4 Advanced Strategies for Successful Cryptocurrency Trading

Do you want to level up your crypto trading strategies? Or maybe you are wondering if this is the time to enter markets for day trading? If you are a crypto trading enthusiast who feels lost in the world of complex trading strategies and uncertain markets, this article will take away any confusion. Let’s check out a few advanced trading strategies.

1. Buy Dips and Then Hold

The times when the price of Bitcoin and other cryptocurrencies are down, it might seem time to run away from the market, but that is actually one of the best times to enter a market. Just like the trend is in stocks, the cryptocurrency market overall is strong and regains prices after significant falls due to the news.

The cryptocurrency market is one of the most volatile ones and can change directions quickly. There have been hundreds of instances when the price of Bitcoin has fallen significantly and recovered after a specific time. This cryptocurrency trading strategy is also one of the safest ones but involves time and patience.

2. Range Trading

Range trading is heavily dependent on the concept of Support and Resistance used in stocks and forex trading. The first thing to learn to master this strategy is candlesticks charts. These charts have been used for centuries to make models of support and resistance.

3. High-Frequency Trading (HFT) or Algorithmic Trading

High-frequency trading is the most complex strategy in this list, but it is also one of the most profitable for many traders all over the world. Algorithmic trading is all about automating all the steps of a strategy without having to do it manually.

HFT is making a lot of trades in seconds, and most HFT consists of making trades in a few milliseconds. Of course this is not possible by humans, but you can create your own rules which will be executed by auto-pilot software.

4. Golden Cross and Death Cross Trading

The Golden Cross and Death Cross is quite an exciting cryptocurrency trading strategy, and you have to understand both these terms to execute it properly. The Golden Cross is basically defined as the timing when a short term average of a particular cryptocurrency surpasses the long term average. The short term average is generally defined as the 50-day average, and the long term is defined as the 200-day average.

The Death Cross, is the exact opposite of the Golden Cross, and is defined as the moment when the short term average goes below the long term average. Confirming the occurrence of these trends is done by analyzing the change in the trading volume. Some traders also use technical indicators like RSI and the MACD, but general volume is considered one of the best indicators.

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