Crypto Trading Strategy with a focus on tools, methods, and best practices:
First: Understanding the nature of the cryptocurrency market
The cryptocurrency market is different from traditional markets:
• Operates 24/7 without interruption
• Highly volatile
• Heavily influenced by news (for example, a tweet from Elon Musk can change the entire market)
• Also driven by whale activity and pump & dump
Types of trading strategies in crypto:
1. Day Trading
• Opening and closing trades within the day.
• Relies on quick technical analysis and news monitoring.
• Uses indicators such as: RSI-MACD-Bollinger Bands.
Advantages:
• Exploiting daily movements to achieve profits.
Disadvantages:
• Mentally exhausting and requires long hours and continuous monitoring.
• Encourages diversification and risk management but requires a deep understanding of timing, costs, and taxes.