Hello lovely people of Hive community. Hopefully you will be enjoying your life with good health and spirit. Friends, trading is not an easy job. Things become more challenging if you are involved in crypto trading which is one of the most volatile trading market.
We often see majority of people who join crypto market with a wish of big return ended their campaign at huge dip. One of the main reason of this is lack of knowledge, poor selection of coin etc. There are couple of trading options available in crypto market like spot trading, margin trading, future trading, range trading, high frequency trading and dollar cost average. Keep in mind that all of trading is risky.
Spot trading is the most easy one. You can purchase or buying coin any time depending upon your self. Main advantage of stop trading is its easiness.
Margin Trading is more risky than spot trading. In margin trading you have to take some laverage which is risky. Although taking laverage may give you big profit but there is possibility it will eat all your asset if the price of coin observed dip.
Like Margin trading, future trading is also very risky. It is based on assumption which required indepth knowledge of the market, and know how about the financial news and upcoming events. Not a good choice for the beginners.
Range trading is based on experienced analysts, who give out support and resistance levels each day. Support and resistance are the basic foundational concept in technical analysis. It is all based upon demand and supply of coin. More demand means price and lower demands decrease the price of coin.
High frequency trading is algorithmic trading strategy used by quant traders. It required high skill to develop a bot which will tell you when to sale and purchase.
Last and least dollar cost averaging is an other way of trading. Dollar Cost average is based on practice of investing a fixed dollar amount on a regular basis. It is far better to invest in multiple installment instead of single trade. It decrease your buying cost and reduce the risk of loss.
You can select any option but for this in depth knowledge, doing technical analysis is must. It is important to remember choose those coins which have good used case. Another rule which need to follow is diversify your investment in multiple coins. What is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time.