In both fiat and crypto financial markets, crypto trading strategies are pre-determined plans or trading behaviors designed to make a profit by selling or buying cryptocurrencies on long or short markets. Having a good, verified trading strategy is extremely important as it will maximize profits and minimize losses, allowing the trader to take full advantage of the market fluctuations.
Every cryptocurrency trading strategy requires a predefined pair of digital-digital or fiat-digital assets to trade, money management rules, and entry/exit points. Trading behavior that is too aggressive or involves excessive risks may turn a potentially lucrative strategy extremely unprofitable.
Just like in the traditional financial markets, cryptocurrency trading strategies are based on fundamental or technical analysis, or both. In the popular imagination, trading tends to have a glamorous aura about it, perhaps because of the way it is portrayed in films or television. Trading tends to be seen as the exclusive territory of the have-everythings. That may be true, if we're talking strictly about traditional stock trading. But things are very different, much more democratic, in the day trading cryptocurrency. It is a means for ordinary retail investors to make a living. And for this, you need trading strategies.