The best crypto trading strategies that every beginner should know: how to choose the best approach
Once billed as the brave new dawn of finance, the implementation and introduction of cryptocurrencies into the financial mainstream has been slower than many first thought. However with Donald Trump promising a “mass acceleration of regulation and a breakdown of barriers to the cryptocurrency market”, perhaps there hasn’t been a better time to look into creating a crypto portfolio.
With many different crypto trading strategies available, in this article we take a look at some of the very best trading strategies that every crypto beginner should be aware of.
How to apply crypto trading strategies
With many different cryptocurrency trading strategies available, here are just some of the very best strategies that every trader needs to know.
The best strategies in cryptocurrency trading for beginner traders:
Crossing Moving Averages
When it comes to the crypto market, one of the most advanced and popular strategies is to get involved with Moving Averages. Often heavily used in technical analysis which helps determine the value of digital currencies, it is a tried and tested method that experienced traders have relied on for years.
Moving averages are used to identify which direction a stock is moving in and it can be calculated over different time spans to gauge market volatility.
For those who are entering and exiting crypto markets, a trader will look at different time spans depending on what they want to achieve from their trades. Shorter moving averages are typically used for short-term trading, while longer-term moving averages are more suited for long-term investors.
Depending on what your day trading entails, you will need to decide whether you employ long or short moving averages. The trading decisions you make should increase your chances of making returns.
Relative Strength Index
Relative Strength Index is also known as trend trading and is another one of the best crypto trading strategies that every investor wanting to get involved in trading cryptocurrencies should know about.
Those wanting to utilise the benefits of a Relative Strength Index do so because it enables them to see how market trends fluctuate; it can also be used to easily reveal volatile crypto markets and the overall impact of market volatility.
At the heart of the Relative Strength Index is a calculation which uses the below formula:
RSI = 100 – (100 / [1+RS])
By using the formula, you should get a percentage out of 100. The lower the percentage, typically represents an oversold position, a higher percentage will reflect an overbought position. Used to identify potential entry and exit points, working out what is an acceptable RSI level is one of the most valuable technical analysis tools that you can use when it comes to buying and selling cryptocurrencies.
Event driven trading
Whereas traditional financial markets solely focus on financial dependencies, trading in the cryptocurrency market is a little different and an investment strategy can focus on the use of events to help boost the value of crypto assets.
Although for some the reliance of events to help determine potential crypto investments isn’t the best crypto strategy, for those who lack trading experience it isn’t a bad strategy to pursue.
Event driven trading is popular in the leadup to big political events such as the US General Election. With Donald Trump and J.D Vance often promoting the value of bitcoin and other currencies such as Ethereum, there have been multiple positive crypto price changes and swing traders have been able to make profits from cfd trading.
A strategy that can be very short term focused, those who wish to trade cryptocurrency will need to analyse when the best time to sell might be as by solely using event driven trading, markets can fluctuate at regular intervals.
Scalping
For those wanting to start trading or looking for a solid foundation from which to build their portfolio, buying and selling digital currency via scalping might be best avoided.
Scalping is often regarded as the most short term trading approach in the crypto space and it requires a trading platform that is made on short term decisions.
Employed when investing in volatile markets, day traders will often dip in and out of a market multiple times as it develops. Trades will last just minutes and require those who buy cryptocurrencies to time their exit to perfection.
This way of trading offers potential big returns to crypto investors but does carry significant risks. Before you get involved in scalping make sure you always do your own research to ensure you understand what it entails and the decisions you will need to take.
The world of crypto currencies isn’t just restricted to the markets
Over the last few years, crypto currencies haven’t been solely restricted to the world of blockchain, buying and holding, swing trading or the diversification of portfolios.
Crypto exchange has also started to play a role in the world of casinos. Crypto casinos have quickly risen and deposits using exchange-traded funds can be used to play in live casinos, slot machines and traditional table games.
Just like traditional casinos, one of the most popular areas of a crypto casino are slot games and there are thousands that can be played. One of the fastest growing genres of slot games are Habanero slots as discussed by Slotsjudge. Widely played by gamblers all around the world, if you want to get involved with crypto casinos, playing some of the best Habanero slots is a great way to get started.
