Most profitable crypto trading strategy for beginners

So talking about Crypto Trading Strategy.  Did you know crypto day trading is one of the easiest and most effective ways to make money from the cryptocurrency market? 

Since crypto trading requires deep knowledge of blockchain and crypto to avoid unnecessary losses, you will need an intuitive trading plan and a winning game if you want to succeed in the challenging world of crypto.

This article will help you clear all doubts and ambiguities related to crypto-day trading and learn about the most effective crypto trading strategies.

What Is Crypto Trading?

Crypto trading is a short-term strategy that involves buying and selling within a single reading day, but it is a high-risk venture made possible by the inherent liquidity and volatility in the crypto markets. Nowadays, many day traders are learning how to profit from small moves in the market and how to profit by taking advantage of coin price volatility.

To do this, you need to have proper knowledge about cryptocurrency trading and technical analysis, so for that, you will need to use chart patterns, volumes, price action, and other indicators to identify buying and selling opportunities and make profitable investment decisions.

Investors also need to keep up with all the updates and news that could affect the prices.

Can You Trade Crypto Even If You Are A Beginner?

If you have a high degree of determination and self-discipline, you can! 

How to Start Trading?

Here is some advice on what you need to do if you are a beginner in the crypto world:

Be Aware of All the Ins and Outs of the crypto market: 

To become successful, traders must be aware of all the ins and outs of the crypto market. 

First, buy Bitcoin or another cryptocurrency whose price is likely to rise in the next few hours, and then sell it for a profit.

Open an Account in an appropriate Trading Exchange 

The next step is to open an account with a trading exchange that meets your day trading needs. It means you need to choose a crypto trading platform that your country supports.

For a smooth trading exchange, you should consider:

• User experience
• Commissions and Fees
• Security and Authorization
• Number of supported cryptos
• Funding methods are supported

Since Bitcoin is the best cryptocurrency to invest in right now, we advise you to choose Bitcoin trading.

Deposit an Initial Investment Capital

Investing in crypto takes just 5 minutes from start to finish. However, you should make sure that you do plenty of research before deciding which cryptocurrency to invest in.

Once you have chosen a reliable crypto exchange, it’s time to deposit a starting capital and start your journey. 

In theory, it takes only a few dollars to invest, but you will still need an effective trading strategy to succeed.

Most profitable crypto trading strategy for beginners

What is the difference between trading and gambling? The answer is – The most effective strategy. 

Traders fund winning strategies based on research with well-laid plans. Depending on your abilities and the nature of the market, you can apply different trading crypto strategies.

Scalping

Traders should choose scalping crypto because of it’s:

• Potential profitability
• Ease of automation for bots
• Low risk

Trader’s scalping strategies not to get big wins, but to build up hundreds of little wins. 

Since scalpers use large amounts of liquidity to take benefit of small price changes over a short period, scalping is a trading strategy with the fastest improvement.

Range Trading

Range trading capitalizes on non-trending markets by identifying stable highs and lows, which are represented as resistance and support levels on a candlestick chart. “Resistance” is the price above and “Support” is the price below the current price.

When there is a price range between the resistance and support levels, traders can buy at the support level and then sell at the resistance level. Day traders using this strategy for day trading cryptocurrencies buy when the crypto asset is oversold and sell when it is overbought to make a profit.

High-Frequency Trading

This strategy is well-suitable for advanced traders since developing such bots requires strong information of computer science and mathematics and an understanding of complex market concepts. 

However, you can combine High-Frequency Trading with different crypto day trading strategies for beginners by instituting specific trading logic.

Technical Analysis

Technical analysis is a strategy used to predict the likely future price movements of a security currency based on market data. 

Technical analysts can apply their statistical trading strategies to any financial market with historical trading data, assessing crypto-based future earnings or losses based on past performance.

To maximize your chances of making a profit, you should use some technical analysis indicators. 

News and Sentiment Analysis

This strategy is similar to technical analysis in that it involves forecasting, but with one significant difference – it is based on human reactions and actions rather than price trends. 

With this strategy, day traders try to predict whether demand will increase or decrease for certain cryptocurrencies by analyzing various data sources to understand the social consensus on the currency and predict people’s actions.

Arbitrage 

Arbitrage is one of the best strategies for trading crypto that involves buying a coin on one exchange and making a profit by selling it on another at a higher price.

To use this strategy, you must have accounts on crypto exchanges that show a large difference between prices. 

Arbitrage is popular for crypto trading because the market is unregulated, meaning numerous exchanges have fair price differences.

IFC Markets

IFC Markets is a leading provider of Forex and crypto CFD that allows trading in several styles with:

• Low fixed spreads
• Over 6000 financial instruments
• Instant order execution
• No hidden commissions

Traders have the freedom to build their financial instruments and their best strategies for trading crypto, taking advantage of the low minimum volume requirements and 1:8 leverages.

Another good thing about crypto CFD trading is that you don’t need to have a Bitcoin wallet or a Bitcoin exchange account to trade.

Things to Avoid while Day Trading

Can I trade crypto without making huge mistakes? This is a common question.

However, you need to be careful and have a strategy to succeed, and not make rash moves on the crypto market that will cost you big.

• Trading FOMO
• Overtrading
• Trading crypto more Than You Can Afford to Lose
• Not Doing Enough Exploration on Your Own

Make sure you have basic trading skills and know-how to conduct a fundamental and technical analysis to avoid being misled by the so-called experts’ signals.

Conclusion

Crypto day trading can be profitable, but can also be a high-risk strategy involving the constant buying and selling of cryptocurrencies in pursuit of short-term profits. 

If you are interested in day trading, you must understand the crypto market, have a detailed trading strategy, know where you plan to trade, and stick to your entry and exit points.