Anyone who wants to become a trading professional should learn aspects of technical analysis from a to z. At the moment, there are dozens and hundreds of parameters on the basis of which experts develop effective tactics. Unfortunately, not all of them are clear to beginners.
That is why all rookies should start with basic cryptocurrency trading strategies — they are simple and require a minimum of time to learn. Let’s look closer at three examples.
Scalping
The essence of scalping is that the user makes several deals within one day — it guarantees a small profit of up to several percent. For a successful process, you need to know the support/resistance levels and the trend`s direction. As soon as the price bounces from the lower border, this is the best time to buy tokens. A rebound from the upper limit is a reason to sell crypto coins.
Before using this strategy in practice, customers should study trend indicators, volume and momentum parameters, such as:
- SMA;
- MACD;
- Parabolic SAR;
- RSI and so on.
The trend can change at any moment, and it is impossible to predict it 100% accurately. Therefore, it`s crucial to ensure that trend indicators maintain their direction.
Trending
This is the second most frequently used strategy among freshmen, which requires determining the direction of price movement at the current moment. In general, the trend can be both local and global. And if users plan to engage in medium-term or long-term trading, then they should pay attention to the global one.
As in the previous strategy, one cannot do without studying the key trend parameters, including:
- MA (SMA, EMA, etc.);
- Stochastic RSI;
- MACD.
Those who wish to use this strategy are most often interested in how to understand that the trend is up. It’s not difficult to determine this moment — the price should move in a ladder-like fashion in a narrow channel. It’s okay if it slightly goes beyond it. The main thing is that each local minimum should be higher than the previous one. The same applies to the local maximum.
Crypto arbitrage
However, it is always worth remembering that some strategies are not based on the indicators mentioned above (although they can be used as a side tool). For example, during a period of high volatility, many exchanges offer different prices — their difference sometimes reaches as much as 5%. And you can also earn on this:
- Buy tokens on one site at a low price.
- Transfer coins to another platform with a different rate.
- Sell currency at a higher price.
It sounds simple, but it`s crucial to pay attention to the correct calculation of the commission for withdrawing funds and currency exchange. In addition, it`s worth remembering the risk of a sharp jump in volatility, which can provoke a loss of profit.
Final words
The listed strategies are the easiest to understand for beginners. They do not require many years of trading experience and are suitable for anyone who decides to try their hand at a new business. And over time, they can move on to more complex tactics, like MASD or a breakdown of the resistance level.
