The first recognized transaction of BTC, the first peer-to-peer digital money has happened on January 12, 2009, between Satoshi Nakamoto y Hal Finney, a developer, and crypto activist. After years of volatility, FUD (fear, uncertainty and doubt), pressure from media, politics, etc... BTC was able to withstand all the obstacles and lead the cryptocurrency industry with a 1 trillion + market cap.
DeFi has immensely emerged over the past two years. Now you can trade cryptocurrencies on decentralized exchanges without paying fees to the 3rd party exchange. The decentralized wallets have also gained more mass adoption, giving more security to the people involved.
However, trading cryptocurrencies was not always so easy. There were few exchanges and the volumes and liquidity were very low. Price volatility was much higher and exchanges had much higher fees per trade. The security, in general, was low, the number of frauds much higher. The leverage market was not available and official interest in crypto was nonexistent.
Fortunately, today you have a perfect environment to educate yourself and start learning strategies to safely trade on any platform of your choice. However, you should stay up to the trends and educate yourself constantly.
Strategies and Tips
Apart from several strategies outlined below, there are many tools you need to get familiar with to stay efficient and ahead of the competitors. There are multiple tools that can give you insights into successful trade positions.
One of the latest trading instruments is developed by IFC Markets, the instrument gives you the ability to trade BTC and ETH cryptocurrencies in the form of synthetic instruments (without expiration). This will allow you to make money on changes in the prices of cryptocurrencies.
Here are some general strategic approaches you should know as a beginner:
Day trading
Day trading strategy means taking positions and exiting on the same day. The goal of a day-trader is to secure profits through daily price movements in a cryptocurrency of their choice. Successful traders generally rely on technical indicators and analysis to make entry and exit points for a chosen cryptocurrency.
Range trading
Market traders also rely on experienced analysts, who highlight support and resistance levels of chart levels daily. `Resistance` refers to the price level which is like a ceiling and therefore a resistance level is a price above the live price. On the other hand, `Support` is a level/floor at which a crypto price has a buying pressure, so a support level is always below the current price.
Scalping
This trading strategy means utilizing increased trading volumes to take profit in a short time period. Scalping involves risk, and an experienced trader ensures the margin requirement and other important metrics to avoid losing a large % of the money. Scalpers analyze the cryptocurrency in general, past trends, trading volumes, and choose an entry and exit point within a short period of time within the day.
Dollar-Cost Averaging (DCA)
Whenever you decide to time the perfect entry and exit point in a crypto market, you have to realize that it is basically impossible. It is more like gambling to find bottoms and the tops, so a more efficient way to invest in the crypto industry is "Dollar Cost Averaging`(DCA). DCA refers to putting the different amounts of money (usually fixed amounts) on different timelines to eventually get a good average entry price in the market.
Conclusion
The best strategy is to invest in yourself, always do your own research, and stay up to date with the latest trends and information. Utilize the tools out there, indicators, online content that explains the exact mechanism in detail. Put away your emotion and trust your knowledge. Choose and stick to a strategy and you will find success!
