Cryptocurrency trading is something relatively new, but it doesn't have to be only for early adopters or techies. Indeed, the trading of cryptocurrencies is easier than fiat markets because it has less variables but it is very volatile. Here are some of the trading strategies I've learn from friends, forums etc.
- Venture capital (ICOO): New coins are a good option to look at, you just have to be carefull with Ponzi schemes, look at the devs and the tech behind the coin or the App coin. ICOO and Github are an excellent way to find this info. Then you just have to look at the charts, future possible news and take your chances.
- Short (analytic): Analytic tools on the exchanges are very usefull, I recomend to use bollinger bands, average movement and average volume. When the first two are crossed, there is a tendency change usually. You can also look at the order book and look at target prices to predict. With this method it's highly recomended that you make one or two acurrate movements a day, with a profit of 2% or 3%. At the end of the month you will end up with a profit of 20% or more. It is highly rcomnded to diversify too (USDT, altcoins etc).
Algoritmic trading: This is a very interesting strategy that I will have to shorten, there are several methods, whether with a good mathematical method, learning machine, or a bot following the exponential growth of the order book in a high liquidity exchange. In some methods you will need specialized hardware, and in others not. Take a look at Github. If you are a coder, this option will surely be a priority.
Timing: News impact the price, but this is a dangerous game and I just ignore them for the most part, but sometimes it works just try to have a good Rss, read the carefully the Slack and buy the rumor at time.
Buy and hold (long): I prefer this strategie, based on the roadmaps of development on the coins. These is a very accurate way to predicted a rise in the price, or predict news and asociations. In order to do this correctly you have to understand blockchain tech and make 5 or 6 strategic movements among 10 months or a whole year. For example: In 2016 Monero went 1,000% up in the price, ethereum almost 75% up, bitcoin went more than 200% up and so on.
TIP: Don't forget to put safe your money and profits with Stop-limit orders or you can buy fiat if you want to keep your money online, you can also safe your money in cold storage if you're not making movements.
Happy trading!
What are your strategies?