All of the success stories you’ve heard about people making thousands or millions of dollars by getting in early and selling when the price is high are true.
But there are also many stories of people that have lost significant amounts due to not being careful. When trading cryptocurrency, it’s important to know what you’re doing, or you could end up losing a lot.
People are intrigued by the idea of cryptocurrency, which is why many end up dipping their toes in the water. However, because there are no rules or regulations in this industry, a lot of people get burned.
People either give up along the way or they lose money due to their lack of understanding of the system or following the good strategy which can make a difference for your crypto trading journey.
So let’s get started,
Here are the best 15 strategy to make money trading cryptocurrency even in your sleep
1) HODL strategy
It is a long-term strategy that involves buying and holding the cryptocurrency for a long time in order to maximize profit.
In this strategy, investors hold onto their assets and do not sell them until a better opportunity arises.
2) Hold on to your profits
Some traders trade on a day-to-day basis and some trade for years at a time. There are also traders who trade in between these two extremes. One thing that all these traders have in common is that they need to make sure they hold onto their profits so they can maximize their earnings.
3) Diversify your portfolio
There are many reasons why you should diversify your crypto coin portfolio. One of the main reasons is because the market is unpredictable and it can change at any time. You never know when a coin will become a success, so it’s better to be safe than sorry.
Another reason why you should diversify your portfolio is because you are exposing yourself to different types of coins and projects that you might not have otherwise come across. This can help increase your knowledge about the crypto world in general, which in turn can help you make better decisions in the future.
4) Invest in the coin having mechanism and future
With blockchain, there are no middlemen, which means that transactions are faster and more secure. It also reduces transaction costs, making micropayments possible.
The future of digital currency will be shaped by how people use it now and in the future.
There are different types of coins with mechanisms for the future. Blockchain, altcoins, Web 3.0, DeFi coins is having the mechanism for the future. It’s designed to be more than just a cryptocurrency and can be used to create other cryptocurrencies as well as develop and run applications.
5) Keep your coins safe
There are many ways to keep your coins safe. Some of them are safer than others.
Some people store their coins on a secure wallet, while others keep them in an encrypted password. Others use a hardware wallet or paper wallet, but they are not as secure as the other options.
5 tips of having safe and secure cryptocurrencies
1. Backup your wallet
2. Encrypt your wallet and files
3. Use a hardware wallet
4. Use two-factor authentication:
5. Use strong passwords:
6) Trade with the trend
Trade with the trend is a cryptocurrency trading strategy that relies on the assumption that the price of a cryptocurrency will rise if it follows the trend of its direct competitor. This strategy can be applied to any two cryptocurrencies, but it is most commonly used by traders who are interested in buying one cryptocurrency and shorting another.
7) Manage your risk with stop-losses and take profit orders
A stop-loss order is an order which triggers once the price of an asset falls below a certain threshold. Traders use them to prevent any more losses from happening by limiting the damage incurred on their portfolio. For example, if a trader has bought Bitcoin for $7000 and set up a stop-loss at $6500, their maximum risk on that trade is limited to the initial investment of $7000.
8) Use a cryptocurrency trading bot to trade automatically
A cryptocurrency trading bot is a software that trades on your behalf automatically. It will buy and sell cryptocurrencies based on the predefined rules.
There are many cryptocurrency trading bots available in the market. These are either free or paid. Some of them are more suitable for beginners while others are better suited for experienced traders.
9) Trade on the right exchanges
There are many different exchanges, so you should do your research beforehand to find the best one for your needs. You should also know about the different types of orders that can be placed on an exchange, and how to choose the right one for your trade.
10) Keep up with news and research
Keeping up with the news and research is an important part of being a successful crypto trader. The crypto market is constantly evolving and changing, so it’s important to stay on top of trends, new coins, and all other updates.
11) Trade on margin
In the world of crypto, margin trading is an important aspect of the game. It allows traders to borrow funds from a broker in order to trade with them on their behalf. This is done by using an agreement called a margin agreement.
The trader will receive funds from the broker, and in return, they will agree to pay back the full amount plus interest if they lose money on their trades. And if they do well and make more than expected, they will simply pay back what they borrowed minus interest.
12) Avoid cryptocurrency scams
The world of cryptocurrencies is a confusing one. With so many different coins and tokens, it can be hard to decide which ones to invest in. And with the promise of quick and easy money, it’s not surprising that scams are rife in this space.
There have been many cases where people send money to scammer’s wallet address by giving them their own private keys, or because they have fallen victim of an elaborate scam.
13) Do not buy into hype
It is important to not buy into this hype as cryptocurrencies are still in their infancy stage and have yet to be tested in real-world scenarios with millions of users.
It is important to be mindful of the trends when it comes to cryptocurrencies. Some of these trends are fake news and pump and dump scams.
Crypto coins are a speculative asset and not a currency. They are not backed by anything other than their own value, which can be manipulated by the people that invest in it.
14) Use stop losses to protect your investment
A stop loss is an order to sell a security at a specified price if its value falls below a certain threshold. This strategy allows investors to limit their losses on any given trade and reduce the risk of catastrophic losses.
15) Keep an eye on volume levels to spot trends early on
Traders are advised to keep an eye on volume levels to spot trends early on and make informed decisions. They can also use these levels to measure the strength of a trend and help them determine when to enter or exit a trade.
Here are the 5 tips to focus on:
1. 24-hour trading volume, the market capitalization and other information on any given crypto coin.
2. Spot trends by comparing the volume of a coin to its price
3. Use different timeframes to identify trends
4. Identify whether the trend is sustainable or not
5. Keep an eye on social media channels to spot trends
16) See 24-hour trading volume
The 24-hour trading volume is a good indicator of how active the market is for a given crypto coin. If you see a sudden spike in volume, it could be an indication of some event or news that has caused people to buy or sell this particular crypto coin in large numbers.
Here are 3 tips to see trading volume in crypto:
1. Use CoinMarketCap
2. Use TradingView
3. Check exchanges’ websites
If you are interested in investing in cryptocurrency, it’s important to have a good understanding of the strategies that work best. The more time you put into learning about strategies, the better your chances will be of making successful trades.
Understanding how crypto gains value, how to read the crypto charts, what an ICO is, or how to pay taxes on your crypto gains is crucial to investing successfully in this new economy.