When we think about cryptocurrency trading strategies, we usually think about trading or holding. But we do not usually think about alternative cryptocurrency trading strategies that would allow us to, perhaps, improve our performance.
When we trade, there is not only Bitcoin (BTC) and Ethereum (ETH), but many other altcoins as well. We should focus on improving our strategies and getting the most out of them. In this post, we are sharing with you some of the best alternative cryptocurrency trading strategies and how you can implement them to have better results while trading.
Disclaimer: the information shared by AltSignals and its writers should not be considered financial advice. This is for educational purposes only. We are not responsible for any investment decision you make after reading this post. Never invest more than what you are able to lose. Always contact your professional. financial advisor.
Alternative Cryptocurrency Trading Strategies
As we mentioned before when we think about trading strategies we usually think about holding or trading Bitcoin or Ethereum. But we do not think about how to improve these strategies and think outside the box.
This is why we have decided to go through some alternative cryptocurrency trading strategies that would help you improve your trades and eventually register larger profits. This is not advice.
Use Crypto Trading Signals Channels
One of the things you can do in order to trade digital currencies is to use crypto trading signals channels. For example, AltSignals shares some of the most advanced and profitable trading signals in the world.
With crypto trading signals channels you do not have to be worried about searching the digital assets you can trade or the best opportunities in the market. Everything would be done by AltSignals and the team of experts behind.
You would only have to make sure you execute the trades as explained by the team and that’s all. With crypto trading signals you are able to get the most out of the crypto market. If you are a newcomer or a trading expert, using these groups could be very helpful to find new strategies and trading opportunities with other digital assets.
Trade Other Altcoins
Bitcoin and Ethereum are certainly some of the most traded virtual currencies. But they are not usually the most volatile ones. This is why you should think about searching for other virtual currencies that would allow you to register larger gains during periods of volatility.
Although you can find other altcoins (smaller cap) that would be great for trading, you should be aware that Bitcoin and Ethereum have large liquidity (they might not be so prone to market manipulation) compared to smaller coins (which could be affected by manipulation).
At the same time, smaller coins could eventually disappear, pushing you to hold a bag of coins that cannot be sold (or that can be sold at a massive loss). This is why you should carefully analyse which coins could be good for trading and how you can reduce your risk while trading with them.
Be Careful with Leverage
If you are searching for a larger exposure to some trades, then using leverage could be a good option. However, this is a tool that is used by expert traders that have a clear strategy in place and that know how to handle risk.
Newcomers and people that do not use stop-loss and take profit levels should not trade with leverage. This is a risky strategy that should be implemented only by those that know how to do so and which are the risks involved.
Nonetheless, if you want to short the market, you would not be able to do that through spot. This is why you could eventually use futures in order to get access to more advanced strategies that could help you increase your profits. As we already said: be careful with leverage.
Use Different Indicators
If you got used to just a few indicators when trading in the market, you should also try using different ones. This might help you register larger gains and also see things that you were not able to detect before.
In the long-term, using different indicators would not only improve your trading skills but also help you detect movements and trades that you might not have seen before. This could be one of the best alternative cryptocurrency trading strategies to implement. Binance and TradingView are offering different solutions for traders to draw their lines and use a wide range of indicators.
