In cryptocurrency trading You can't rely on a fate. To become successful trader and effectively open positions and earn income in the future, You need to have a clear strategy.
Trend trading
Asset quotes always move according to the trend, which can be up or down. A trader can open positions in the direction of the trend, i.e. buying when the trend is up and sell when the trend is down.
The most difficult moment for novice investors is the definition of a trend, for that it's necessary to determine the key local lows and highs.
For an uptrend, each next point must be higher than the previous one, and for a downtrend, local highs and lows must be lower than the previous ones. Then we can safely talk about the presence of any trend.
Trend change
This method is more complex and requires basic knowledge in technical analysis. A trend reversal can be used to open new trades, but the difficulty of such a strategy lies in correctly identifying a possible reversal. Several indicators can be used for this.
The first tools are the moving average (MA - Moving Average) and the exponential moving average (EMA - Exponential Moving Average). These indicators determine the current trend from previous values.
There is a high probability, that the price will sharply change the local trend when approaching this line, and the larger the “timeframe” (the time interval enclosed in one candle on the chart), the more significant the resistance at these levels.
The next tool is the Relative Strength Index (RSI), which shows the strength of the current trend. The main signals are the intersection of lines with overbought and oversold zones, i.e. values close to the upper (100) or lower (0) limit. The closer the RSI line is to 0, the more the downtrend weakens, and the closer it is to 100, the less the price growth strength.
One of the most common among novice traders is the MACD moving average convergence/divergence indicator. The main thing to know about this indicator is that it tells you where the market is likely to go next.
To correctly recognize the convergence / divergence of moving averages, you need to open two lines on the chart of a trading pair - a signal line and a MACD line. When the MACD crosses the signal line from below, it forms a bullish crossover, and when it crosses from above, it forms a bearish crossover. That is, when the MACD line is higher, it is a signal of an uptrend; when it is lower, that's a signal of a downtrend. That's indicator is very simple, quite visual, not cluttered with unnecessary data.
Purchase in equal parts
The easiest way to start investing in cryptocurrencies can be a long-term accumulation of digital coins with regular purchases in equal installments. You can invest a fixed amount in favorite coin every month.
The advantage of this strategy is that you can buy an asset regardless of the market situation. If the price of a cryptocurrency start falling, then subsequent purchases at a lower price can average the entry point. This strategy works for those investors, who have a long-term vision for the growth of the asset.
What principles You follow in the cryptocurrency market?Share with me in the comments😉
Are you interested in these kinds of posts? If yes, I'll be glad to see your approval - by pressing the like button 😊
Thank you for staying with me🙏
Always Yours Rocket Bomb🚀💣
Trend trading
Asset quotes always move according to the trend, which can be up or down. A trader can open positions in the direction of the trend, i.e. buying when the trend is up and sell when the trend is down.
The most difficult moment for novice investors is the definition of a trend, for that it's necessary to determine the key local lows and highs.
For an uptrend, each next point must be higher than the previous one, and for a downtrend, local highs and lows must be lower than the previous ones. Then we can safely talk about the presence of any trend.
Trend change
This method is more complex and requires basic knowledge in technical analysis. A trend reversal can be used to open new trades, but the difficulty of such a strategy lies in correctly identifying a possible reversal. Several indicators can be used for this.
The first tools are the moving average (MA - Moving Average) and the exponential moving average (EMA - Exponential Moving Average). These indicators determine the current trend from previous values.
There is a high probability, that the price will sharply change the local trend when approaching this line, and the larger the “timeframe” (the time interval enclosed in one candle on the chart), the more significant the resistance at these levels.
The next tool is the Relative Strength Index (RSI), which shows the strength of the current trend. The main signals are the intersection of lines with overbought and oversold zones, i.e. values close to the upper (100) or lower (0) limit. The closer the RSI line is to 0, the more the downtrend weakens, and the closer it is to 100, the less the price growth strength.
One of the most common among novice traders is the MACD moving average convergence/divergence indicator. The main thing to know about this indicator is that it tells you where the market is likely to go next.
To correctly recognize the convergence / divergence of moving averages, you need to open two lines on the chart of a trading pair - a signal line and a MACD line. When the MACD crosses the signal line from below, it forms a bullish crossover, and when it crosses from above, it forms a bearish crossover. That is, when the MACD line is higher, it is a signal of an uptrend; when it is lower, that's a signal of a downtrend. That's indicator is very simple, quite visual, not cluttered with unnecessary data.
Purchase in equal parts
The easiest way to start investing in cryptocurrencies can be a long-term accumulation of digital coins with regular purchases in equal installments. You can invest a fixed amount in favorite coin every month.
The advantage of this strategy is that you can buy an asset regardless of the market situation. If the price of a cryptocurrency start falling, then subsequent purchases at a lower price can average the entry point. This strategy works for those investors, who have a long-term vision for the growth of the asset.
What principles You follow in the cryptocurrency market?Share with me in the comments😉
Are you interested in these kinds of posts? If yes, I'll be glad to see your approval - by pressing the like button 😊
Thank you for staying with me🙏
Always Yours Rocket Bomb🚀💣
Write me if You need my support or wanna trade together 👉🏻
Join me in👇🏻:
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www.bybit.com/invite?ref=7X0W2A
Join me in👇🏻:
🚀💣 t.me/+aAADzO1OqsQ2MGI0
💰 I'm using Bybit and I highly recommend it to You. By using my link - You'll get a nice bonus
www.bybit.com/invite?ref=7X0W2A