The cryptocurrency market has been growing since the beginning of the year until half of February. Many altcoins and Bitcoin (BTC) were able to move to new highs in several months. In this way, the whole crypto market was excited about the future of the space. However, the main question remained whether it was possible for it to continue growing.
There are many ways for traders to be part of the cryptocurrency market and remain profitable. These two ways include day trading, swing trading or holding. These techniques are different from each other but could offer great possibilities for traders and individuals.
Swing and Day Trading
Swing Trading is a way for individuals to buy and sell virtual currencies – among other assets – that would provide you with some good profits if you do it in the correct way. The positions opened for swing traders will be open in general between a few days or some week,s allowing the price of the asset to move accordingly and mature over time.
The cryptocurrency market has an advantage: it is very volatile. This would help users enter the market, register a short profit, and leave it in just a few days or weeks. This is in general not possible (or less common to happen) in traditional financial markets.
Technical analysis is going to be a great tool for users that want to improve their Swing Trading strategies in the crypto market. With these things in mind and correct fundamental analysis, users will have the chance to register profits if they do so properly.
Meanwhile, Day Trading works in a similar way. However, there are some differences with traditional Swing Trading. Day traders tend to search for shorter-term positions that would allow them to get some profits in very short periods of time. This can only happen and be useful when the market volatility is higher than normal.
If the market is traded flat, then the possibilities of getting some profits to get reduce and the strategy must change into Swing Trading with positions that can be opened for several days. Although technical analysis is always a needed tool, fundamentals will also play a very important role in day trading.
If there is massive news that could change the sentiment in the market, it is very important to understand its impact in a specific cryptocurrency. In general, partnerships, acquisitions, announcements, hacks and other important events have a moderated and large impact on crypto assets in the market.
AltSignals could be a good way of increasing the chances of having profits while trading Swing or Daytrading. AltSignals is one of the most respected and known crypto trading signals providers in the market. It has been offering crypto trading information to users in the last few years.
This is very positive if you want to get proper information about when to enter or exit the market at the correct time. This can be great for newcomers to the market that want to learn how to trade virtual currencies and it can also be good for expert traders that want to get a confirmation regarding the positions they want to enter or exit.
Holding Crypto Strategy
By holding a cryptocurrency you are already planning to invest in the long term. When you acquire digital currencies with the holding strategy (meaning that you will hold them for a long time waiting for massive profits) you already know it will take not some days but maybe months, or even years for this position to be closed.
It is worth taking into account that holding strategies could end with holders having large “bags” of altcoins and virtual currencies. This makes reference to investments that seem to be going nowhere and registering losses. It is always recommended for traders to place the funds they are able to lose in the market.
This strategy can be great for people that do not care about time frames or do not need the money in short periods of time. Moreover, it would be possible for them to accumulate large amounts of virtual currencies and sell them at the correct moment.
Crypto trading strategies change according to the kind of trader that you are and the time in which you are expected to generate a profit. AltSignals as a crypto trading signals provider in the market will be great to help users understand whether to enter a position, close a trade or wait longer to perform an action.