Four Profitable Crypto Trading Strategies

You want your crypto trading strategies to level up? Or maybe you wonder if this is the time to enter day-trading markets?


We will help you eliminate any confusion if you are a cryptocurrency trading enthusiast who feels lost in the world of complex trading strategies and uncertain markets. In the beginning, the crypto-trading world might seem foreign and complicated. Still, after all, it is not that hard after understanding the various trading strategies and the instruments.


Range Trading


Range trading depends heavily on the concept of support and resistance used in trading stocks and forex. Candlestick charts are the first thing you need to learn to master this strategy. For centuries, these charts have been used to make support and resistance models, which are two price ranges predicting a coin's volatility in a range.


At the support levels, you are supposed to buy the currency and sell it when it nears resistance levels. The idea behind the strategy is that the price will stay in the range. It will be regarded as breaking the limits that occur less frequently and is the only risk involved in this strategy if it increases beyond a specific level.


Golden Cross and Trading Death Cross


The golden cross and death cross are quite an exciting strategy, and to execute them correctly. You have to understand both these terms. The golden cross is essentially defined as when the long-term average is crossed by a short-term average of a specific cryptocurrency. The short-term standard is generally defined as the 50-day average, and the 200-day average is defined as the long term.


On the other hand, the death cross is the exact opposite of the golden cross and is characterized as when the short-term average is lower than the long-term average.


Analysis of the change in the volume of trading is used to confirm the occurrence of these trends. Other indicators, such as RSI and MACD, are also used by some traders, but volume is considered one of the best hands.


Algorithmic Trading or High-frequency Trading (HFT)


The most complex strategy on this list is high-frequency trading, but it is also one of the most profitable for many traders worldwide. Without having to manually, algorithmic trading is all about automating all the steps of a strategy and automating your policies.


HFT makes a lot of trades in seconds, and in a few milliseconds, most HFT consists of making trades. Now, humans can't do that, and you can create your own rules that will be executed on auto-pilot.


After raking in tiny profits and leveraging trade volumes, it involves a lot of back-testing and repeating small trades. It's important to know that finding a good cryptocurrency trading algorithm you can use is not that straightforward.


That's why the use of Multi HODL is preferred by so many crypto traders. It has all the incredible, automated advantages of algorithmic trading but a user-friendly experience with more hands-on to help one profit from market volatility.


Buy Hold and Dips


It may seem like a time to stay away from the market when the price of Bitcoin and other cryptocurrencies is down, but that is one of the best times to enter a market. Just as the trend is in inventories, the overall cryptocurrency market is strong, and after significant drops due to news, prices recover.


The market for cryptocurrencies is one of the most volatile and can quickly change directions. Hundreds of instances have occurred when bitcoin's price has dropped significantly and recovered after a specific time. This approach is also one of the safest, but it involves time and relatively limited profits.

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