Popular and simple strategies in cryptotrading: even a newbie will succeed

Newcomers are attracted to the rapid growth of cryptocurrencies caused by high volatility. This opens up a lot of opportunities for trading. However, strategies that are popular among experienced traders are difficult for novice crypto traders to understand. In addition, extensive experience is required to correctly apply them and determine favorable market conditions for their use.

But there are simple strategies that allow beginners to easily start trading on the cryptocurrency market and at the very start to earn income from crypto trading. In this article, we will tell you what trading strategies exist that beginners can use to earn money on cryptocurrencies.

HODL

This is probably the most popular method among beginners. The essence of it is extremely simple: buy a cryptocurrency and hold it until the rate grows, and then sell it. At the same time, no special knowledge of crypto trading is required: it is enough to choose a convenient moment when the rate has fallen or a stable uptrend has appeared.

The name of the strategy comes from the word “hold”. This term originated from a simple fingerprint of a popular forum user, and later became firmly established among crypto enthusiasts and even became official.

To buy Bitcoin or other cryptocurrencies, you need to have a wallet and choose an exchange. The easiest way to find a crypto exchange for a quick purchase of cryptocurrency at a low rate, for example, using the Changevisor service.

Changevisor (http://changevisor.com/) is a popular browser for cryptocurrency exchangers that allows you to filter offers for various exchange methods, such as Bitcoin-PayPal USD or Perfect Money-Ethereum. The service sorts offers from various exchangers, starting with the most favorable exchange rate.

Users just need to select exchanges and click on the link from Changevisor (http://changevisor.com/) go to the site of the exchanger and make an exchange, receiving the cryptocurrency immediately to the wallet. The exchange takes place in a few simple steps and takes up to 15 minutes. This is faster and easier than exchanging cryptocurrency through crypto exchanges.

Scalping

This strategy is popular among newcomers due to the trading period. The essence of scalping is to make short trades to get a small profit. A trader opens a position based on the indicators and closes it immediately when a small profit is reached. And the transactions themselves can take from a few seconds to several hours.

The advantage of this strategy is that a cryptotrader can open a lot of deals within one day. Due to this, you can get a considerable profit, provided that there will be significantly more profitable transactions.

Trading with the trend

When a stable trend appears on the crypto market, traders start investing on the average market and hold the cryptocurrency for some time before signals of a trend reversal appear on the crypto market.

The trend is easy to detect: the price chart begins to resemble a ladder, where each high (the top of the Japanese candle) and low (the bottom of the Japanese candle) is higher than the previous levels. However, the sooner you can recognize an uptrend, the better, since no one knows how long it will last. The trend may keep its direction for several weeks or change in a few hours.

What should novice traders beware of?

Cryptocurrencies have a small capitalization compared to traditional financial markets, which is why there is high volatility in the crypto market. The smaller the capitalization of the cryptocurrency, the stronger the volatility will be. Low liquidity opens up space for manipulation of the crypto market by large players, who can easily raise and collapse the exchange rate.

This scheme is known as Pump & Dump. But the good news is that it is easy to detect: suddenly a long green candle appears on the chart, and after that the rate continues to grow for some time. Then the big players sharply crash the rate, leaving the last buyers with losses.

In any case, if you noticed an abnormal growth and did not have time to buy a cryptocurrency before, it is better to stay on the sidelines and wait for the correction, which will be 100% likely. However, sometimes large investors do not immediately collapse the rate, allowing you to believe that a new trend is emerging – this is the main trick of this scheme.

If you still bought a cryptocurrency after a strong growth, then immediately set a stop loss to protect your funds from large losses. You should also avoid trading signals in messengers or social networks. As a rule, such signals are aimed at attracting buyers of VIP groups. Often such channels are fraudulent, and the organizers themselves work according to the already known Pump & Dump scheme.

Conclusion

Most strategies require at least basic experience, but if you are a beginner and do not want to go into analysis, then the best option is the HODL strategy. In addition, this method is completely passive. Since the beginning of the year, bitcoin has grown by almost 50%, and Ethereum-by more than 150%. This is how much holders could earn without doing anything if they bought a cryptocurrency before March 2020. And after the fall in March, you could get even more profit.

Therefore, it is better to buy cryptocurrency using PayPal or another method and store it in your wallet until the right moment for sale, and Changevisor will help you choose the right crypto exchange.

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