Cryptocurrency trading is the way to make money from buying and selling digital assets when their price changes. Like with any other asset or commodity, trading bears higher risks than any other way of making a living. In fact, crypto trading is much more complex than traditional financial markets trading. The reason lies in the instability and high volatility of digital assets, which are hard to foresee and forecast. For example, during the day, the SOL price fluctuated between $23,58 and $23,36, and this price change could be used by traders to make a profit.
Many people treat crypto trading as a lottery or a game. Even if they succeed once by luck, they get burned sooner or later. Luck is never enough. In order to learn cryptocurrency trading, traders spend a lot of time making their mistakes and taking their experience to a new level every time they try again.
Also Read: Kidnappers Free Cryptocurrency Boss After Paying $1M Bitcoin Ransom
The Main Things to Know About Cryptocurrency Trading
To make a living from crypto trading, you should know the following:
- The supply and demand relationships are the main factor affecting crypto rates.
- The crypto market is still young, so the media impact is enormous.
- For successful training, you should not make decisions driven by emotions.
- Never invest the last money in trading, and never borrow.
- Diversify your investment portfolio.
- Pick a reliable cryptocurrency trading platform.
- Do not take large leverage ratios.
- Pick crypto assets with high liquidity.
- Always adhere to your trading strategy.
Here are the most common trading methods that allow people to make a living.
Buy and hold. This is the long-term trading strategy that implies holding crypto coins for many months or even some years before selling them. Such large-cap assets as Bitcoin are suitable for this method.
Swing. It is the method to make money from buying and selling assets within a couple of weeks or months.
Intraday trading. It means opening and closing the positions within 24 hours. Usually, traders pick the time of the day to buy assets when the market is “sleeping” and sell coins in the most active business hours when crypto rates increase.
Scalping. The most dynamic type of trading - positions are opened and closed in a couple of seconds, bringing profits from tiny market fluctuations.
These were the main methods of making money from trading crypto. To learn cryptocurrency trading, welcome to the WhiteBIT blog.