Crypto trading is the way to generate income by taking the advantage of the market volatility, implying entering and exiting the market at the right time and using different trading tools.
High volatility if coin prices crypto is explained by the absence of control and regulations on the part of banks and total decentralization. Crypto rates fluctuate together with the market trends. That may be tiny price changes or sharp jumps caused by positive or negative news background, the economic situation in the world and other factors. For example, even temporal technical problems with BTC withdrawals on Binance affected the entire market in the spring of 2022, not to mention such global factors as the war, crisis, inflation, etc.
How Does Cryptocurrency Trading Work?
Considering so many factors that affect crypto rates and taking into account the market volatility as well as the fact that investors experience differing emotions that do not allow them to make the right decisions timely (greed, fear, feat, etc.), the crucial factor of successful trading is picking a strategy.
Depending on how long you hold your position, trading techniques vary:
- Scalping – short trades that may last from a couple of seconds to 15 minutes. Allow generating income on cryptocurrency coin price changes in the shortest terms.
- Intraday method – trades are closed within one day.
- Swing – the time between opening and closing position ranges from one day to a few weeks.
- Position trading – long term investments that may last even for many months or years.
Physically, it works as follows. You register on one of the large crypto platforms, create a crypto wallet and, based on your strategy, buy and sell digital coins at different crypto rates. You can also use several platforms at once to generate income from the difference in crypto live prices on them.
