The cryptocurrency market is growing, and many new companies are entering the market, bringing something new to the industry and offering investors more opportunities to profit. To trade crypto does not only mean buying and selling assets at higher prices. It is a much more complex activity that requires knowledge of the market and what influences it, how to use different trading strategies, when is the best time to trade, what tools are suitable for this or that strategy, etc.
It is possible to generate income in a growing market, for example, “crypto long”, which means a trader forecasts the future price increase and concludes an agreement to sell his assets in the long term. And it is also possible to make money on the dropping market or “to go short”, selling out assets before the market drops and buying them back when the price reduces.
Now let’s move on to cryptocurrency trading strategies.
Cryptocurrency Trading Styles
Here are some of the most popular trading methods:
- Range trading
- Scalping
- High-frequency trading
- Arbitrage
- News and sentiment analysis
- Tech analysis
Let’s speak about crypto scalping in more detail
Scalping means that the user receives many profits throughout the day. In one day, there can be hundreds of small gains that add up to a substantial amount.
Scalping is a strategy that allows users to profit as quickly as possible. Thanks to high liquidity, traders take advantage of every price fluctuation to purchase and sell cryptocurrencies several times a day. Transactions can be completed in minutes or even seconds. This strategy involves monitoring market conditions and news to determine what might affect an asset’s price and then using this to increase the asset’s trading volume. Trading bots can help ensure that market conditions are closely monitored and that profit opportunity is not missed.
Crypto scalping can be tested on the WhiteBIT cryptocurrency trading platform. It includes automated bots that you can set up in your account. To learn more about this style of trading, we recommend visiting the WhiteBIT Blog. It is a resource full of interesting articles, educational material, charts and guides. It is useful for both beginners and advanced users. Beginners can learn basic skills, while experienced traders can learn more about complex trading strategies and tools.