1. Day Trading
What it is:
Buying and selling crypto within the same day to profit from small price changes.
How it works:
Traders use short-term charts (1-minute to 1-hour).
Quick decisions are made using price patterns and indicators (like RSI, MACD).
The goal is to make multiple small profits that add up.
Good for:
People who can actively monitor the market and react quickly.
2. Swing Trading
What it is:
Holding a crypto asset for several days or weeks to benefit from medium-term price trends.
How it works:
Traders spot when a coin starts "swinging" up or down.
Entry and exit points are based on trend analysis and chart patterns.
Less stress than day trading; no need to watch charts all day.
Good for:
Those who want fewer trades but bigger profits per trade.
3. Trend Following
What it is:
Trading in the direction of the current trend—whether it’s up or down.
How it works:
"The trend is your friend" is the motto.
Traders use moving averages and trendlines to confirm the direction.
They enter the trade and stay until signs of a reversal appear.
Good for:
People who want a clear direction and simpler decision-making.
4. Arbitrage Trading
What it is:
Making profit by buying crypto on one exchange at a low price and selling it on another at a higher price.
How it works:
Prices can differ across exchanges (like Binance vs. Coinbase).
Fast execution is required to exploit the price gap before it closes.
Bots are often used to automate this process.
Good for:
Tech-savvy traders who can act fast and manage multiple platforms.
5. Scalping
What it is:
Making dozens or even hundreds of small trades in a day to capture tiny price movements.
How it works:
Trades last seconds to minutes.
Volume is high, and profits come from small margins.
Requires a good setup and quick reflexes.
Good for:
Very active traders with fast internet and trading tools.
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