Since cryptocurrency seems to be the future of economics, people have developed arbitrage – the process of buying and selling an asset at different prices, in order to profit from the price difference. Because of the fast monetary fluctuations, it is useful to use trading systems in order to avoid losing any money. These systems are able to solve complex algorithms that determine an optimal result of your trades.
It’s important to take this into account, as it is impossible for a human being to process so much data in a very short period of time. However, if you want to learn on your own, there are still numerous strategies that you can apply. For instance, let’s take the Free Bitcoin Trading Strategy. In order to use it, you have to know about OBV – the On Balance Volume is an indicator used for day trading Bitcoin and it shows the total money flow which goes in and out of the market.
For the information to be accurate, you should use the Ethereum trading strategy simultaneously. Therefore, your chart should have 3 windows: for the Bitcoin chart, for the Ethereum chart, and for the OVB. Firstly, you look at the price differences between the two currencies, then you check the OVB, and when it gives you the green signal you can place a buy limit order and gain profit after the OVB reaches 105,000.
Another strategy is scalping, which involves the exploitation of price gaps – this usually applies to small fluctuations. Whether it’s this, swing trading or any other strategy, you shouldn’t hurry if you haven’t gathered all the necessary information yet. Trading is profitable once you learn the basic rules, so luck is out of the picture when it comes to it. Check all the options available and pick the one that suits your character best.