crypto currency will increase many-fold.