The long-term crypto trading refers to purchasing cryptocurrency with the expectation of selling it at a higher price to attain maximum profit. While short-term trading means to buy before selling and to sell at lower prices to get enough gain. Similarly, in the crypto world, the trading is done as both the long and short trading. The short-term trading strategy is the most common among the two.
Here are a few long and short trading strategies that make the crypto trading effective, smooth, and efficient.
- Short-term Crypto Trading Strategies
Short-term trading is the most common trading approach used by the crypto market as it the most convenient and smooth process to run. Thus, here are a few short-term crypto trading strategies.
- Day Trading
Day trading is one of the practical and most used trading strategies in the crypto world. As day trading is referred to as a short-term strategy, so in day trading, a trader has to sell an asset within 24 hours. Similarly, in crypto trading, day trading serves in the same manner. A crypto trader has to sell the cryptocurrency within 24 hours.
A few points can effectively help in making day trading a smooth and efficient process.
- Prepare yourself for volatility
There is a huge difference in day trading crypto and real-world trading. In the real stock market, tremendous volatility might occur within a day. But, in crypto trading, there are fewer chances that are a 10% chance of immense change in the prices of the cryptocurrency.
- Accept the Losses
No matter, whatever type of trading it is experiencing, losses are natural. A trader one must accept the damage, if any, as it is a part of trading.
- Target the Right Audience
The key to making crypto trading successful and effective is to target the right audience. Targeting the right audience will help you make it a smoother process, and you can easily exchange cryptocurrency.
Few are the pros and cons of the Day Trading:
- It has the potential to gain massive profits
- It provides an opportunity for a new income stream.
- It involves high risks
- It contains higher tax rates
- It requires more paperwork.
Another effective shortterm trading crypto strategy is the hammer pattern or hammer candlestick pattern strategy. Clearly, the name shows that it follows a pattern that follows a hammer or candlestick path. It is thinner at the bottom but thicker on the top.
The hammer pattern shows that in this short-term trading, the market follows the short-termed bottom and pushes towards higher. In the same manner, the crypto trading works, and the traders sell from short to a higher level that starts from lower and reaches the maximum.
2- Long Crypto Trading
The long-term crypto trading refers to the process of buying a cryptocurrency and selling it later when the prices increased in the market. In return, attaining more profit. Some strategies for long-term crypto strategies are as follows:
· Follow a Parabolic Path to Grow
There are two primary exceptions in this strategy that is leverage trading and automatic bot trading. In traditional trading, the traders sit down and analyze the charts to find ways to get maximum profit. But in this case, the growth follows the parabolic path.
· Buy more Bitcoins using a Fiat
Buying more bitcoins for trading purposes is more beneficial. It is more profitable to invest or trade in fiat rather than traditional sources. It is more helpful to buy bitcoins via fiat due to fewer fees.