A Beginner’S Guide To Cryptocurrency Trading Strategies

George Smith

Updated on:

In the dynamic landscape of cryptocurrencies, few digital assets have captured the attention of investors quite like AXS crypto and Bitcoin. As blockchain technology continues to reshape the global financial ecosystem, these two tokens have emerged as prominent players, each with its unique characteristics and use cases. 

AXS crypto is commonly used for governance and staking within the Axie Infinity play-to-earn platform. Players can earn AXS tokens within the game process and buy additional in-game items for them. The more players join the game, the higher the AXS price. The peak of this token popularity was in November 2021. As of today (summer 2023) the game’s popularity reduced. 

Bitcoin is an investment and trading asset. It has totally other use cases and audiences. If AXS attracts blockchain games enthusiasts, BTC gathers traders and institutional investors around. Let’s see how to trade crypto currency BTC with a profit.

Crypto Trading Strategies

Before starting to trade, it’s crucial to grasp the fundamentals of Bitcoin – what it is based on, how it is used, and its price history. Thus, you will understand the prospects of this asset. 

When choosing a crypto exchange to trade on, make sure to select a reputable one. Look for platforms with a user-friendly interface, strong security, and a diverse selection of trading pairs.

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Establish your trading objectives and assess your risk tolerance. Are you seeking short-term profits or long-term investments in BTC? Set a budget for the amount of money you are comfortable risking, and always avoid investing more than you can afford to lose.

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You may use the following strategies:

  • Intraday trading (day trading) – refers to the practice of purchasing and selling assets within a single day to capitalize on short price changes. Day traders investigate crypto charts to pinpoint optimal entry and exit positions for their trades. Typically, all positions are closed before the end of the day to avoid overnight risks.
  • Scalping – a cryptocurrency trading strategy that focuses on making small profits through frequent trades within a single day. Scalpers aim to earn from small price movements and may execute numerous trades on a daily basis.
  • Swing trading – profit is taken from medium-term price movements, while traders hold positions for several days to weeks.
  • Holding – the practice of holding onto cryptocurrencies for a long period, regardless of short price swings. This strategy necessitates conducting research and having faith in the potential of the selected cryptocurrencies in the long run. Short-term price swings should not affect the holder’s decision.
  • Dollar-Cost Averaging (DCA) – one of the best Bitcoin trading strategies. With DCA, you invest a fixed amount of money at regular intervals, regardless of how the price behaves. This approach helps to smooth out the buying price over time and minimize the impact of short-term volatility.

Keep in mind that crypto trading carries risks, and the market can be exceptionally volatile at some moments. If you’re new to this, begin with small investments and gradually grow your capital as you become more experienced and confident in your trading strategies and skills.