A simple guide to cryptocurrency trading for the beginners
Cryptocurrency has been around for a while now and everybody wants a piece of it. Cryptocurrency is the hotcake of the decade and is posing a great promise across industry sectors. Not only it is disrupting the financial sector but also changing the shape of almost every industry in the world. Be it travel, healthcare, retail, or IT, cryptocurrencies are the future. Although the growth looks promising, it is challenging as well.
Therefore, before you start investing or trading in cryptocurrencies, you must understand the style and structure of crypto trading. Fortunately, in this article, we will discuss the same. Taking knowledge from the 비트겟 거래소, we have simplified the way of investing in a cryptocurrency for beginners.
Cryptocurrency trading vs. investment
Before we embark on our journey to understanding the structure and style of trading, let us get an overview of basic terms. While trading and investment sound synonymous to many newbies, we assure you they are not.
In simpler terms, trading refers to an economic concept of purchasing and selling assets. Now, assets can either be goods or services depending upon their trademark. When we are talking about cryptocurrency trading, it relates to financial instruments like stocks, currency, etc. So, if you purchase or sell any stocks of the cryptocurrency for short occasional periods, it is called trading.
On the other hand, investment percolates to holding onto the asset for a longer term for profits. 비트겟 거래소 terms investment to be a long-term strategy, thereby neglecting short-term fluctuations. However, both strategies are valid to earn profit over the investment. Now that you understand the basic difference, let us hop on to know different types of trading strategies.
Cryptocurrency trading strategies
If you are a beginner and want to do crypto trading to earn some good dollars, you must understand these strategies. The three active strategies are used by experts in the market to stay afloat even in the volatile market. These strategies come in handy as well for long-term investments with a little bit of tweaking.
Intraday trading is one of the most used strategies for trading in the world. The concept is quite simple and similar to normal intraday trading. The idea is to hold an asset for a single day and exit within the same day. The traders generally purchase a few stocks at the beginning of the day at a listed price. They carefully monitor the movement and performance of these stocks during the day. And when they hit a profitable price during the day, they sell to book the profits.
But you must also know that in day trading, you may also need to book losses when the market plummets. The profits are small but keep the volatility at bay.
People hold their position for a few days or weeks in this strategy. This strategy is quite useful to those who can’t keep their eyes glued to the performance and have another job to do. However, you must be vigilant about the trend and performance of cryptocurrencies.
Scalping is the shortest duration strategy where you can hold onto a cryptocurrency for a few seconds or minutes. It means that you can just buy some units at the listed price. And once you see the prices soaring, you can sell those units and book a profit. You can keep on doing it for the whole day to accumulate small profits throughout the day.