Buying cryptocurrency is a good idea because:
- digital assets can be used for buying goods and services;
- crypto is a good investment option;
- crypto trading is a popular way to make a profit from price volatility;
Due to crypto price volatility, it is possible to make money buying/selling cryptocurrency.
Ways To Use Crypto For Trading
Let’s discuss the most popular trading strategies. We will begin with scalping. Since asset rates change rapidly and many times a day, it allows earning a profit from every little price movement. Scalping implies making small incomes every day. Crypto exchanges allow using leverages in this strategy, which makes it possible to multiply initial investments. This strategy takes around 15 - 30 minutes from opening to closing positions.
The next trading cryptocurrency strategy is daily trading. It implies taking advantage of crypto price movements within one day. The timeframes between opening and closing positions are longer than that on scalping, but it is finished within a day.
These two strategies require deep knowledge of the market and experience in taking quick decisions, so they are suitable for advanced traders.
Swing trading strategy implies trades opened and closed for more than one day and up to a few weeks. Position trading is a long-term strategy that gives traders enough time to think and analyse the market. It may take up to a few years. So this strategy is suitable for beginner traders.
Arbitrage trading is a strategy that means speculating on crypto rate differences through several crypto exchanges. That is, buying cryptocurrency on one platform and then converting it to another exchange where the price is higher, then selling it and receiving the difference. These are the main ways to receive a profit in the crypto market.