Trading has always been part of the highest interest for everyone around the world. Today's hottest trade isn't oil or gold, it's cryptocurrencies. There are many trading systems and methods available for the average online trader. The question one might ask is, ''what is the absolute best way to trade cryptocurrency and make as much gain as possible?''. The answer to that question isn't easy. it is more complicated and it largely depends on what your personality is and your circumstances.
Strategy for beginners
The first question beginners need to answer is how long will they hold your position. Most will conclude that day trading is the best way to go. After you have opened your crypto wallet you need to take certain things into consideration when trading cryptocurrencies. The four factors that are a must are
Supply and demand - choose the best known
Utility - this means how useful a certain currency is, the more its used the more value it has
Market sentiment - be knowledgeable about the markets you inhabit
Mining difficulty - a measure of how hard it is to add the next block to the blockchain
Three of the most talked about strategies for beginners are:
Harmonic bat pattern strategy. This strategy follows a four-legged reversal pattern that follows specific Fibonacci ratios. If the retracement of AB leg is up to 0.382 but doesn't go above 0.886 and this will create a leg C. After that establish a D leg of the Bat. The Fibonacci ratio of 88,6% gives you the best risk. This strategy has a very high rate of success and a small stop loss compared to other harmony pattern strategies.
Another strategy popular among beginners is the Parabolic SAR Moving Average strategy. It is a dynamic tool used in a variety of markets, from Forex and Stocks to Futures. It isn't usable for choppy markets but flourishes in trending ones. One of the advantages of this strategy is that it can be used for any time frame. Don't let this make you complacent. Always be sure to check the time frame and what the market is currently doing. The main thing this strategy does is establish when a trend ends or is about to end. IF you are a day trader or swing trader, this strategy will help you earn big.
The average True range strategy is new and picking up steam as it becomes more and more popular with each passing day. Maximizing profit and minimizing loss is the goal of every successful tradesman. This strategy encapsulates just that. The main idea behind this strategy, called ATR for short, is knowing when the market will accelerate. After that, this strategy will help you to determine what is the average by which prices move so you can trade on a consistent basis. This is quite an unorthodox approach since it combines the market's volatility and price action. Combing these two factors you achieve the best trades possible any and give a frame.
Every aspect of our life is getting closer to digitalization with each passing day. Flat money still exists, but for how long nobody knows. One day, it might be completely replaced by cryptocurrencies. These skills and strategies might be new but the world changes at an ever faster rate.