Risk will always be a part of any investment, whether it be stocks, commodities or cryptocurrencies.
Time-wise, there are 3 different ways on how you can invest in cryptocurrency- hourly, daily and weekly. Let’s explore all of them and see the pros and cons of each.
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Aggressive Short Term Trading
Believe it or not, you can already make a tidy profit within hours of buying Bitcoin or any other cryptocurrency.
This method is often referred to as day trading, and it’s used in the stock market as well. The whole goal of day trading is to earn as much money as you can by trading cryptocurrency within a given day.
Although it sounds very appealing, not everyone can take up day trading. It requires a lot of time and dedication, and you’ll have to be in front of a computer or your smartphone all day. Plus, you’ll need to focus on the task at hand because jumps in value can be fleeting and temporary.
If you’re okay with the conditions, it’s recommended that you start small and build up on your capital. The money you sink in should be expendable, which means you should still be fine even if you lost that money.
Range and Swing Trading
If you can’t be bothered with day trading then there’s another way for you to make money by trading cryptocurrency.
Both swing and range trading are good options for profiting several times a week. In order to become successful you will need to learn how to read trends and assets that have experienced both highs and lows on a regular basis.
Once you see a pattern, then the next action will be to time it right so you buy when the price is low and sell when it’s high. To accurately predict the movement you will need to complete a technical analysis or go with a site like http://the-quantum-ai.com/nl/login.
This trading strategy works well for those who work a day job and still have extra time to make money when they’re at home.
Position Trading – For Long Term
Lastly, we have position trading which is an excellent strategy for holding your assets and making a profit long term.
This isn’t as lengthy as other methods such as HODL, but you can make a profit every week or so. It works just like swing and range trading but with other indicators such as support level and resistance level.
For optimal position trading it’s wholly recommended that you keep your cryptocurrency in a cold wallet or hardware wallet to keep it from being stolen or hacked online.
The first step involves identifying a trend, then waiting for the pullback and buying the crypto as it exits the pullback. When the asset is riding up again you can sell at the resistance point and make a tidy sum of money.
All these short term trading strategies can be cycled, which means you can do them over and over as long as you have the capital and reintroduce your profits into the cryptocurrency market.