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Top 10 Crypto Trading Strategies To Earn Profit From Bitcoin & More

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Any type of money that operates digitally or virtually and uses cryptography to safeguard transactions is referred to as cryptocurrency or crypto. Cryptocurrencies use a decentralised mechanism to track transactions and create new units rather than a central body to issue or regulate them.

 

These digital assets can be exchanged in the financial markets on cryptocurrency exchanges or expert trading platforms like WazieX, CoinSwitch Kuber, CoinDCX & more, just like stocks, commodities, or foreign exchange currencies. Trading these extremely erratic assets can result in substantial returns.

The following article includes a variety of pointers and strategies to show you how to day trade cryptocurrencies utilising a variety of tried-and-true, profitable trading strategies. You'll quickly pick up the skills necessary to manage risk, trade Bitcoin for profit, and do in-depth technical analysis.

1. Know what a blockchain is and how it functions

1. Know what a blockchain is and how it functions

Blockchains are a unique kind of online network that is essential to cryptocurrencies. In terms of cryptocurrencies, you can choose from "n" different blockchain networks like Ethereum, Cardano, etc. It's important to notice that despite having various characteristics, they function similarly. In-depth knowledge of their features turns out to be a great way to profit from cryptocurrencies in 2022.

2. Understand the cryptocurrency you want to trade for profit.

2. Understand the cryptocurrency you want to trade for profit.

In every situation one can imagine, having the right information is essential. Speaking of cryptocurrencies, understanding how their value is calculated, how they operate, on which platforms one should purchase or sell them, etc., will always be useful. In order to produce significant gains, it is also important to keep up with current events.

3. Choose a suitable Crypto trading platform
 

3. Choose a suitable Crypto trading platform

You must first choose a platform before you can start to plan your day trading cryptocurrency trading strategy. Numerous cryptocurrency trading platforms are available. The majority of cryptocurrency trading platforms currently use blockchain technology, which enables decentralised storage of order books and is more secure due to cryptography encoding methods. These platforms offer quick, free registration that doesn't demand any personal information. It's time to start strategizing after you make a deposit.

4. Technical Analysis vs Fundamental Analysis

4. Technical Analysis vs Fundamental Analysis

The underlying characteristics that give an asset value and determine whether it is a good investment are thoroughly examined by fundamental analysis. 
The centralised authority or usefulness that provides an asset value in cryptocurrencies is sometimes absent. Value is instead formed from factors like scarcity or the value that is exchanged on the underlying blockchain network of each coin.
However, technical analysis is more geared toward traders who want to use the technique to obtain a competitive edge in the market, whereas fundamental analysis is more for investors who are deciding which long-term entries to take.

5. Best Indicators for Trading Cryptocurrencies

5. Best Indicators for Trading Cryptocurrencies

A number of technical analysis indicators can be found by browsing the available indicator list on crypto platforms. Technical analysis of cryptocurrency is typically based on charting patterns, statistical indicators, or both. Candlestick, bar and line charts are the most commonly used charts. Each can be built with similar data but presents it in unique and useful ways. The Relative Strength Index, Moving Averages, TD Sequential, and many other indicators are among them. Once you've mastered how these tools work in the cryptocurrency market, you can use them to gain a competitive advantage in forex, commodities, stocks, and other markets.

6. Relative Strength Index Crypto Trading Strategy

6. Relative Strength Index Crypto Trading Strategy

The Relative Strength Index is a profitable trading strategy that consistently produces positive results. The Relative Strength Index (RSI) forecasts an asset's price movements over a given time period. It's an excellent tool for determining what your asset will do and making decisions accordingly. In this case, the RSI can also forecast cryptocurrency price changes. Only the most extreme moves will be traded, so the most conservative entries will prevent losses.

7. Moving Average Crypto Trading Strategy

7. Moving Average Crypto Trading Strategy

The moving average is one of the most widely utilised technical indicators for determining the general trend direction. When trading in the unpredictable crypto environment, the exponential moving average is crucial since it concentrates on the most recent price data. Trading professionals can use moving averages, which are straightforward mathematical formulas, to better examine certain data points across a range of time periods and develop a visual tool that can be used to indicate whether or not to take a position or initiate a trade.

8. Parabolic SAR Strategy

8. Parabolic SAR Strategy

A sequence of dots is placed above or below the price activity by the parabolic SAR. They only appear on the other side of the price action when the price really crosses these dots, at which point a signal is sent. While utilising this method, traders lose out on some returns, it also permits less risky, more conservative trades. A special and useful tool for traders, the parabolic SAR concentrates not only on price but also on time.

9. MACD Strategy

9. MACD Strategy

The MACD is a favourite among cryptocurrency traders because it frequently provides an early warning when a reversal may be on the way when the lines start to turn, subsequently validating the signal when a crossing takes place. The MACD is one of the most popular technical analysis indicators available and is frequently referred to be a lagging indicator. The technique can aid traders in anticipating impending trend changes.

10. Bollinger Bands Strategy

10. Bollinger Bands Strategy

A reliable, effective approach for cryptocurrency traders can be to trigger long or short signals using the midline simple moving average of the Bollinger Bands. It can be a component of an effective and lucrative cryptocurrency trading strategy when utilised in conjunction with price chart patterns, candlesticks, and other technical indicators.

Story first published: Saturday, June 25, 2022, 16:36 [IST]
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