Introduction
Cryptocurrency Trading Strategies separate winners from losers in this market. Most traders lose money chasing random tips online. Since 2017, I have been trading with real money. Before I made profits, the lessons would cost me thousands.
This guide disseminates what really works regularly. No tricky signs and baffling graphs. Complex systems are nearly always outperformed by simple strategies.
You will also be taught some useful techniques tried over several market cycles. The strategies are effective among novice and advanced traders. We should develop your trading abilities properly.
The reason most Cryptocurrency trading plans fail.
The tragic reality sinks in as soon as possible. More than 9 out of every 10 traders of cryptocurrencies lose in the long term. They pursue pumps once the move has already been made. They run scared when the market is in the process of normalizing.
Emotional trading kills accounts more rapidly than any other thing. Good cryptocurrency trading plans eliminate emotion. They make guidelines which dictate each decision mechanically.
I lost my initial trading account miserably in the year 2018. I learned that lesson at a high price, but it taught me that discipline is the most important thing. The absence of any clear strategies is gambling and not trading at all.
Dollar-Cost Averaging: The Friend of the Amateurs.
DCA is the easiest cryptocurrency trading tool. Purchase the same dollar every week no matter what the price is. Some weeks you buy something expensive. Other weeks you buy cheap. Your average entry price is a beautiful smooth out over time.
I contribute a fixed sum of money to Bitcoin on a weekly basis every Monday morning. This strategy eliminated my apprehension of timing. There is no price checking all the time.
There is no worrying about everyday moves. DCA is particularly effective during bull run build-ups and accumulation. It develops standings in an organized manner without sentimentality of any kind.
Swing Trading: Medium-Term Professor Swings.
Swing trading has day-to-week positions. You trade bigger price swings than the day traders. Normal people can cope with the stress levels. Swing trading is done using jewel strategies on cryptocurrencies.
Trend: Buy on the pullbacks in uptrends. Buy on bounces downwards. I rely on simple moving averages to realize the trend direction easily. I have been fine with the 50 and 200-day moving averages. When the prices hit the levels, chances are available.
Cheerleading and Criticism: The Pivot of All.
All successful cryptocurrency trading plans rely on these ideas on a basic level. Support is where the prices are likely to halt falling over and over again. Resistance is an area where the prices are more prone to cease increasing at a specific point.
The levels are seen due to traders having previous price responses in their memories psychologically. I make vertical lines at bouncing points on charts, which are evident.
It would be logical to buy around a support and use the stops below the support. Targets that are defined and sold near resistance do equally well. This is an easy strategy that made me win significantly better than random.
Risk Management: The Strategy of the Strategy.
Position sizing establishes the survival rather than the entry time in an honest way. In every trade, do not risk over 2 percent of your account. This rule appears to be conservative until there comes a time when you experience losing streaks.
I lost eight trades in a row in choppy weather. Adequate position sizing made me financially stay in the game. Without risk management, the cryptocurrency trading strategies are meaningless.
A 50 percent loss of an account will need a 100 percent gain to offset. Protect your capital first. When you survive, profits follow automatically.
The Breakout Strategy That Continues to Work.
Breakouts are the instances where the prices break the levels of resistance in the end. Volume confirmation declares between real breakouts and fake ones clearly. Breakouts with high volume have a directional tendency to persist.
The breakouts of low volume tend to turn around painfully. I will only enter when all the daily candles close above the resistance. Patience sort of sorts a great deal of false signals.
Breakout trading approaches with the use of cryptocurrency can lead to explosive moves. It only takes one successful breakout trade to get your month profitable.
Trend Following: Simple but Surprisingly Effective
The fashion is your friend until it stops altogether. This proverb is full of real wisdom for traders. The struggle against trends is also unprofitable in the long term. I would purchase assets whose trading is above the 200-day moving average.
I only sell short those assets that have a moving average that is below 200 days. This simple filter enhanced my performance instantly and in an apparent way.
Trend following cryptocurrency trading is plainly boring at times. Strategies that are boring usually generate the highest amount of money at all times.
My Personal Trading Routine That Proves to Work.
The first thing I do in the morning is check major support and resistance levels. I observe the unusual substantial volumes of cryptocurrencies. I analyze my current positions and make adequate stops.
Then I seek arrangements that fit my pre-arranged requirements in particular. There is nothing like no criterion; therefore, no trade that day. Coercing trades kills more accounts than forbearance.
My average trading is around 10-15 times an average month. Profitable cryptocurrency trading methods are always characterized by quality rather than quantity.
Prevention of the Largest Trading Error
When it comes to losses, accounts are murdered through revenge trading. Relaxing after a loss saves money and sanity. Excitement is the cause of overtrading, which results in sloppy decision-making in general.
Buying at the very peak produces bag holders regularly. I maintain a trading journal where I record all my trades. The analysis of errors will help avoid making them again and again.
Effective cryptocurrency trading plans need to be self-evaluated with honesty regularly. The worst of you is your ego in trading.
Technologies and Resources Assisted Implementation.
Technical analysis TradingView offers ample charting without fees. Coinglass displays funding rates and liquidation statistics easily. Glassnode uncovers on-chain figures to make informed decisions.
I am always using limit orders as opposed to market orders. During volatility, market orders are executed at the cost of slippage. The use of alerts will do away with daily round-the-clock screen watching.
Automation eliminates emotion in implementation, where it is well programmed. Good cryptocurrency trading strategies are always supported using good tools.
When to Trade and When to Wait
A quality trading opportunity does not present itself in reality every day. Trend following schemes are killed by sideways choppy markets. During low-volume times of consolidation, I sit out.
Honestly speaking, patience is a trading strategy. The perfect trades are realized after the wait until they have the perfect setups.
I have lost chances of waiting and ended up losing less. Trading strategies in cryptocurrency demand the knowledge of how to do nothing. Sometimes all one can do is to be out.
Conclusion
The successful strategies used in cryptocurrency trading always have similar aspects. They eliminate emotion in the processes of decision-making. They take risks in control before going the extra mile to make money.
They do not struggle against market direction but rather go with it. Begin with dollar-cost averaging if you are new in this field. Add swing trading as you get better at it. Be master support and resist before venturing on anything difficult.
Always be honest with yourself about your mistakes. The market is rewarding to the patient, discipline,d and the learner. Use these strategies on a regular basis. Your results will improve.
Frequently Asked Questions
Q1. Which is the most advantageous crypto investment plan to use as a beginner?
Dollar-cost averaging is best when one is a beginner. It eliminates the aspect of timing and creates positions that are developed over time.
Q2. What is the amount of money required to trade crypto?
You can start with 100-500 that you can spare. Educate on a small scale before committing huge capital.
Q3. Is it possible to earn a living with cryptocurrency trading?
A few traders are, and a majority are not always able to succeed. Use it as an additional income at the beginning and then become full-time.
Q4. What is the number of hours per day that I should trade crypto?
It takes quality rather than quantity. One or two hours of attention wins eight distracted hours with little trouble.
Q5.What is the greatest error cryptocurrency traders commit?
Most accounts are destroyed by overtrading and a lack of proper risk management. Common failures are avoided by the use of patience and appropriate position sizing.
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