Trading cryptocurrency is a way to make money by purchasing and selling digital assets at different prices. The crucial thing here is understanding the right time to enter and exit the position. The crypto market is still very young, so it is incredibly volatile. Crypto rates are susceptible to the news background and other factors, for example:
- The market trend;
- Supply of coins;
- External factors such as the global economy, inflation, etc.;
- Mistakes in crypto exchanges’ work.
All these factors are the subject of investors’ investigation for proper and successful trading, and they are all counted in trading strategies.
Crypto trade cannot be profitable without a crypto strategy. It makes trading consistent and guides a trader, helping to understand the right time to open and close positions on a crypto trading platform. For example, the scalping cryptocurrency trading strategy implies keeping the position for a few seconds or minutes and then selling them. To apply this trading style, investors use automated programs.
Other trading styles:
- Position trading.
Let’s talk about position trading (buy and hold).
Buy And Hold Strategy Crypto
This trading style does not require quick decisions on selling assets. It is a long-term investment where investors buy and hold assets for months or even years. It is probably the best crypto trading strategy because it gives enough time for an investor to think and analyze the situation, consider all the factors that may affect the market, and sell assets at the right time to make a profit. Considering the present market situation when it is down, the buy and hold strategy crypto sounds like the best option to invest in crypto. So you can pick coins, buy them and hold them until the upward trend starts and prices go up. Read more about crypto trading on the WhiteBIT blog.
Looking For A Place To Trade Cryptocurrency?
If you want to succeed in trading cryptocurrency, it’s essential to practice. We suggest signing up for the WhiteBIT crypto exchange, as it offers a user-friendly and transparent platform with tools suitable for beginners. WhiteBIT also provides a demo account for you to experiment with different strategies and choose the best one. To start trading, you can use the WhiteBIT crypto converter, which allows you to quickly purchase crypto online with ease. Simply select the asset you want to obtain and the currency you want to exchange (which can be fiat money), pay the fee, and click "Exchange." For more information on trading and cryptocurrencies, check out the WhiteBIT blog.