Features of Effective Crypto Trading Strategies – Times Square Chronicles

Features of Effective Crypto Trading Strategies

According to official stats, the world blockchain market will hit $23.3 billion by 2023. And that’s mostly because of cryptocurrency branch development. Thus, crypto trading is quite popular worldwide. However, there is a high competition level within this branch. Therefore, dealers use different trading strategies to get more income.

Experts note that the key to successful crypto investment is the timely receipt of verified information about the state of the cryptocurrency market. Actually, traders may get such data only on reputable platforms cryptotracker. And using information from doubtful online resources, dealers risk losing their funds.

Popular Crypto Trading Strategies

The cryptocurrency market can be very chaotic. In such conditions, even experienced dealers sometimes succumb to emotions. As a result, such traders frequently lose entire fortunes. And the use of trading strategies helps dealers keep calm as well as follow the particular plan no matter what happens. So, below are three investment schemes in high demand among skilled dealers nowadays.

What Is Alligator Crypto Trading Strategy?

This investment scheme applies to various financial assets, including cryptocurrency. Bill Williams, the author of books on trading psychology, first suggested using this strategy. The essence of the tactics is that three Moving Averages (MAs) are superimposed on the price chart.

In this case, the fastest MA is usually green, the middle one is commonly red, and the slowest MA is primarily blue. A signal to buy or sell comes in if all the Moving Averages intersect (or approach). Next, green and blue change places. If blue is at the top, there’s a downtrend. Otherwise, there is an uptrend.

Peculiarities of BTER Strategy

The strategy’s essence is to purchase cryptocurrency and simultaneously place a pending sell order after an increase in price by 5%. Thus, under the method’s authors, dealers can get up to 20% of the deposit amount daily.

Experts advise conducting additional technical analysis of the charts as well as determining the prevailing trend movement before trading on BTER. Moreover, proficient traders don’t recommend making deals on days of very high volatility and for a full deposit in one transaction within the described tactics.

Inverse Stochastic Crypto Trading Strategy Features

This method requires dealers to apply Stochastic as the main indicator. The latter is an oscillator that helps determine the downtrend or uptrend strength. As soon as the course turns in a certain direction, traders need to open a short or long position, depending on the situation.

Some Tips on Cryptocurrency Trading for Newbies

To not go broke on the first day, experts advise beginners to follow the next recommendations:

Start trading with small money amounts. For example, it could be $50 or $100. Then, if a dealer starts to receive a profit, the amount can be gradually increased.
Focus on low-risk trading. So, beginners shouldn’t chase super profits. This tactic requires some experience and carries high risks.
Plan their actions in case of a bad scenario. This will help avoid confusion if the purchased coins’ price starts to fall sharply.

Additionally, specialists advise newbies to use only trustworthy crypto wallets. E.g., such options are offered by CryptoTracker.