Cryptocurrencies can be included in many strategies for investing and gaining profits, and mining is only one side of the game.
Each day, more and more people get involved in different crypto strategies, hoping to make a huge profit out of it. Although this is not impossible, it is really hard to achieve. It takes adequate knowledge, experience and planning. And sometimes it is all about luck.
Cryptocurrencies are being looked at, as a good investment, as they are believed to displace the fiat money in the distant or not so distant future. Anyway, if you want to be on the winning side, you will have to come up with a unique strategy. Also, you shouldn’t forget that trading is always associated with lots of risks.
What is short-term trading?
Short-term trading is also known as “aggressive” trading, as there is a huge risk of losing all your investments, really fast.
Short-term investment can be classified depending on how fast the profits come. It can be weeks, days or even hours. The important thing to remember is that the shorter the period, the greater the risk.
The key word, when we are talking about cryptocurrency investments and trading, is strategy. That is why, we are going to have a look at some of the most popular short-term crypto investments' strategies.
This is a popular trading strategy, among short-term traders. It needs a lot of commitment and dedication, so the trader could monitor the market trends and make the right decision at the right moment.
Of course, this trading method does not guarantee profit, as it is very risky. Despite that, with the right strategy, you can make 5 to 10% profit on your investment, as it capitalizes on the volatility of the crypto market.
Day traders should always be up-to-date on what comes out in the market, and they usually do lots of orders in a single day, as this is the way to make some money out of short-term crypto investment.
Scalping is another short-term strategy, where the traders buy and sell crypto very fast, resulting in multiple trading within a day.
To use this crypto trading strategy, you should at least have a free commission brokerage, as sometimes fees can be bigger than the profit itself.
This strategy brings up small profit but also comes with a minimal risk. It is a good strategy for newbies, so they can get the experience they need to become part of bigger and much more profitable crypto trading strategies.
Swing trading is a process of using graphical representation of the instability of crypto prices, so the trader could identify the current trending stock. As the prices vary in both directions, the result can be both rising and falling.
The strategy name “swing” comes from swinging, which in the stock market means identifying a repeating time frame of price behavior. In this strategy, traders use essential tools such as mobile apps and charts.
Automated crypto trading
Automated crypto trading gives traders the opportunity to trade, without the need of constant monitoring and dedication. The bots do all the hard work.
Automated trading allows you to choose from different strategies based on different indicators.
Cryptoarbi.com is a great example of an automated trading platform. We don’t have access to your assets. Our job is to find the best trading opportunity and do the work for you.