Best trading strategies when the crypto market is unstable

by: Guest Post

Best trading strategies when the crypto market is unstable

Cryptocurrency is the new trading technique that has taken over the whole world. It is a currency that exists virtually and can be transacted using cryptography. It has a decentralized mode of regulation. Digital payment has come up as the most secure and fast mode of transaction. Hence, cryptocurrency came into being. It hardly requires any bank linkation; rather, it ensures payment worldwide while using encryption to maintain security. Bitcoin is one of the most famous categories of cryptocurrency whose value has gone up exponentially. These virtual currencies developed with the help of mining and can be secured in a cryptographic wallet. 

As this concept is fairly new to the world, the risks associated with its advancement often leave people shattered. However, a few keen steps can reduce this risk to nothing. In the case of an unstable crypto market, one can use some strategies to ensure safety. 

Best trading strategies that one can use when the crypto market is unstable:

Crypto market is a market that is susceptible to a number of profits and losses. Hence, gaining the right strategies is important to strike the right cord. Here are the best trading strategies to maximize your crypto decision. 

  1. Snap the dip currencies and hold them: This is one of the most effective strategies used by professional traders; they buy the currencies whose cost gets a little lower. They know as soon as the market calms down again, the cost of those currencies will escalate automatically. Even the people who are new to this crypto market should try this trick to earn and get a little experience in the market.

Most of the time, the cost of the currencies gets increased as soon as the market regains its credibility. This strategy is used for traders who like to trade long-term. And once the cost gets increased, the traders who trade for an extended period quickly sell their currencies in a better amount to other traders. 

  1. Go along with the trend: Another strategy that can be used when one can see turbulence in the crypto market is to follow the provided trend. This trick should be used only once when you think it’s challenging for you to anticipate the right direction. When you use this trick, you just have to pay attention to the trends provided. Following the trend, strategy is quite risky as crypto markets are very unpredictable.

When you see that the market trends are going high, then that is the only time for you to open long trades, and if the trends of the markets are falling, then you should go for short trades. You don’t have to trade if the trends are in the middle of the chart.

  1. Try to invest in staking coins: Investing in staking coins is quite a complicated trick if we compare this strategy with other ones. To claim this strategy, one has to do précised research about it. Because most of the traders have started to have alternative financing without offering any kind of returns through it. They have started to invest in gold, commercial real estate, and other cryptocurrencies too.

The main reason behind investing in staking coins is to make an intelligent aim for ahead as they can produce profits over time. The best crypto coins in which most of the trader stakes are Hydra, Terra, Ethereum, Binance, and many more. We can’t tell you the perfect one, and you have to study the staking coins and choose according to your preference. You can also utilize fxflat review for tracking more information on the crypto trading options.

  1. Give your crypto on loan through a lending platform: This strategy is for the one who doesn’t want to take any kind of risk during the turbulence in the crypto market, or they think they aren’t the good traders to earn a good amount of money via the crypto market. For this trick, the trader has to build up the crypto portfolio. Then, once your portfolio is completed, you just have to lend all your crypto funds to other traders and should earn a good amount of interest.

The best part of the technique is that you don’t need any experience in the crypto market and crypto investments. Not a single trading technique is required in this. The lending platforms on which one can easily lend their crypto are Cryptolend. It gives around 10% of interest.  Nexo and Celsius are also very good platforms to lend your crypto. They also give a good percent of interest. 

  1. Make use of Scalping: Scalping is the technique that many traders use at the early time when the crypto markets get unstable. This trick is only possible if the traders are ready to make quick moves in buying and selling cryptocurrencies. As soon as the market gets unstable, one has to start small trading in markets. Small trading is the only key to becoming successful in this technique. 

The winning and the losing chances ratio is very close to each other. The best thing about scalping are short trades because as soon as one feels like they are lost in a trade, they can directly come out of that trade. The only thing which the traders require is the ability and some experience of understanding indicators. To achieve more profit during trading, scalper traders have to make many small trades.

Conclusion:

When you own a cryptocurrency, you do not own anything fundamental, rather a unit that can be transferred from one to another without any actual transaction. You can buy any form of cryptocurrency from either a broker who deals with buying and selling them or from digital sources. Both Ways, your cryptograph remains the same. After you buy one, finance it in a wallet. As an option you can read an oanda review to start a trading journey in the crypto market.

As the market of crypto is gaining popularity, the amount of scams associated with it is fairly increasing. In this case, use trusted sources only and avoid falling for unreal offers. Make most of these strategies when the crypto market is unstable and save big bucks for yourself. 

 

Author

George Rossi

George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.

 

George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader. 

 

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

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