In this era, cryptocurrency has its grip on a lot of people today due to its successful and secure transaction methods. In simple words, it’s online money but much safer. Cryptocurrencies have portrayed cryptographic encryption that creates money together with check-out ventures. The collection of binary data is used as a medium of exchange. Crypto is not available in physical form and isn’t even issued by a central authority. Here are some strategies that you can follow:
Strategies To Have The Upper Hand At Cryptocurrency
Following are the requirements to inculcate these strategies:
- Have an online charting tool account. There are a lot of free charting tools available like Tradeview, Yahoo Finance, and StockCharts
- Have a good understanding of candlestick charts.
1. Golden Cross/ Death Cross
This crypto trading strategy uses two moving averages. They are as follows:
- Convergence: Convergences show how short-term momentum overrides long-term momentum. This occurs when buyers come back to the market and hike the prices. Divergences come to the surface when a lot of traders come together to quit the market and sell their assets. For setting this up, log in to your online charting tool account and set the time frame to daily or weekly, and click on the indicators button. This method of crypto trading is very effective in a highly volatile market (when prices are going up or falling).
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2. RSI Divergence Crypto Trading Strategy
RSI, which stands for “Relative Strength Index” is an indicator of the chart that calculates the momentum by measuring the average no. of gains and losses over 14 days. This system can be utilized as a simple crypto trading strategy which sometimes can direct false results. The RSI divergence strategy can be utilized to identify the scenarios when the price trend will direct directions. Both the price and the RSI move almost in the same direction. There are several times when the price is going down but the RSI is going up. This takes place when there’s a shift in the buying and selling volume and in the early stages of reversing.
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3. Dollar Cost Averaging
This is a well-known and well-tested trading strategy that works best when worked over long periods. Rather than investing your money in a single particular cryptocurrency at once, you divide it into smaller amounts. Choose a particular time and day of the week, and buy at those times.
Dollar-cost averaging is a good method of crypto trading for beginners among the other strategies as the process can be automated by a lot of trading bot services. All you have to do is deposit funds, direct the trading according to your requirements , and then have it do the hard work for you.
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Conclusion
As crypto gets its maturity over time, we will achieve stability with possible strategies which will make it quite transferable. This emergence of Cryptocurrency and other currencies has attracted debates about the future of the same.
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