Crypto trading and investment can be successful only on the condition that you know exactly what you are doing. That is, you know the market, you understand the trends, you comprehend a crypto chart, and you can conduct fundamental and technical analysis. Unfortunately, it’s not that easy to become a successful trader. There are also psychological factors to consider: never allow emotions, feelings of greed and hope to guide you.
Since crypto rates are highly volatile, they may have a negative impact on a trader. Not to be guided by emotions, investors and traders usually adhere to some strategy.
Here are the most popular strategies:
- Day trading
- Swing trading
- Buy and hold
How to Succeed in Day Trading?
Day trading is the most popular type of trading. It allows for making a living, provided that this strategy is used properly. One of the most often traded crypto pairs in the day trading strategy is BTC USDT.
Beginners may find this strategy complicated because it requires quick reactions to market volatility and fast decision-making. In addition, it requires a lot of experience and knowledge of the market. Maybe that is why day trading is not the best option for novice traders. However, experienced investors find this strategy quite an easy way to make a living.
Day trading is not a strategy for everyone. Some people will find it too intensive and risky, for cryptocurrency rates change rapidly and require a quick reaction. So they prefer a rather long-term strategy like “swing” or “buy and hold”.
To understand if a day trading strategy is your cup of tea, you can try it on a demo account on the WhiteBIT exchange. It allows practicing any strategy and tool, using coins created intentionally for demo trading. Thus, you will understand your weak sides, learn to control emotions, and receive an experience that will help you become a successful investor in the future. Or maybe you will understand that it is not your cup of tea and switch to a less risky strategy.