Cryptocurrencies have been all over the news lately because they fundamentally change how we trade currencies and commodities. They also make it easier for people from different countries to trade, which is a significant step towards world peace. Several new investors are looking to get on board too! But first, they need a strategy...

This article will outline some simple methods to help you decide where to invest your money! We'll also show you how some of these methods can be combined depending on your circumstances.

What is crypto trading?

Cryptocurrency trading is the buying or selling of cryptocurrency for a profit. This includes digital trading currencies, tokens, and the likes, which can be done through various exchanges. Crypto-trading lets you generate an income from these trades, and it is thus considered speculation or investing in cryptocurrencies. Be it Bitcoin, Ethereum, or any other significant crypto and its fiat equivalent, they are traded on cryptocurrency exchanges like Binance and Bitfinex every day. The process of buying and selling these cryptocurrencies occurs when one purchases them with a fiat currency such as U.S Dollars (USD) then sells them to make a profit after a certain period has passed since their purchase date.

A coin can have a value of between $1 and $10. Many different factors influence the value of a cryptocurrency, such as its supply and demand. And because of this, Bitcoin has been known to vary in its value throughout any given day. For example, if more people wanted to buy it than sell it, it would go up. This is called buying pressure. Similarly, if more people tried to sell it than buy it, the cost would go down-this is called the pressure of a sale.

Cryptocurrency trading strategies

Now you may be wondering: "OK, this is great. But how can I trade cryptocurrency to make the most out of my money?" Here are some of the most common methods that people use to increase their income or value without having to put in a lot of additional effort:

Day Trading Cryptocurrencies

This is probably one of the most popular cryptocurrencies trading strategies out there. It involves buying and selling a coin within 24 hours, with multiple buy-and-sell transactions throughout that period. For example, if you made three trades today, your total profit would be $300. Within one day, you would have theoretically turned $100 into $300 by buying and selling each of your coins ten times.

Stopping Buying and Selling When You Want to Sell

This is simply a nifty little trick that will likely earn you some profit over time. Those who sell their crypto gain from the short-term capital gains they generate when the price rises (of course, it doesn't continue rising indefinitely since that would eat into your capital). Meanwhile, it is precisely here where buyers get a bit tricky. If they want to sell their holdings at a higher price, they must purchase new tokens with the same ratio they previously owned.

This can get tricky to determine and can be done for the first handful of attempts. However, the key is recognizing when this happens (which will be apparent in the case of a buy order placed either during a spike in price or after a dip in price). Once you have this down, you might find it much easier to identify trends and changes and make more educated guesses about what is happening within the crypto markets.

Playing Currency Pairs and Spot Trading Cryptocurrency

One of the most popular approaches to trading is to consider the so-called "currency pairs." On the one hand, if you prefer to trade Bitcoin (BTC) against another currency such as USD or Euro (as opposed to, say, BTC against gold or oil), then this can be a very profitable trade (assuming your timeframe is short). First of all, you will have traded in a somewhat similar commodity as on your "short" crypto. This can either be advantageous or unfavorable. The overall market movements are less volatile than Bitcoin and other major currencies.

Spot trading of cryptocurrency is the most straightforward strategy on our list. This can be done by buying and selling one crypto at a time. The best time to use this method would be when you deal with a currency that has just launched or has seen a price increase, such as Ether (ETH) and Bitcoin Cash (BCH). If you bought Ether right after it was first introduced, you could have made quite a bit of profit if you decided to sell it later!

How to Profit from Cryptocurrency Trading

Identifying trends within the market helps use any of these methods. This is where the "technical analysis" concept comes into play. Many people are still skeptical about this topic, but it has been highly influential over the years. Simply put, technical analysis is the practice of analyzing market information and making predictions based upon it. It typically involves applying trend lines, candlesticks, and other indicators to reveal a more excellent picture of what is going on with a particular currency or commodity. Experiencing cryptocurrencies trading with INX, you'll get an opportunity to verify and validate the effectiveness of these methods. The market is highly volatile, and this field will continue growing quickly.

Conclusion

While there are many ways to make money from crypto, trading is the most effective and popular way. Trading can be a bit difficult to start with. Still, once you have a solid grasp of the different factors that influence the price of any given cryptocurrency, you can begin making accurate predictions about what will happen next. This will allow you to utilize your trading strategies better and know when best to sell or buy a particular currency. By analyzing charts daily and keeping track of trends, you can potentially make quite a lot of profit despite day-to-day swings in price.

Once you know the basics of trading, you can begin gradually increasing your risk as your knowledge improves and will soon be making large amounts of profits off of your trades!

Stay safe and make sure to learn all you can learn about cryptocurrencies before investing.