How should you trade cryptocurrencies? This is a common question that is uppermost in the minds of crypto trade beginners. The most widely used style of crypto trading include scalping, day trading, swing trading, investing, and position trading. Several trading apps are readily available in the crypto market to improve trading profits. One of the most reputable and successful app is immediate bitcoin krypto software, which provides enough options for successful cryptocurrency trading.
- Investing: Some may look at investing and trading to be one and the same thing, but there are differences that you need to understand. Trading is when you take a position to make money while investing refers to owning an asset that you expect to grow with time; for example, Warren Buffet was an investor buying company stocks. Investors will not always opt for stop-loss orders; rather, they will seek to build a position and stick to their assets for as long needed. This is called HODLing or holding onto your coins for which you need not monitor trade price charts or graphs.
- Scalping is when you wish to make fast moves. You execute quick trades with the aim of making constant profits, albeit small. For instance, you can make trades every couple of minutes. To be a successful scalper, you must have great focus and know how to manage your risks.
- Day Trading: This means making trades in the course of a single trading day. You have to implement stop-loss and take-profit orders. The idea is to make steady but small gains every day. You can download the Bitcoin Bank app which can do manual as well as automated trading so that you can choose whichever you want during the day. While in manual mode you have to choose the exchanges whereas in automated mode, the app chooses the exchange for you.
- Range trading refers to trades that a trader will engage in when a trend starts and finish when it stops. Traders are not concerned whether they trade this range at an all-time low or an all-time high; they only buy when prices are at the bottom of this range and sell when prices are at the top.
- Intra-day Trading is also like day trading but it lets you hold positions for more than a day. Since the crypto market never sleeps there is no real end for a trade day.
- Swing trading is when you trade on a large range. So, you open a trade position at prices you think are at the bottom of a range and then hold onto the position all the while till what you consider to be the top is attained. Swing trading can be done across weeks or days and you can take positions and watch it oscillate, without feeling nervous. For those of you who can do technical analysis, it is sensible to choose swing trading. Swing traders seek to find the bottom of a price wave and ride it all the way to the top.
- Position Trading is similar to swing trading but you build a long position at a low price or a short position at a high price and stick to these for a long while. While this sounds simple on paper, it requires discipline. It is like investing because it is long-term but the aim is to make a better trade through overarching trends.
All these are different crypto trading styles that you must learn about in-depth before choosing. Any of these can go wrong and you must have a lot of patience to stick to them. You have to wait and see if any of these styles is working well over time; it is naïve to judge a style based on only a handful of trade results.