Еvery year cryptocurrency becomes more and more popular all over the world. And very often people ask the question: where to buy it? when to buy cryptocurrency?
The price of bitcoin changes every day and day and night, and the rate is quite volatile — there can be big jumps both up and down. Therefore, choosing the best time to buy cryptocurrency is quite difficult. You can apply technical analysis (chart research) using a variety of analytical tools (e.g. BitcoinWisdom, Cryptowatch), as well as track important news related to bitcoin.
There are countless ways to profit from cryptocurrency trading. Trading strategies will help you organize these techniques into a single structure that you can follow along. Thus, you will have the opportunity to constantly monitor and optimize your strategy. When building a trading strategy, you need to conduct a complete market analysis using technical analysis and fundamental analysis. You can describe a trading strategy as a detailed plan for all your trading activities that you create in order to have a guide in your endeavors.
A trading plan can also help reduce financial risk as it eliminates a lot of unnecessary actions and impulsive decisions by itself. While having a trading strategy is not required to trade, it sometimes becomes a vital asset management factor. In the event that something unexpected happens on the market (which happens regularly), your trading plan should be based on the reasonable reaction, not your emotions.
Active trading strategies require more time and attention. We call them active because they involve constant monitoring and portfolio management.
Passive investing strategies provide a more relaxed approach, and do not involve active portfolio management, reducing the investment of time and attention. While there are differences between trading and investment strategies, trading ultimately means buying and selling assets in the hope of making a profit from it.
It can also be helpful to distribute the assets in your portfolio across different trading strategies. In this way, you can track the individual performance of each while simultaneously implementing proper risk management.
The capitalization of the cryptocurrency market is growing steadily.
In 2020, the world experienced one of the biggest crises in the last 50 years, but cryptocurrency market players have seen the increase and confirmed the prospects for cryptocurrency. Bitcoin is once again reaching record highs, so virtual money is only gaining momentum and preparing to become a significant part of the global economy at the level of ordinary currencies.
Maria Koshelieva, Team bit4you