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6 Cryptocurrency Trading Strategies to Profit from Market Turbulence

Cryptocurrency Trading Strategies
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Cryptocurrency market is a new avenue for investment. It has attracted many enthusiastic traders. However, the volatility of crypto usually puts people off. After all, no one wants to live in uncertain environments. But, we see that people who came up with the right plan at the turbulent time eventually became successful. Here we are going to discuss some of the cryptocurrency trading strategies. These strategies you can specifically employ in unstable market conditions.   

What is Cryptocurrency Trading Strategy?

The cryptocurrency trading strategy is a plan traders have designed for themselves. They take long or short based on a plan rather than market situation. The returns according to the plan are easily measure able. Hence you as a trader can see whether the plan is working or not over a period of time.

The reason for developing a strategy is that you go in one direction. The tumultuous swings of crypto market make you impulsive. Consequently, most traders make a hasty decision of going one way and then take a 180-degree turn and go the other way. Afterward, they realize that their first move was right. In situations like this lack of strategy cause way more harm. Hence it is recommended that you go by a plan.
Below are some of the strategies that experts suggest for usage:

Arbitrage:

Arbitrage simply means buying an asset for a low price and then selling it at a higher price for profit. This is a common form of business. Nevertheless, the opportunity of arbitrage increases with irregularities in the market. That’s why crypto market is the best place for making money through this technique.

First, find an exchange where you can buy a crypto coin such as bitcoin at a low price. Secondly, look for another exchange to sell coin for profit. As the price change is sudden in crypto so you will need to act quickly. The discrepancies can be as high as 40 percent at some points

Point to Remember:

Learn the technicalities of different exchanges before making any buy/sell decision. Additionally, calculate the trading fee and other expenses to see the profit margin.

Buy the Dip and Hold:

When the price of an asset is going down then it is high time to buy it. The trading community even has a word for this, BTFD. However, buy those assets only which have a strong reputation overall. This is a guarantee of the fact that after the storm, prices will rise again. We have seen this in the case of bitcoin.

Most traders are regular people who are sensitive to market sentiments. When some news of uncertainty arises from the market then many rush to sell the coins in panic. Resultantly, some coins are undervalued in this situation. As a cool-headed trader you should opt to buy, keeping in sight the bigger picture. This will help in making a decent return when chaos is over.

Point to Remember:

Employing this strategy requires lots of patience. You don’t know how much time the market is going to take before it rises again. Just hold on.

Follow the trend:

Following the trend is a cliched yet effective trading strategy. Traders can avoid taking a risk by following the trend. The key is to wait for a trend to establish. After that, you can hold long or short positions accordingly. If the trend is upward then go long and if the trend is downward then go short. It is also known as position trading. The traders get out once the trend ends.

In order to stay further secure in trend following, you can employ margin trading, leverage, and stop-loss. This helps in earning big profits and protecting assets in the long run.

Point to Remember:

Cryptocurrency market is unpredictable. Sudden changes can come in a smooth trend. So, you should have a secure plan in place for protection in case of sudden change.

Scalping:

Scalping is one of the effective cryptocurrency trading strategies. A scalper takes advantage of small market movements rather than big swings. In such trades, you will have to enter and exit quickly. Squeeze from the slight price differences and try to make as many successful trades as possible. Traders have a very thin margin for profit and loss in scalping. However, if the number of wins is greater then you can definitely make some money.

Scalping is a secure way of trading. Nevertheless, it is time taking and needs effort. Look closely at the charts for thin volumes trades. Additionally, gauge the indicators and then make the trade. Take a break if losses increase. Have patience with this strategy while moving speedily in and out of deals.

Point to Remember:

In this crypto trading strategy, you have to be very fast. Some traders use automated bots for trading. These bots are also trying to take advantage of scalping. Hence to compete with them you will need to step up your game.

Hedging:

Traders employ hedging as cryptocurrency trading strategy when there is a market decline expected. Hedging involves short-selling the asset which you are holding. Sell the coins on the market price. Afterward, when the prices fall you can easily buy the same again. Consequently, you will make some profit out of the price differences.

Point to Remember:

Hedging needs to be done with absolute surety of market trend. Don’t rule out the possibility of the market moving against you. Hence calculate the risks before using this strategy.

Lending Your Crypto:

If you don’t want to trade directly then you have another way of earning with that crypto in your account. Lend your assets at some lending platform and earn profits on them. It is an excellent source of passive income. Just build a crypto portfolio and start using this strategy today. Especially, in the time of the turbulent crypto market, you can take advantage of it.

The lending strategy does not require crypto holder to learn market movement. A person without any experience in the financial market can do this. It is hustle free. All you need is some starting investment to buy crypto.
Platforms like Nexo and Celsius provide excellent interest margin to crypto lenders.

Point to Remember:

When you are lending your money, asset, or anything then you lose control of it. There are stories of people who lost their wealth on the scammer site. So, be very careful while lending. Pick only trustworthy platforms with a good reputation.

Conclusion:

These 6 Cryptocurrency trading strategies can help you in making money despite uncertainty in market trends. But all of them come with some risk factors. The knowledgeable and experienced traders have a better chance of pulling off the right strategy at the right moment. However, beginner traders can also benefit if they go for little help.

Autotrading Strategy is one such platform that offers help to beginners or inexperienced traders. You can grow your income by developing strategies with expert opinion from our team. We have recent data on the market, complete knowledge of strategies, and a number of Softwares for turning your whole trading business into complete success within days. So, sign up with us today. Don’t be a mediocre trader when you have the opportunity of becoming extra-ordinary.

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