When i was entering to the crypto trading field, i am bit nervous and trust me I've lost so many funds. Then I've found a good guidance video
[1] regarding trading strategies. So i prctised and strict to a plan and able to earn money by covering my previous losses. That's why i feeled to share the content of that video which will be very helpful for new comers to the crypto field.
Disclaimer: This is just few methods that i used, strongly advised to trade at your own risk and DYOR before trading---- Crypto Trading Strategies ----
Table of contentsTechnical Analysis(TA) - I will create a separate thread for that later
HODLCost AveragingBuy the DipLock in ProfitsIncrease Your PositionCut Your LossesBalancing PortfolioLock Your Coins Away
HODL
Most straight forward and easiest strategy is HODL. That means buy some coins and don't touch them, forget about them few years. Hopefully if everything goes right, it will be worth pretty penny once you revisit them after waiting for a long time. In that way you don't have to worry about any crashes, don't have to worry about going to the moon, keep on "
HODLing".
Cost Averaging
This is something very important to learn for beginners called "Cost Averaging". So if you feeled, like coin is particularly high right now and you still want to buy,but you don't want to start to dropping lot immediately after you bought. Then this is the best strategy. Basically you buy at consistent intervals like everyday, every week, every month, it doesn't matter. Just pick a interval and split your money across that and put in like 10$ to 100$ every once in a while. That way is more conservative. Because lows are less lows and highs are less high, you are just averaging. This is called "Cost Averaging". Rather than putting up your money at a higher high and then dropping down a lot (then you will thought like i just screwed up), this way it protects you from really big drops and big losses.
Buy the Dip
Basically what this means is if some thing goes pretty high and once it starts dropping, you are buying some. Most important thing is "
Be Patient". When it starts to dropping you could possibly buy a little bit and don't get too exited like put your all new money in and buy immediately when it starts to dropping. If you do that, once start drop some more later you have feeled like could have saved some money for buy even better price. So be patient but don't be too patient. Basically be ready if it drops even more and if it doesn't drop, you can save your money for next down trend.
Lock in Profits
This is something we really hard to do. Because it goes against human nature. Basically when coins are going up and up(going to the moon), we all are become really greedy and we all feeled like we all can buy lambo, we all are gonna become millionaires. But instead the smart thing to do is locking some profit every once a while. Because as they really up, also can drop really fast and if you held it all there way up to all there way down, whats the benefit of the ever having gone up. It's not saying sell all of them once, but may be some small percentage at every designated intervals of a rise.
Increasing Your Position
This is an another important strategy. Basically when it goes up and you sell a bit, when it down and you will re buy it. This is defiantly a nerve racking strategy. Because you don't know it's going to hit on point that you are willing to re buy it. It may never hit there and can just go back up and up again. So how to cope up with that is by not selling everything bu in just part of your stack and in also have a mind if it doesn't go back to a price that you are willing to re buy it,just use the profit still like buying an another coin that you can keep eye on. In that way, it's like a win win situation.
Cut Your Losses
It's also hard to do,because it's against the human nature. Every ones might be heard that phrase like "
You not at a loss until you sell it". On the problem is if like fundamentals changed, market savior on a particular coin, you might have big losses and not want to sell it. But it might be smarter to sell it and redirect those funds into another coin which will help to recover your losses faster.
Balancing Your Portfolio
This is something very important but hard to manage, because it takes more time. But definitely a good thing to do. So you can split you'r portfolio in a multiple way. You can have part for long term "
hodling" and the other part for day trading. You could have a some part from blue chip coins and other part for really risky ICO. The whole point is having a distribution between your funds. In simply "
Don't put your all eggs in one basket".
Finally re balance your portfolio if skewed after some times. Always just follow the strategy that you set forth at the first place. In that way you can re balance and getting the proportions more even what they were before. This is similar to like mutual funds. Say if you are an investor and they splits their funds stocks and bonds depending on how risky you want to be and what goals you should achieve.
Lock Your Coins Away
This is a good strategy. Part of this strategy that calls for not touching your coins for a long time. In that case you might then want to put them in a paper wallet or some other place like hardware to access real quick. Since there lot of people gets bored, "Oh i want to trade daily, Oh i want to buy more coins etc..." and then you will go against your predefined strategy and end up regretting that later.
[1] - video source>>>https://www.youtube.com/watch?v=omXPt53KIWc
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