To excel in cryptocurrency trading, it is essential to have well-defined strategies. Some of the most commonly used include:
Trend trading: This consists of identifying the market direction and trading accordingly. If the price of a cryptocurrency shows an upward trend, traders usually buy expecting it to continue rising.
Scalping: This strategy involves making multiple trades over short periods, taking advantage of small price fluctuations. Although it is risky, it can be profitable if executed with discipline.
Fundamental and technical analysis: Fundamental analysis is based on evaluating the potential of a crypto project, its developers, and its market adoption. On the other hand, technical analysis studies graphic patterns and indicators to predict price movements.
